1.55%
6.85%
11.99%
19.10%
40.89%
93.81%
220.44%
AI Spotlight on COST
Company Description
Costco Wholesale Corporation, together with its subsidiaries, engages in the operation of membership warehouses in the United States, Puerto Rico, Canada, the United Kingdom, Mexico, Japan, Korea, Australia, Spain, France, Iceland, China, and Taiwan.It offers branded and private-label products in a range of merchandise categories.The company offers sundries, dry groceries, candies, coolers, freezers, liquor, and tobacco and deli products; appliances, electronics, health and beauty aids, hardware, garden and patio products, sporting goods, tires, toys and seasonal products, office supplies, automotive care products, postages, tickets, apparel, small appliances, furniture, domestics, housewares, special order kiosks, and jewelry; and meat, produce, service deli, and bakery products.
It also operates pharmacies, opticals, food courts, hearing-aid centers, and tire installation centers, as well as 636 gas stations; and offers business delivery, travel, same-day grocery, and various other services online in various countries.As of August 29, 2021, the company operated 815 membership warehouses, including 564 in the United States and Puerto Rico, 105 in Canada, 39 in Mexico, 30 in Japan, 29 in the United Kingdom, 16 in South Korea, 14 in Taiwan, 12 in Australia, 3 in Spain, 1 in Iceland, 1 in France, and 1 in China.It also operates e-commerce websites in the United States, Canada, the United Kingdom, Mexico, South Korea, Taiwan, Japan, and Australia.
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.
Market Data
| Last Price | 979.01 |
| Change Percentage | 1.55% |
| Open | 970.3 |
| Previous Close | 964.02 |
| Market Cap ( Millions) | 434582 |
| Volume | 1780358 |
| Year High | 1008.25 |
| Year Low | 691.5 |
| M A 50 | 951.76 |
| M A 200 | 872.37 |
Financial Ratios
| FCF Yield | 1.15% |
| Dividend Yield | 0.46% |
| ROE | 33.45% |
| Debt / Equity | 32.85% |
| Net Debt / EBIDTA | -23.47% |
| Price To Book | 17.78 |
| Price Earnings Ratio | 57.38 |
| Price To FCF | 86.67 |
| Price To sales | 1.68 |
| EV / EBITDA | 35.26 |
News
- 00:59 - Costco to raise hourly pay for most US store workers to over $30
- Jan -30 - Is It Too Late to Buy Costco Stock?
- Jan -29 - 'BAD FOR BUSINESS': O'Leary calls out Costco for bucking DEI trend
- Jan -29 - Consumer Confidence Drops: Why These 4 Retail Stocks Are Still a Buy
- Jan -29 - Costco Stock: Could It Be a Long-Term Retail Winner?
- Jan -28 - Costco (COST) Stock Sinks As Market Gains: Here's Why
- Jan -28 - Costco's DEI programs face new scrutiny from 19 Republican attorneys general
- Jan -28 - Republican state attorneys pressure Costco to drop diversity policies
- Jan -27 - 3 Blue-Chip Retail Stocks You Can Trust for Long-Term Gains
- Jan -27 - Here's why Costco will eventually drop DEI, says activist investor
- Jan -27 - Best Stock to Buy Right Now: Altria vs. Costco
- Jan -27 - Costco Ditches Pepsi For Coca-Cola In Major Food Court Supplier Switch, Reinforces $1.50 Hot Dog Combo Legacy
- Jan -26 - Costco shareholders defended DEI hiring against anti-woke attacks and won—for now
- Jan -25 - Coke Kicks Out Pepsi At Costco
- Jan -25 - Costco Has Soared 35% Over the Last 12 Months. Here's What's Next for the Stock, According to Wall Street.
- Jan -24 - 4 Retail Stocks Set to Gain From Record Holiday Consumer Spending
- Jan -24 - Costco shareholders reject anti-DEI measure
- Jan -24 - Costco Shareholders Overwhelmingly Support Company's DEI Policies As Other Major Retailers Retreat
- Jan -24 - Costco shareholders vote down anti-DEI proposal
- Jan -24 - 3 Richly Valued Stocks I'll Be Watching Like a Hawk in 2025
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Food and Sundries
Expected Growth : 5 %
What the company do ?
Food and Sundries from Costco Wholesale Corporation refers to a segment of products including snacks, beverages, and other consumable items sold at discounted prices.
Why we expect these perspectives ?
Costco's Food and Sundries segment growth is driven by increasing demand for bulk grocery items, rising sales of private-label products, and expansion of e-commerce capabilities. Additionally, the company's focus on improving in-store experience, competitive pricing, and loyalty programs contribute to the 5% growth rate.
Segment n°2 -> Non-Foods
Expected Growth : 4 %
What the company do ?
Non-Foods from Costco Wholesale Corporation refers to the retail giant's offerings beyond groceries, including electronics, home goods, clothing, and more.
