COSTCO WHOLESALE CORP (NASDAQ:COST) Exhibits Quality Stock Traits. Here's Why.

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if COSTCO WHOLESALE CORP (NASDAQ:COST) is suited for quality investing. Investors should of course do their own research, but we spotted COSTCO WHOLESALE CORP showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Some of the quality metrics of NASDAQ:COST highlighted

• COSTCO WHOLESALE CORP has shown strong performance in revenue growth over the past 5 years, with a 10.75% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
• COSTCO WHOLESALE CORP exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 31.28% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
• COSTCO WHOLESALE CORP maintains a healthy Debt/Free Cash Flow Ratio of 0.89, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
• The Profit Quality (5-year) of COSTCO WHOLESALE CORP stands at 103.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
• COSTCO WHOLESALE CORP has experienced impressive EBIT growth over the past 5 years, with 14.41% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
• COSTCO WHOLESALE CORP demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

A complete fundamental analysis of NASDAQ:COST

Every day, ChartMill assigns a Fundamental Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various fundamental indicators and properties.

COST gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 41 industry peers in the Consumer Staples Distribution & Retail industry. COST gets an excellent profitability rating and is at the same time showing great financial health properties. While showing a medium growth rate, COST is valued expensive at the moment. These ratings would make COST suitable for quality investing!

Check the latest full fundamental report of COST for a complete fundamental analysis.

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

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.