Business Description
![Costco Wholesale Corp Costco Wholesale Corp logo](https://static.gurufocus.com/logos/0C00000ARG.png?14)
Costco Wholesale Corp
NAICS : 452319
SIC : 5331
ISIN : US22160K1051
Share Class Description:
MEX:COST: Ordinary SharesCompare
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Traded in other countries / regions
COST.USACOST.Canada0I47.UKCOWC34.BrazilCOST.ArgentinaCOST.MexicoCTO.GermanyCOST.Chile1COST.ItalyCOST.Austria IPO Date
2004-12-13Description
Costco operates a membership-based, no-frills retail model, predicated on offering a select product assortment in bulk quantities at bargain prices. The firm avoids maintaining costly product displays by keeping inventory on pallets and limits distribution expenses by storing its inventory at point of sale in the warehouse. Given Costco's frugal cost structure, the firm is able to price its merchandise below competing retailers, driving high sales volume per warehouse and allowing the retailer to generate strong profits on thin margins. Costco operates over 600 warehouses in the United States and enjoys over 60% market share in the domestic warehouse club industry. Internationally, Costco operates another 270 warehouses, primarily in markets such as Canada, Mexico, Japan, and the UK.
Financial Strength
9/10
Name | Current | Vs Industry | Vs History | |||
---|---|---|---|---|---|---|
Cash-To-Debt | 1.24 | |||||
Equity-to-Asset | 0.32 | |||||
Debt-to-Equity | 0.43 | |||||
Debt-to-EBITDA | 0.78 | |||||
Interest Coverage | 51.27 | |||||
Piotroski F-Score | 7/9 | |||||
Altman Z-Score | 9.4 | |||||
Beneish M-Score | -2.82 | |||||
WACC vs ROIC |
Growth Rank
8/10
Name | Current | Vs Industry | Vs History | |||
---|---|---|---|---|---|---|
3-Year Revenue Growth Rate | 13.2 | |||||
3-Year EBITDA Growth Rate | 14.3 | |||||
3-Year EPS without NRI Growth Rate | 16.1 | |||||
3-Year FCF Growth Rate | 3.6 | |||||
3-Year Book Growth Rate | 10.9 | |||||
Future 3-5Y EPS without NRI Growth Rate | 9.93 | |||||
Future 3-5Y Total Revenue Growth Rate | 4 |
Momentum Rank
9/10
Name | Current | Vs Industry | Vs History | |||
---|---|---|---|---|---|---|
5-Day RSI | 51.97 | |||||
9-Day RSI | 57.65 | |||||
14-Day RSI | 62.05 | |||||
6-1 Month Momentum % | 21.46 | |||||
12-1 Month Momentum % | 50.98 |
Liquidity Ratio
Name | Current | Vs Industry | Vs History | |||
---|---|---|---|---|---|---|
Current Ratio | 0.94 | |||||
Quick Ratio | 0.45 | |||||
Cash Ratio | 0.33 | |||||
Days Inventory | 28.11 | |||||
Days Sales Outstanding | 3.65 | |||||
Days Payable | 29.94 |
Dividend & Buy Back
Name | Current | Vs Industry | Vs History | |||
---|---|---|---|---|---|---|
Dividend Yield % | 0.46 | |||||
Dividend Payout Ratio | 0.26 | |||||
3-Year Dividend Growth Rate | 12.5 | |||||
Forward Dividend Yield % | 0.5 | |||||
5-Year Yield-on-Cost % | 0.81 | |||||
3-Year Average Share Buyback Ratio | -0.1 | |||||
Shareholder Yield % | 0.64 |
Profitability Rank
7/10
Name | Current | Vs Industry | Vs History | |||
---|---|---|---|---|---|---|
Gross Margin % | 12.5 | |||||
Operating Margin % | 3.56 | |||||
Net Margin % | 2.83 | |||||
FCF Margin % | 2.93 | |||||
ROE % | 30.57 | |||||
ROA % | 10.43 | |||||
ROIC % | 15.62 | |||||
ROC (Joel Greenblatt) % | 32.77 | |||||
ROCE % | 28.46 | |||||
Years of Profitability over Past 10-Year | 10 |
GF Value Rank
1/10
Name | Current | Vs Industry | Vs History | |||
---|---|---|---|---|---|---|
PE Ratio | 52.66 | |||||
Forward PE Ratio | 48.31 | |||||
PE Ratio without NRI | 53.11 | |||||
Shiller PE Ratio | 79 | |||||
Price-to-Owner-Earnings | 51.5 | |||||
PEG Ratio | 4.05 | |||||
PS Ratio | 1.49 | |||||
PB Ratio | 17.31 | |||||
Price-to-Tangible-Book | 17.31 | |||||
Price-to-Free-Cash-Flow | 50.94 | |||||
Price-to-Operating-Cash-Flow | 31.21 | |||||
EV-to-EBIT | 38.36 | |||||
EV-to-Forward-EBIT | 36.9 | |||||
EV-to-EBITDA | 31.26 | |||||
EV-to-Forward-EBITDA | 27.95 | |||||
EV-to-Revenue | 1.48 | |||||
EV-to-Forward-Revenue | 1.37 | |||||
EV-to-FCF | 50.51 | |||||
Price-to-Projected-FCF | 4.08 | |||||
Price-to-DCF (Earnings Based) | 2.95 | |||||
Price-to-DCF (FCF Based) | 2.1 | |||||
Price-to-Median-PS-Value | 1.86 | |||||
Price-to-Peter-Lynch-Fair-Value | 3.75 | |||||
Price-to-Graham-Number | 6.39 | |||||
Earnings Yield (Greenblatt) % | 2.61 | |||||
FCF Yield % | 1.97 | |||||
Forward Rate of Return (Yacktman) % | 15.66 |