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About The Company

CEO

Mr. W. Craig Jelinek

Market Cap

322.34 Billion USD

Sector

Consumer Defensive

Website

https://www.costco.com

Last Update

2/22/2024, 12:00:00 PM

Description

Costco Wholesale Corporation, together with its subsidiaries, engages in the operation of membership warehouses in the United States, Puerto Rico, Canada, the United Kingdom, Mexico, Japan, Korea, Australia, Spain, France, Iceland, China, and Taiwan.

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Overview

Value

8

Growth

47

Health

42

Management

68

Analyst Opinion

80

Total

49

All Scores Out Of 100

Best Features

  • Has a low level of debt
  • Low risk of bankruptcy
  • Liked by analysts
  • Has strong dividend growth
  • Low preportion of income is paid as dividend
  • Very safe dividend

Risk Factors

  • Overvalued on cashflow basis
  • Earnings growth has slowed down recently
  • There is a history of diluting shareholders
  • No margin of safety at their current market price
  • Disliked by Twitter users
  • Price-to-earnings ratio of 51.7 is higher than the market average (19.6x)

Market Peers

COST

Key Figures

PE Ratio (TTM)

51.68

Margin Of Safety (DCF)

-67.67%

Revenue Growth (5 Year Average)

12.45%

Ratings Consensus

Buy

Share Buybacks

-0.24%

Dividend Yeild (TTM)

0.52%

Valuation

Value Score

8

  • Estimated intrinsic-value of 245.42 USD is lower than current price ( 726.79 USD)
  • Price-to-earnings ratio of 51.7 is higher than the market average (19.6x)
  • Free-cashflow-yeild of 2.61% is worse than the market average (4.7%)
  • Margin-of-safety of -67.67% is worse than the market average (17.95%)

Desired Margin Of Safety

0%

Tip: Set your desired Margin Of Safety

Free Cash Flow Type

Annual Cashflow Growth

0%

Discount Rate

0%

Buy Target: < 290.2 USD

Current Price: 759.2 USD

How Does This Work?

Show Advanced Options

This calculator helps investors estimate the Intrinsic Value of a company based on the current value of future cash flows. To use the tool, simply input a desired Margin Of Safety, which is an additional discount applied to the present value of the expected future cash flows. The tool calculates the present value using a discount rate that reflects the risk and time value of money, and provides an estimated target price for the company based on the selected margin of safety. The calculator defaults to using 5 Year Free Cash Flow Growth % and a discount rate based on the US 10-year treasury bond coupon rate. Use our performance analyser to get a feel the impact this has on longterm investment returns and discover a margin of safety you are comfortable with. This can be a useful tool for investors looking to make informed decisions about whether to buy or sell shares of a particular company.

Price/Earnings

51.68x

Free Cashflow Yeild

2.61%

PE/Earnings Growth

3.12

Price/Book

12.88x

Growth

Growth Score

47

  • 5 Year Average Revenue growth of 12.45% is higher than the market average (10.97%)
  • 5 Year Average Earnings growth of 15.36% is higher than the market average (14.48%)
  • Free Cashflow growth has improved this year
  • Revenue growth has slowed this year
  • Earnings growth has slowed this year
  • 5 Year Average Free Cashflow growth of 2.35% is lower than the market average (12.35%)

Revenue Growth

12.45%

Earnings Growth

15.36%

Cashflow Growth

2.35%

Health

Health Score

42

  • Low risk of bankruptcy
  • Has a low level of debt
  • Assets cover liabilities
  • Normal operation does not require debt to be sustainable
  • Debt repayments do not significantly impact cashflow

Altman Z Score

8.30

Piostroski Score

8.00

Debt/Equity

0.44x

Current Assets/Liabilities

1.02x

Free Cashflow/Total Debt

0.39x

Debt/Capital

0.28x

Dividend

Secure Dividend Score

83

  • Very safe
  • Long term dividend payout ratio of 62.24% is considered good
  • Payout ratio (TTM) of 26.94% is lower than the average (40%)
  • Dividends have shown growth over the last 5 years
  • Spending a lower percentage of their income on dividends than last 5 years
  • Dividend yeild of 0.52% is less than the market average (1.85%)
  • Dividend growth has been slowing recently

Dividend Yeild

0.52%

Dividend Growth

-24.54%

Payout Ratio (Earnings)

26.94%

Payout Ratio (Cashflow)

19.95%

Management

Management Score

68

  • Has issued new shares to finance growth when share price is high
  • Has returned higher dividends when earnings have risen
  • Return-on-equity of 28.31% is higher than the market average (15%)
  • Return-on-capital-employed of 12.19% is higher than the market average (10%)
  • Has a history of diluting shareholders to finance activity

Average Buybacks/Dilution

-0.24%

Recent Buybacks/Dilution

0.02%

5 Year Price Volitility

33.37%

Return On Assets

9.11%

Return On Capital Employed

12.19%

Return On Equity

28.31%

Return On Free Cashflow

N/A

Return On Investments

N/A

Social Sentiment

Social Sentiment Score

0

Twitter Sentiment

N/A

Stocktwits Sentiment

N/A

Analysts

Analyst Opinion

80

  • Ratings consensus is Buy

SEC Filings

Find yearly (10-K), quaterly (10-Q) and disclosure (8-K) report here, on the Securities and Exchange Commission's EDGAR database. If reading through reports isn't your cup of tea, don't worry. We've made it easy for you by summarizing all the important bits.

Other Information

Company Name

Costco Wholesale Corporation

Currency

USD

Beta

0.785177

Vol Avg

1837873

Ceo

Mr. W. Craig Jelinek

Cik

0000909832

Cusip

22160K105

Exchange

NASDAQ Global Select

Full Time Employees

304000

Industry

Discount Stores

Sector

Consumer Defensive

Ipo Date

1986-07-09

Address

999 Lake Drive

City

Issaquah

State

WA

Country

US

Zip

98027

Phone

425 313 8100

Analysis Last Updated

2/22/2024, 12:00:00 PM

All financial data provided by FMP

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