What Should You know About Costco Wholesale (COST) Before Investing?

Shares of Large-cap consumer discretionary company Costco Wholesale moved 0.6 this afternoon, and are now trading at $580.57 per share. On the other hand, the average analyst target price for the stock is $545.34.

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.

Potential Costco Wholesale Investors Should Analyze the Following:

  • Costco Wholesale has moved 11.0% over the last year.

  • The company has a price to earnings growth (PEG) ratio of 5.43. A number between 0 and 1 could mean that the market is undervaluing Costco Wholesale's estimated growth potential

  • Its Price to Book (P/B) ratio is 10.26

  • Costco Wholesale currently returns an annual dividend yield of 0.7%.

Understanding Costco Wholesale's Operating Margins

Date Reported Total Revenue ($ k) Operating Expenses ($ k) Operating Margins (%) YoY Growth (%)
2023 242,290,000 21,590,000 4 33.33
2022 226,954,000 19,779,000 3 0.0
2021 195,929,000 18,537,000 3 0.0
2020 166,761,000 16,387,000 3 0.0
2019 152,703,000 14,994,000 3 0.0
2018 141,576,000 13,876,000 3

Over the last 6 years, Costco Wholesale's operating margins have averaged only 3.2%, with a high coefficient of variability of 470.7%. The firm's margins exhibit a relatively stable growth trend of 2.6%.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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