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 ?

Flat results in Dec 25

ROCE(HY) Lowest at 21.3%
DIVIDEND PAYOUT RATIO(Y) Lowest at 101.19%
CASH AND EQV(HY) Lowest at MXN 63,772.82 MM

With ROE of 23.86%, it has a expensive valuation with a 4.90 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 3.11%, its profits have fallen by -4.1%

Underperformed the market in the last 1 year

The stock has generated a return of 3.11% in the last 1 year, much lower than market (Mexico IPC) returns of 31.40%

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%

65.58

27.21%

Mexico IPC

31.4%

1.71

18.32%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.73%

EBIT Growth (5y)

5.73%

EBIT to Interest (avg)

8.67

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.13

Sales to Capital Employed (avg)

4.38

Tax Ratio

22.84%

Dividend Payout Ratio

70.33%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

48.72%

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

4.90

EV to EBIT

13.86

EV to EBITDA

10.49

EV to Capital Employed

5.46

EV to Sales

1.05

PEG Ratio

Dividend Yield

0.07%

ROCE (Latest)

39.43%

ROE (Latest)

23.86%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Sideways

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

No Trend

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

6What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 1,127.22

RAW MATERIAL COST(Y)

Fallen by -2.08% (YoY

NET SALES(Q)

Highest at MXN 282,849.3 MM

OPERATING PROFIT(Q)

Highest at MXN 29,271.16 MM

PRE-TAX PROFIT(Q)

Highest at MXN 21,038.8 MM

-7What is not working for the Company

ROCE(HY)

Lowest at 21.3%

DIVIDEND PAYOUT RATIO(Y)

Lowest at 101.19%

CASH AND EQV(HY)

Lowest at MXN 63,772.82 MM

DEBT-EQUITY RATIO (HY)

Highest at 22.18 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 7.04 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 39.29 times

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

Interest Coverage Ratio

Highest at 1,127.22

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales

Highest at MXN 282,849.3 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (MXN MM)

Operating Profit

Highest at MXN 29,271.16 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (MXN MM)

Pre-Tax Profit

Highest at MXN 21,038.8 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (MXN MM)

Raw Material Cost

Fallen by -2.08% (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 6,277.93 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

Cash and Eqv

Lowest at MXN 63,772.82 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 22.18 %

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

Inventory Turnover Ratio

Lowest at 7.04 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 39.29 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Dividend Payout Ratio

Lowest at 101.19%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)