COST Stock Report
2-Year Price History
Recent Price
(7/2 4:00PM)
-2.5%
$44.64
52-Week Price
$30.70 - $71.00
Market Capitalization
$19.4 Billion
Most Recent Dividend
$0.61
Ockham's Rating
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COST Revenue
For a long time, value investors have used the current share price relative to sales per share levels as an important valuation tool. We utilize a historical weighted average methodology that treats recent years more importantly in the calculation. When looking at COST through this framework, we can see that our weighted average historical high and low Price to Sales per share ratios over the last 10 years are 0.44x and 0.29x respectively.
Utilizing this range we can see that COST’s current Price to Sales per share ratio of 0.27x is significantly below its average levels historically. In fact, with a current price of $44.64, COST is a full 27% below its average Price to Sales ratio at comparable sales levels. This is a rare occurrence and, when taken in context of the other areas of our analysis, can be a strong positive for our outlook for COST.
COST Cash Earnings
As the old saying goes, "Cash is King!" However, we prefer to capture a few other items within our analysis to identify "cash earnings". Nevertheless, an analysis of Cash Earnings is absolutely pivotal to assessing a company's value, and currently COST is significantly below its historical average multiple of cash earnings as calculated by Ockham. Similar to our analysis of sales per share, Ockham looks at the last 10 years of cash earnings levels for COST to identify where the current high and low price levels have been historically in relation to profit per share. Again, we utilize a weighted average methodology which relies more heavily on recent years of data. This weighted average framework provides us with an average high Price to Cash Earnings ratio per share of 16.85 and a 11.10 low over the same period.
Now that COST’s current price is $44.64 and its Price to Cash Earnings ratio is 10.71, we are very positive on its outlook from the cash earnings perspective. In fact, COST is now trading a full 24% below its average historical Price to Cash Earnings ratio at these profit per share levels. When our clients ask us why COST has great long term potential, the Cash Earnings levels to current stock is one of our primary reasons. But naturally, now we need for the overall market to recognize this disparity.
COST Dividends
While it is not necessary to pay an attractive dividend or a dividend at all, to receive a positive rating from Ockham, we view dividends as an additionally helpful measure in determining the future potential of any company.
In COST’s case, the estimated annual dividend is $0.72 resulting in a current dividend yield of 1.61%. Similar to our review of Sales and Cash Earnings per share, we evaluate dividend yields from COST against the historic high and low levels over the past 10 years. The highest dividend yield from COST over this period was 2.35% while the lowest dividend yield was 0.00% If you are looking for some “bang for your buck” then a dividend yield of 37.02% above the historical median should be enticing. COST receives a positive boost in our view because as you know, equity at its core is simply a claim on future dividends.
The latest TV Media Discussion
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“…That commodity costs are coming patty edwards, are you concerned perhaps the price hike they enacted on the consumer will have to be rolled back, given >> well, I know that walmart and COSTCO both talked about going back to suppliers that had commodity hikes last year and trying to get some of that back for the consumers now. Given that, maybe they have to give up a little bit -- the amount of down side they had on the commodity side is huge. …” …more details…
“…Sort of like nothing to fear but catastrophe. >> cheryl: the retailers, the only thing looking good is wal-mart. Maybe COSTCO. >> tom: I have a question for you. Would you take an iou from the state of california? California owes you money, that may be the only thing you can …” …more details…
“…>> alexis, you are completely correct that wal-mart attacked maryland on this issue. Secondly, wal-mart's benefits healthcare lower than many key competitors, kroger, COSTCO, etc., and finally because of their attack against president obama during the election campaign, the administration …” …more details…
“…Bigger discounters. Saks, nordstrom and tiffanies are outperforming wal-mart, COSTCO and b.J. What happens when the economy how do you keep the customers who came to you in the tougher times? >> I think everyone likes to save money. We sell things that people need every day. …” …more details…
“…But it's going to be a volatile ride. India, nord, has yet to give the >>> consumer shares of best buy earning driving down names like target and COSTCO. Best buy beat analyst expectations, but left the full year unchanged, leading investors to believe perhaps there is downside in quarters to the ceo also saying consumers will be cautious when it comes to back-to-school spending, …” …more details…
“…Downgrade. Downgraded to accelerating. Tough to digest. Look at the other movers. Wal-mart is so key, and I have to tell you year to date wal-mart sales are down 13%. COSTCO is lower. So many retailers have done well today. Big lots and jpmorgan up 40 to 50% respectively. They got cut at goldman putting pressure on wal-mart …” …more details…
“…Wal-mart underperforming some of the other retailers. Year to date, big losses up 53%. J.C. Penney up 42% and tiffany's is up. And COSTCO and wal-mart are each down about 12 or 13% respecttism so you're absolutely right. Wal-mart is an underperforming by the way, avon, colgate. …” …more details…
