Walmart Stores Case Study

Wal-Mart Stores, Inc. operates retail stores in various formats in the United States and internationally. It has three segments: The Wal-Mart Stores, The SAM'S CLUB, and International. The Wal-Mart Stores segment includes Discount Stores, Supercenters, and Neighborhood Markets in the United States, as well as Walmart.com. It offers apparel for women, girls, men, boys, and infants; domestics, fabrics, and notions; stationery and books; shoes; housewares; hardware; electronics; home furnishings; small appliances; automotive accessories; horticulture and accessories; sporting goods; toys; pet food and accessories; cameras and supplies; health and beauty aids; pharmaceuticals; jewelry; and optical, as well as photo processing services. The Neighborhood Markets include dry grocery, meat, produce, deli, bakery, dairy, frozen foods, pharmaceuticals, photo processing, health and beauty aids, household chemicals, paper goods, general merchandise, and pet supplies departments. The SAM'S CLUB segment comprises the warehouse membership clubs in the United States and samsclub.com. It offers hardgoods, softgoods, software, electronics, jewelry, sporting goods, toys, tires, stationery and books, institutional-size grocery items, and selected private labels. As of July 31, 2005, Wal-Mart operated 1,276 Wal-Mart stores, 1,838 Supercenter, 92 Neighborhood Markets, and 556 SAM's Clubs in all the 50 states in the United States. The International segment operates various retail formats in Argentina, Brazil, Canada, Germany, Mexico, Puerto Rico, South Korea, and the United Kingdom. This segment operated 261 Canadian Wal-Mart stores and SAM's Clubs, 11 units in Argentina, 150 units in Brazil, 88 units in Germany, 16 units in South Korea, 697 units in Mexico, 54 units in Puerto Rico, and 292 units in the United Kingdom, as well as 48 units in China under joint venture agreements. The company was incorporated in 1969 and is based in Bentonville, Arkansas.

Wal-Mart Stores has a current Overall Rating of C (Neutral). Appreciation potential (76) is high; Power Rating (38) is low. Relative to the S&P 500 Composite, Wal-Mart Stores Inc has moderate Growth characteristics -- its appeal is likely to be to investors neutral towards Income. WMT is of high investment quality. Current annual total return performance of -10.0% is lower quartile. Current 5-year total return performance of 4.1% is slightly below median. Over the full time

Rankings

* #1 in FORTUNE 500

* S&P 500

* Dow Jones Industrials

* Dow Jones Global Titans

* #6 in FT Global 500

Key Numbers

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Company Type Public (NYSE: WMT)

Fiscal Year-End January

2005 Sales (mil.) $285,222.0

1-Year Sales Growth 11.3%

2005 Net Income (mil.) $10,267.0

1-Year Net Income Growth 13.4%

2005 Employees 1,700,000

1-Year Employee Growth 13.3%

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Annual Income Statements

All amounts in millions of US Dollars except share amounts

Year Revenue Gross Profit Operating Income Total Net Income Diluted EPS (Net Income)

Jan 05 285,222.0 69,834.0 14,324.0 10,267.0 2.41

Jan 04 256,329.0 61,434.0 12,673.0 9,054.0 2.07

Jan 03 244,524.0 56,118.0 11,643.0 8,039.0 1.81

View more detailed Annual Financials, including:

* Income Statement, Balance Sheet, and Cash Flow

Quarterly Income Statements

All amounts in millions of US Dollars except share amounts

Year Revenue Gross Profit Operating Income Total Net Income Diluted EPS (Net Income)

Jul 05 76,811.0 19,202.0 3,970.0 2,805.0 0.67

Apr 05 70,908.0 17,469.0 3,169.0 2,461.0 0.58

Jan 05 82,217.0 19,737.0 4,696.0 3,164.0 0.75

Oct 04 68,520.0 17,046.0 3,043.0 2,286.0 0.54

Jul 04 69,722.0 17,220.0 3,660.0 2,651.0 0.62

View more detailed Quarterly Financials, including:

* Income Statement, Balance Sheet, and Cash Flow

Comparison To Industry & Market

Valuation Company Industry1 Market2

Price/Sales Ratio 0.63 0.61 1.26

Price/Earnings Ratio 17.72 17.94 20.23

Price/Book Ratio 3.93 3.50 2.62

Price/Cash Flow Ratio 12.20 12.03 10.51

* 1Industry: Discount, Variety Stores

* 2Market: Public companies trading on the NYSE, AMEX, and NASDAQ

View more detailed Comparison Data, including:

* Side-by-side comparison of Wal-Mart and its top 3 competitors

Top Competitors

Wal-Mart Costco Wholesale Kmart Target

Annual Sales 285,222.0 48,107.0 19,701.0 46,839.0

Employees 1,700,000 113,000 133,000 292,000

Market Cap ($ mil.) 187,321.4 20,691.7 0.0 46,624.3

Quarterly Income Statement

All amounts in millions of

except per share amounts.

View: Annual | Quarterly

Quarter Ending Jul 05 Quarter Ending Apr 05 Quarter Ending Jan 05 Quarter Ending Oct 04 Quarter Ending Jul 04

Revenue 76,811.0 70,908.0 82,217.0 68,520.0 69,722.0

Cost