Costco Story

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COST -- USA Stock  

USD 361.30  1.00  0.28%

Net Cash Flow Business Acquisitions and Disposals is likely to drop to about (1.1 B) in 2020. While many traders today are more concerned about the preservation of capital over market returns, Costco Wholesale could be one exception. We will evaluate why we are still optimistic in anticipation of a recovery. Here I will also expose some primary fundamental factors affecting Costco Wholesale's services, and outline how it will impact the outlook for investors this year.
Published over a month ago
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Is Costco Wholesale (NASDAQ:COST) ripping up private investors?
The company reported the previous year's revenue of 166.76 B. Net Income was 4 B with profit before overhead, payroll, taxes, and interest of 21.93 B. Earning per share calculations of Costco Wholesale is based on official Zacks consensus of 8 analysts regarding Costco Wholesale's future annual earnings. Given the historical accuracy of 96.99%, the future earnings per share of the company is estimated to be 9.7486 with the lowest and highest values of 9.25 and 10.21, respectively. Please note that this consensus of annual earnings estimates for the firm is an estimate of EPS before non-recurring items and including employee stock options expenses.

And What about dividends?

A dividend is the distribution of a portion of Costco Wholesale earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Costco Wholesale dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Costco one year expected dividend income is about $1.52 per share.
Costco Wholesale Dividend Yield is comparatively stable at the moment as compared to the past year. Costco Wholesale reported Dividend Yield of 0.011 in 2020. Dividends per Basic Common Share is likely to gain to 1.36 in 2021, whereas Payment of Dividends and Other Cash Distributions is likely to drop (630.1 M) in 2021.
Last ReportedProjected for 2021
Payment of Dividends and Other Cash Distributions-584 M-630.1 M
Dividend Yield 0.011  0.0157 
Dividends per Basic Common Share 1.33  1.36 
Investing in dividend-paying stocks, such as Costco Wholesale is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Costco Wholesale must own a stock before its ex-dividend date to receive its next dividend. This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Costco Wholesale. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Costco Wholesale's Liquidity

Costco Wholesale financial leverage refers to using borrowed capital as a funding source to finance Costco Wholesale ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Costco Wholesale financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Costco Wholesale's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Costco Wholesale, but it might be worth checking our own buy vs. sell analysis

What did Costco Wholesale file with SEC?

The SEC filings are financial statements or other formal documents of Costco Wholesale that are regularly submitted to the U.S. Securities and Exchange Commission (SEC). Public companies, certain insiders, and broker-dealers are required to make SEC filings and fintech professionals rely on these filings for information about companies they are evaluating for investment purposes. Please note, most SEC filings are available online through the SEC's EDGAR database. Please check here for more information.
Please note, although all public domestic companies are required to submit their filings via EDGAR, not all public companies are available through our service. Also, keep in mind that the actual annual reports to Costco shareholders may or may not be submitted as SEC does not always require it.
Financial Statements and Exhibits. Results of Operations and Financial Condition
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Please note, although all public domestic companies are required to submit their filings via EDGAR, not all public companies are available through our service. Also, keep in mind that the actual annual reports to Costco shareholders may or may not be submitted as SEC does not always require it.

Is Costco Wholesale valued wisely by the market?

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Costco Wholesale has an asset utilization ratio of 502.85 percent. This implies that the company is making $5.03 for each dollar of assets. An increasing asset utilization means that Costco Wholesale is more efficient with each dollar of assets it utilizes for everyday operations.

Costco Wholesale is estimated to stay under $380 in January

Newest semi variance is at 1.85. Costco Wholesale has relatively low volatility with skewness of -1.27 and kurtosis of 3.79. However, we advise all investors to independently investigate Costco Wholesale to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

Whereas some firms under the discount stores industry are still a bit expensive, Costco Wholesale may offer a potential longer-term growth to private investors. To sum up, as of the 10th of December 2020, we see that Costco Wholesale moves indifferently to market moves. The firm is overvalued with very small probability of distress within the next 24 months. Our primary 30 days buy-or-sell advice on the firm is Cautious Hold.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of Costco Wholesale. Please refer to our Terms of Use for any information regarding our disclosure principles.

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