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Costco Wholesale Corp
NASDAQ:COST

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Costco Wholesale Corp Logo
Costco Wholesale Corp
NASDAQ:COST
Watchlist
Price: 731.54 USD 0.81% Market Closed
Updated: Mar 19, 2024

Intrinsic Value

Costco Wholesale Corp. engages in the operation of membership warehouses. [ Read More ]

The intrinsic value of one COST stock under the Base Case scenario is 424.61 USD. Compared to the current market price of 731.54 USD, Costco Wholesale Corp is Overvalued by 42%.

Key Points:
COST Intrinsic Value
Base Case
424.61 USD
Overvaluation 42%
Intrinsic Value
Price
Worst Case
Base Case
Best Case

Valuation Backtest
Costco Wholesale Corp

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Fundamental Analysis

Costco's Strategic Growth and E-Commerce Success
2024-Q2 Earnings Call

Costco's Strategic Growth and E-Commerce Success

Costco plans to accelerate its growth trajectory by opening 28 new stores, continuing its investment with a yearly capital expenditure range of $4.4 to $4.6 billion. The company's second quarter reports reveal a robust e-commerce sales increase of 18.2%, complemented by more than a million deliveries, marking a 28% surge from the previous year. Significant enhancements to user experience, like the launch of a faster mobile app homepage and the adoption of Apple Pay, have contributed to a remarkable uptick in app downloads, now totaling 33 million. Amid a flat inflation rate, Costco is committed to price leadership, embodying its 'Why Buy at Costco?' philosophy with value-focused offerings like costconext.com, which features premier direct-to-consumer products. February's sales demonstrated a 6.9% year-over-year growth to $18.21 billion and a 5.6% rise in total company comparable sales, excluding gas and foreign exchange fluctuations.

Financials

Balance Sheet Decomposition
Costco Wholesale Corp

Current Assets 32.1B
Cash & Short-Term Investments 10.3B
Receivables 2.8B
Other Current Assets 19B
Non-Current Assets 34.2B
PP&E 30.3B
Other Non-Current Assets 3.8B
Current Liabilities 34.7B
Accounts Payable 17.5B
Accrued Liabilities 7.1B
Other Current Liabilities 10.1B
Non-Current Liabilities 10.9B
Long-Term Debt 5.9B
Other Non-Current Liabilities 5B
Efficiency

Earnings Waterfall
Costco Wholesale Corp

Revenue
248.8B USD
Cost of Revenue
-218B USD
Gross Profit
30.8B USD
Operating Expenses
-22.3B USD
Operating Income
8.5B USD
Other Expenses
-1.7B USD
Net Income
6.8B USD

Free Cash Flow Analysis
Costco Wholesale Corp

Last Value
3-Years Average
FCF Margin
Conversion Rate
History
Components
Chart
Table
What is Free Cash Flow?
Fundamental Scores

COST Profitability Score
Profitability Due Diligence

Costco Wholesale Corp's profitability score is 57/100. The higher the profitability score, the more profitable the company is.

Exceptional 3-Year Average ROE
Exceptional ROE
Positive 3-Year Average ROIC
Positive 3-Years Revenue Growth
57/100
Profitability
Score

Costco Wholesale Corp's profitability score is 57/100. The higher the profitability score, the more profitable the company is.

COST Solvency Score
Solvency Due Diligence

Costco Wholesale Corp's solvency score is 68/100. The higher the solvency score, the more solvent the company is.

High Altman Z-Score
Low D/E
Negative Net Debt
Long-Term Solvency
68/100
Solvency
Score

Costco Wholesale Corp's solvency score is 68/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

COST Price Targets Summary
Costco Wholesale Corp

Wall Street analysts forecast COST stock price to rise over the next 12 months.

According to Wall Street analysts, the average 1-year price target for COST is 768.99 USD with a low forecast of 469.65 USD and a high forecast of 950.25 USD.

Lowest
Price Target
469.65 USD
36% Downside
Average
Price Target
768.99 USD
5% Upside
Highest
Price Target
950.25 USD
30% Upside
View Analyst Estimates
View Analyst Estimates

Competitive Landscape

Ownership

COST Insider Trading
Buy and sell transactions by insiders

Cumulative Transactions Amount
Period Sold Bought Net
3 Months
6 Months
9 Months
12 Months
Why is insider trading important?

Shareholder Return

COST Price
Costco Wholesale Corp

1M 1M
+1%
6M 6M
+30%
1Y 1Y
+50%
3Y 3Y
+126%
5Y 5Y
+228%
10Y 10Y
+682%
Annual Price Range
731.54
52w Low
482.76
52w High
785.59
Price Metrics
Average Annual Return 22.39%
Standard Deviation of Annual Returns 29.93%
Max Drawdown -9%
Shares Statistics
Market Capitalization 324.5B USD
Shares Outstanding 443 504 000
Percentage of Shares Shorted 1.52%

COST Return Decomposition
Main factors of price return

What is price return decomposition?

COST News

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Last Important Events
Costco Wholesale Corp

Significant happenings or occurrences that are of interest to investors. These could be company-specific developments or market-wide shifts.

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Sentiment Analysis
Costco Wholesale Corp

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Last 7 Days 7D
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Last 90 Days 90D

Company Profile

Costco Wholesale Corp Logo
Costco Wholesale Corp

Country

United States of America

Industry

Retail

Market Cap

324.5B USD

Dividend Yield

0.56%

Description

Costco Wholesale Corp. engages in the operation of membership warehouses. The company is headquartered in Issaquah, Washington and currently employs 288,000 full-time employees. The firm's average warehouse space is approximately 146,000 square feet. The firm's warehouses on average operate on a seven-day, 70-hour week. The firm offers merchandise in various categories, which include food and sundries (including dry foods, packaged foods, groceries, snack foods, candy, alcoholic and nonalcoholic beverages, and cleaning supplies); hardlines (including appliances, electronics, health and beauty aids, hardware, and garden and patio); fresh foods (including meat, produce, deli, and bakery); softlines (including apparel and small appliances), and ancillary (including gasoline and pharmacy businesses).

Contact

WASHINGTON
Issaquah
999 Lake Dr
+14253138100.0
https://www.costco.com/

IPO

1985-12-05

Employees

288 000

Officers

President, CEO & Director
Mr. Ron M. Vachris
Executive VP, CFO & Director
Mr. Richard A. Galanti
Executive VP & COO of International Division
Mr. Pierre Riel
Senior EVP and COO of Warehouse Operations - U.S. & Mexico
Mr. Russell D. Miller
Executive Vice President of Administration
Mr. Patrick J. Callans
Vice President of Finance & Investor Relations
David Sherwood
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Executive VP, General Counsel & Corporate Secretary
Mr. John Sullivan
Senior Vice President of Global Sustainability & Compliance
Sheri Flies
Senior Vice President of Human Resources
Brenda Weber
Senior Vice President of Construction & Purchasing
Mr. Ali Moayeri
Show Less

See Also

Discover More
What is the Intrinsic Value of one COST stock?

The intrinsic value of one COST stock under the Base Case scenario is 424.61 USD.

Is COST stock undervalued or overvalued?

Compared to the current market price of 731.54 USD, Costco Wholesale Corp is Overvalued by 42%.