Is COSTCO WHOLESALE CORP (NASDAQ:COST) a Strong Candidate for Quality Investing?

In this article we will dive into COSTCO WHOLESALE CORP (NASDAQ:COST) as a possible candidate for quality investing. Investors should always do their own research, but we noticed COSTCO WHOLESALE CORP showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Key Considerations for Quality Investors.

• COSTCO WHOLESALE CORP has shown strong performance in revenue growth over the past 5 years, with a 11.34% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
• COSTCO WHOLESALE CORP demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 32.06% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
• With a Debt/Free Cash Flow Ratio of 0.93, COSTCO WHOLESALE CORP exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
• COSTCO WHOLESALE CORP demonstrates consistent Profit Quality over the past 5 years, with a strong 103.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
• With a robust 5-year EBIT growth of 12.61%, COSTCO WHOLESALE CORP showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
• COSTCO WHOLESALE CORP has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

What is the full fundamental picture of NASDAQ:COST telling us.

ChartMill assigns a Fundamental Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple fundamental indicators and properties.

We assign a fundamental rating of 6 out of 10 to COST. COST was compared to 41 industry peers in the Consumer Staples Distribution & Retail industry. Both the health and profitability get an excellent rating, making COST a very profitable company, without any liquidiy or solvency issues. While showing a medium growth rate, COST is valued expensive at the moment. With these ratings, COST could be worth investigating further for quality investing!.

Our latest full fundamental report of COST contains the most current fundamental analsysis.

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.