Costco Wholesale Corporation [COST] is following downward trend in the market concluded with the last trading session. The shares of the Services sector company has a current value of $287.14 after COST shares went down by -1.81% during the last trading session. One of the reasons why Services stocks may go bearish is decreased momentum in the press.
Costco Wholesale Corporation [NASDAQ:COST]: Analyst Rating and Earnings
Its stock price has been found in the range of 189.51 to 307.34. This is compared to its latest closing price of $292.43.
Keep your eyes peeled for the next scheduled financial results to be made public for this company, which are scheduled to be released on Thu 3 Oct (In 14 Days).
Fundamental Analysis of Costco Wholesale Corporation [COST]
Now let’s turn to look at profitability: with a current Operating Margin for Costco Wholesale Corporation [COST] sitting at +3.21 and its Gross Margin at +13.01, this company’s Net Margin is now 2.40%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 23.81, and its Return on Invested Capital has reached 16.40%. Its Return on Equity is 26.59, and its Return on Assets is 8.12. These metrics all suggest that Costco Wholesale Corporation is doing well at using the money it earns to generate returns.
Turning to investigate this organization’s capital structure, Costco Wholesale Corporation [COST] has generated a Total Debt to Total Equity ratio of 54.49. Similarly, its Total Debt to Total Capital is 35.27, while its Total Debt to Total Assets stands at 17.08. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 28.60, and its Long-Term Debt to Total Capital is 53.73.
What about valuation? This company’s Enterprise Value to EBITDA is 21.40 and its Total Debt to EBITDA Value is 1.17. The Enterprise Value to Sales for this firm is now 0.86, and its Total Debt to Enterprise Value stands at 0.07. Costco Wholesale Corporation [COST] has a Price to Book Ratio of 7.98, a Price to Cash Flow Ratio of 17.84 and P/E Ratio of 35.24. These metrics show that this company has a mixed appeal, and ROI could be a gain or a loss.
Shifting the focus to workforce efficiency, Costco Wholesale Corporation [COST] earns $577,861 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 91.31 and its Total Asset Turnover is 3.67. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.46 and its Current Ratio is 1.02. This company is not investing its short-term assets in an optimally efficient way, making it a riskier investment.
Costco Wholesale Corporation [COST] has 439.86M shares outstanding, amounting to a total market cap of $128.63B. Its stock price has been found in the range of 189.51 to 307.34. At its current price, it has moved down by -6.57% from its 52-week high, and it has moved up 51.52% from its 52-week low.
This stock’s Beta value is currently 0.93, which indicates that it is 1.33% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 48.38. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Costco Wholesale Corporation [COST] a Reliable Buy?
Shares of Costco Wholesale Corporation [COST], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.