(By Dividends4Life) This article originally appeared on The DIV-Net April 23, 2012.
Linked here is a detailed quantitative analysis of Wal-Mart Stores, Inc. (WMT). Below are some highlights from the above linked analysis:Company Description: Wal-Mart Stores, Inc. is the largest retailer in North America, Wal-Mart operates a chain of discount department stores, wholesale clubs, and combination discount stores and supermarkets.Fair Value: In calculating fair value, I consider the NPV MMA Differential Fair Value along with these four calculations of fair value, see page 2 of the linked PDF for a detailed description:
1. Avg. High Yield Price
2. 20-Year DCF Price
3. Avg. P/E Price
4. Graham Number
WMT is trading at a discount to only 1.) above. The stock is trading at a 13.0% discount to its calculated fair value of $68.69. WMT earned a Star in this section since it is trading at a fair value.Dividend Analytical Data: In this section there are three possible Stars and three key metrics, see page 2 of the linked PDF for a detailed description:
1. Free Cash Flow Payout
2. Debt To Total Capital
3. Key Metrics
4. Dividend Growth Rate
5. Years of Div. Growth
6. Rolling 4-yr Div. > 15%
WMT earned three Stars in this section for 1.), 2.) and 3.) above. A Star was earned since the Free Cash Flow payout ratio was less than 60% and there were no negative Free Cash Flows over the last 10 years. The stock earned a Star as a result of its most recent Debt to Total Capital being less than 45%. WMT earned a Star for having an acceptable score in at least two of the four Key Metrics measured.
China’s high and rising corporate debt problem and how best to address it has received much attention read on...
It’s all about jobs now. Actually, it’s always been about jobs. But the stakes are even higher—perhaps more read on...
In this current era of central planning, malincentives abound. We raced to frack as fast we could for the read on...
The Federal Reserve left interest rates unchanged yesterday, as widely expected. But the possibility of a read on...