Walmart

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Walmart
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BACKGROUND

• Worlds largest retailer (Three Formats)
• -Discount Store (1,478 )
• -Supercenter (1,471 )
• -Neighborhood Market (538 )
• As of January 31, 2004
• Three Segments
• - Walmart Store
• - Sams Club
• - Walmart International

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Walmart Strategy

• Low Price Everyday
• Effective use of logistics management
• Effective inventory control
• Bargaining power over suppliers
• Global Expansion for new market opportunity

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SOME KEY FINANCIALS
Today
2004
P/E Ratio 20.54
-1-Year Sales Growth 11.3
Beta 0.403
-Earning Growth 12.60
Return of Asset 9.37
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5-YEAR CHART
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5-YEAR vs. Costal
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5-YEAR vs. SP 500
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MACRO-ANALYSIS

• Continued depreciation of the US dollar expected
  against Euro and most major Asian currencies
• -Increase the sales in the oversea
• -Boost up the income statement
• Industry Environment
• -Highly Competitive
• -Low Profit Margin
• -Cost Reduction Oriented
• -Economies of Scale

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Recommendations

• Purchase 5000-6000 worth of Walmart stock
• Minimum expectation of 13-15 annual growth
• -Consistently outperform SP 500 over the past
  five years and projected to do the same
• Provides a risk diversification for the portfolio

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• Questions?
• Vote

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Main Sources

• finance.yahoo.com
• www.hoovers.com