"Is Walmart Inc. (WMT) the Best Low Risk Stock to Buy In 2025?"

Ladies and gentlemen, listen up! We're diving into the world of retail giants, and today, we're talking about Walmart Inc. (WMT). Is it the best low-risk stock to buy in 2025? Let's find out!

First things first, Walmart is the king of retail. With a market cap of $735.3 billion and operations in all 50 states in the US, this company is a behemoth. But what makes it a low-risk investment? Let's break it down!

1. Dividend Cover and Growth: Walmart has a dividend cover of 2.3, meaning its earnings are more than twice the amount it pays out in dividends. This is a strong indicator of financial stability. Plus, Walmart has a history of increasing its dividends year over year. This consistency is a big plus for income-focused investors.

2. Financial Ratios: Walmart's return on equity (ROE) is 21.41%, and its return on invested capital (ROIC) is 11.83%. These numbers show that Walmart is efficient with its capital and profitable. Its debt-to-equity ratio of 0.62 is relatively low, indicating a healthy balance sheet.

3. Market Performance: Walmart's stock price has increased by 47.39% in the last 52 weeks. Its beta of 0.54 suggests lower price volatility than the market average. This stability is a key factor that sets Walmart apart from many of its peers.

4. Analyst Consensus: According to 32 analysts, the average rating for WMT stock is "Strong Buy." The 12-month stock price forecast is $101.53, which is an increase of 15.00% from the latest price. This strong buy rating and positive price forecast further support the idea that Walmart is a low-risk investment with significant upside potential.

Now, let's talk about the potential risks. Walmart's dividend cover, while currently at 2.3, could be affected by fluctuations in earnings. Additionally, the company's dividend growth has been negative in the past year, with a dividend growth (YoY) of -15.06%. This decline in dividend growth could be a concern for investors who rely on consistent dividend increases.

Another risk is the company's financial position. Walmart has a current ratio of 0.82, which is below the industry average, indicating potential liquidity issues. The company also has a significant amount of debt, with total debt of $60.11 billion and a net cash position of -$51.08 billion. This high level of debt could impact the company's ability to maintain its dividend payments, especially in an economic downturn.

But let's not forget about Walmart's strategic initiatives and market trends. Walmart's focus on eCommerce, as evidenced by its operation of ecommerce websites such as walmart.com.mx, walmart.ca, flipkart.com, PhonePe, and other sites, as well as mobile commerce applications, allows it to tap into the growing trend of online shopping. Additionally, Walmart's acquisition of Flipkart, one of India's leading ecommerce platforms, positions the company to capitalize on the rapidly growing Indian market.

Walmart's strong financial performance and dividend history also contribute to its status as a low-risk stock. In 2024, Walmart's revenue was $680.99 billion, an increase of 5.07% compared to the previous year, and earnings were $19.44 billion, an increase of 25.30%. This strong financial performance demonstrates Walmart's ability to generate consistent earnings growth, even in challenging economic conditions.

Finally, Walmart's strong market position and competitive advantages also contribute to its status as a low-risk stock. Walmart is the world's biggest retailer, with a market cap of $735.3bn and 8,033 million shares in issue. This market position provides Walmart with significant economies of scale and bargaining power with suppliers. Additionally, Walmart's strong brand recognition and customer loyalty provide the company with a competitive advantage in the retail industry.



So, is Walmart Inc. (WMT) the best low-risk stock to buy in 2025? The answer is a resounding YES! With its strong dividend cover, consistent dividend growth history, favorable financial ratios, stable market performance, and positive analyst consensus, Walmart is a reliable and attractive investment option. Don't miss out on this opportunity to own a piece of the world's biggest retailer!