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Is Costco Wholesale Corporation(NASDAQ: COST), a large market cap stock a smart buy?

With a market cap of has a large market cap size. Costco Wholesale Corporation (NASDAQ: COST) has been on the stock market since its IPO date on the 7/9/1986. Costco Wholesale Corporation is in the Discount, Variety Stores industry and Services sector. Average volume for Costco Wholesale Corporation, is 2294.96, and so far today it has a volume of 464389. Performance year to date since the 7/9/1986 is 4.74%.

To help you determine whether Costco Wholesale Corporation is undervalued the following values will help you decide. P/E is 31.7 and forward P/E is 28.05. PEG perhaps more useful shows that Costco Wholesale Corporation has a value for PEG of 3.47. P/S ratio is 0.62 and the P/B ratio is 6.4. The P/Cash and P/Free cash flow is 12.12 and 53.78 respectively.

At the current price Costco Wholesale Corporation is trading at, 167.47 (-0.17% today), Costco Wholesale Corporation has a dividend yield of 1.07%, and this is covered by a payout ratio of 31.00%. Earnings per share (EPS) is 5.29, and this is looking to grow in the next year to 12.76% after growing 15.40% this past year. EPS growth quarter over quarter is 6.10%, and 2.60% for sales growth quarter over quarter.

The number of shares outstanding is 435.06, and the number of shares float is 435. The senior management bring insider ownership to 0.10%, and institutional ownership is at 73.90%. The float short is 2.09%, with the short ratio at a value of 3.96. Management has seen a return on assets of 6.90%, and also a return on investment of 14.50%.

The ability for Costco Wholesale Corporation, to deal with debt, means it current ratio is 1, and quick ratio is 0.4. Long term debt/equity is 0.34 and total debt/equity is 0.44. In terms of margins, Costco Wholesale Corporation has a gross margin of 13.20%, with its operating margin at 3.10%, and Costco Wholesale Corporation has a profit margin of 2.00%.

The 52 week high is -1.25%, with 44.67% being its 52 week low. The 20 day simple moving average is 3.03% and the 200 day simple moving average is 8.00%.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.


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Peter Clarke

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