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Costco Wholesale Corp
COST : NASDAQ : Services
$163.58 | %
Today's Range: 162.49 - 164.41
Avg. Daily Volume: 2,002,300
11/27/15 - 12:59 PM ET

Financial Analysis

COSTCO WHOLESALE CORP's gross profit margin for the fourth quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. COSTCO WHOLESALE CORP has very weak liquidity. Currently, the Quick Ratio is 0.46 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has decreased by 13.70% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.

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Income Statement Q4 FY15 Q4 FY14
Net Sales ($mil)35778.035523.0
EBITDA ($mil)1507.01412.0
EBIT ($mil)1156.01091.0
Net Income ($mil)767.0697.0

Balance Sheet Q4 FY15 Q4 FY14
Cash & Equiv. ($mil)6419.07315.0
Total Assets ($mil)33440.033024.0
Total Debt ($mil)6443.05286.0
Equity ($mil)10617.012303.0

Profitability Q4 FY15 Q4 FY14
Gross Profit Margin14.0713.53
EBITDA Margin4.213.97
Operating Margin3.233.07
Sales Turnover3.473.41
Return on Assets7.16.23
Return on Equity22.3816.72
Debt Q4 FY15 Q4 FY14
Current Ratio1.051.22
Interest Expense40.035.0
Interest Coverage28.931.17

Share Data Q4 FY15 Q4 FY14
Shares outstanding (mil)437.95437.68
Div / share0.40.36
Book value / share24.2428.11
Institutional Own % n/a n/a
Avg Daily Volume2148566.01878195.0


BUY. The current P/E ratio indicates a significant premium compared to an average of 20.09 for the Food & Staples Retailing industry and a premium compared to the S&P 500 average of 21.93. For additional comparison, its price-to-book ratio of 6.72 indicates a significant premium versus the S&P 500 average of 2.77 and a significant premium versus the industry average of 3.66. The current price-to-sales ratio is well below the S&P 500 average, but above the industry average. Upon assessment of these and other key valuation criteria, COSTCO WHOLESALE CORP proves to trade at a premium to investment alternatives within the industry.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
COST 30.32 Peers 20.09   COST 16.64 Peers 11.72

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

COST is trading at a significant premium to its peers.


Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

COST is trading at a significant premium to its peers.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
COST 25.89 Peers 18.58   COST 5.82 Peers 2.30

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

COST is trading at a significant premium to its peers.


Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

COST trades at a significant premium to its peers.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
COST 6.72 Peers 3.66   COST 15.23 Peers 29.33

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

COST is trading at a significant premium to its peers.


Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, COST is expected to significantly trail its peers on the basis of its earnings growth rate.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
COST 0.61 Peers 0.56   COST 3.15 Peers 9.78

Average. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

COST is trading at a valuation on par with its industry on this measurement.


Lower. A sales growth rate that trails the industry implies that a company is losing market share.

COST significantly trails its peers on the basis of sales growth



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