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.

Some of the quality metrics of NASDAQ:COST highlighted

• COSTCO WHOLESALE CORP has demonstrated significant revenue growth over the past 5 years, with a 11.34% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
• The ROIC excluding cash and goodwill of COSTCO WHOLESALE CORP stands at 29.85%, 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.
• COSTCO WHOLESALE CORP demonstrates a well-balanced Debt/Free Cash Flow Ratio of 1.12, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
• 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.
• COSTCO WHOLESALE CORP has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

Zooming in on the fundamentals.

ChartMill assigns a proprietary Fundamental Rating to each stock. The score is computed daily by evaluating various fundamental indicators and properties. The score ranges from 0 to 10.

We assign a fundamental rating of 6 out of 10 to COST. COST was compared to 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. These ratings would make COST suitable for quality investing!

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

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

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.