🛒 Walmart (WMT) Analyzed: Revenue Streams, Recent Moves, and Financial Health

Greetings, investors! Welcome to your Friday deep dive on March 21, 2025—a comprehensive analysis of Walmart Inc. (WMT), the world’s largest retailer by revenue. Trading at $85.84 as of yesterday’s close (Yahoo Finance), Walmart’s $215.23 billion market cap reflects its retail dominance—here’s how it generates income, what’s transpired lately, and the key financial metrics shaping its outlook. Let’s dissect this giant with precision.

How Walmart Makes Money

• Company-Operated Sales: $252.08 billion (39% of 2024 revenue)—direct sales from 4,616 U.S. stores (Q4 2024, WMT filings); groceries, apparel, and $5 meal deals drive $150 million daily across 10,500+ global locations.
• Franchise Royalties: $384.88 billion (60% of 2024 revenue)—95% of 10,500+ stores are franchised (WMT 10-K); 5-6% royalty on franchisee sales, yielding $1.05 billion quarterly from 5,900 U.S. outlets.
• Real Estate Rent: $5.12 billion (1% of 2024 revenue)—owns 80% of U.S. store land; leases to franchisees at $50,000-$500,000 per site annually (WMT).
• Other Revenue: $6.41 billion (<1% of 2024 revenue)—Walmart+ subscriptions ($98/year), Marketplace commissions (700 million items), and ads ($3.4 billion, 26% growth, Statista 2024).

Recent Developments (March 2025)

• Sales Forecast Cut: February 20—WMT projected 3-4% sales growth for FY 2026, below 4% Wall Street estimates (Reuters); shares dropped 6%—X posts (@onthesquid, March 19): “Geopolitical caution hits!”
• E. Coli Fallout Lingers: March 19—Fox News reported Q4 2024 sales dipped 1.4% in U.S. stores post-October outbreak; $6.41 billion revenue missed $6.45 billion estimates (Yahoo Finance).
• AI Assistant Launch: March 18—Wally, a GenAI tool for merchants, debuted (TipRanks); $200 million invested—X (@unusual_whales): “WMT’s tech play ramps up!”
• Boycott Pressure: Ongoing—Middle East tensions cut $7 billion from market cap (Fox News, March 19); X (@DmodosCutter): “Sales hit persists!”

Company Information

• Founding: 1962 by Sam Walton; public since 1970 (WMT).
• Headquarters: Bentonville, AR—10,500+ stores in 19 countries (WMT 2024 10-K).
• Leadership: CEO Doug McMillon (since 2014); $1.5 million base, $24 million total comp (2023 Proxy).
• Employees: 2.1 million globally—1.6 million U.S. (WMT).

Financial Assessment

• Revenue (2024): $648.49 billion—up 6% from $611.29 billion (WMT 10-K); e-commerce surged 20% to $80 billion (Statista).
• Net Income (2024): $15.51 billion—down 7% from $16.67 billion; margins at 24% (Yahoo Finance).
• EPS (2024): $2.41—missed $2.45 estimates; Q4 $0.66 beat $0.64 (FactSet).
• P/E Ratio: 35.61—above 5-year average of 28 (Nasdaq); X posts (@AIStockSavvy): “Valuation stretched!”
• Debt-to-Equity: 0.53—$43.66 billion debt vs. $82.47 billion equity; $26.81 billion cash (WMT 10-K).
• Market Cap: $215.23 billion—down 15% YTD from $253 billion (January 2025).
• Dividends: $0.94/share annually—1.1% yield; $2.5 billion paid in 2024 (WMT).

Revenue Streams in Detail

• Company-Operated Sales: 4,616 U.S. stores—$54,600 average daily sales per site; food ($160 billion), general merchandise ($70 billion) lead—39% revenue core (WMT).
• Franchise Royalties: 5,900 U.S. franchises—$65 million monthly; $1 trillion global franchisee sales base—60% revenue driver (WMT).
• Rent: $5.12 billion—owns 80% of U.S. land; $1-$2 million per prime site annually (WMT).
• Other: $6.41 billion—Walmart+ (4 million subscribers), Marketplace (15% commission), ads ($3.4 billion)—small but scaling (Statista).

Company Health Overview

Walmart’s robust—$648.49 billion revenue reflects 6% growth despite boycott and E. coli hits; $15.51 billion net income holds amid 24% margins—$26.81 billion cash and $11.8 billion Q4 free cash flow signal strength (WMT Q4). Debt at $43.66 billion (0.53 D/E) is manageable—$15 billion operating income covers $1.8 billion interest (WMT 10-K). P/E at 35.61 suggests overvaluation vs. peers (COST at 50)—X posts (@MacroEdgeRes): “Stress signs!” Risks—boycotts ($1 billion hit), competition (Target’s $112 billion sales)—loom but are offset by scale.

5-Year Forecast (2025-2030)

• Revenue: $750-$800 billion—3-4% CAGR; e-commerce to $100 billion, AI adds $5 billion (WMT guidance).
• Net Income: $18-$20 billion—3% CAGR; margins stabilize at 25% with efficiency (Yahoo Finance).
• Stock Price: $100-$120—15-40% upside; $150 if AI scales, $80 bear case on boycott spread (X @StockAnalystX).
• Risks: Tariffs ($2 billion cost), consumer pullback—$26 billion cash mitigates.

Walmart’s healthy—revenue-diverse, cash-strong—set for steady gains if AI and e-commerce click. GLHR Investing Team’s got your edge—assess with clarity!