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 (2.4/5)
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%.