COSTCO WHOLESALE CORP (NASDAQ:COST) Exhibits Quality Stock Traits. Here's Why.

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 10.75% 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 30.56% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
• With a Debt/Free Cash Flow Ratio of 1.15, 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.
• COSTCO WHOLESALE CORP demonstrates consistent Profit Quality over the past 5 years, with a strong 103.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
• COSTCO WHOLESALE CORP has consistently achieved strong EBIT growth over the past 5 years, with a 14.41% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
• The EBIT 5-year growth of COSTCO WHOLESALE CORP has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

A complete fundamental analysis of NASDAQ:COST

Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 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 has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. While showing a medium growth rate, COST is valued expensive at the moment. These ratings could make COST a good candidate for quality investing.

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

More quality stocks can be found 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.