Walmart Inc. (WMT) Fundamental Checkup
Walmart Inc. fundamental checkup using revenue growth, EPS growth, free cash flow, margins, ROIC, debt-to-equity, and TGMCharts chart exhibits as of July 31, 2026.
By TGMCharts Research · Data as of · Updated
Walmart Inc. gets a balanced fundamental read when revenue growth of 5.20%, EPS growth of 10.95%, free-cash-flow growth of -9.94%, net margin of 3.13%, and ROIC of 11.87% support the same story.
The checkup weighs operating growth, shareholder conversion, cash conversion, reinvestment quality, and balance-sheet flexibility. Current ratio is 0.79x and debt-to-equity is 0.67x, so the balance-sheet read is part of the final view rather than a footnote.
- Walmart Inc. has market cap of $884.94B and closed at $111 on July 31, 2026.
- Five-year revenue CAGR is 5.20% and five-year EPS CAGR is 10.95%.
- Five-year free-cash-flow CAGR is -9.94%.
- Net margin is 3.13% and ROIC is 11.87%.
- Current ratio is 0.79x and debt-to-equity is 0.67x.
Fundamental snapshot
The valuation, growth, profitability, and balance-sheet facts behind the checkup.
Evaluating the Retail Giant Across Five Operational Vectors
A rigorous fundamental assessment of Walmart Inc. requires reconciling its top-line expansion, bottom-line efficiency, cash generation, balance-sheet strength, and market pricing. The equity closed at $111 on July 31, 2026, representing a key market reference. However, a structural analysis must look past daily price fluctuations to determine if the underlying business metrics tell a cohesive story of durable value creation.
The core tension in this financial profile lies between expanding accounting profits and contracting cash generation. Over the last five years, the firm achieved a revenue CAGR of 5.20% and an EPS CAGR of 10.95%. Yet, this bottom-line momentum is contrasted by a five-year free cash flow CAGR of -9.94%, signaling that cash conversion has diverged from reported net income.
Current compounder snapshot · WMT
Live supporting context; not part of the article's frozen 2026-07-31 evidence snapshot.
- Score
- 23/100
- 10Y CAGR
- 4%
- Median YoY
- 4.3%
- YoY volatility
- σ 2.4pp· very smooth
- Quarters ≥ 20%
- 0 of 40
- Negative quarters
- 0
- Valuation vs own 10Y history
- P/S 1.2x · 10Y median 0.7x · 93rd percentile · as of Jul 31, 2026
How this score is computed
- Quarters at or above 20%: 0 of 40 → 0 of 40 pts
- Steadiness (typical swing 2.4pp) → 23.3 of 25 pts
- Pace (median 4.3% YoY) → 0 of 20 pts
- Latest quarter (7.3% YoY) → 0 of 15 pts
- Score: 23 of 100
Annual revenue · last 11 fiscal years
Quarterly YoY revenue growth vs the 20% line
P/S multiple vs its 10Y median
The Defensive Retail Model in a Single Financial Frame
Operating in the highly competitive Consumer Defensive sector, the business relies on high volume and operational scale to offset structurally thin margins. This fundamental snapshot integrates key operational indicators, leverage ratios, and growth rates to assess how efficiently the enterprise deploys capital. Analyzing these factors collectively helps clarify whether the company's massive scale acts as a stable foundation or an operational drag.
Fundamental evidence table
A compact cross-check of valuation, growth, quality, and financial flexibility.
WMT revenue
Revenue history shows whether the business has been expanding before margins and per-share metrics are considered.
Five-year revenue CAGR: 5.20%. This is endpoint-to-endpoint from the fiscal years shown — a depressed start year can inflate it, so read it against the recent bars.
Five-year revenue CAGR of 5.20% is the top-line test. A fundamental checkup becomes more durable when revenue growth is paired with earnings growth instead of depending only on margin expansion.
Top-Line Expansion Translates to Accelerated Shareholder Return
The relationship between revenue and earnings growth reveals how effectively the business leverages its operating model. While a five-year revenue CAGR of 5.20% indicates steady market demand, the five-year EPS CAGR of 10.95% shows that bottom-line returns have outpaced top-line growth. This positive divergence suggests that efficiency gains, share repurchases, or structural shifts have amplified the profitability of each dollar of sales.
WMT EPS
EPS history shows how much of the business growth has reached shareholders.
Five-year EPS CAGR: 10.95%. This is endpoint-to-endpoint from the fiscal years shown — a depressed or negative start year can inflate it, so read it against the recent bars.
Five-year EPS CAGR of 10.95% is the shareholder conversion check. If EPS grows faster than revenue, the note should ask whether that came from margin quality, buybacks, or a temporary base effect.
The Cash Flow Divergence Challenging Earnings Quality
While earnings growth remains robust, cash generation presents a significant counterpoint. The five-year free cash flow CAGR of -9.94% highlights a clear disconnect from the upward trajectory of net income. This contraction in free cash flow suggests that capital expenditures, working capital demands, or other operational requirements are consuming a larger share of cash, raising questions about the long-term sustainability of the earnings trend.
WMT free cash flow
Free cash flow checks whether earnings are converting into owner cash.
Five-year free-cash-flow CAGR: -9.94%. This is endpoint-to-endpoint from the fiscal years shown — a depressed or negative start year can inflate it, so read it against the recent bars.
Free-cash-flow CAGR of -9.94% is the counterweight to the EPS story. If cash flow lags earnings, the quality of the fundamental setup deserves a more cautious reading.