“…Products and my most exciting part, division, a few fast-growing optical business where it makes the lenses for the ones that change color. I got some at COSTCO. Ppg is a big dividend that yields 4.6%. A dividend that's increased for every one of its last 37 years. So you're getting paid handsomely to wait for a rebound. …” …more details…
“…It's time, I think, not only to put principles back in executive pay, but also try and get c.E.O.S to be a part of society. Let's shop at COSTCO and fly coach for a while, and let's not have a class society where the disparatey between a c.E.O. Makes and people in the company …” …more details…
“…>> no, I don't. >> why would you buy cat food? >> i'm hungry and i'm not getting paid a lot. I'm a journalist, joe, right? Go to COSTCO an}#[ buy a big case of it. Never mind few when we come back we'll talk about whether the fed is ready to raise rates. Fred mishkin on the big challenges coming up. …” …more details…
“…Talking about the success they had this last at this point. >> before the meeting what's your sense of where they stand? I mean, we're getting some weird retail numbers. Like COSTCO, although that was partly because of gasoline. But COSTCO was down 1%. How is is walmart doing? >> you know, we continue to think they're out-pacing their competitors like they have the last five consecutive quarters, they've out-paced the …” …more details…
“…Down almost 12%. Same store sales down almost 10%. Where are the teens? COSTCO, target all had awful days. Number six, fifth third bank corp. >> number five sun tech. …” …more details…
“…Ross store tos had four to 5% sales gains for the month. They were buying clothes but closed out discount stores. COSTCO, an outperformer in the largest u.S. Warehouse club not immune to the tighter consumer spending out and the same-store sales numbers dropping 6%. Liz, it was still the …” …more details…
“…Re there are a few retail stocks that trade at the nasdaq. Disappointing same-store sales hot topic is getting hit to the down 4.5%. COSTCO under pressure as well down by 2 pkd. Finally, let's talk about odyssey marine exploration. Small market cap. Only $100 million. We had them on cnbc in the past. This is the company that goes …” …more details…
“…63% missed expectations. Some of the retailers that trend on the lower side of things also missed expectations, the likes of target and COSTCO. Look at retail and same-store sales going forward, walmart is not going to be including itself in that bunch anymore. In fact, they won't be issuing …” …more details…
“…This is from paidscale.Com. A survey of workers. I want to give you both of you a chance to react. Doesn't include benefits, by the way. COSTCO, k-mart, walmart and what's interesting is that the lowest payer is k-mart, closely followed by target, which I thought was pretty interesting considering walmart has been demonized by people who say wages are too low. They are not as low as their >> the example of COSTCO, a beautiful example. COSTCO pages its workers much higher wages. Their ceo said turnover is much lower because of the salary and people are more satisfied. >> sam walton is one of the five greatest entrepreneurs in …” …more details…
“…Is chinese will continue to lend us money for a couple more at least consumers are cutting back on spending. The latest figures for same store sales were lower than expected. COSTCO, target, many others, all of them way down. To the big board, the dow jones industrial average in with a 48.Gain with very low volume but at 8700. I want to alert you to another …” …more details…
“…It's a specialty store. A lot to do with fashion coming in and going out. What I can't understand is something like target down 6%, is it? And COSTCO down another 6 or 7%. That I don't get. >> sews what's happening with some of these individual stores, what happens was COSTCO for example had to lower tv set prices by 29, 39% during the month so their sales volumes went up 40% but that didn't make up for the huge discounts they …” …more details…
“…Sharon epperson at the nymax. >> the may same store sales, 63% of retailers missed expectations. However, what we did see was the discounters feeling some weakness. COSTCO among them. What was interesting about today's numbers is that they don't include walmart. Walmart is opting out of the monthly same store sales game. They're not going to be reporting. That's a tough one. We get a lot of information from …” …more details…
“…And consumers have been taking a pause for some time now and it's not turning around yet. The may retail sales numbers out today show last month was weaker than expected. Target sales were down, COSTCO sales were down and the list goes on. The red ink keeps flowing and fear and caution seem to be that is the big story today. …” …more details…
“…>> cheryl: so we're not getting out of the recession. >> tom: we'll go out and go back in. >> what kind of when you have COSTCO down, abercrombie down we may well be over the cliff-diving face of the economy but we're sure as not recovering >> cheryl: stuart varney after the break. …” …more details…
“…Discounters which continue to outperform the may store sales. Tjx company, matching a 5% gain while COSTCO doing very well, the largest u.S. Warehouse club, tighter consumer spending, sales falling by 6%. The theme here, shoppers …” …more details…
“…Griffeth said yesterday, they are saving to their grave, not shopping till they are dropping spending in this food stamps, helping walmart, help out COSTCO testing out a redemption at the new york stores. Some of the social programs will absolutely provide strength but the shifting of the dollars to different stores will affect. >> that may be. All i'm saying is look at this …” …more details…
“…Expectations, but this time, it isn't just a matter of consumer weakness. The discounters are hurting from lower food and gas prices. As a result, the average customer transaction at COSTCO was 10% lower than last year. Fluctuations in the dollar pinched their international while the basics sold at cotco …” …more details…
