Costco Wholesale Corp Stock Operating Margin

COST Stock  USD 732.08  1.10  0.15%   
Costco Wholesale Corp fundamentals help investors to digest information that contributes to Costco Wholesale's financial success or failures. It also enables traders to predict the movement of Costco Stock. The fundamental analysis module provides a way to measure Costco Wholesale's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Costco Wholesale stock.
  
This module does not cover all equities due to inconsistencies in global equity categorizations. Continue to Equity Screeners to view more equity screening tools.

Costco Operating Margin Analysis

Costco Wholesale's Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
 2021 2022 2023 2024 (projected)
Capital Expenditures3.9B4.3B5.0B5.2B
Dividends Paid1.5B1.3B1.4B1.4B

Operating Margin

 = 

Operating Income

Revenue

X

100

More About Operating Margin | All Equity Analysis

Current Costco Wholesale Operating Margin

    
  0.04 %  
Most of Costco Wholesale's fundamental indicators, such as Operating Margin, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Costco Wholesale Corp is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.

Costco Operating Margin Driver Correlations

Understanding the fundamental principles of building solid financial models for Costco Wholesale is extremely important. It helps to project a fair market value of Costco Stock properly, considering its historical fundamentals such as Operating Margin. Since Costco Wholesale's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Costco Wholesale's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Costco Wholesale's interrelated accounts and indicators.
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A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Competition

Costco Pretax Profit Margin

Pretax Profit Margin

0.0337

At this time, Costco Wholesale's Pretax Profit Margin is comparatively stable compared to the past year.
Based on the recorded statements, Costco Wholesale Corp has an Operating Margin of 0.0353%. This is 100.11% lower than that of the Consumer Staples Distribution & Retail sector and 99.53% lower than that of the Consumer Staples industry. The operating margin for all United States stocks is 100.64% lower than that of the firm.

Costco Operating Margin Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Costco Wholesale's direct or indirect competition against its Operating Margin to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Costco Wholesale could also be used in its relative valuation, which is a method of valuing Costco Wholesale by comparing valuation metrics of similar companies.
Costco Wholesale is currently under evaluation in operating margin category among related companies.

Costco Wholesale ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Costco Wholesale's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Costco Wholesale's managers, analysts, and investors.
Environment Score
Governance Score
Social Score

Costco Fundamentals

About Costco Wholesale Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Costco Wholesale Corp's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Costco Wholesale using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Costco Wholesale Corp based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Costco Wholesale Corporation, together with its subsidiaries, engages in the operation of membership warehouses in the United States, Puerto Rico, Canada, the United Kingdom, Mexico, Japan, Korea, Australia, Spain, France, Iceland, China, and Taiwan. Costco Wholesale Corporation was founded in 1976 and is based in Issaquah, Washington. Costco Wholesale operates under Discount Stores classification in the United States and is traded on NASDAQ Exchange. It employs 304000 people.

Pair Trading with Costco Wholesale

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Costco Wholesale position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Costco Wholesale will appreciate offsetting losses from the drop in the long position's value.

Moving together with Costco Stock

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The ability to find closely correlated positions to Costco Wholesale could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Costco Wholesale when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Costco Wholesale - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Costco Wholesale Corp to buy it.
The correlation of Costco Wholesale is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Costco Wholesale moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Costco Wholesale Corp moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Costco Wholesale can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
When determining whether Costco Wholesale Corp is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Costco Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Costco Wholesale Corp Stock. Highlighted below are key reports to facilitate an investment decision about Costco Wholesale Corp Stock:

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Is Costco Wholesale's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Costco Wholesale. If investors know Costco will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Costco Wholesale listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.188
Dividend Share
4.08
Earnings Share
15.28
Revenue Per Share
560.607
Quarterly Revenue Growth
0.057
The market value of Costco Wholesale Corp is measured differently than its book value, which is the value of Costco that is recorded on the company's balance sheet. Investors also form their own opinion of Costco Wholesale's value that differs from its market value or its book value, called intrinsic value, which is Costco Wholesale's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Costco Wholesale's market value can be influenced by many factors that don't directly affect Costco Wholesale's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Costco Wholesale's value and its price as these two are different measures arrived at by different means. Investors typically determine if Costco Wholesale is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Costco Wholesale's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.