WMT - Embedded Expectations Analysis - 2019 03 19
Walmart, Inc. (WMT:USA) currently trades near recent averages relative to UAFRS-based (Uniform) Earnings with a 24.5x Uniform P/E. At these levels, the market has bullish expectations for the firm, and management is confident about delivery and grocery services, improvements in e-commerce, and automation opportunities.Specifically, management is confident in their ability to deliver to customers and improve customer satisfaction with increased optionality. Additionally, they are confident in their ability to leverage core capabilities to deliver strong growth, and are confident in opportunities to enter new businesses. Moreover, they are confident in the growth and reach of their grocery pickup business, their e-commerce search and inventory improvements, and the success of their offerings during the holiday season. Furthermore, they are confident in their digital transformation, and in opportunities for further automation.
Walmart is engaged in global operations of retail, wholesale and other units, as well as eCommerce, located throughout the U.S., Africa, Argentina, Canada, Central America, Chile, China, India, Japan, Mexico and the U.K. The company's operations are conducted in three reportable segments: Walmart U.S., which is a mass merchandiser of consumer products, operating under the Walmart and Walmart Neighborhood Market brands, as well as walmart.com, jet.com and other eCommerce brands; Walmart International, which includes various formats divided into retail, wholesale and other categories; and Sam's Club, which is a membership-only warehouse club that also operates samsclub.com.
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