Wal-Mart de México SAB de CV (WALMEX*) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Grupo Gigante SAB de CV

Organización Soriana SAB de CV

Wal-Mart de México SAB de CV

Why is Wal-Mart de México SAB de CV ?

Negative results in Jun 26

DEBT-EQUITY RATIO (HY) Highest at 22.2 %
DIVIDEND PAYOUT RATIO(Y) Lowest at 89.56%
DEBTORS TURNOVER RATIO(HY) Lowest at 37.03 times

With ROE of 19.78%, it has a very expensive valuation with a 3.53 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -13.62%, its profits have fallen by -5.6%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -13.62% returns in the last 1 year, the stock has also underperformed Mexico IPC in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Retailing)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Wal-Mart de México SAB de CV for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Wal-Mart de México SAB de CV

-100.0%

68.96

21.84%

Mexico IPC

14.41%

0.77

19.31%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.69%

EBIT Growth (5y)

5.36%

EBIT to Interest (avg)

8.40

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.13

Sales to Capital Employed (avg)

4.24

Tax Ratio

27.04%

Dividend Payout Ratio

58.82%

Pledged Shares

Institutional Holding

0.13%

ROCE (avg)

41.14%

ROE (avg)

26.79%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.53

EV to EBIT

11.30

EV to EBITDA

8.51

EV to Capital Employed

3.78

EV to Sales

0.86

PEG Ratio

Dividend Yield

0.06%

ROCE (Latest)

33.47%

ROE (Latest)

19.78%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at MXN 89,781.81 MM

RAW MATERIAL COST(Y)

Fallen by 0% (YoY

-9What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 22.2 %

DIVIDEND PAYOUT RATIO(Y)

Lowest at 89.56%

DEBTORS TURNOVER RATIO(HY)

Lowest at 37.03 times

DIVIDEND PER SHARE(HY)

Lowest at MXN 37.03

OPERATING PROFIT(Q)

Lowest at MXN 23,066.08 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 9.19 %

PRE-TAX PROFIT(Q)

Lowest at MXN 14,865.15 MM

NET PROFIT(Q)

Lowest at MXN 11,235.94 MM

Here's what is working for Wal-Mart de México SAB de CV

Operating Cash Flow

Highest at MXN 89,781.81 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (MXN MM)

Raw Material Cost

Fallen by 0% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at MXN 6,620.74 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (MXN MM)

Here's what is not working for Wal-Mart de México SAB de CV

Debt-Equity Ratio

Highest at 22.2 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Operating Profit

Lowest at MXN 23,066.08 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (MXN MM)

Operating Profit Margin

Lowest at 9.19 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at MXN 14,865.15 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (MXN MM)

Net Profit

Lowest at MXN 11,235.94 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (MXN MM)

Debtors Turnover Ratio

Lowest at 37.03 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Dividend per share

Lowest at MXN 37.03

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (MXN)

Dividend Payout Ratio

Lowest at 89.56%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Non Operating Income

Highest at MXN 0.07 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income