Costco Wholesale Intrinsic Value – COSTCO WHOLESALE Reports Second Quarter FY2023 Earnings Results on March 3, 2023
March 18, 2023
Earnings Overview
Costco Wholesale ($NASDAQ:COST) announced their financial results for the second quarter of FY2023 on March 3 2023, with revenue totaling USD 1.5 billion, representing a 13.1% year-over-year increase. In addition, net income rose 6.5% from the same period in the prior year to USD 55.3 billion.
Price History
The company’s stock opened at $474.8 and closed at $475.3, representing a 2.1% decline in price from the previous closing rate of $485.7. The company’s Chairman and CEO, W. Craig Jelinek, commented on the results stating, “We are pleased to report solid earnings growth for the second quarter of 2023. We remain focused on delivering value to our customers through our commitment to quality products and exceptional service.” COSTCO WHOLESALE remains optimistic about their upcoming quarters and expects to continue to generate strong returns for their shareholders. Investors are encouraged to stay up-to-date with the company’s progress as it continues to build upon its success. 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 |
| 234.39k | 6.05k | 2.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Costco Wholesale. More…
| Operations | Investing | Financing |
| 6.74k | -3.92k | -4.28k |
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 |
| 66.03k | 44.55k | 48.41 |
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 |
| 14.0% | 17.4% | 3.5% |
| FCF Margin | ROE | ROA |
| 1.2% | 24.0% | 7.8% |
Analysis – Costco Wholesale Intrinsic Value
GoodWhale has analyzed the financials of COSTCO WHOLESALE, and according to our proprietary Valuation Line, the fair value of its share is around $491.1. Currently, COSTCO WHOLESALE stock is traded at $475.3, which is a fair price that is undervalued by 3.2%. Our Valuation Line provides investors with useful insights into the stock valuation of COSTCO WHOLESALE and its potential returns. As an independent financial analytics platform, GoodWhale is committed to providing comprehensive data and analysis for investors to make informed investment decisions. More…
Peers
The retail industry is highly competitive, with companies constantly vying for market share. Costco Wholesale Corp is no exception, and it competes directly with the likes of Target Corp, Takayoshi Inc, and Walmart Inc. All four companies are leaders in the retail space, and each has its own strengths and weaknesses.
– Target Corp ($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 reported a positive second quarter for FY2023, with revenue increasing 13.1% year-over-year and net income increasing 6.5%. This is a strong indication of the company’s financial health and could be seen as a sign of confidence in the firm’s long-term potential. Investors should therefore consider the stock as a potential investment opportunity, as the upward trend in revenue and earnings suggests that COSTCO could continue to generate positive returns for shareholders in the future.
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