Wal Mart de Mexico SAB de CV

Wal Mart de Mexico maintains a capital structure characterized by moderate leverage and tight liquidity metrics. The company reports total equity of 235.58 billion MXN against total liabilities of 259.69 billion MXN, resulting in a debt-to-equity ratio of 0.34. Long-term debt stands at 80.85 billion MXN, while cash and equivalents are reported at 0.0 MXN, leading to a negative net cash position. The current ratio is 0.97, indicating that current liabilities slightly exceed current assets, which aligns with the medium liquidity risk assessment. Operating cash flow is robust at 82.44 billion MXN, but free cash flow is compressed to 6.77 billion MXN due to significant capital expenditures of 38.98 billion MXN.

Profitability metrics demonstrate strong returns on capital employed. The company achieves a return on equity (ROE) of 21.26% and a return on assets (ROA) of 10.11%. Net income of 49.89 billion MXN is derived from operating income of 78.49 billion MXN on revenues of 1.01 trillion MXN. The gross profit margin is approximately 24.2%, calculated from gross profit of 245.20 billion MXN. These returns suggest efficient asset utilization and effective cost management within the retail sector.

Revenue concentration and geographic exposure details are not provided in the available data. The company operates within the Consumer Staples Distribution & Retail industry, implying a broad consumer base, but specific segment breakdowns or regional revenue splits are absent from the current snapshot. Consequently, analysis of revenue concentration risk or geographic diversification benefits cannot be performed with the present information.

Growth trajectory analysis is limited by the absence of historical period data. The current financial snapshot provides a single-period view of revenue at 1.01 trillion MXN and net income at 49.89 billion MXN. Without multi-year annual or quarterly data, trends in revenue growth, earnings stability, or cyclical patterns cannot be established. The valuation multiples, including a P/E of 16.87 and EV/EBITDA of 11.86, reflect current market expectations but do not reveal historical growth rates.

Risk factors include medium liquidity risk and low dilution risk. The key flag notes that net cash is negative after subtracting total debt, highlighting reliance on operating cash flows to service obligations. The current ratio of 0.97 further underscores short-term liquidity pressure. However, the low dilution risk suggests that share count stability is maintained, with basic and diluted shares outstanding both at 17.22 billion.

Recent events and market sentiment indicate a mixed analyst outlook. The mean price target is 64.61 MXN, with a median of 65.00 MXN, suggesting upside potential from the current market price of 49.06 MXN. The mean recommendation is 2.71, leaning towards a hold rating, with 10 hold recommendations, 3 buy, and 2 strong buy ratings. The high price target of 81.00 MXN and low of 53.00 MXN reflect a wide dispersion in analyst expectations.

Revenue grew at an 8.3% CAGR from 2022 to 2026, demonstrating consistent top-line expansion over the four-year period.

Analysts project 23.9% upside to the mean price target of 64.61 pesos from the current market price.

Operating margin of 7.7% exceeds the cohort median of 7.5%, indicating superior operational efficiency relative to peers.

Free cash flow surged 65.5% year-over-year in 2026, reaching 6.77 billion pesos after a dip in 2024.

Net margin of 4.9% falls below the cohort median of 5.3%, suggesting lower bottom-line efficiency than peers.

Long-term debt increased steadily from 64.7 billion pesos in 2022 to 80.8 billion pesos in 2026.

The company faces a medium level of liquidity risk according to internal risk flag assessments.

Free cash flow turned negative in 2024, dropping to -3.24 billion pesos before recovering in subsequent years.

Revenue MXN 245.02B, +1,7% YoY; Operating income −2,2% YoY.

• ▍Revenue MXN 245.02B, +1,7% YoY
• ▍Operating income −2,2% YoY
• ▍Net income +1,5% YoY
• ▍Free cash flow +9,9% YoY
• ▍Net margin 5.1%

Revenue MXN 282.85B, +3,0% YoY; Operating income +8,5% YoY.

• ▍Revenue MXN 282.85B, +3,0% YoY
• ▍Operating income +8,5% YoY
• ▍Net income −4,0% YoY
• ▍Free cash flow −39,9% YoY
• ▍Net margin 5.2%

Revenue MXN 241.52B, +4,9% YoY; Operating income +1,6% YoY.

• ▍Revenue MXN 241.52B, +4,9% YoY
• ▍Operating income +1,6% YoY
• ▍Net income −9,2% YoY
• ▍Free cash flow −17,2% YoY
• ▍Net margin 4.9%

Revenue MXN 246.25B, +8,3% YoY; Operating income −4,0% YoY.

• ▍Revenue MXN 246.25B, +8,3% YoY
• ▍Operating income −4,0% YoY
• ▍Net income −10,3% YoY
• ▍Free cash flow −8,4% YoY
• ▍Net margin 4.6%

Revenue MXN 240.97B; Operating income MXN 18.89B.

• ▍Revenue MXN 240.97B
• ▍Operating income MXN 18.89B
• ▍Net margin 5.1%

Revenue MXN 274.70B; Operating income MXN 21.48B.

• ▍Revenue MXN 274.70B
• ▍Operating income MXN 21.48B
• ▍Net margin 5.5%

Revenue MXN 230.19B; Operating income MXN 18.72B.

• ▍Revenue MXN 230.19B
• ▍Operating income MXN 18.72B
• ▍Net margin 5.6%

Revenue MXN 227.42B; Operating income MXN 17.98B.

• ▍Revenue MXN 227.42B
• ▍Operating income MXN 17.98B
• ▍Net margin 5.5%

Revenue MXN 1.01T, +5,5% YoY; Operating income +1,5% YoY.

• ▍Revenue MXN 1.01T, +5,5% YoY
• ▍Operating income +1,5% YoY
• ▍Net income −7,3% YoY
• ▍Free cash flow +65,5% YoY
• ▍Net margin 4.9%

Revenue MXN 958.51B, +8,1% YoY; Operating income +5,6% YoY.

• ▍Revenue MXN 958.51B, +8,1% YoY
• ▍Operating income +5,6% YoY
• ▍Net income +4,3% YoY
• ▍Free cash flow +226,2% YoY
• ▍Net margin 5.6%

Revenue MXN 886.52B, +8,2% YoY; Operating income +7,7% YoY.

• ▍Revenue MXN 886.52B, +8,2% YoY
• ▍Operating income +7,7% YoY
• ▍Net income +5,3% YoY
• ▍Free cash flow −118,9% YoY
• ▍Net margin 5.8%

Revenue MXN 819.17B, +11,3% YoY; Operating income +8,1% YoY.

• ▍Revenue MXN 819.17B, +11,3% YoY
• ▍Operating income +8,1% YoY
• ▍Net income +11,0% YoY
• ▍Free cash flow +27,5% YoY
• ▍Net margin 6.0%