Stock Analysis & Valuation Walmart Inc. (WMT.DE)

• Previous Close: €99.16
• Sector Valuation Confidence Level: Low

Valuation method	Value, €	Upside, %
Artificial intelligence (AI)	47.20	-52
Intrinsic value (DCF)	32.96	-67
Graham-Dodd Method	6.40	-94
Graham Formula	27.00	-73

Strategic Investment Analysis

Company Overview

Walmart Inc. (WMT.DE) is a global retail giant operating under three key segments: Walmart U.S., Walmart International, and Sam's Club. With approximately 10,500 stores and e-commerce platforms across 24 countries, Walmart serves millions of customers daily through its supercenters, hypermarkets, discount stores, and online channels like walmart.com and Flipkart. The company offers a vast product range, including groceries, health and wellness items, electronics, apparel, and financial services. Walmart's scale, supply chain efficiency, and omnichannel strategy make it a dominant force in the discount retail sector. Headquartered in Bentonville, Arkansas, Walmart continues to expand its digital footprint while maintaining strong brick-and-mortar operations, reinforcing its position as a leader in the consumer defensive sector.

Investment Summary

Walmart presents a stable investment opportunity due to its defensive business model, global scale, and strong cash flow generation. The company benefits from consistent demand for essential goods, a resilient supply chain, and growing e-commerce penetration. However, risks include margin pressures from inflation, wage increases, and intense competition in both physical and online retail. Walmart's dividend yield and steady earnings growth appeal to income-focused investors, while its strategic investments in automation and digital transformation aim to sustain long-term competitiveness. The stock's low beta (0.699) suggests relative stability compared to broader market volatility.

Competitive Analysis

Walmart's competitive advantage lies in its unmatched scale, cost leadership, and integrated supply chain, allowing it to offer low prices consistently. Its omnichannel strategy, combining physical stores with a growing e-commerce presence, strengthens customer retention. Walmart International diversifies revenue streams, though regional competitors pose challenges. The company's private-label brands and data-driven inventory management enhance profitability. However, Amazon (AMZN) pressures Walmart in online retail with superior logistics and Prime membership loyalty. In grocery, Kroger (KR) and Costco (COST) compete on pricing and membership perks. Walmart's focus on automation and AI-driven efficiency improvements aims to counter labor cost inflation. While Walmart leads in rural and suburban markets, urban penetration remains a growth area where rivals like Target (TGT) excel with a more curated product mix.

Major Competitors

• Amazon.com Inc. (AMZN): Amazon dominates e-commerce with superior logistics, Prime membership loyalty, and AWS-backed financial flexibility. Its grocery segment (Whole Foods, Amazon Fresh) competes with Walmart but lacks the same physical store density. Amazon's tech-driven approach and global reach challenge Walmart's online growth, though Walmart's brick-and-mortar footprint provides a hybrid advantage.
• Costco Wholesale Corporation (COST): Costco rivals Walmart's Sam's Club with a high-margin membership model and bulk-selling efficiency. Its loyal customer base and limited SKU strategy drive higher per-store sales. However, Costco's smaller global footprint and slower e-commerce adoption compared to Walmart limit its reach. Costco's premium private-label offerings differentiate it from Walmart's broader low-price focus.
• Target Corporation (TGT): Target competes with Walmart in suburban markets with a focus on stylish, affordable merchandise and smaller-format stores. Its partnerships with Disney and Ulta enhance brand appeal. Target's supply chain struggles during peak demand periods and higher reliance on discretionary spending make it more vulnerable to economic downturns than Walmart.
• The Kroger Co. (KR): Kroger is Walmart's primary competitor in U.S. groceries, with strong private-label brands and a focus on fresh produce. Its acquisition of Albertsons aims to consolidate market share, but regulatory hurdles persist. Kroger lacks Walmart's international diversification and general merchandise scale, relying heavily on the competitive grocery sector.
• Alibaba Group Holding Limited (BABA): Alibaba's TMall and Freshippo challenge Walmart in China and emerging markets with a tech-centric approach. Its ecosystem integrates payments (Alipay) and cloud services, but regulatory crackdowns and slower international growth hinder its global expansion compared to Walmart. Alibaba's strength lies in Asian e-commerce, whereas Walmart leads in omnichannel retail.