WMT
Wal-Mart Stores Inc.
Consumer
02/09/2015
Presented
| Date | 02/06/2015 |
| Price | $87.33 |
| Market Cap | $281.00B |
| Ent Value | $335.54B |
| P/E Ratio | 17.73x |
| Book Value | $24.51 |
| Div Yield | 2.2% |
| Shares O/S | 3,223.19M |
| Ave Daily Vol | 7,530,000 |
| Short Int | 0.97% |
Current
| Price | $81.65 |
| Market Cap | $656.32B |
| Wal-Mart Stores Inc. operates retail stores in various formats worldwide. The company operates through three segments: Walmart U.S., Walmart International, and Sam’s Club. It operates discount stores, supermarkets, supercenters, hypermarkets, warehouse clubs, restaurants, apparel stores, drug stores, and convenience stores, as well as various retail Websites, such as walmart.com and samsclub.com. The company’s stores offer meat, produce, deli, bakery, dairy, frozen foods, alcoholic and nonalcoholic beverages, and floral and dry grocery; health and beauty aids, baby products, household chemicals, paper goods, and pet supplies; electronics, toys, cameras and supplies, photo processing services, cellular phones, cellular service plan contracts and prepaid service, movies, music, video games, and books; and pharmacy, optical services, and over-the-counter drugs. Its merchandise also include stationery, automotive accessories, hardware and paint, sporting goods, fabrics and crafts, and seasonal merchandise; apparel for women, girls, men, boys, and infants, as well as shoes, jewelry, and accessories; and home furnishings, housewares and small appliances, bedding, home décor, outdoor living, and horticulture products. The company also provides financial services and related products, including money orders, prepaid cards, wire transfers, check cashing, and bill payment. In addition, it offers brand name merchandise, including hardgoods, softgoods, and selected private-label items, such as Member’s Mark and its own proprietary brands, such as Artisan Fresh, Bakers & Chef, Daily Chef, and Simply Right. Further, the company operates banks that provide consumer financing programs. As of June 5, 2014, it operated approximately 11,000 stores under 71 banners in 27 countries; and ecommerce Websites in 10 countries. Wal-Mart Stores Inc. was founded in 1945 and is headquartered in Bentonville, Arkansas. |
Publicly traded companies mentioned herein: Target Corp (TGT), Wal-Mart Stores Inc (WMT), The Kroger Co (KR)
Highlights
The presenter is short shares of Wal-Mart (WMT) because he sees minimal upside risk and at least $1 billion of EBIT headwind due to a combination of FX exposure and investments in e-commerce over the coming year. WMT is viewed as a primary play on the US consumer, and shares have benefitted greatly over the past month from the flight to safety and low gas prices trade. However, 3 turns of multiple expansion for a company facing many structural business issues has created an attractive risk/ reward and entry point for a short position.
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