Fundamentals for Costco Wholesale Corporation
COST's forward EPS exceeding its trailing EPS reflects expectations of increased profitability for the current year. This suggests that the company is projected to achieve ...
Business Operations:
Sector: Consumer DefensiveIndustry: Discount Stores
Costco Wholesale Corporation, together with its subsidiaries, engages in the operation of membership warehouses in the United States, Puerto Rico, Canada, Mexico, Japan, the United Kingdom, Korea, Australia, Taiwan, China, Spain, France, Iceland, New Zealand, and Sweden. It offers merchandise, including sundries, dry groceries, candies, coolers, freezers, deli, liquor, and tobacco; non-food merchandise comprising appliances, small electronics, health and beauty aids, hardware, lawn and garden, sporting goods, tires, toys and seasonal, automotive, stamps, tickets, apparel, furniture, domestics, housewares, special order kiosks, and jewelry; and fresh food, such as meat, produce, service deli, and bakery products. The company is also involved in warehouse ancillary operations, which include gasoline, pharmacies, optical, food courts, hearing-aid centers, and tire installation centers. In addition, it engages in e-commerce, business centers, travel, and other businesses. The company was formerly known as Costco Companies, Inc. and changed its name to Costco Wholesale Corporation in August 1999. Costco Wholesale Corporation was founded in 1976 and is based in Issaquah, Washington.
Revenue projections:
Financial Ratios:
| currentRatio | 1.06000 |
|---|---|
| forwardPE | 36.80470 |
| debtToEquity | 23.95300 |
| earningsGrowth | 0.15000 |
| revenueGrowth | 0.11100 |
| grossMargins | 0.12824 |
| operatingMargins | 0.03971 |
| trailingEps | 20.77000 |
| forwardEps | 25.01447 |
COST's current ratio, being 1.06, means the company is well-positioned to meet its short-term debt obligations. This reflects COST's strong liquidity, as its cash reserves and current assets provide more than enough coverage for its immediate liabilities.
Costco Wholesale Corporation's low Debt-to-Equity ratio demonstrates that the company is not over-leveraged. This means it maintains a healthy balance between debt and equity, lowering financial risk and contributing to overall financial stability, which could attract risk-averse investors.
With positive earnings and revenue growth, COST is on a path to expand its business. This strong financial performance suggests the company will continue to grow, as increasing profits and revenue highlight a healthy outlook.
COST's forward EPS exceeding its trailing EPS reflects expectations of increased profitability for the current year. This suggests that the company is projected to achieve higher earnings than in the previous financial year, signaling positive growth and improved financial health.
Price projections:
Insider Transactions:
13 Costco Wholesale Corporation sales were executed, with market price at 949.1099994365985.There were no sell transactions recorded during the period under consideration.The recent trend of increased buying at COST's current price levels may indicate a favorable market sentiment. This could point to a positive outlook for the stock, as investors show growing confidence through higher buy activity.
Recommendation changes over time:
Costco Wholesale Corporation has been receiving a buy bias from analysts, indicating confidence in its investment potential. This could drive more investors to view Costco Wholesale Corporation as a reliable choice for their money, offering a promising avenue for future growth and financial gains.