Walmart had a stellar quarter beating Wall Street expectations in terms of both, revenues as well as profitability. The company’s top-line grew across almost all its segments and the U.S. e-commerce growth was as high as 37% (Sam’s Club e-commerce revenues grew by a staggering 47%). Walmart’s management has been carrying out heavy e-commerce investments which accounted for nearly 70% of its total capex but these are clearly expected to pay off. The company has the strongest supply chain setup in the U.S. and its infrastructure should comfortably help it regain all the market share that it has lost in the grocery segment. Walmart’s management has given a strong guidance for 2021 and we believe that the company could even surpass the same given the Government stimulus increasing per capita spending as well as the child tax credit introduced by the Biden administration. We maintain our ‘Buy’ recommendation on the stock with a revised target price.
Our Report Structure:
⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
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