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Analyzing the Quality Characteristics of COSTCO WHOLESALE CORP (NASDAQ:COST).

By Mill Chart

Last update: Dec 7, 2023

In this article we will dive into COSTCO WHOLESALE CORP (NASDAQ:COST) as a possible candidate for quality investing. Investors should always do their own research, but we noticed COSTCO WHOLESALE CORP showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Looking into the quality metrics of COSTCO WHOLESALE CORP

  • 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.
  • With a notable ROIC excluding cash and goodwill at 31.64%, COSTCO WHOLESALE CORP demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
  • With a favorable Debt/Free Cash Flow Ratio of 0.96, COSTCO WHOLESALE CORP showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
  • COSTCO WHOLESALE CORP exhibits impressive Profit Quality (5-year) with a 103.0% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
  • COSTCO WHOLESALE CORP has experienced impressive EBIT growth over the past 5 years, with 12.61% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
  • COSTCO WHOLESALE CORP has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

Zooming in on the fundamentals.

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 6 out of 10. We evaluated COST against 43 industry peers in the Consumer Staples Distribution & Retail industry. COST gets an excellent profitability rating and is at the same time showing great financial health properties. While showing a medium growth rate, COST is valued expensive at the moment. These ratings would make COST suitable 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.



NASDAQ:COST (2/22/2024, 9:00:38 AM)

After market: 734.4 0 (0%)


+11.38 (+1.57%)


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