Why Quality-Oriented Investors Should Consider NASDAQ:COST.

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.

Looking into the quality metrics of COSTCO WHOLESALE CORP

• The 5-year revenue growth of COSTCO WHOLESALE CORP has been remarkable, with 10.75% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
• With a robust ROIC excluding cash and goodwill at 30.56%, COSTCO WHOLESALE CORP showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
• COSTCO WHOLESALE CORP maintains a healthy Debt/Free Cash Flow Ratio of 1.15, 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.
• 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.
• The 5-year EBIT growth of COSTCO WHOLESALE CORP has been remarkable, with 14.41% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
• 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.

Fundamental Analysis Observations

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

COST gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 40 industry peers in the Consumer Staples Distribution & Retail industry. COST scores excellent points on both the profitability and health parts. This is a solid base for a good stock. COST is valied quite expensively at the moment, while it does show a decent growth rate. These ratings could make COST a good candidate for quality investing.

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

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Keep in mind

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.