Walmart Story

WMT -- USA Stock  

USD 137.27  0.57  0.42%

It looks like Vipshop Holdings will be up for a correction way faster as its share price whent up 6.11% today to Walmart's 2.2624%. While some baby boomers are getting worried about services space, we are going to review both, Walmart and Vipshop Holdings as potential short-horizon investments. We are going to break down some of the competitive aspects of both Walmart and Vipshop.
Published over a month ago
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Will Walmart (NYSE:WMT) private investors shift to Vipshop (NYSE:VIPS)?
By analyzing existing basic indicators between Walmart and Vipshop, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Vipshop with a short position in Walmart. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Walmart has an asset utilization ratio of 267.89 percent. This implies that the company is making $2.68 for each dollar of assets. An increasing asset utilization means that Walmart is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Walmart or Vipshop is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

UNDERSTANDING Walmart dividends

A dividend is the distribution of a portion of Walmart earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Walmart dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Walmart one year expected dividend income is about $1.42 per share.
Dividends per Basic Common Share is likely to gain to 1.90 in 2020, whereas Payment of Dividends and Other Cash Distributions is likely to drop (7.8 B) in 2020.
Last ReportedProjected for 2020
Payment of Dividends and Other Cash Distributions-7.2 B-7.8 B
Dividend Yield 0.027  0.0215 
Dividends per Basic Common Share 1.76  1.90 
Investing in dividend-paying stocks, such as Walmart is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Walmart must own a stock before its ex-dividend date to receive its next dividend. This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Walmart. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Walmart's Liquidity

Walmart financial leverage refers to using borrowed capital as a funding source to finance Walmart ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Walmart financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Walmart's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Walmart, but it might be worth checking our own buy vs. sell analysis

Correlation Between Walmart and Vipshop Holdings

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Walmart together with similar or unrelated positions with a negative correlation. For example, you can also add Vipshop Holdings to your portfolio. If Vipshop Holdings is not perfectly correlated to Walmart it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Walmart for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down. Please check pair correlation details between WMT and VIPS for more information.


Are you currently holding both Walmart and Vipshop Holdings in your portfolio? Please note if you are using this as a pair-trade strategy between Walmart and Vipshop Holdings, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses.

Breaking down Walmart Indicators

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Let me now analyze Walmart revenue. Based on the latest financial disclosure, Walmart reported 534.66 B of revenue. This is much higher than that of the Services sector and significantly higher than that of the Discount, Variety Stores industry. The revenue for all United States stocks is significantly lower than that of the stock. As for Vipshop Holdings we see revenue of 12.55 B, which is much higher than that of the Discount, Variety Stores

534.7 B
WMT534.66 Billion97.54
Sector956.4 Million0.17
VIPS12.55 Billion2.29

Are Walmart technical ratios showing a collapse?

Walmart newest kurtosis boosts over 8.42. Walmart has low volatility with Treynor Ratio of 3.13, Maximum Drawdown of 8.76 and kurtosis of 8.42. However, we advice all investors to further analyze Walmart to make certain all market information is desiminated and is consistent with the current expectations about Walmart upside potential.

Our Final Take On Walmart

Whereas some firms within the discount, variety stores industry are still a little expensive, even after the recent corrections, Walmart may offer a potential longer-term growth to private investors. While some private investors may not share our view, we believe it may be a good time to increase your existing holdings in Walmart. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Walmart.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of Walmart. Please refer to our Terms of Use for any information regarding our disclosure principles.

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