Invest Well in Costco Stock: Products, Dividend, Financial Statements, and More
2024-04-07 updated
When making long-term investments to ensure stability through diversified investments, it is recommended to prioritize ETFs that include Costco stocks. However, there might still be individuals who wish to invest directly in Costco stocks. Shall we also explore a value investing approach to assess whether Costco's performance will grow in the long term?
Q. What products and services does Costco provide?
- Costco is one of the largest wholesale retailers in the US.
- It is famous for selling a variety of products at low prices and providing great discounts to consumers.
Q. What is Costco's competitive advantage?
- Costco has a strategy of selling products in bulk to lower the price per product.
- Costco operates a membership system to provide special benefits to customers.
- Costco offers its own brand products such as Kirkland Signature at higher quality and lower prices than general brands.
- Costco supplies products at lower prices than its competitors by operating a low-cost operating model.
Q. Is Costco's executive CEO honest and competent?
Ron Vachris is the CEO of Costco.
- He was selected as the next CEO in 2023.
- He is a long-time veteran of Costco who has dedicated himself to the company for more than 40 years.
- He started his career as a forklift driver and has played various key roles in the company’s business operations and sales activities.
Q. Is Costco's financial statements healthy?
(2024년 04월 06일 기준)
Net Profit Margin
- Costco has earned an annual net profit equivalent to 2.15% of the current stock price.
- It's good to see that the net profit has been growing at an annual rate of 14.50% over the past 5 years.
Total Debt
- The debt is 98.79% of the annual net profit.
- It would take about 1 years for the company to repay all of its debt.
- The net profit is growing, so Costco can repay the debt faster.
Dividend
- Costco offers a 0.57% annual dividend.
- Over the past 5 years, the annual average dividend has grown by 12.38%.
- Dividends are growing, which is good.
Share Buyback
- Apple recently repurchased its own shares equivalent to 0.23% of the stock price in the past year.
- The recent share buyback amount is 122.61% higher than the 3-year average.
Q. What is Costco's stock performance like?
- This year's total return is 47.77%.
- 5-year mean total return is 26.68%.
Q. When is a good time to buy and sell Costco?
If Costco is healthy and growing, it will rise in the long run, so it is good to buy in installments even if you think the current stock price is a bit high. On the other hand, if you think that Costco is no longer healthy in the long run, you can consider selling.
PER
- Current: 46.68
- 5Y Avg: 39.85
- The current value is higher than the average, so be careful when buying. However, purchasing can be considered only if you judge that the company will sustain high long-term growth.
Price/Sale Ratio
- Current: 1.27
- 5Y Avg: 1.01
- Current value is higher than average so be careful when buying. However, purchasing can be considered only if you judge that the company will sustain high long-term growth.
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Value Investing Together is a blog and application that provides stock information for individuals interested in value investing and is not intended for investment recommendations. The information provided should only be used for reference purposes, and investment decisions should be made at one's own discretion and responsibility.