WMT
Walmart Inc.
Consumer Defensive · Discount Stores · United States · Stock
Score Breakdown
Scored for Safe Long-Term Investing profile
Sub-scores are 0–20 each; Model Score is weighted by your selected investment goal. How it works →
Why Ranked Here
- The composite score of 59.3/100 reflects a company with very strong financial health and solid momentum, offset by thin profitability margins, moderate dividend metrics, and no macro theme contribution.
- Earnings and EPS growth were double-digit in FY2026, which supported the growth factor, but the relatively modest +4.7% revenue expansion kept that factor in the mid-range.
- The Very Low risk rating is anchored by the low debt-to-equity ratio of 0.38 and strong interest coverage of 12.9, which together signal a highly stable balance sheet.
Why Not Higher
- Thin net and operating margins of 3.1% and 4.2% in FY2026 constrain the profitability score, as these are characteristic of large-scale retail but leave limited room for upside in that factor.
- The absence of any macro theme assignment means the theme factor contributes nothing to the composite, and quarterly net income volatility tempers the momentum score from reaching the top tier.
Data Confidence
10 / 10
Very High — full data coverage
Why This Score
Grounded in figures from this company's SEC EDGAR filings — not a restatement of the score itself.
Revenue grew from FY2025's $674,538,000,000 to FY2026's $706,413,000,000, a gain of +4.7%. Net income rose +12.6% over the same period, from FY2025's $19,436,000,000 to FY2026's $21,893,000,000, while diluted EPS increased +13.3% from FY2025's $2.41 to FY2026's $2.73.
The model rewarded the double-digit earnings and EPS growth, but the relatively modest +4.7% top-line revenue expansion tempered the overall growth score, placing it in the mid-range rather than the top tier.
In FY2026, Walmart reported a net margin of 3.1%, an operating margin of 4.2%, and a return on assets of 7.7%.
While the return on assets of 7.7% in FY2026 reflects reasonable asset utilization, the thin net and operating margins of 3.1% and 4.2% respectively are characteristic of large-scale retail and constrain the profitability score to a mid-range result.
In FY2026, Walmart carried a debt-to-equity ratio of 0.38 and an interest coverage ratio of 12.9, against a total asset base of $284,668,000,000.
The model rewarded the low leverage indicated by the FY2026 debt-to-equity ratio of 0.38 and the strong debt-servicing capacity reflected in the interest coverage ratio of 12.9, together signaling a highly stable balance sheet that justifies a near-maximum score.
Over the last four reported quarters, revenue ranged from $175,684,000,000 in 2027Q1 to a peak of $188,913,000,000 in 2026Q4, showing relative stability with a seasonal spike. Operating income followed a similar pattern, rising from $7,286,000,000 in 2026Q2 to $8,708,000,000 in 2026Q4 before settling at $7,493,000,000 in 2027Q1. Net income was more variable, declining from $7,026,000,000 in 2026Q2 to $4,237,000,000 in 2026Q4, then partially recovering to $5,330,000,000 in 2027Q1.
The model recognized generally stable-to-positive revenue and operating income trends across the four quarters, while the net income volatility introduced some uncertainty, producing a solid but not top-tier momentum score.
Walmart's dividends per share have grown each year from FY2023's $0.7467 through FY2024's $0.76, FY2025's $0.83, and FY2026's $0.94, while the FY2026 dividend payout ratio stood at 34.3% of net income.
The model acknowledged the consistent multi-year dividend growth trend, but the moderate payout ratio of 34.3% in FY2026 and the relatively low absolute yield implied by the per-share figures likely limited the score to the lower-mid range.
Walmart is not currently assigned to any of the 24 tracked macro themes in the model.
The absence of a macro theme assignment means no theme-based score contribution was applied; this reflects the model's current classification state and should not be read as a commentary on the company's business characteristics.
Research Summary
AI-generated analysis reflects data and conditions as of the report date shown above. Verify any specific figures through primary sources before acting on this analysis.
Walmart delivered solid FY2026 results, with revenue rising +4.7% to $706,413,000,000 and net income growing +12.6% to $21,893,000,000, while diluted EPS climbed +13.3% to $2.73. The company's balance sheet is a standout strength, with a debt-to-equity ratio of just 0.38 and an interest coverage ratio of 12.9, reflecting very low financial risk. Profitability margins remain characteristically thin for large-scale retail, with a net margin of 3.1% and an operating margin of 4.2%, and the absence of a macro theme assignment means no theme-based contribution lifted the composite score. Overall, the model rates Walmart as 'Research Further' with a Very Low risk rating and a total score of 59.3/100.
Plain English
Walmart is a financially rock-solid retailer that grew its earnings strongly in FY2026, but its razor-thin profit margins and lack of a macro theme tag keep its overall model score in the middle of the pack at 59.3 out of 100.
Bull Case vs. Bear Case
Bull Case
- Earnings power is accelerating faster than revenue: net income grew +12.6% and diluted EPS grew +13.3% in FY2026, well ahead of the +4.7% top-line gain, suggesting improving operational efficiency.
- The balance sheet is exceptionally strong, with a debt-to-equity ratio of 0.38 and an interest coverage ratio of 12.9, providing significant financial resilience and flexibility.
- Dividends per share have grown every year from $0.7467 in FY2023 to $0.94 in FY2026, demonstrating a consistent and rising income stream for shareholders.
Bear Case
- Net and operating margins of 3.1% and 4.2% respectively in FY2026 are very thin, leaving little buffer against cost pressures or revenue slowdowns.
- Quarterly net income has been volatile, swinging from $7,026,000,000 in 2026Q2 down to $4,237,000,000 in 2026Q4 before partially recovering to $5,330,000,000 in 2027Q1, introducing meaningful earnings uncertainty.
- Walmart is not assigned to any of the 24 tracked macro themes, meaning it receives no theme-based score contribution, which weighs on the composite total.
What Could Change the Picture
Bullish Triggers
- A sustained acceleration in revenue growth beyond the current +4.7% annual rate, combined with continued double-digit earnings growth, would signal stronger operating leverage and could lift the growth score.
- Assignment to one or more of the model's 24 tracked macro themes could add a meaningful contribution to the composite score that is currently absent.
Bearish Triggers
- A compression in the interest coverage ratio from its current 12.9 level or a meaningful rise in the debt-to-equity ratio above 0.38 would erode the financial health advantage that is currently a primary score driver.
- Continued or worsening net income volatility across quarters—as seen in the swing from $7,026,000,000 in 2026Q2 to $4,237,000,000 in 2026Q4—could undermine confidence in earnings quality and pressure the momentum score.
Risk Profile
Very Low RiskWalmart's Very Low risk rating is supported by a debt-to-equity ratio of 0.38 and an interest coverage ratio of 12.9 in FY2026, indicating low leverage and strong capacity to service debt. Quarterly operating income has remained relatively stable, ranging from $6,696,000,000 to $8,708,000,000 across the last four reported quarters, further underpinning the low-risk assessment.
This report is for educational and research purposes only. It does not constitute financial, investment, legal, or tax advice — always conduct your own due diligence before making investment decisions.