WALMART

1
WAL-MART

• Listen to everyone in your company, exceed your
  customers' expectations, but most importantly,
  control your expenses better than your
  competition, this is where you can always find
  the competitive advantage. Sam Walton

2
WALMART IS A BUY!

• Growth
• Leader in its industry
• Strong Financials
• No real threats
• Good Management
• Successful in their business model
• Future Growth

3
Wal-Mart

• Ticker Symbol WMT
• Exchange Traded on NYSE
• Current Market Price 60.25

4
Wal-Marts History

• 1960s
• Foundation and incorporation
• 1970s
• Wal-Mart goes public
• 1980s
• Sams Club and Superstores open
• 1990s
• Expansion everywhere

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How Does The Business Work?
SUPPLIER 1
Warehouse
SUPPLIER 2
FOOD
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How Does the Business Work?
Median to Low Household Income
Grocery Stores
Gas Stations
7
Sales
8
Earnings Per Share
9
Future EPS
10
Number of stores
11
Industry Leader
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Porters Five Forces

• Bargaining Power of Suppliers
• Threat of New entrants
• Bargaining power of Buyers
• Threats of substitute products or services
• Rivalry among existing competitors

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Strong Financials

• EPS
• 1.25
• PE Ratio
• 41.61
• Current Ratio
• 0.99
• Debt/Equity
• 0.67
• Return on Assets 
• 8.18
• Return on Equity 
• 20.29

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Stock Chart
15
No real threats

• Margins are decreasing
• Still have best margins in the industry
• K-Mart coming back and beating Wal-Mart
• Yeah, like thats going to happen

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Successful in their business model

• What is their business model?

17
Basket of Goods Analysis

• Looked for .. Items and recorded their price
• Electronics
• Clothes
• Pharmacy
• Sports
• Cleaning Supplies
• Food
• School Supplies
• Hardware
• Calculated total savings

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Good Management

• President CEO
• H. Lee Scott
• Executive Vice President
• Thomas D. Hyde
• Chairman of the Board
• S. Robson Walton
• CIO
• Thomas M. Schoewe

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Questions?