Costco Stock Analysis (NASDAQ:COST)
Costco Analysis Video
View Costco stock analysis video. This is our COST analyst opinion covering the buy and sell arguments for COST stock.
Costco Wholesale Corporation Stock Rating (2.5/5)
Our Costco stock opinion is based on fundamentals of the company. This Costco stock analysis is based on latest Q2 earnings for 2017. The stock price analysis takes into account a company's valuation metrics.
Should you buy COST stock?
- Costco sales grew by 5.7% year on year in 2017 Q2.
- Costco has an attractive ROIC (Return on Invested Capital) of 19.3%
- Costco has a good Return On Equity (ROE) of 19.8%.
Should you sell COST stock?
- Costco had a poor average operating margin of 3.1% over the last 4 quarters.
- Costco posted a TTM Net margin of 2%.
- Costco is debt laden and has a high debt/equity ratio of 0.4.
- The COST stock currently trades at a PE of 31.3, which is expensive, compared to the industry average of 18.7.
- Costco has a negative FCF (Free Cash Flow) margin of -0.1%.