The share price of Costco Wholesale Corporation [NASDAQ: COST] inclined by $305.69, presently trading at $299.33. The company’s shares saw 38.72% gains compared to the lowest price in the period of the last 52 weeks, set at $215.77 recorded on 02/26/20. The last few days have been tough to the share price as COST fall by -8.46% during the last week, even though the stock is still down by -8.80% compared to -27.43 of all time high it touched on 02/21/20. However, the stock had a strong performance during the past 3 months, roughly losing -1.22%, while additionally gaining 40.48% during the last 12 months. Costco Wholesale Corporation is said to have a 12-month price target set at $313.40. That means that the stock has a strong potential to acquire 14.07% increase from the current trading price.
Costco Wholesale Corporation [NASDAQ:COST]: Analyst Rating and Earnings
Its stock price has been found in the range of 215.77 to 325.26. This is compared to its latest closing price of $305.69.
Pay attention to the next-scheduled financial results for this company to be released, which is slated for 03/05/2020.
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 +3.16 and its Gross Margin at +12.98, 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 22.48, and its Return on Invested Capital has reached 15.80%. Its Return on Equity is 26.10, and its Return on Assets is 8.49. 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 47.52. Similarly, its Total Debt to Total Capital is 32.21, while its Total Debt to Total Assets stands at 15.96. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 32.15, and its Long-Term Debt to Total Capital is 36.21.
What about valuation? This company’s Enterprise Value to EBITDA is 21.02 and its Total Debt to EBITDA Value is 1.15. The Enterprise Value to Sales for this firm is now 0.86, and its Total Debt to Enterprise Value stands at 0.06. Costco Wholesale Corporation [COST] has a Price to Book Ratio of 8.50, a Price to Cash Flow Ratio of 20.54 and P/E Ratio of 35.44. These metrics suggest that this publicly-traded organization will not likely result in investment gains.
Shifting the focus to workforce efficiency, Costco Wholesale Corporation [COST] earns $601,193 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 95.32 and its Total Asset Turnover is 3.54. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.52 and its Current Ratio is 1.01. This company is not investing its short-term assets in an optimally efficient way, making it a riskier investment.
Costco Wholesale Corporation [COST] has 444.68M shares outstanding, amounting to a total market cap of $135.93B. Its stock price has been found in the range of 215.77 to 325.26. At its current price, it has moved down by -7.97% from its 52-week high, and it has moved up 38.72% from its 52-week low.
This stock’s Beta value is currently 0.91, which indicates that it is 2.18% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 36.88. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Costco Wholesale Corporation [COST] a Reliable Buy?
Costco Wholesale Corporation [COST] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.