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Exploring NASDAQ:COST's quality characteristics.

By Mill Chart

Last update: Apr 18, 2024

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

  • 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.
  • COSTCO WHOLESALE CORP exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 29.85% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
  • COSTCO WHOLESALE CORP maintains a healthy Debt/Free Cash Flow Ratio of 1.12, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
  • With a favorable Profit Quality (5-year) ratio of 103.0%, 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 12.61% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
  • 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.

Fundamental analysis of NASDAQ:COST

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 41 industry peers in the Consumer Staples Distribution & Retail industry. COST scores excellent points on both the profitability and health parts. This is a solid base for a good stock. COST is quite expensive at the moment. It does show a decent growth rate. These ratings would make COST suitable for quality investing!

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

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.

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COSTCO WHOLESALE CORP

NASDAQ:COST (5/29/2024, 7:00:00 PM)

Premarket: 809.5 +2.98 (+0.37%)

806.52

-6.65 (-0.82%)

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