Costco Wholesale Corporation, together with its subsidiaries, engages in the operation of membership warehouses in the United States, Puerto Rico, Canada, the United Kingdom, Mexico, Japan, Korea, Australia, Spain, France, Iceland, China, and Taiwan.
Costco Wholesale Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$459.51|
|52 Week High||US$307.00|
|52 Week Low||US$469.77|
|1 Month Change||1.16%|
|3 Month Change||20.64%|
|1 Year Change||36.78%|
|3 Year Change||95.74%|
|5 Year Change||201.26%|
|Change since IPO||4,736.95%|
Recent News & Updates
Costco Stock: Priced For Near Perfection
Costco is set to report its fiscal Q4 results later this month, after posting a strong beat in fiscal Q3, with revenue up 21% year-over-year, and 3% ahead of estimates. Given the company's strong July/August net sales, it looks like the company should post a solid fiscal Q4 performance, with revenue set to increase ~15% year-over-year to a new record. However, at more than 45x FY2021 earnings estimates, Costco looks priced for near perfection, with this figure being well above stock's historical earnings multiple. In summary, I see no way to justify chasing the stock above $460.00, and I would view rallies above $477.00 before year-end as an opportunity to book some profits.
Costco Wholesale (NASDAQ:COST) Might Become A Compounding Machine
There are a few key trends to look for if we want to identify the next multi-bagger. In a perfect world, we'd like to...
Costco Wholesale (NASDAQ:COST) is Surprisingly Good at Delivering Returns
Costco Wholesale (NASDAQ:COST), has been around since 1976, and the company delivered a 1-year total return of 35.6%. That is quite impressive for this mature, US$200 billion Market Cap Company. Costco is the 3rd largest retailer with 809 warehouses worldwide and US$186b trailing twelve months revenue.
Costco: I Love The Company, Not The Valuation
Costco is up ~20% YTD as U.S. equities continue to rise to all-time highs. As of August 16th, the company has a market capitalization of $200.2B. Historically, I have been bullish on Costco given its unique business model, exceptional brand recognition, and impressive financial performance. Under many market conditions, I would seriously consider buying Costco stock; however, under current market conditions, the company’s valuation is too high to justify buying.
Should You Be Adding Costco Wholesale (NASDAQ:COST) To Your Watchlist Today?
It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks...
|COST||US Consumer Retailing||US Market|
Return vs Industry: COST exceeded the US Consumer Retailing industry which returned 17.8% over the past year.
Return vs Market: COST exceeded the US Market which returned 33.8% over the past year.
Stable Share Price: COST is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 2% a week.
Volatility Over Time: COST's weekly volatility (2%) has been stable over the past year.
About the Company
Costco Wholesale Corporation, together with its subsidiaries, engages in the operation of membership warehouses in the United States, Puerto Rico, Canada, the United Kingdom, Mexico, Japan, Korea, Australia, Spain, France, Iceland, China, and Taiwan. It offers branded and private-label products in a range of merchandise categories. The company provides dry and packaged foods, and groceries; snack foods, candies, alcoholic and nonalcoholic beverages, and cleaning supplies; appliances, electronics, health and beauty aids, hardware, and garden and patio products; meat, bakery, and deli products, as well as produce; and apparel and small appliances.
Is Costco Wholesale undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: COST ($459.51) is trading below our estimate of fair value ($465.05)
Significantly Below Fair Value: COST is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: COST is poor value based on its PE Ratio (43x) compared to the US Consumer Retailing industry average (20.8x).
PE vs Market: COST is poor value based on its PE Ratio (43x) compared to the US market (17.8x).
Price to Earnings Growth Ratio
PEG Ratio: COST is poor value based on its PEG Ratio (5.3x)
Price to Book Ratio
PB vs Industry: COST is overvalued based on its PB Ratio (12.3x) compared to the US Consumer Retailing industry average (2.3x).
How is Costco Wholesale forecast to perform in the next 1 to 3 years based on estimates from 26 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: COST's forecast earnings growth (8.1% per year) is above the savings rate (2%).
Earnings vs Market: COST's earnings (8.1% per year) are forecast to grow slower than the US market (14.9% per year).
High Growth Earnings: COST's earnings are forecast to grow, but not significantly.
Revenue vs Market: COST's revenue (7.2% per year) is forecast to grow slower than the US market (9.8% per year).
High Growth Revenue: COST's revenue (7.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: COST's Return on Equity is forecast to be high in 3 years time (25%)
How has Costco Wholesale performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: COST has high quality earnings.
Growing Profit Margin: COST's current net profit margins (2.5%) are higher than last year (2.3%).
Past Earnings Growth Analysis
Earnings Trend: COST's earnings have grown by 13.9% per year over the past 5 years.
Accelerating Growth: COST's earnings growth over the past year (27.4%) exceeds its 5-year average (13.9% per year).
Earnings vs Industry: COST earnings growth over the past year (27.4%) exceeded the Consumer Retailing industry 25%.
Return on Equity
High ROE: COST's Return on Equity (28.2%) is considered high.
How is Costco Wholesale's financial position?
Financial Position Analysis
Short Term Liabilities: COST's short term assets ($27.9B) do not cover its short term liabilities ($28.0B).
Long Term Liabilities: COST's short term assets ($27.9B) exceed its long term liabilities ($12.3B).
Debt to Equity History and Analysis
Debt Level: COST's debt to equity ratio (44.7%) is considered high.
Reducing Debt: COST's debt to equity ratio has increased from 43.5% to 44.7% over the past 5 years.
Debt Coverage: COST's debt is well covered by operating cash flow (135.2%).
Interest Coverage: COST's interest payments on its debt are well covered by EBIT (56x coverage).
What is Costco Wholesale current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: COST's dividend (0.69%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.33%).
High Dividend: COST's dividend (0.69%) is low compared to the top 25% of dividend payers in the US market (3.6%).
Stability and Growth of Payments
Stable Dividend: COST is not paying a notable dividend for the US market, therefore no need to check if payments are stable.
Growing Dividend: COST is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: COST is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of COST's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
W. Jelinek (69 yo)
Mr. W. Craig Jelinek has been the President and Chief Executive Officer of Costco Wholesale Corporation since February 2010 and January 1, 2012 respectively and served as its Executive Vice President of Me...
CEO Compensation Analysis
Compensation vs Market: W.'s total compensation ($USD8.28M) is about average for companies of similar size in the US market ($USD11.36M).
Compensation vs Earnings: W.'s compensation has been consistent with company performance over the past year.
Experienced Management: COST's management team is seasoned and experienced (14.3 years average tenure).
Experienced Board: COST's board of directors are considered experienced (5.9 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: COST insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Costco Wholesale Corporation's employee growth, exchange listings and data sources
- Name: Costco Wholesale Corporation
- Ticker: COST
- Exchange: NasdaqGS
- Founded: 1976
- Industry: Hypermarkets and Super Centers
- Sector: Consumer Retailing
- Market Cap: US$203.135b
- Shares outstanding: 442.07m
- Website: https://www.costco.com
Number of Employees
- Costco Wholesale Corporation
- 999 Lake Drive
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/09/18 22:02|
|End of Day Share Price||2021/09/17 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.