Exploring NASDAQ:COST's quality characteristics.

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.

Highlighting Notable Quality Metrics of NASDAQ:COST.

• The 5-year revenue growth of COSTCO WHOLESALE CORP has been remarkable, with 11.34% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
• The ROIC excluding cash and goodwill of COSTCO WHOLESALE CORP stands at 32.7%, 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 favorable Debt/Free Cash Flow Ratio of 0.79, 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.
• 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 consistently achieved strong EBIT growth over the past 5 years, with a 12.61% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
• 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, ranging from 0 to 10, is updated daily and is determined by evaluating multiple fundamental indicators and properties.

We assign a fundamental rating of 6 out of 10 to COST. COST was compared to 42 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. COST is quite expensive at the moment. It does show a decent growth rate. This makes COST very considerable for quality investing!

For an up to date full fundamental analysis you can check the fundamental report of COST

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

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.