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 (2.6/5)
Our Costco stock opinion is based on fundamentals of the company. This Costco stock analysis is based on latest Q3 earnings for 2017. The stock price analysis takes into account a company's valuation metrics.
Should you buy COST stock?
- Costco sales grew by 7.8% year on year in 2017 Q3.
- The company has an operating cash flow which is 2.3 times the net income.
- The company has a healthy dividend yield of 5.88%.
- Costco has an attractive ROIC (Return on Invested Capital) of 21.3%
- Return On Equity (ROE) which is a measure of the company's profitability, looks great for Costco at 21.4%.
Should you sell COST stock?
- Costco had an unimpressive average operating margin of 3.1% during the Last Twelve Months (LTM).
- Costco's LTM Net margins were poor at 2.1%.
- COST stock is trading at a PE ratio of 27.3, which is worse than the industry average multiple of 17.4.