ScoreWhy is Costco Wholesale Corp. ?
1
High Management Efficiency with a high ROE of 29.77%
2
The company is Net-Debt Free
3
Healthy long term growth as Net Sales has grown by an annual rate of 9.89% and Operating profit at 9.38%
4
Positive results in Feb 26
- OPERATING CASH FLOW(Y) Highest at USD 15,011 MM
- DIVIDEND PER SHARE(HY) Highest at USD 83.68
- INTEREST COVERAGE RATIO(Q) Highest at 9,706.06
5
With ROE of 27.40%, it has a fair valuation with a 14.67 Price to Book Value
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -5.20%, its profits have risen by 9.6% ; the PEG ratio of the company is 5.6
6
High Institutional Holdings at 80.1%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
- Their stake has increased by 9.9% over the previous quarter.
Real-Time Research ReportHow much should you buy?
- Overall Portfolio exposure to Costco Wholesale Corp. should be less than 10%
- Overall Portfolio exposure to Retailing should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Retailing)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Costco Wholesale Corp. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Costco Wholesale Corp.
-5.2%
0.65
19.50%
S&P 500
28.21%
2.22
12.69%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
9.89%
EBIT Growth (5y)
9.38%
EBIT to Interest (avg)
51.30
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.33
Sales to Capital Employed (avg)
8.21
Tax Ratio
24.74%
Dividend Payout Ratio
27.02%
Pledged Shares
0
Institutional Holding
70.20%
ROCE (avg)
52.68%
ROE (avg)
29.77%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
54
Industry P/E
Price to Book Value
14.67
EV to EBIT
40.66
EV to EBITDA
32.99
EV to Capital Employed
22.96
EV to Sales
1.54
PEG Ratio
5.60
Dividend Yield
0.52%
ROCE (Latest)
56.48%
ROE (Latest)
27.40%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Mildly Bullish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend11What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 15,011 MM
DIVIDEND PER SHARE(HY)
Highest at USD 83.68
INTEREST COVERAGE RATIO(Q)
Highest at 9,706.06
RAW MATERIAL COST(Y)
Fallen by -2.08% (YoY
CASH AND EQV(HY)
Highest at USD 35,423 MM
DEBT-EQUITY RATIO
(HY)
Lowest at -30.87 %
INVENTORY TURNOVER RATIO(HY)
Highest at 13.21 times
-3What is not working for the Company
ROCE(HY)
Lowest at 29.65%
DEBTORS TURNOVER RATIO(HY)
Lowest at 83.68 times
Here's what is working for Costco Wholesale Corp.
Operating Cash Flow
Highest at USD 15,011 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Interest Coverage Ratio
Highest at 9,706.06
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Dividend per share
Highest at USD 83.68 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Cash and Eqv
Highest at USD 35,423 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debt-Equity Ratio
Lowest at -30.87 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Inventory Turnover Ratio
Highest at 13.21 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by -2.08% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Costco Wholesale Corp.
Debtors Turnover Ratio
Lowest at 83.68 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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