Brief presentation of the company
- Name / ISIN: Wal-Mart de Mexico SAB - MX01WA000038
- Sector / Industry: Consumer Staples - Grocery, e.g. Bodega Aurrera,Walmart Supercenter, Sam's Club, Superama,
Walmart Express, Suburbia, Farmacias Medimart - Geographical positioning: Mexico (90 % sales), Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica
- Special features: largest retailer in Mexico, listed subsidiary of Walmart USA,
Fundamental key figures (as at Q4 24, rounded)
- Market capitalization: MXN 1,027.952 billion
- P/E ratio / forward P/E ratio: 19 /22
- Sales growth (3y CAGR): 9%
- Profit growth: 10%
- Free cash flow mage: 6%
- Debt to equity ratio: 16
- Dividend yield: 3.7%
Valuation and comparison
- The historical average P/E ratio of Walmex is 24.07 over the last 10 years. The share therefore appears to be cheaply valued.
- Peer group: Walmart USA P/E 39
- Walmex delivers a very strong balance sheet and growth. Walmex opened 180 new stores in 2024. In 2025, the aim is to double this number and open 365 units, one store per day.
Opportunities & investment thesis
- Demographics & consumption boom in Mexico and Central America
- Digital transformation: eCommerce + logistics network being aggressively expanded
- Defensive business model in a region with high potential in retail
- Interesting currency (MXN) with positive real interest rate and relative stability vs. USD/EUR
Risks
- Concentration on Mexico - high domestic dependency
- Political risks (e.g. wage regulation, tax policy)
- Margin pressure from online trading and new competitors
- Currency risk for euro investors
Chart technology
- After months in a downtrend, the trend may be reversing after the last breakout
- short-term overbought
Personal assessment
- Interesting long-term quality share with a defensive profile
- Solid mix of dividend, growth đ¤ & emerging market exposure
- I am invested and would like to increase the position in the event of a setback đ¤
