Costco Stock Analysis (NASDAQ:COST)

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$150.44 $0.55 (0.36%) COST stock closing price Jul 21, 2017 (Closing)
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Costco
Updated on : Jul 21, 2017
previous close
COST 150.4 (0%)
S&P 500 2472.5 (0%)
Closing Price On: Jul 21, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Retail-Discount and variety
Sector :
Retail-Wholesale
5 Quarter Revenue
Revenue Growth
2017-Q3
$billion
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
3.1%
Sector Average:
5.7%
5 Quarter Net Profit
Net Margins
2017-Q3
%
LTM Margin
Compared to the industry
Cash Flow
Operating cash flow:
$1.61B
Net Income:
$700M
Dividend Yield
COST dividend yield:
5.88%
PROS      CONS
Recent Growth
Cash Flow
ROIC
ROE
High Dividend Yield
Operating Margins
Net Margins
PE Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
COST PS :
0.5
Industry PS :
0.7
Sector:   Retail-Wholesale.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
21.3%
Return on Equity:
21.4%
Free Cash Flow Margin:
3.7%
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Costco Analysis Video

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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.

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