Is NASDAQ:COST suited for quality investing?

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if COSTCO WHOLESALE CORP (NASDAQ:COST) is suited for quality investing. Investors should of couse do their own research, but we spotted COSTCO WHOLESALE CORP showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Why NASDAQ:COST may be interesting for quality investors.

• COSTCO WHOLESALE CORP has achieved substantial revenue growth over the past 5 years, with a 11.96% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
• COSTCO WHOLESALE CORP exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 27.8% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
• With a Debt/Free Cash Flow Ratio of 1.12, COSTCO WHOLESALE CORP exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
• With a favorable Profit Quality (5-year) ratio of 99.93%, COSTCO WHOLESALE CORP showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
• The 5-year EBIT growth of COSTCO WHOLESALE CORP has been remarkable, with 13.99% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
• COSTCO WHOLESALE CORP demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

What is the full fundamental picture of NASDAQ:COST telling us.

Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple fundamental indicators and properties.

Overall COST gets a fundamental rating of 6 out of 10. We evaluated COST against 41 industry peers in the Consumer Staples Distribution & Retail industry. COST has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. COST is quite expensive at the moment. It does show a decent growth rate. This makes COST very considerable for quality investing!

Check the latest full fundamental report of COST for a complete fundamental analysis.

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.