# Walmart (NYSE:WMT)



## Ethan (Aug 8, 2010)

Walmart just released their Q4 2013 financial results. The results were above expectations and included an 18% increase in the dividend.

I hold a small and growing stake in Walmart in my RRSP, and here's why. I calculate their free cash flow (in millions) as 

25,591 - Operating cash flows
1,060 - add back decrease in working capital
(12,898) - deduct capital expenditures
13,573

Walmart's market cap is 17.5x free cash flows, or $237,710 million. Walmart has sufficient dividend coverage, considering FY13 dividends were $5,361 million, or 40% of free cash flows. I expect annual dividend increases in the 15% range given the excess cash flow the corporation is generating.

From a qualitative standpoint, I find their new super centers convenient and well located, if I need a random assortment of items I simply go to Walmart as I know they'll have everything I need.

What are your thoughts on Walmart?


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## sags (May 15, 2010)

There late January sales were dreadful.........and the first of February has been worse.

There was an article about emails made public from a Walmart executive asking "where have all the customers gone"?


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## none (Jan 15, 2013)

I don't shop at walmart anymore. I kind of slid a bit because it's a crazy cheap place to buy cheap crap for kids parties etc.

really though I've stopped shopping there because:
1) It's too damn big and annoying and there are lots of freakie deekies there: http://www.peopleofwalmart.com/
2) Their attitude about selling the AR15 assault weapons after the 20 kids getting killed was offensive
3) I don't really trust they source quality - non-poison Chinese products
4) They treat their employees like crap. 

I can get much better quality stuff at Costco at what I consider to be fair prices. Also, they don't sell guns, they has a CEO that gets paid reasonably, and they treat their employees with a bit of dignity.

I'll take my consumer votes to Costco thanks. Walmart can suck it.


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## doctrine (Sep 30, 2011)

I shop at Wal-Mart all the time. The Walmart P/E is 15 so I would say its neutral based on price - would have been nice getting in at the 10-11 P/E of 2009-2011, of course. But, with neutral means it's okay by my books to start building a position.


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## daddybigbucks (Jan 30, 2011)

none said:


> I don't shop at walmart anymore. I kind of slid a bit because it's a crazy cheap place to buy cheap crap for kids parties etc.
> 
> really though I've stopped shopping there because:
> 1) It's too damn big and annoying and there are lots of freakie deekies there: http://www.peopleofwalmart.com/
> ...


I agree. I hate walmart. And i won't step foot in one, let alone invest in the parent company.

One thing that bothered me when i go there is that, all the aisles are packed with stuff that its hard to move around. I never understood that.
Then it dawned on me, they probably do that because that's the way hoarders live. So hoarders feel comfortable in there.
Kinda a weird opinion i know, but there just is nothing positive in a walmart. So i avoid it like the plague.


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## sags (May 15, 2010)

That is funny about the "hoarder" environment..........lol.

I have a family member who is a store manager, who told me they were taking out the self serve checkouts because theft went through the roof.

The biggest thing the stores are told to push these days..........is the Walmart Credit Card.

We have one older store here.........that is filthy. The bathrooms are a disaster and should be an embarrassment to Walmart.

The new superstore is huge........well designed..........and well stocked. It has a deli and a bakery.

My biggest complaint with them is grocery buyers have to stand in regular lineups with people buying merchandise. 

Combine that with "older" employees they have plodding along at the cash register (I am old and I can say that) and you have an hour wait.

I don't buy ice cream there anymore.


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## none (Jan 15, 2013)

sags said:


> I don't buy ice cream there anymore.


There is a story here and I want to hear it.


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## sags (May 15, 2010)

none said:


> There is a story here and I want to hear it.


Not a big story..............just a soggy box of ice cream left at the cashier.

We had our 4 year old grandson with us..........and that did remind me of another time.

We were returning from a car trip to Florida and got pulled into the customs office at the border on the way back in to Canada.

We had our 4 year old son with us.............who at the time had the ability to turn into an indescribably intolerable little monster, when the mood struck him.

As we sat in the crowded office area.......waiting and waiting and waiting until the Customs officials got around to us, my wife was struggling to keep the little guy under control. I told her to let him go wild ..........and she did.

A few minutes later ..............and they cleared us right out of there.


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## GGO (Feb 15, 2015)

Noticed that this one has been sliding downwards lately and wonder if it's a good buy now or still expensive? They announced recently to increase wages by about 1 billion dollars and I guess that will hurt their bottom line. Any thoughts? Thanks.


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## Getafix (Dec 29, 2014)

sags said:


> We had our 4 year old son with us.............who at the time had the ability to turn into an indescribably intolerable little monster, when the mood struck him.
> 
> As we sat in the crowded office area.......waiting and waiting and waiting until the Customs officials got around to us, my wife was struggling to keep the little guy under control. I told her to let him go wild ..........and she did.
> 
> A few minutes later ..............and they cleared us right out of there.


Hahah! Sounds just like my son, who just turned four. Please tell me it gets better with time?!


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