Costco Stock Analysis (NASDAQ:COST)

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$176.8 $4.12 (2.39%) COST stock closing price Apr 26, 2017 (Closing)
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Costco
Updated on : Apr 26, 2017
previous close
COST 176.8 (0%)
S&P 500 2387.5 (0%)
Closing Price On: Apr 26, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Retail-Discount and variety
Sector :
Retail-Wholesale
5 Quarter Revenue
Revenue Growth
2017-Q2
$billion
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
3.1%
Sector Average:
5.5%
5 Quarter Net Profit
Net Margins
2017-Q2
%
LTM Margin
Compared to the industry
Cash Flow
Operating cash flow:
$493M
Net Income:
$515M
Dividend Yield
COST dividend yield:
1.02%
PROS      CONS
ROIC
ROE
Operating Margins
Net Margins
FCF Margin
PE Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
COST PS :
0.6
Industry PS :
0.7
Sector:   Retail-Wholesale.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
19.3%
Return on Equity:
19.8%
Free Cash Flow Margin:
-0.1%
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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 (2.4/5)

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 generates a high return on invested capital of 19.3%.
  • The LTM ROE of 19.8% for Costco is attractive.

Should you sell COST stock?

  • Costco had a poor average operating margin of 3.1% over the last 4 quarters.
  • Costco's LTM Net margins were poor at 2%.
  • Trading at a PE ratio of 33, COST stock is overvalued in comparison to industry average multiple of 20.
  • The company has negative Free Cash Flows (FCF), with a negative FCF margin of -0.1%.

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