walmart company analysis report

7/27/2019 Walmart Company Analysis Report

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Wal-Mart Company

Analysis

By Jean-Laurent Pelissier,Magdalena Besser, ZhengranZhou, Dai-Ying Wu


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Company Overview

2,100,000 Employees

Founded in 1945 and is based in

Bentonville, Arkansas.

Offers general merchandise: Food,Clothes, Electronics, Jewelry, etc

Ranked first in Fortune 500


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Industry Analysis

market cap income profit margin PE

Wal-Mart (WMT) 225B 12.88B 3.36% 18.04

Costco (COST) 31.7B 1.19B 1.75% 27.18

Target (TGT) 44.6B 2.85B 4.50% 16.46

Industry 314B --- 3.40% 15.4

Discount, Variety Stores

Carrefour (not listed in US) secondlargest retail company in the world (by

revenue)


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Financial

Revenue $378 B

Return on Equity 21.24% (highest in

industry)

Dividend Yield 1.7-% (2nd highest)

WMT TGT COST

Sales Growth +8.60% +6.50% +7.10%

Income Growth +6.90% -8.00% +31.40%

Debt/Equity Ratio 0.76 1.12 0.26


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Technical Analysis


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Technical Analysis (Cont.)


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Technical Analysis (Cont.)


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Economic Outlook

Economic Outlook

Unemployment rate as of May 18, 2008:

National: 5.0%

CA: 6.2% (CA ranks 48 out of 52; 4th worstin the nation).

All of the following information is from CNN Money as ofMay 18, 2008.

Gas hits 11th straight record high: The price for a gallonof gas sets new all-time high at $3.793(nationalaverage), according to AAA.


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Economic Outlook (Cont.)

The indicator The reading Next update

Retail Sales Sales excluding autos top

forecasts in Aprilreport.

June 12

Job Growth Minus 20,000 in April June 6

Manufacturing Unchanged in April. June 2

Consumer Confidence At 5-year low. May 27

Leading Indicators Slight increase

after

months of declines.May 19

Industrial Production Rebounded in March. May 15

Inflation CPI Running at 4% May 14

7 economic indicators


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Economic Outlook (Cont.)

o The sick dollar may begetting a little healthier -but it is far from making a

full recovery.o Wal-mart April sales

went up by 6.5%compared to those of

April 07. This shows that

retail industry is stillstrong despite overalldeclining of the economy.


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Strengths

Wal-Mart is a well known store worldwide and inthis time of economic uncertainty, consumers

must rely on cheap products to maintain theirstandards of living

Very advanced information technology. Wal-Martis able to manage its products around the world

and enables the management to take quick costeffective decisions.


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Weaknesses

Although Wal-Mart has a global presence,it is only concentrated in a few countries.

Wal-Mart does not specialize in anyspecific goods and may not have theneeded expertise on managing some of

these goods.


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Opportunities

Since Wal-Mart only operates in a fewcountries, there is a great opportunity to

expand to other areas. With recent economic uncertainties, Wal-

Mart can no market its good towards a

larger group of consumers.


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walmart company analysis report

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