COST
COST — Consumer Defensive
Graham: 25
Buffett: 84
Lynch: 57
Costco Wholesale Corporation, together with its subsidiaries, engages in the operation of membership warehouses in the United States, Puerto Rico, Canada, Mexico, Japan, the United Kingdom, Korea, Australia, Taiwan, China, Spain, France, Iceland, New Zealand, and Sweden. It offers merchandise, including sundries, dry...
Price ?
913.59
Market Cap ?
405.2B
P/E ?
50.25
P/B ?
13.88
Div Yield ?
0.55%
52W Range ?
871.71 - 1078.23
200W MA ?
694.79
25
Graham-style buying rate (0-100)
Criteria breakdown
- ✓ Company size sufficient (large-cap) ? $405,156,233,216 — Uses market cap >= $2B as proxy
- ✗ Solid financial condition (CR>=2; LT debt <= NCAV) ? CR=1.03 | D/E=0.34 — Partial: checks current ratio; LT debt vs NCAV unavailable
- ✓ Uninterrupted dividends for 20 years ?
- ✓ No losses in last 10 years ? 10y window — Positive earnings for last 15y
- ✓ EPS growth >= 33% over 10 years ? ~953%
- ✗ Price-to-Book (P/B) <= 1.5 ? 13.88
- ✗ Price-to-Earnings (P/E) <= 15 ? 50.3 — Uses trailing P/E as proxy for 3y avg EPS
- ✗ Combined formula (P/E * P/B) <= 22.5 ? 697.7
- ✗ Margin of safety >= 20% ? -235% — Intrinsic = EPS * 15
- ✓ High ROE maintained without excessive debt ? ROE=30.7% | D/E=0.34 — Approximate threshold ROE = 15%, D/E = 1.0
What is evaluated (Graham):
- Valuation discipline and buying below intrinsic value.
- Financial resilience: liquidity and prudent leverage.
- Consistent dividends and earnings over long horizons.
"The intelligent investor is a realist who sells to optimists and buys from pessimists." — Benjamin Graham
84
Buffett-style buying rate (0-100)
Criteria breakdown
- ✓ Positive and growing FCF (multi-year) ? 16,049,000,000 -> 18,833,000,000
- ✓ ROIC >= 12% sustained ? 100.4%
- ✓ High ROE (proxy for durable advantages) ? 30.7% — Consistency over years not checked
- ✗ Net profit margin >= 10% ? 2.9% — Derived from available financial filings
- ✓ Conservative leverage (D/E <= 1.0) ? 0.34
- ✓ Sustainable shareholder returns (dividend > 0%) ? 0.55% — Does not assess buybacks or payout safety
What is evaluated (Buffett):
- Durable advantages: high ROE, healthy margins.
- Balance discipline and shareholder friendly capital use.
- Positive free cash flow and efficient reinvestment.
"It is far better to buy a wonderful company at a fair price than a fair company at a wonderful price." — Warren Buffett
57
Lynch-style buying rate (0-100)
Criteria breakdown
- ✗ PEG ratio (P/E / growth) <= 1.0 ? 3.94
- ✓ Positive multi-year EPS growth (per-year >= 10%) ? ~12.7%/yr
- ✓ Conservative leverage (D/E <= 0.5) ? 0.34
- ✗ Sustainable profitability (net margin >= 5%) ? 2.9%
- ✓ Earnings stability (no losses in 10y) ? 10y window
What is evaluated (Lynch):
- Growth at a reasonable price (PEG and EPS CAGR).
- Durable earnings with limited drawdowns.
- Conservative balance sheet and baseline profitability.
"Know what you own, and know why you own it." — Peter Lynch