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Walmart

WMT
55
Discount Stores · Consumer Defensive
Also trades as: WMT.DE
Exchange
NASDAQ
Winston Score
55
Winston is curious
A decent business — some strong pillars, some weaker.
Data as of Aug 23, 2026 · filings through Jul 31, 2026
How the score breaks down
Quality
Good
Growth
Mixed
Cash Flow
Strong
Stability
Strong
Valuation
Good
Dividends
Mixed

Winston Score History

The full picture

Walmart is the world's largest retailer, selling groceries, clothing, electronics, and household goods to everyday shoppers. It operates thousands of physical stores under the Walmart and Sam's Club brands across the United States, and also runs a large international business in countries like China, Canada, and Mexico. Walmart serves hundreds of millions of customers each week, making it the biggest grocery seller in the US.

Walmart makes most of its money through direct product sales in its stores and on its growing e-commerce website. It also earns revenue from membership fees at Sam's Club, advertising through its Walmart Connect platform, and third-party seller fees on its online marketplace. Its main competitive advantage is its massive scale, which lets it negotiate lower prices from suppliers and pass savings to shoppers. The key growth driver is its expanding digital and advertising businesses, while its main risk is thin profit margins that leave little room for error if costs rise.

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Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+5.6% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

-18.5% YoY

YoY Growth Rate

Earnings declining

Insider Activity

45.0%ownership

Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$10.7B cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

Walmart is growing revenue at 6% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale
Gross Margin
26.1%
Modest — 26.1% gross margin
Profit after running costs
Operating Margin
5.0%
Thin — 5.0% operating margin
Return on the money invested
ROCE
21.7%
Exceptional — 21.7% return on capital

ROIC between 15% and 25%. Every dollar invested in the business earns 15 to 25 cents back per year.

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Growth

Sales growth
Sales YoY
+6.2%
Slow sales growth (+6.2% YoY)
Profit growth
EPS YoY
+4.1%
Modest earnings growth (+4.1% YoY)

Single-digit earnings growth — steady but not exciting.

How steady the profit is
EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash
Cash Conversion
194%
Turns 194% of profit into real cash
Spare cash per sale
FCF Margin
1.8%
Thin free cash flow (1.8%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns
Debt / Equity
0.51
Conservative — low debt load (0.51)
Covers its interest
Interest Cover
13.71x
Comfortably covers interest (13.7x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
37.4x
no trend
Pricey — P/E 37.4

P/E over 35. The market is pricing in heavy, sustained growth.

Cheaper or dearer next year
P/E vs Forward
+6.5
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (37.4 → 30.9)

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Dividends

Dividend
Dividend Yield
0.85%
no trend
Small dividend — 0.85% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend record
Dividend Growth
+5.3%
no trend
Dividend growing modestly (5.3% YoY)

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