Costco Wholesale Corporation
Costco operates membership warehouses across many countries. It offers branded and private-label products in various categories. Products include groceries, appliances, electronics, and more. The company also operates services such as pharmacies, optical centers, food courts, and tire installation centers. Online services include delivery, travel, and grocery shopping. Costco was founded in 1976 and is based in Washington state.
Overview
Strengths
- The company has low debt. Net Debt to EBITDA Ratio is -0.33 and it is lower than the sector mean.
- The company has high returns. ROIC (38.41%) is higher than the sector mean (20.53%).
Weaknesses
- With a depreciation Potential of -70.89%, based on our fundamental analysis, it suggests the stock may be overvalued.
- Current Price to Earnings Ratio (58.67) is significantly higher than the sector mean (29.36).
- Price to book ratio (18.30) is significantly higher than the sector mean (5.41).
- EV/EBITDA (35.33) is significantly higher than the sector mean (18.84).
- The Price to Free Cash Flow ratio (65.20) is significantly higher than the sector mean.
- EBITDA Margin (4.76%) appears relatively low.
Key Financial Data
| Indicator | Value |
|---|
| PER | 58.9 |
| EV/EBITDA | 35.5 |
| Price/Free Cash Flow' | 65.5 |
| ROIC | 38.4% |
| Net Debt/EBITDA | -0.3 |