WalMart: Will Trump’s Economy Support Big-Box Retailers?
The Wal-Mart Store was incorporated in 1969 and is headquartered in Bentonville, AR. is in the business of retail and wholesale in various formats around the world. The Company classifies business operates into three segments: Walmart U.S., Walmart International, and Sam’s Club.
The US segment operates retail stores in all 50 states in the United States, and the global value of the company is often determined by the rising and falling forex prices that are tied to the U.S. Dollar. The Walmart U.S. segment includes retail stores and digital retail operations throughout the country. It also offers some financial services and related products such as wire transfers, money orders, prepaid cards, bill payment and check cashing. The international segment operates in over 27 countries outside of the United States, and Walmart competes with BJ’s Wholesale Club, Costco Wholesale and local stores.
Company News: Walmart Stores
On October 5 Wal-Mart Store reported that it increase stake in jd.com inc to 10.8% from 5.9% as reported on June 20, 2016. On September 22 Walmart say that it will process payments through Chasenet. Earlier in September, the company announce to
Earlier in September, the company announce to cut 7,000 back-office store jobs. In August the company agreed to acquire fastest growing e-commerce companies Jet.Com for $3 billion in cash and $300 million of Walmart shares. Walmart and Jet will remain distinct brands; the company clarifies.
WMT’s third quarter earnings per share reported at $0.98 matching the Reuters average analysts expectation of $0.96. Its net sales for the quarter was $74,550 million versus $72,712 million last year. The company issues the financial year 2017 adjusted EPS guidance of $4.15-$4.35 and the company expected to generate $80 billion in operating cash flow from the financial year 2017 through the financial year 2019. The company intends to invest $11.0 billion under capital investments head.
Dividend Stocks: WMT
WMT is a regular dividend payer. It is currently paying $0.50 a share quarterly dividend. At current price yielding 2.89%. In January 2015 stock makes five-year high of $90 and a few months later in November 2015, it made a five-year low of $56. At present WMT is trading near $69.
It finished the year 2015 with 12% gain. WMT’s trailing-twelve-month earnings per share is $4.61. At the current price, the price to earnings ratio of 15.01 is well below of the industry average of 34.31; source Reuters.
The company gives a handsome 20.88% annualized return on equity in last 5 year while the industry average is 10.75% during the same period; source Reuters. Similarly, it gives 12.91% annualized return on investment during the last five years compared to the industry average of 7.27%. Sales have a dull growth rate of 2.71% annualized in last 5 years despite the industry growth rate of 5.63% during the same period. The analysts are caution on the stock and recommending to hold; source Reuters.