Select a Fortune 500 company or another company you are familiar with. Consider pharmaceuticals, computer hardware, retail, or automotive industries for your selection. If you choose a company that is not in the Fortune 500, ensure that enough financial information and key performance indicator results are available to complete the assignment.

 

Imagine your manager has asked you to help with a presentation on the company's financial performance at the company's annual meeting. 

 

Research financial information and key performance indicators for the company.

 

Identify key performance indicators for the company you selected, including the following:

• The company and its ticker symbol
• Cash flow from operations
• Price-to-earnings ratio
• Stock dividends and the yield, if any
• Earnings per share ratio
• Revenue estimates for the next 12 months
• Revenue from the previous 3 years
• Statement of cash flows and identify net cash from operating, investing, and financing activities over the past 3 years
• Average trade volume.
• Current stock price, 52-week high, and 1-year estimated stock price
• Analysts' recommendations for the stock (buy,sell, hold)
• Market cap for the company

 

Relate the stock price to price-to-earnings ratio and provide details on your findings.

 

Explain the market capitalization, what it means to the investor, and why it is important to understand.

 

Evaluate trends in stock price, dividend payout, and total stockholders' equity. Relate recent events or market conditions to the trends you identified and explain in detail.

 

Determine, based on your analysis, whether you think the organization is going to meet its financial goals, the outlook for growth and sustainability, and explain why you recommend this stock for purchase.

 

Cite references to support your assignment and avoid copying charts, graphs, and illustrations from your source. Instead make your own illustrations.

Walmart Inc is the company that has been chosen for the project as it forms part of the Fortune 500 companies which sells a wide range of products and has significant inventory levels.

Walmart Inc. is an American multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores, headquartered in Bentonville, Arkansas.

Walmart Inc. helps people around the world save money and live better anytime and anywhere in retail stores and through eCommerce. Through innovation, Walmart is striving to create a customer-centric experience that seamlessly integrates the eCommerce and retail stores in an omni-channel offering that saves time for the customers. Each week, Walmart serves nearly 270 million customers who visit more than 11,700 stores and numerous eCommerce websites under 65 banners in 28 countries.

The Company is engaged in the operation of retail, wholesale and other units, as well as eCommerce websites, located throughout the U.S., Africa, Argentina, Brazil, Canada, Central America, Chile, China, India, Japan, Mexico and the United Kingdom.

The Company's operations are conducted in three reportable segments: Walmart U.S., Walmart International and Sam's Club. The Company defines its segments as those operations whose results the chief operating decision maker(CODM) regularly reviews to analyze performance and allocate resources. The Company sells similar individual products and services in each of its segments. It is impractical to segregate and identify revenues for each of these individual products and services.

Walmart U.S. is their largest segment and operates retail stores in all 50 states in the U.S., Washington D.C. and Puerto Rico, with three primary store formats, as well as eCommerce. Walmart U.S. generated approximately 64% of their net sales in fiscal 2018, and of their three segments, Walmart U.S. is the largest and has historically had the highest gross profit as a percentage of net sales ("gross profit rate"). In addition, Walmart U.S. has historically contributed the greatest amount to the Company's net sales and operating income.

Walmart International consists of operations in 27 countries outside of the U.S. and is divided into three major categories: retail, wholesale and other. These categories consist of many formats, including: supercenters, supermarkets, hypermarkets, warehouse clubs (including Sam's Clubs) and cash & carry, as well as eCommerce.

As Walmart Inc. tops the Fortune 500 charts and hence the competition is bound to be extremely severe and of various forms. The critical competitors who are direct competitors of the business of Walmart Inc. are The Kroger Company, Amazon, Costico, Home Depot, Lowe's are the main competitors out of a host of other such competitors existing in the market for the products sold by Walmart and the industry they are operating in general.

• Company Name & Ticker symbol : Walmart Inc ; WMT in NYSE

# Cash flow from operations of Walmart Inc has been a wavering on over the past five years due to variable demand of certain products sold in both retail and wholesale while on the overall the cash flow from operations has been on a marginal decline due to the massive competition in the retail and wholesale business.

# Price-to-earnings ratio at 26.7 is significantly high as compared to previous years though the future growth prospects look a little weaker due to the market maturity stage that the company has currently attained and for any further spurt in growth innovation at best is required to do so.

# Stock dividends and the yield of the company is quite high as the dividend payout ratio is 41% while the dividend yield is relatively low @ 2.24% on a 5 year average. Though the company has been a constant declarer of dividends

# Earnings per share ratio has seen massive jump to $ 5.19 from a measly $ 2.26 in the previous year and also its almost a 50 % rise on the earnings per share compared to any of the past five years showing immense value for the investors in the Walmart stock trading in the NYSE Stock exchange.

# Revenue estimates for the next 12 months are quite constant compared to present levels due to various challenged posed by competitors as well as the economy's condition in general due to the ongoing pandemic post which luxury sales might pick up compared to the over sold retail and wholesale segment of the necessary goods.

# Revenue from the previous 3 years states that there has been a steady increase in revenue as per projections and the same would continue though the current spike in current year revenue may be due to the excessive sales of the necessary goods during the times of the dreaded pandemic.

# Average trade volume Walmart's average daily volume on a 3 month average for fiscal years ending January 2016 to 2020 averaged 8.539 million which shows the active interest in the stock of Walmart by both retail and institutional investors and also the market capitalization of Walmart has been on the steady rise owing it to be a more attractive option for investors

# Current stock price, 52-week high is $ 131.746 and the current trading price of Walmart Inc is $ 131.1 hence trading very close to the 52-week high which states that the company has been projected to increase their earnings in the near future as well as analysts recommending either a hold or buy call at the current prices due to the future projections as well as the economy returning to normal at gradual yet steady pace.

# Market capitalization of the company of the company current is at a whooping $ 373.03 Billion which is massively due to the stock attaining higher prices in the market as well as positive future projections with fundamentally strong financials laying the base for such high valuations and a massive market capitalization amount.