Walmart vs Philip Morris International
This page compares Walmart and Philip Morris International, outlining their business models, financial performance, and market context in a clear, neutral manner. Educational content, not financial advice.
This page compares Walmart and Philip Morris International, outlining their business models, financial performance, and market context in a clear, neutral manner. Educational content, not financial ad...
Why It's Moving
Walmart Hits All-Time High on Black Friday Boom and Nasdaq Switch
- Black Friday online sales jumped 9.1% to $11.8 billion, powered by the new AI shopping assistant Sparky that boosted customer conversions.
- Opened a $350 million dairy plant in Georgia to tighten grocery cost controls and bolster supply chain efficiency for high-margin essentials.
- Shifted to Nasdaq Global Select Market on Dec. 9, underscoring its pivot to a tech-driven omnichannel powerhouse.
Philip Morris lifts dividend and reaffirms 2025 outlook, keeping investors focused on cash returns amid steady consumption trends.
- Dividend boost: The board declared a regular quarterly cash dividend of $1.47 per share, underscoring management’s emphasis on returning cash to shareholders and supporting income-oriented investor demand.
- Guidance reaffirmed: Management reiterated its 2025 full‑year reported diluted EPS forecast at the Morgan Stanley Global Consumer & Retail conference, signaling confidence in near‑term revenue and margin assumptions despite macro and regulatory headwinds.
- Product mix and strategy: Commentary this week reiterated focus on smoke‑free and oral nicotine growth (IQOS and ZYN) — a reminder that PMI’s shift away from combustible cigarettes continues to underpin long‑term margin support and steady cash flow generation.
Walmart Hits All-Time High on Black Friday Boom and Nasdaq Switch
- Black Friday online sales jumped 9.1% to $11.8 billion, powered by the new AI shopping assistant Sparky that boosted customer conversions.
- Opened a $350 million dairy plant in Georgia to tighten grocery cost controls and bolster supply chain efficiency for high-margin essentials.
- Shifted to Nasdaq Global Select Market on Dec. 9, underscoring its pivot to a tech-driven omnichannel powerhouse.
Philip Morris lifts dividend and reaffirms 2025 outlook, keeping investors focused on cash returns amid steady consumption trends.
- Dividend boost: The board declared a regular quarterly cash dividend of $1.47 per share, underscoring management’s emphasis on returning cash to shareholders and supporting income-oriented investor demand.
- Guidance reaffirmed: Management reiterated its 2025 full‑year reported diluted EPS forecast at the Morgan Stanley Global Consumer & Retail conference, signaling confidence in near‑term revenue and margin assumptions despite macro and regulatory headwinds.
- Product mix and strategy: Commentary this week reiterated focus on smoke‑free and oral nicotine growth (IQOS and ZYN) — a reminder that PMI’s shift away from combustible cigarettes continues to underpin long‑term margin support and steady cash flow generation.
Which Baskets Do They Appear In?
Stagflation Standouts
This collection features stocks and assets carefully selected by professional analysts to potentially outperform during stagflation periods. These defensive investments have already shown strength while the broader market struggles, making them worth consideration for economic uncertainty ahead.
Published: May 19, 2025
Explore BasketWhich Baskets Do They Appear In?
Stagflation Standouts
This collection features stocks and assets carefully selected by professional analysts to potentially outperform during stagflation periods. These defensive investments have already shown strength while the broader market struggles, making them worth consideration for economic uncertainty ahead.
Published: May 19, 2025
Explore BasketInvestment Analysis
Walmart
WMT
Pros
- Walmart maintains a dominant US retail market share, benefiting as inflation pressures drive consumers toward value-focused retailers.
- The company is rapidly expanding e-commerce, now accounting for 18% of net sales, with automation expected to improve supply chain efficiency over time.
- Walmart’s balance sheet is robust, with a low debt-to-equity ratio of 0.43, signalling lower financial risk and strong stability.
Considerations
- Recent net income declined year-over-year despite revenue growth, partly due to higher costs for sales and operating expenses, especially in e-commerce.
- The quick ratio of 0.23 suggests potential short-term liquidity challenges, as the company may struggle to cover liabilities without liquidating inventory.
- Walmart’s high price-to-earnings ratio (over 40) indicates the stock may already reflect much of its near-term growth potential, raising valuation concerns.
Pros
- Philip Morris International has a diversified global portfolio beyond traditional cigarettes, with strong growth in smoke-free products like IQOS and ZYN.
- The company offers an attractive dividend yield near 4%, supported by consistent cash generation and a shareholder-friendly capital allocation policy.
- Analyst sentiment is positive, with consensus ratings leaning toward buy, reflecting confidence in the company’s strategic pivot and international reach.
Considerations
- Philip Morris faces ongoing regulatory risks and public health scrutiny as global tobacco restrictions intensify, particularly in developed markets.
- While smoke-free products are growing, traditional cigarette sales still dominate revenue, exposing the company to secular declines in smoking rates.
- Net income declined year-over-year in 2024 despite revenue growth, indicating margin pressures that could persist amid product mix transition costs.
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