Reasonable growth and debt and a high ROIC for COSTCO WHOLESALE CORP (NASDAQ:COST).

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.

Looking into the quality metrics of COSTCO WHOLESALE CORP

• COSTCO WHOLESALE CORP has achieved substantial revenue growth over the past 5 years, with a 10.75% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
• COSTCO WHOLESALE CORP demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 31.28% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
• 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 consistently achieved strong EBIT growth over the past 5 years, with a 14.41% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
• COSTCO WHOLESALE CORP has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

How does the complete fundamental picture look for NASDAQ:COST?

As part of its analysis, ChartMill provides a comprehensive Fundamental Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of 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. COST is valied quite expensively at the moment, while it does show a decent growth rate. These ratings would make COST suitable for quality investing!

For an up to date full fundamental analysis you can check the fundamental report of COST

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.