Walmart (NASDAQ: WMT)
Quality Value Investing Research Report | $WMT Updated Coverage | January 2026
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In this updated coverage research report, we reevaluate the QVI Real-Time Stock Picks consumer-staples-sector holding, Walmart WMT 0.00%↑, to determine whether it still meets the criteria for Quality Value Investing based on our checklist analysis of the company’s current wealth and the stock’s present value.
Walmart | Company Current Wealth
Value Proposition
Walmart Inc. is a dividend-paying large-cap stock in the consumer staples sector’s merchandise retail industry. It was added to the QVI Real-Time Stock Picks on June 27, 2017, at a cost basis of $22.13 per share, adjusted for a 3:1 stock split in February 2024 and cash dividends.
Walmart Inc. (NASDAQ: WMT) operates retail, wholesale, and other units, as well as eCommerce, worldwide. The company functions through three segments: Walmart US, Walmart International, and Sam's Club. It runs supercenters, supermarkets, hypermarkets, warehouse clubs, cash and carry stores, and discount stores under the Walmart and Walmart Neighborhood Market brands; membership-only warehouse clubs; e-commerce websites such as Compras en línea | Walmart online México, Online Shopping Canada, flipkart-com, PhonePe, and other sites; and mobile commerce applications. The company was formerly known as Wal-Mart Stores, Inc., and changed its name to Walmart Inc. in February 2018. Walmart was founded in 1945 and is headquartered in Bentonville, Arkansas, USA.
Economic Moat
Morningstar assigns Walmart a “wide” moat rating based on its industry-leading cost structure and strong brand intangible assets. Its analysts believe these competitive advantages will stay strong due to Walmart’s unmatched scale, operational discipline, and ongoing investment in technology and infrastructure.
QVI’s Value Proposition Elevator Pitch for WMT:
Walmart, loved or hated, is an enduring American institution.
Value Proposition Rating
QVI’s competitive advantage rating for Walmart is Bullish.
Returns on Management
Revenue Growth and Profit Margins
According to the checklist table below, Walmart’s trailing five-year annualized revenue growth was mid-single digits, underperforming the S&P 500’s topline growth of 15.4%. The company’s topline grew 4.3% compared to the market benchmark’s 18.0% over the most recent 12-month period.
Further down the income statement, Walmart’s low-single-digit positive net profit margin, driven by a cost-of-goods-sold-influenced gross margin, is typical of a big-box retailer. The company underperformed the S&P 500’s net margin of 23.2%, which was driven by a gross margin of 54.4%.
Returns on Equity and Invested Capital
Walmart’s senior management reported a double-digit return on equity (ROE), above QVI’s target threshold, while lagging behind the S&P 500’s median ROE of 48.6%.
Stock buyback programs often elevate ROE. For example, Walmart completed over US$800 million in share buybacks during the period ending October 31, 2025. That's down significantly from repurchases over the last several years.
Walmart’s return on invested capital (ROIC) was in line with QVI’s threshold but below the broader market’s median ROIC of 27.0%. In addition, WMT’s ROIC doubled its weighted average cost of capital (WACC), demonstrating that its senior executives are competitive capital allocators.
QVI’s Owners’ Earnings
In a further test of shareholder value, the five-year trailing current wealth of owners’ earnings for WMT, or EPS growth plus dividend rate growth annualized, was barely double-digits, a minimally acceptable rate of return for shareholders.
In addition, when substituting free cash flow growth for EPS growth, owners’ earnings increase slightly to 10.83%.
Return on Management Rating
QVI’s business fundamentals rating for Walmart is Bullish.
Next, we’ll analyze the company’s enterprise downsize risks, the stock price’s present value—including shareholder yields, valuation, and share price downside risks—and the investment thesis, all exclusive to Quality Value Investing’s premium (paying) subscribers.
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Unless noted, all data and images presented are sourced from Charles Schwab & Co., Google Finance, GuruFocus, Microsoft Designer, Walmart Inc., and Yahoo Finance as of the market close on January 12, 2026, and are intended for illustration only.
Disclosure: As of the date of this research report, I/we hold no beneficial shares of WMT in our family portfolio. I authored this report independently, and it reflects my personal opinions. I am not receiving compensation for it beyond Substack paid subscriptions. I have no business relationship with any company whose stock is discussed in this post.
Additional Disclosure: Quality Value Investing by David J. Waldron’s primary ticker research reports are for informational purposes only. The accuracy of the data cannot be guaranteed. The narrative and analytics are impersonal; they are not tailored to individual needs and are not intended for portfolio creation beyond the QVI Stock Picks, which is presented solely for educational purposes. David is a private investor and author, not an investment adviser. Readers should conduct their own research or due diligence and, as appropriate, consult a fee-only certified financial planner, a licensed discount broker-dealer, a flat-fee registered investment adviser, a certified public accountant, or a specialized attorney before making any investment, income tax, or estate-planning decisions.
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