“…Continues to outperform the other discounters. >> you know, it comes down to beating expectations and exceeding the consumer's expectations and you go into a warehouse club like a b j's or a COSTCO or a sam's club. If you find items you didn't expect there and see great prices, you're going to jump all over it and buy it because you know it's not going to be there the next time you come in. And really, what we're seeing the same thing is happening at …” …more details…
“…Books and start to spend some more money? >> yeah, and marshall, a big thing that we're seeing here is that the mixed results coming from the discounters, it's not like as a whole everybody is still shopping at COSTCO, shopping hat the target. Target really not doing well at what's really setting some of the discount retailers apart? Take bj wholesale, for example, who beat expectations and …” …more details…
“…Quick the discounters, mixed and waurm the big winner and target not so much. Worse than expected and sales down 6% for may. COSTCO not so good. Dropped 7% and bj wholesale, they've done pretty well. An outperformer and sales were something to say about COSTCO, ask marshall about, tv set sales, the average price of a tv set has gone down 39%, but at the same time, because the prices are so low, the volumes …” …more details…
“…The stock is up 44%. That's basically represents the premium that intel is paying I mentioned retail news and the disappointment out of both COSTCO and hot topic. Both share prices are under pressure. COSTCO down 3%. Hot hot topic down 6 1/2%. Cost con down. Let's go to sharon at the nymex. >> you can say oil prices got a boost today from the goldman …” …more details…
“…The financial capital of the the opening bell is going to ring in five minutes. Most retailers posting sales declines for may, even COSTCO. If you can believe that. You know, COSTCO. Boy, what can go wrong there? Sales down 1%. Margaret brennan joining us now to go inside those numbers. Margaret? >> mark, this month of may was truly a roller coaster ride for 76% of those who report missed their own expectations here. You mentioned COSTCO. If you strip out gas, it would have been up. But this month, what happened to COSTCO is endemic of what happened to a lot of warehouse and retailers. Starting to see deplace for theflation for the first time. Gas prices impacted COSTCO and stronger dollar impacting their on top of the consumer that is saving rather than spending. They're now starting to feel the pressure of food price …” …more details…
“…$884. The shares up 45% as it is about a 40% premium or so over where this stock did close yesterday. And we merngsed the retail sales this morning. Disappointing from COSTCO and hot topic. Cost can is off 2%. Hot topic down 4 1/2%. >>> oil prices are up $2 as they open get under way. …” …more details…
“…They've been choosing wal-mart and now, wal-mart because of the better business results adding jobs as a result. So, there you have it. You know, pretty tough times, alexis, for a lot of retailers, we have seen it in the numbers from COSTCO, from macy's as I just said and target, we didn't talk about the detail down more than expected and tough times for many of the companies. Alexis: yeah, some ugly thank you very much. A check on the european markets and ashley webster has the …” …more details…
“…Several key changes, rough store sales for may and connell mcshane with a story. Connell: and tells you there is he' work to do here on the COSTCO, for example, down by 7%, stores open at least a year the month of may. The drop for COSTCO does include fuel, bigger than most analysts expected. Stock price for COSTCO lower in the pre-market ahead of the open when you take fuel sales out. Same-store sales at COSTCO actually did go up a little bit. They were up by 1%, exfuel as moving on to macy's, simply. Same-store sales they were down …” …more details…
“…Pressure today we will watch retailers. Same-store sales numbers we will watch wal-mart, a hot topic, also target and COSTCO we watch those names as well on the upgrade and downgrade, capital markets are …” …more details…
“…Target out with the same store down 6.1% for the month of may. Worse than expected. The street was looking for 4.3% decline. Matches what we've seen from COSTCO this morning. We'll keep an eye on this. Walmart not reporting monthly sales anymore. Target and COSTCO, really the big discounters to show you what's going on. From the two of them that have reported weaker than expected sales for the month of may. We don't know what walmart did, …” …more details…
“…Look at true religion jeans. It's replacing multiple purchases of dresses or high-end items it has remained extremely these are the winners in that segment. >> COSTCO came out with numbers that were disappointing earlier on. Is that a trend that will hold for walmart and target as well? >> one of the things we'll see from target. The month of april is the first month they had a traffic …” …more details…
“…It is not moving much in the pre-market. Out onto the company outlook, COSTCO down 7% the expectations down 6.5% it is a stop to watch that includes fuel if you take that out …” …more details…
“…Billion from 750 million. This is the same story. Fifth third was one of those banks I think, wasn't it? They have some tarp. COSTCO reporting may comps down 7% vs. The street. Looking for 4.2%. May revenues down 5%. U.S. Comps down 6%. International down 7%. …” …more details…
“…>>> welcome back to "quacksquawk we've been watching many stories ahead of the opening bell. COSTCO says in store sales down 7% last month. The estimate were for 4.5%. Limited brands matching analysts we should point out that we will …” …more details…