Costco Wholesale Corp

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COST : NASDAQ : Services
$160.2 up 3.07 | 1.95%
Today's Range: 158.1 - 160.99
Avg. Daily Volume: 2811400.0
06/26/17 - 4:14 PM ET

Financial Analysis


COSTCO WHOLESALE CORP has very weak liquidity. Currently, the Quick Ratio is 0.34 which clearly shows a lack of ability to cover short-term cash needs. 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 Q3 FY17 n/a
Net Sales ($mil)28860.00.0
EBITDA ($mil)1288.00.0
EBIT ($mil)968.00.0
Net Income ($mil)700.00.0


Balance Sheet Q3 FY17 n/a
Cash & Equiv. ($mil)5725.00.0
Total Assets ($mil)35631.00.0
Total Debt ($mil)3979.00.0
Equity ($mil)9898.00.0


Profitability Q3 FY17 n/a
Gross Profit Margin14.590.0
EBITDA Margin4.460.0
Operating Margin3.350.0
Sales Turnover3.460.0
Return on Assets7.120.0
Return on Equity25.650.0
Debt Q3 FY17 n/a
Current Ratio0.810.0
Debt/Capital0.290.0
Interest Expense21.00.0
Interest Coverage46.10.0


Share Data Q3 FY17 n/a
Shares outstanding (mil)438.680.0
Div / share7.50.0
EPS1.590.0
Book value / share22.560.0
Institutional Own % n/a n/a
Avg Daily Volume2788954.02325521.0

Valuation


HOLD. The current P/E ratio indicates a premium compared to an average of 21.22 for the Food & Staples Retailing industry and a value on par with the S&P 500 average of 25.75. For additional comparison, its price-to-book ratio of 7.08 indicates a significant premium versus the S&P 500 average of 3.09 and a significant premium versus the industry average of 3.92. 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.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
COST 27.69 Peers 21.22   COST 14.33 Peers 9.24

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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
COST 24.85 Peers 18.42   COST 3.56 Peers 1.81

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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
COST 7.08 Peers 3.92   COST 42.11 Peers 11.38

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.

 

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

COST is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
COST 0.57 Peers 0.51   COST 35.22 Peers 7.27

Premium. 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 premium to its industry on this measurement.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

COST has a sales growth rate that significantly exceeds its peers.

 

 

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