Forbes/Trefis Says Walmart Stock Is 'Unattractive,' Sets $83 Target

Overview

• Forbes, citing Trefis analysis published Jan. 21, recommends divesting Walmart shares and assigns a price target of $83.
• Walmart trades at roughly 41.7 times earnings, which the analysis characterizes as a rich multiple given current performance.
• Recent revenue expansion is moderate at about 4.3% over the last twelve months and a 5.4% average over three years.
• Profitability remains slim with an estimated 4.1% operating margin, about $29 billion in operating income, and roughly $23 billion in net income.
• The report notes strong cash generation and stability, including about $41 billion in operating cash flow, debt near $68 billion, and roughly $132 billion returned to shareholders over the past decade.