Wal-Mart Inc. May Invest in Chinese Company 360buy.com

Wal-Mart Inc. (NYSE:WMT) has agreed to invest in 360buy.com, which is one of the fastest growing online retail companies in China. Wal-Mart Inc. would be making investments worth $500 million, in collaboration with five other companies. 360buy.com founder and Chief executive officer Liu Qiangdong made this announcement via a Chinese microblogging site.

* 360buy.com is a privately owned company.
* 360buy.com has declined to divulge the size of Wal-Mart Inc’s investment in the company.

Wal-Mart Inc., however, refused to confirm the news. China is fast emerging as an attractive destination for retail companies. Many companies such as Gap are making aggressive investment in the market. Wal-Mart Inc. currently operates more than 200 stores in the country. Chinese online video site Youku.com had recently raised more than $200 million via its initial public offering in the US. The other attractive internet companies in China are Baidu and Alibaba.

China currently has more than 420 million internet users. Wal-Mart Inc. operates its retail stores worldwide. The company offers various products including deli, dairy, meat and beauty aids. It also pet supplies and electronics. The company is based out of Arkansas.

Key Financial Stats

Valuation

* Price/Earnings(TTM)13.40
* Price/Cash Flow8.20
* Price/Sales (TTM)0.46
* Price/Book2.91

Financial Strength

* Quick Ratio (MRQ)0.20
* Current Ratio (MRQ)0.90
* LT Debt to Equity (MRQ)0.67
* Total Debt to Capital (MRQ)0.87
* Return on Equity23.80

Assets

* Asset Turnover2.30
* Asset per Employee23014.76
* Inventory Turnover7.70

Per Share Data

* Earnings (TTM)4.01
* Current P/E Ratio0.90
* Cash Flow6.50
* Annual Dividend1.21
* Book Value18.40
* EBITDA6.00

Profitability

* Market Cap4.01
* Gross Margin (TTM)27.00
* Operating Margin (TTM)6.00
* Profit Margin (TTM) 3.70

Management Effectiveness

* Return on Equity (TTM)23.80%
* Return on Assets (TTM)8.40%
* Return on Investment (TTM)14.30%