Walmart Return On Equity vs. Gross Profit
| WMT Stock | MXN 1,850 60.00 3.14% |
For Walmart profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Walmart to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Walmart utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Walmart's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Walmart over time as well as its relative position and ranking within its peers.
Walmart |
Walmart Gross Profit vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Walmart's current stock value. Our valuation model uses many indicators to compare Walmart value to that of its competitors to determine the firm's financial worth. Walmart is rated fifth in return on equity category among its peers. It is rated second in gross profit category among its peers fabricating about 1,349,802,816,901 of Gross Profit per Return On Equity. Comparative valuation analysis is a catch-all model that can be used if you cannot value Walmart by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Walmart's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.Walmart Gross Profit vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
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| = | 0.11 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.
Walmart |
| = | 143.75 B |
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
Walmart Gross Profit Comparison
Walmart is rated first in gross profit category among its peers.
Walmart Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Walmart, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Walmart will eventually generate negative long term returns. The profitability progress is the general direction of Walmart's change in net profit over the period of time. It can combine multiple indicators of Walmart, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Walmart Inc. engages in the operation of retail, wholesale, and other units worldwide. The company was founded in 1945 and is based in Bentonville, Arkansas. WALMART INC operates under Discount Stores classification in Mexico and is traded on Mexico Stock Exchange. It employs 2300000 people.
Walmart Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Walmart. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Walmart position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Walmart's important profitability drivers and their relationship over time.
Use Walmart in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Walmart position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Walmart will appreciate offsetting losses from the drop in the long position's value.Walmart Pair Trading
Walmart Pair Trading Analysis
The ability to find closely correlated positions to Walmart could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Walmart when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Walmart - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Walmart to buy it.
The correlation of Walmart is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Walmart moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Walmart moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Walmart can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Walmart position
In addition to having Walmart in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Adviser Favorites Thematic Idea Now
Adviser Favorites
Financial advisors frequently recommend that individuals diversify their investment portfolios with a mix of different types of stocks. These can include blue-chip stocks, growth stocks, and dividend stocks. The Adviser Favorites theme has 17 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Adviser Favorites Theme or any other thematic opportunities.
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Additional Tools for Walmart Stock Analysis
When running Walmart's price analysis, check to measure Walmart's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Walmart is operating at the current time. Most of Walmart's value examination focuses on studying past and present price action to predict the probability of Walmart's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Walmart's price. Additionally, you may evaluate how the addition of Walmart to your portfolios can decrease your overall portfolio volatility.