WALMART

Analysis of Walmart share price

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If you want to invest online in the share of the American group Walmart, we offer our help, through this article, to carry out your analyzes based on the right information. We will indeed approach all aspects here and reveal you the necessary information to carry out the analysis of this stock such as the detailed activities of this company, its main strengths and weaknesses, the elements to follow for a fundamental analysis of this stock. We will also discover the direct competitors of this group and its main recent partners.

Elements that can influence the price of this asset:

Analysis N°1

Consumer demand in emerging countries and its growth.

Analysis N°2

The growth of online consumption.

Analysis N°3

The cost of labour and its impact on Walmart's strategy.

Analysis N°4

Competition in this sector of activity is increasingly strong, especially competition from abroad.

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General presentation of Walmart

Let's find out more about Walmart and its activities.

The Walmart group is an American company specialising in mass distribution but also the world leader in this sector.

In order to better understand the activities of this group, it is possible to divide them into different divisions according to the share of turnover they generate and in this way :

  • Distribution in the United States and Puerto Rico represents 76.3% of the group's turnover and is carried out through various chains including Wal-Mart with 4,769 stores and Sam's Club with 599 warehouses.
  • Distribution in the rest of the world represents 23.7% of sales with 5,993 stores in Mexico, Central America, the United Kingdom, China, Brazil, Africa, Canada, Chile, Japan, Argentina and India.
Analysis of Walmart share price
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The major competitors of Walmart

Walmart's major competitors include the following companies:

Costco Wholesale Corporation

This retail company owns a distribution chain that operates on the principle of club member-accessible warehouses. It has 715 warehouses worldwide but its head office is based in the United States.

Carrefour

This French group is notably the first to have created supermarkets in 1963 and has become over time one of the leaders of mass distribution in the world. It is currently the third largest in this sector in terms of sales.

Tesco Plc

This UK-based company also operates in Ireland, Eastern Europe and Asia. Tesco is one of the world's largest retail groups and has 3,780 stores in the UK.

The Kroger

This is another U.S. retailer that offers food distribution in 2,757 stores and also operates convenience stores, jewelry stores, gas stations and manufacturing plants for third party accounts.

Amazon 

Finally, the American group Amazon is also a major competitor of Walmart in the online sales sector because this company now offers both everyday products and food products on its Internet platform.


The major partners of Walmart

Let's find out now who are the recent partnerships that the Walmart group has put in place over the last few years:

Microsoft 

In 2018, it is with the giant Microsoft that Walmart signed a 5-year strategic partnership to migrate a large part of the sites Walmart.com and Samsclub.com to the Microsoft Azure cloud. The company thus wishes to use artificial intelligence solutions in order to compete with Amazon, which is taking more and more market share.

Shopify 

Another recent strategic alliance is with the start-up Shopify. This electronic platform is used by more than a million companies worldwide. Here, Walmart's main objective is to open its market to vendors of small businesses registered on Shopify.

Google 

Finally, the Walmart group has also set up a strategic partnership with the Google group, again with the aim of countering Amazon's offensive. Since the implementation of this alliance, Walmart has been able to market hundreds of thousands of its products on Google Express, which is a home delivery platform.

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The factors in favour of a rise in the Walmart share price:

Let's now discover the main strengths and weaknesses of the Walmart Group in order to better anticipate its growth capacities.

Let's start with a summary of the main benefits of this action with the strong points of the Walmart company:

  • First of all, let's remember that Walmart is currently the leader in mass distribution in the world with more than 20% of the market share and a turnover of more than 40 billion dollars per year.
  • The Group has also implemented a well-thought-out price competitiveness strategy.
  • The Group's internationalisation strategy is also to be commended and enables it to effectively compensate for the maturity of the American market. In addition, the group has recorded interesting growth in its results in emerging countries for several years, particularly in Brazil and South Africa.
  • Finally, the company also managed to improve its results in the online sales segment.
The factors in favour of a drop in the Walmart share price:

With regard to the drawbacks of this value and therefore the weak points of this company, only one point should be noted:

  • The Walmart group is indeed regularly under attack with regard to labour legislation which tarnishes its brand image.
The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions.

Frequently Asked Questions

Does the Walmart group operate several brands?

As you may know, the Walmart Group operates through a variety of brands including Sam's Club, Massmart, Walmart Canada, Walmart Chile, Wal-Mart Mexico, Seiyu, Asda, Kosmix, Walmart, Mas Club, Lider, Hyeprmart USA, Amigo Supermarkets, Walmart Market, Asda Mobile, Marketside, Vudu and Walmart Nicaragua. The group also operates an online site, Walmart.com, which enables it to market its products on the Internet.

What are Walmart's latest financial publications?

Knowing the recent financial publications of the Walmart group will of course allow you to better understand the growth of this company and the attractiveness of its stock on the stock market. For the fiscal year 2019, the group achieved sales of 510,329 million US dollars. Its net income for the same year was 6,670 million dollars. It is of course possible to follow the publication of these results directly on the company's website and in real time.

How is Walmart organized?

The Walmart Group is organized into three main distribution networks with Wal-Mart Stores Division US, Sam's Club and Wal-Mart International. In addition, it operates nine types of stores of various sizes, including supercenters, food and drug stores, general merchandise stores, bodegas, cah and carry stores, membership warehouse clubs, apparel stores, soft discount stores and restaurants

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76.4% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. Trade CFDs with Plus500