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Costco Wholesale Corp COST

Morningstar Rating
$838.13 −1.24 (0.15%)
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Company Report

Price vs Fair Value

COST is trading at a 515% premium.
Price
$838.13
Fair Value
$864.00
Uncertainty
Medium
1-Star Price
$178.40
5-Star Price
$794.00
Economic Moat
Mkgf
Capital Allocation
Dwtrflxs

Bulls Say, Bears Say

Bulls

Costco maintains a proven formula for successfully translating its operations across borders and faces minimal direct competition abroad, implying a long runway of growth prospects.

Bears

As Costco reaches a point of maturity in its US and Canadian markets, the firm’s cost leverage may show signs of deterioration.

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News

Trading Information

Previous Close Price
$839.37
Day Range
$835.56848.88
52-Week Range
$530.56896.67
Bid/Ask
$837.20 / $844.15
Market Cap
$371.57 Bil
Volume/Avg
177 / 1.9 Mil

Key Statistics

Price/Earnings (Normalized)
52.95
Price/Sales
1.47
Dividend Yield (Trailing)
0.50%
Dividend Yield (Forward)
0.55%
Total Yield
0.70%

Company Profile

Costco operates a membership-based, no-frills retail model, predicated on offering a select product assortment in bulk quantities at bargain prices. The firm avoids maintaining costly product displays by keeping inventory on pallets and limits distribution expenses by storing its inventory at point of sale in the warehouse. Given Costco’s frugal cost structure, the firm is able to price its merchandise below competing retailers, driving high sales volume per warehouse and allowing the retailer to generate strong profits on thin margins. Costco operates over 600 warehouses in the United States and enjoys over 60% market share in the domestic warehouse club industry. Internationally, Costco operates another 270 warehouses, primarily in markets such as Canada, Mexico, Japan, and the UK.
Sector
Consumer Defensive
Industry
Discount Stores
Stock Style Box
Large Core
Total Number of Employees
316,000

Competitors

Valuation

Metric
COST
KR
TGT
Price/Earnings (Normalized)
52.9511.5716.80
Price/Book Value
17.073.175.01
Price/Sales
1.470.260.65
Price/Cash Flow
35.296.869.12
Price/Earnings
COST
KR
TGT

Financial Strength

Metric
COST
KR
TGT
Quick Ratio
0.400.370.18
Current Ratio
0.940.860.86
Interest Coverage
51.737.7812.52
Quick Ratio
COST
KR
TGT

Profitability

Metric
COST
KR
TGT
Return on Assets (Normalized)
11.34%6.44%7.99%
Return on Equity (Normalized)
33.24%28.12%34.30%
Return on Invested Capital (Normalized)
22.77%11.42%14.78%
Return on Assets
COST
KR
TGT
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Capital Allocation
Economic Moat
Market Cap
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Wal - Mart de Mexico SAB de CV
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DLMAF
Gqdlz$26.3 Bil
Dollar Tree Inc
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Pan Pacific International Holdings Corp ADR
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BJ's Wholesale Club Holdings Inc
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