September 24, 2025 a 03:43 pm
COST: Fundamental Ratio Analysis - Costco Wholesale Corporation
Costco Wholesale Corporation is a robust player in the retail sector, operating membership warehouses that offer a wide variety of products. With a consistent business model and expansion strategy, it remains a reliable investment in the consumer defensive sector. The company's focus on low prices and quality consumer goods continues to attract a wide customer base.
Fundamental Rating
Costco's fundamental ratings point to a stable outlook, with notable strength in Return on Equity and Assets, while other metrics suggest average performance.
| Category | Score | Rating |
|---|---|---|
| Discounted Cash Flow | 3 | |
| Return on Equity | 5 | |
| Return on Assets | 5 | |
| Debt to Equity | 3 | |
| Price to Earnings | 1 | |
| Price to Book | 1 |
Historical Rating
Comparing current scores with historical data shows consistency in Costco’s financial health, increased confidence over time noted in stable metrics.
| Date | Overall Score | DCF | ROE | ROA | Debt/Equity | P/E | P/B |
|---|---|---|---|---|---|---|---|
| 2025-09-23 | 3 | 3 | 5 | 5 | 3 | 1 | 1 |
| N/A | 0 | 3 | 5 | 5 | 3 | 1 | 1 |
Analyst Price Targets
Analyst estimates suggest a favorable price target with a consensus to buy, indicating growth potential.
| High | Low | Median | Consensus |
|---|---|---|---|
| 1100 | 1035 | 1057.5 | 1062.5 |
Analyst Sentiment
The consensus among analysts is optimistic, with a significant number of buy recommendations, underscoring positive sentiment towards Costco's stock.
| Recommendation | Count | Impact |
|---|---|---|
| Strong Buy | 0 | |
| Buy | 36 | |
| Hold | 19 | |
| Sell | 0 | |
| Strong Sell | 0 |
Conclusion
Costco Wholesale Corporation demonstrates a strong financial position supported by positive analyst ratings, suggesting a stable and promising outlook. While some fundamental metrics reflect average performance, the company's resilience in the market continues to attract investors' confidence. The consistent buy recommendations further indicate potential growth, making it a viable stock in the consumer defensive sector. Investors should consider potential risks such as market fluctuations and competitive pressures, but overall, Costco's strategic positioning and operational excellence offer significant opportunities.