Why quality investors should have a look at COSTCO WHOLESALE CORP (NASDAQ:COST).

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 course 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 shown strong performance in revenue growth over the past 5 years, with a 11.34% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
• The ROIC excluding cash and goodwill of COSTCO WHOLESALE CORP stands at 30.08%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
• With a Debt/Free Cash Flow Ratio of 0.96, 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 robust Profit Quality (5-year) ratio of 103.0%, COSTCO WHOLESALE CORP highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
• COSTCO WHOLESALE CORP has demonstrated consistent growth in EBIT over the past 5 years, with a strong 12.61%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
• With EBIT 5-year growth outpacing its Revenue 5-year growth, COSTCO WHOLESALE CORP showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

How does the complete fundamental picture look for NASDAQ:COST?

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

Overall COST gets a fundamental rating of 5 out of 10. We evaluated COST against 44 industry peers in the Consumer Staples Distribution & Retail industry. COST has an excellent profitability rating, but there are some minor concerns on its financial health. While showing a medium growth rate, COST is valued expensive at the moment.

Our latest full fundamental report of COST contains the most current fundamental analsysis.

More quality stocks can be found in our Caviar Cruise screen.

Disclaimer

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.