Strong Buy Rating for Costco Amidst Outstanding Financial Performance and Membership Growth (2024)

FAQs

How well is Costco performing financially? ›

Net income for the first 24 weeks was $3.33 billion, $7.49 per diluted share, compared to $2.83 billion, $6.37 per diluted share, last year. For the four-week reporting month of February, ended March 3, 2024, the Company reported net sales of $18.21 billion, an increase of 6.9 percent from $17.04 billion last year.

Costco Wholesale Balance Sheet Health

Costco Wholesale has a total shareholder equity of $20.8B and total debt of $6.9B, which brings its debt-to-equity ratio to 33.5%. Its total assets and total liabilities are $66.3B and $45.6B respectively. Costco Wholesale's EBIT is $8.9B making its interest coverage ratio -20.2.

Costco's business will grow

Costco's surest path to positive shareholder returns is to boost sales at a faster clip than its peers. It's been doing a great job on this score lately, with same-store sales rising 6% in the most recent quarter, compared to Walmart's 4% uptick.

While ZipRecruiter is seeing hourly wages as high as $50.48 and as low as $9.38, the majority of Costco Employee wages currently range between $15.38 (25th percentile) to $24.76 (75th percentile) across the United States.

COST Sales Forecast

Next quarter's sales forecast for COST is $79.92B with a range of $77.63B to $82.26B.

From a profit perspective, Costco stock trades at a price-to-earnings (P/E) ratio of 47. That valuation is double the average P/E ratio of the S&P 500, which currently sits at 23. It essentially means investors think Costco is worth buying at twice the price of an average stock.

Total debt on the balance sheet as of May 2024 : $9.29 B

According to Costco's latest financial reports the company's total debt is $9.29 B. A company's total debt is the sum of all current and non-current debts.

Total debt on the balance sheet as of May 2024 : $9.29 B

According to Costco's latest financial reports the company's total debt is $9.29 B. A company's total debt is the sum of all current and non-current debts.

Costco Wholesale (COST -1.64%) has an impressive record behind it, with the business growing strongly for years and the stock price rising along with it. At this point, share prices have soared over 600% in just 10 years compared to a far less impressive 170% gain for the S&P 500 index.

Costco Financial Overview

The company's EPS TTM is $16.133; its P/E ratio is 53.97; and it has a dividend yield of 2.21%. Costco is scheduled to report earnings on September 26, 2024, and the estimated EPS forecast is $5.02.

Is Costco making money? ›

The answer is surprising: Costco makes a profit mainly from membership fees. To shop at Costco, one must possess a membership. This permits Costco to do what no other grocery store could previously do, which is sell their items at a price so low that they break even.