Why we expect these perspectives ?
Costco's Non-Foods segment growth is driven by increasing demand for electronics, home appliances, and health & beauty products. Expansion of e-commerce capabilities, improved supply chain efficiency, and strategic pricing also contribute to growth. Additionally, the company's focus on private label brands, such as Kirkland Signature, helps to drive sales and loyalty among members.
Segment n°3 -> Warehouse Ancillary and Other
Expected Growth : 3 %
What the company do ?
Warehouse Ancillary and Other from Costco Wholesale Corporation refers to revenue generated from non-merchandise sources, including gas stations, pharmacies, and food courts.
Why we expect these perspectives ?
Costco's Warehouse Ancillary and Other segment growth is driven by increasing demand for e-commerce services, expansion of its grocery delivery and online shopping capabilities, and growth in its business centers and specialty warehouses. Additionally, the company's focus on improving its supply chain and logistics operations, as well as its investments in digital transformation, are also contributing to this growth.
Segment n°4 -> Fresh Foods
Expected Growth : 7 %
What the company do ?
Fresh Foods from Costco Wholesale Corporation offers a wide selection of high-quality meats, produce, dairy products, and baked goods at discounted prices.
Why we expect these perspectives ?
Costco's Fresh Foods segment growth is driven by increasing demand for convenient and healthy meal options, private label offerings, and competitive pricing. Additionally, the company's focus on sourcing high-quality products, expanding organic and specialty food offerings, and investing in e-commerce capabilities also contribute to the 7% growth.
Costco Wholesale Corporation Products
| Product Range | What is it ? |
|---|---|
| Electronics | A wide range of electronic products including TVs, laptops, tablets, smartphones, cameras, and gaming consoles |
| Home and Bedding | A variety of home furnishings, bedding, and kitchenware, including mattresses, sofas, and cookware |
| Health and Beauty | A range of health supplements, skincare products, fragrances, and optical services |
| Food and Beverages | A selection of fresh produce, meat, dairy products, snacks, and beverages, including specialty and gourmet items |
| Tires and Auto | A range of tires, auto parts, and accessories, including batteries, oil, and car care products |
| Jewelry and Watches | A collection of fine jewelry, watches, and accessories, including diamonds, gold, and silver pieces |
| Sports and Fitness | A range of fitness equipment, athletic wear, and outdoor gear, including bicycles, treadmills, and camping equipment |
| Office and School Supplies | A selection of office furniture, printers, paper products, and school supplies, including backpacks and lunchboxes |
| Travel and Insurance | A range of travel services, including vacation packages, cruises, and insurance products |
Costco Wholesale Corporation's Porter Forces
Threat Of Substitutes
Costco's business model is focused on providing low prices and high-quality products, making it difficult for substitutes to emerge.
Bargaining Power Of Customers
Costco's customers have some bargaining power due to the availability of alternative retailers, but the company's loyalty program and low prices help to mitigate this.
Bargaining Power Of Suppliers
Costco's large scale and strong relationships with suppliers give it significant bargaining power, allowing it to negotiate low prices.
Threat Of New Entrants
The warehouse club model requires significant investment and scale, making it difficult for new entrants to compete with Costco's established business.
Intensity Of Rivalry
The warehouse club market is highly competitive, with Costco facing intense rivalry from other retailers such as Sam's Club and BJ's Wholesale Club.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 26.17% |
| Debt Cost | 3.95% |
| Equity Weight | 73.83% |
| Equity Cost | 7.74% |
| WACC | 6.75% |
| Leverage | 35.45% |
Costco Wholesale Corporation : Quality Control
Costco Wholesale Corporation passed 7 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| MO | Altria Group, Inc., through its subsidiaries, manufactures and sells smokeable and oral tobacco products in the United States. The company provides cigarettes primarily under the Marlboro brand; cigars and pipe … |
| DG | Dollar General Corporation, a discount retailer, provides various merchandise products in the southern, southwestern, Midwestern, and eastern United States. It offers consumable products, including paper and cleaning products, such as … |
| KHC | The Kraft Heinz Company, together with its subsidiaries, manufactures and markets food and beverage products in the United States, Canada, the United Kingdom, and internationally. Its products include condiments and … |
| TGT | Target Corporation operates as a general merchandise retailer in the United States. The company offers food assortments, including perishables, dry grocery, dairy, and frozen items; apparel, accessories, home décor products, … |
| WMT | Walmart Inc. engages in the operation of retail, wholesale, and other units worldwide. The company operates through three segments: Walmart U.S., Walmart International, and Sam's Club. It operates supercenters, supermarkets, … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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Altria
A-Score
1-Year Total Return ->
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Walmart
A-Score
1-Year Total Return ->
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Costco Wholesale
A-Score
1-Year Total Return ->
4
Kraft Heinz
A-Score
1-Year Total Return ->
5
Target
A-Score
1-Year Total Return ->
6
