Money and Finance
Wal-Mart Stores, Inc.: Low Prices Have Shares Trading For A 10%+ Discount
Wal-Mart Stores (NYSE:WMT) has a rich history of generating returns for investors and 42 consecutive years of increasing the dividend. Of course, that's what happens when you grow a 1-store business into the world's largest retailer with sales approaching $500 B annually. However, just because Wal-Mart has been one of the great American success stories doesn't mean that the valuation warrants an investment. I'm going to take an in depth quantitative analysis at Wal-Mart stores in order to determine what price I'm willing to purchase shares. Wal-Mart Stores closed trading on October 2nd at $64.98 per share giving investors a current yield of 3.02%.
The following tables/graphs are taken from my personal stock analysis spreadsheet. Data for the stock analysis was sourced from Wal-Mart Stores' investor relations page, Morningstar, and Yahoo Finance.
Historic Growth Rates:Owners of Wal-Mart have received steady, but unspectacular, returns over the last 10 years. According to longrundata.com, shares of WMT have earned investors a total return of 184.6% or 6.3% annualized over the last decade. Those numbers are market returns at specific snapshots in time and aren't necessarily indicative of the business results over the same time period. Looking at the historic growth rates for per share dividends, earnings, revenue, and free cash flow gives a better idea of the true operational results that Wal-Mart has delivered.
Continue reading the Wal-Mart Stores Dividend Stock Analysis at Seeking Alpha.
Also, you can check out other stock analyses at my Stock Analysis page.
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Money and Finance