Costco Wholesale Corp. (COST) – Expansion of warehouse to influence growth

Costco Wholesale Corp. (COST) (Q3FY23)

Introduction

Costco Wholesale Corporation, together with its subsidiaries, engages in the operation of membership warehouses in the United States, Puerto Rico, Canada, the United Kingdom, Mexico, Japan, Korea, Australia, Spain, France, Iceland, China, and Taiwan.

It offers branded and private-label products in a range of merchandise categories. The company offers sundries, dry groceries, candies, coolers, freezers, liquor, and tobacco and deli products; appliances, electronics, health and beauty aids, hardware, garden and patio products, sporting goods, tires, toys and seasonal products, office supplies, automotive care products, postages, tickets, apparel, small appliances, furniture, domestics, housewares, special order kiosks, and jewelry; and meat, produce, service deli, and bakery products. It also operates pharmacies, opticals, food courts, hearing-aid centers, and tire installation centers, gas stations; and offers business delivery, travel, same-day grocery, and various other services online in various countries.

The company has warehouses in the United States, Puerto Rico, Canada, Mexico, Japan, the United Kingdom, South Korea, Taiwan, Australia, Spain, Iceland, France, and China. It also operates e-commerce websites in the United States, Canada, the United Kingdom, Mexico, South Korea, Taiwan, Japan, and Australia.

Highlights

The company’s membership is also growing. In Q3FY23, COST had 69.1mn paid households and 124.7mn cardholders, which is about 7% higher than the previous year. Additionally, there were 31.3mn paid executive members at the end of the third quarter, which is an increase of 681,000 or 57,000 per week in Q3FY23.

Stock performance

Costco stock gave returns of 4.8% and 0.1% in the period of three months and one year. The stock has a 52- week high of $571.16 and a 52-week low of $447.90. The stock gave returns of 58.6% and CAGR of 16.6% over a period of three years. The stock had a 200-Day Moving Average of $507.27 and a 50-Day Moving Average of $544.94.

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Highlights

Valuation

– Enterprise Value
– CrispIdea Forecast
– CrispIdea Segment Forecast
– Economic Value Added Analysis
– P/E Analysis
– Peer Valuation
– CrispIdea Forecast Relative to Consensus
– Consensus History and Surprise
– Consensus Momentum

Actual & Historical Performance

– Income Statement
– Balance Sheet
– Cash Flow
– 10 Year Historical Performance
– Ratio Analysis
– Du Pont Analysis
– ROIC & ROCE Analysis
– Segment Performance
– Key Metrics
– M&A Deals

Peer Performance

– Summary
– Profitability
– Growth
– Price Performance

Ownership

Stock Price Performance

Crispidea Coverage

No of Pages: 37

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