Costco Wholesale Intrinsic Value Calculation – William Blair Analyzes Costco Wholesale Co.’s FY2024 Earnings
December 5, 2023
🌥️Trending News
William Blair has released an analysis of Costco Wholesale ($NASDAQ:COST) Co.’s FY2024 earnings and financial results. The company is known for providing a wide selection of merchandise, including groceries, apparel, home goods, electronics, and more, at discounted prices to its members. The company has also proven to be resilient in the face of economic downturns by maintaining its focus on cost containment, efficient operations, and customer service.
These strategies have enabled the company to achieve strong returns for shareholders in recent years. William Blair’s analysis of Costco Wholesale Co.’s FY2024 financial results is a testament to the company’s success and provides insight into how the company can continue to generate returns for investors in the years ahead.
Price History
COSTCO WHOLESALE stock opened at $592.2 and closed at $599.1, an increase of 0.5% from the prior closing price of $596.2. Analysts have also predicted that COSTCO WHOLESALE’s earnings and revenue will see several quarters of growth over the course of FY 2024, with some analysts predicting double-digit growth. Moreover, they have also predicted that Costco Wholesale Co.’s stock may experience an upward trajectory over the next year due to the company’s strong financial position and good performance in the market. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Costco Wholesale. More…
| Total Revenues | Net Income | Net Margin |
| 242.29k | 6.29k | 2.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Costco Wholesale. More…
| Operations | Investing | Financing |
| 11.07k | -4.97k | -2.61k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Costco Wholesale. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 68.99k | 43.94k | 56.59 |
Key Ratios Snapshot
Some of the financial key ratios for Costco Wholesale are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 13.3% | 14.3% | 3.6% |
| FCF Margin | ROE | ROA |
| 2.8% | 22.2% | 7.8% |
Analysis – Costco Wholesale Intrinsic Value Calculation
At GoodWhale, we have conducted an analysis on COSTCO WHOLESALE‘s fundamentals. Our proprietary Valuation Line has calculated the fair value of COSTCO WHOLESALE share to be around $534.3. However, the stock is currently trading at a fair price of $599.1, which is 12.1% overvalued. We advise caution when considering investing in the stock at this time. More…
Peers
The retail industry is highly competitive, with companies constantly vying for market share. Costco Wholesale Corp is no exception, and it competes directly with the likes of Target Corp, Takayoshi Inc, and Walmart Inc. All four companies are leaders in the retail space, and each has its own strengths and weaknesses.
– Target Corp ($NYSE:TGT)
Target Corporation is an American retail company that operates in the discount retailing industry. The company was founded in 1902 and is headquartered in Minneapolis, Minnesota. Target Corporation operates 1,851 stores in the United States and Canada, and has a market cap of 71.52B as of 2022. The company’s return on equity is 34.09%. Target Corporation’s main competitors are Walmart and Amazon.
– Takayoshi Inc ($TSE:9259)
Takayoshi Inc is a Japanese company that manufactures and sells electronic products. It has a market cap of 8.99B as of 2022 and a ROE of -45.41%. The company’s products include computers, mobile phones, digital cameras, and other electronic devices. Takayoshi Inc has been in business for over 50 years and is a well-known brand in Japan.
– Walmart Inc ($NYSE:WMT)
With a market cap of 363.06B as of 2022, Walmart Inc. is a retail giant with a 16.44% return on equity. The company operates a chain of hypermarkets, discount department stores, and grocery stores. Walmart is the world’s largest company by revenue, with US$514.405 billion in 2020.
Summary
Costco Wholesale Co.’s FY2024 earnings report has drawn positive comments from investment firm William Blair. According to the firm, Costco’s quarterly earnings have been bolstered by strong membership growth, e-commerce sales, and the emergence of its smaller store formats. In addition to robust sales figures, Costco’s improved operating margin, return on invested capital, and efficient inventory management have all contributed to the company’s impressive financial results. Looking ahead, William Blair analysts expect enhanced operational efficiency to drive Costco’s growth and continue to create value for shareholders.
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