June 6, 2018

WMT – Market expectations are for Uniform ROA to remain near recent lows, but management is confident in their initiatives, private brands, and partnerships


 

  • Wal-Mart Stores, Inc. (WMT:USA)currently trades near recent averages relative to UAFRS-based (Uniform) Earnings with a 21.3x Uniform P/E. At these levels, the market has muted expectations for the firm, but management is confident in their initiatives, private brands, and partnerships
  • Specifically, management is confident in their grocery delivery rollout across the U.S., and that their initiatives are contributing to their growth goals. Additionally, they are confident in their opportunity to increase the quality of their private brands, and that their relationship with JD.com will allow them to leverage learnings from China in other markets, in a similar manner to what they have done in the past

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