Thin Margins Balanced by Steady Capital Returns
In the discount retail space, profitability is defined by thin margins and rapid asset turnover. The company operates with a net margin of 3.13%, illustrating the intense pricing pressure inherent in its sector. However, the business achieves a return on invested capital (ROIC) of 11.87%, demonstrating that despite low profit margins on individual sales, the business efficiently generates returns on the capital deployed across its vast operational footprint.
WMT net margin
Net margin is the operating-quality check behind the growth record.
Net margin (TTM): 3.13%. The bars below are annual fiscal years.
Net margin of 3.13% shows how much revenue becomes profit. The checkup is stronger when margin quality supports EPS growth rather than simply flattering one recent period.
WMT ROIC Chart
ROIC tests whether the business earns enough on reinvested capital to deserve attention.
Latest ROIC: 11.87%.
ROIC of 11.87% is the reinvestment-quality check. A business with stronger returns can support a better long-term read even when the valuation is not obviously cheap.
Liquidity Constraints and Managed Debt Leverage
The balance sheet provides the necessary guardrails for the company's expansion plans and dividend commitments. The current ratio of 0.79x indicates a tight short-term liquidity position, which is common for large retailers with rapid inventory turnover but requires disciplined cash management. On a long-term basis, the debt-to-equity ratio of 0.67x shows a moderate leverage profile, indicating that the company has avoided over-leveraging its capital structure.
WMT debt-to-equity Chart
Debt-to-equity keeps the checkup honest about balance-sheet flexibility.
Latest debt-to-equity ratio: 0.67x.
Debt-to-equity of 0.67x and current ratio of 0.79x are the balance-sheet checks. They matter because growth and margins are less valuable if financial flexibility is narrowing.
Market Multiples Reflect Premium Valuation Demands
The market currently prices the business at a trailing P/E ratio of 39.02x, which corresponds to an earnings yield of 2.56%. This valuation multiple suggests that investors are willing to pay a significant premium for the company's defensive characteristics and market positioning, placing the burden on the business to maintain its operational efficiency and earnings growth to justify this pricing.
WMT Price Chart
Latest close: $111 as of July 31, 2026.
The close at $111 is not the conclusion, but it is the market reference point. The fundamental read has to explain whether growth, margins, and balance-sheet support justify the price investors are paying.
Weighing Scale Efficiency Against Cash Generation Risks
The core bullish argument rests on the company's ability to drive consistent EPS growth through operational leverage and scale, supported by a solid ROIC of 11.87% that demonstrates disciplined capital allocation. Conversely, the bearish thesis focuses on the persistent decline in cash flow, as evidenced by the five-year free cash flow CAGR of -9.94%, which could eventually limit the company's financial flexibility, share buybacks, and capacity to service its debt obligations.
Bull and bear case
Fundamental support
- Five-year revenue CAGR of 5.20% and five-year EPS CAGR of 10.95% support the business case.
- Net margin of 3.13% and ROIC of 11.87% are the quality checks behind the thesis.
Fundamental pressure
- Free-cash-flow CAGR of -9.94% can weaken the read if it falls away from EPS growth.
- Debt-to-equity of 0.67x and current ratio of 0.79x are the balance-sheet checks that can change the view.
Monitoring Key Operational Thresholds for Trend Reversals
This fundamental assessment remains highly dependent on the stability of the company's core financial metrics. Any significant deterioration in top-line growth, a further widening of the gap between net income and free cash flow, or a contraction in capital efficiency would require a reassessment of this outlook. This analysis serves as general research context based on historical reporting and does not constitute personalized financial advice.
FAQ
What is the fundamental read on WMT?
Walmart Inc. is judged through revenue growth of 5.20%, EPS growth of 10.95%, free-cash-flow growth of -9.94%, net margin of 3.13%, and ROIC of 11.87%.
Which WMT fundamental metric matters most?
No single metric carries the article. The checkup requires growth, cash conversion, profitability quality, balance-sheet flexibility, and valuation to be read together.
When should this WMT checkup refresh?
Its figures are as of July 31, 2026, the note's dated snapshot; a note whose figures stop verifying against reported data is corrected or unpublished.
What would change our mind
- Revenue growth moving away from the current five-year CAGR of 5.20%.
- Free-cash-flow growth drifting away from five-year EPS CAGR of 10.95%.
- ROIC or balance-sheet flexibility weakening from ROIC of 11.87% and debt-to-equity of 0.67x.
The bottom line
Walmart Inc. fundamental research note from TGMCharts Research, grounded in a dated fundamentals snapshot, chart exhibits, and linked source facts.
Read next: Walmart Inc. (WMT) Earnings ReviewEarnings review on Walmart Inc. — from the same data-checked research desk.How we checked this researchShowHide
Data snapshot · By TGMCharts Research.
Every number in this note comes from data we compute and store ourselves from the company's reported figures, plus verbatim excerpts from its SEC filings. When a value isn't available we say so — we never fill gaps with estimates.
Latest filing excerpt
10-Q · filed 2026-05-29 · period 2026-04-30 · SEC EDGAR source
- “Our total revenues increased $12.1 billion or 7.3% for the three months ended April 30, 2026 when compared to the same period in the previous fiscal year.”
- “Membership and other income increased 45.6% for the three months ended April 30, 2026, primarily driven by increases in certain miscellaneous income items, as well as double-digit percentage growth in membership fee revenue from Walmart+.”
- “As a result of the factors discussed above, operating income increased $0.2 billion for the three months ended April 30, 2026, when compared to the same period in the previous fiscal year.”
- “As a result of the factors discussed above, operating income increased $0.3 billion for the three months ended April 30, 2026, when compared to the same period in the previous fiscal year.”
Source pages
Exhibit sources
Research trail
Every number, checked
Every numeric or dated claim in this note was checked against our stored company data before publishing — each figure below links to the page it comes from.