Shareholder Analysis
Rubicon Reaper2
Assignment11.pptxAssignment
Name
Institutional Affiliation
Date
Costco Wholesale
About the organization
An American and global company
It is operating a chain of membership-only warehouse clubs.
Established on 15th September, 1983.
It has its subsidiaries such as Costco Travel and Costco Wholesale.
The founders are James Sinegal and Jeffrey Brotman (Cascio, 2018).
This is an American multinational corporation that is operating a chain of membership-only warehouse clubs. The firm was founded in 15th September, 1983. it has its subsidiaries such as Costco Travel and Costco Wholesale. The founders are James Sinegal and Jeffrey Brotman.
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Cash flow from the operations
For quarter ending of May 31 2020: $4.619B, a 13.68% increase year-over-year.
Twelve months ending May 31 2020: $15.798B, a 13.07% increase year-over-year.
Activities of 2019: $6.356B, a 10.08% increase from 2018.
2018 operating activities: $5.774B, a 14.15% decline from 2017
2017 operating activities: $6.726B, a 104.31% increase from 2016 (Cascio, 2018).
The cash flow from the operating activities for the quarter ending May 31, 2020 was $4.619B, a 13.68% increase year-over-year. The cash flow from the operating activities for the twelve months ending May 31, 2020 was $15.798B, a 13.07% increase year-over-year. The yearly cash flow from the operating activities for 2019 was $6.356B, a 10.08% increase from 2018. The annual cash flow from operating activities for 2018 was $5.774B, a 14.15% decline from 2017. The annual cash flow from the operating activities for 2018 was $6.726B, a 104.31% increase from 2016.
4
Price to earning ratio
Costco Wholesale has a higher P/E than the average (21) P/E for companies in the consumer retailing industry. Market participants think the company will perform better than its industry peers, going forward.
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Stock dividends and the yield
Costco Wholesale is having a solid stock on its own merits
It is also paying a dividend.
It has a steadily raise the payout every quarter
In 2014 the payout share was $ 0.10 after the first payment of dividend.
It increased to $ 0.65 in August 2019.
Based on the Ex-dividend date of July 30, 2020, the dividend yield is 0.86 percent.
Annual dividend of $ 2.8 with the payout ratio of 38.97 percent.
Costco Wholesale is paying annual dividend of $ 2.80 per share with a dividend yield of 0.86 percent (Cascio, 2018).
Besides being a solid stock on its own merits, this firm is also paying a dividend. It is having a steadily raise the payout every quarter from $ 0.10 a share in 2014 when the first dividend was paid. This increased to $ 0.65 in August 2019. Based on the Ex-dividend date of July 30, 2020, the dividend yield is 0.86 percent. There is annual dividend of $ 2.8 with the payout ratio of 38.97 percent. Costco Wholesale is paying annual dividend of $ 2.80 per share with a dividend yield of 0.86 percent.
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Earnings per share ratio
The organization’s earnings in every share for the past 12 weeks ended in May 2020 was $ 1.89.
The earnings per share for the trailing 12 months whose end was May 2020 with $ 8.36.
The organization’s EPS for the 12 weeks ended in May 2020 with $ 1.90
In trailing twelve months whose end was May 2020 was $ 8.40.
The EPS with no NRI for the 12 weeks whose end in May 2020 ($ 1.89).
The EPS with no NRI for the trailing twelve months ended in May 2020 at $ 8.36.
In the past one year, Costco Wholesale’s average EPS with no growth in NRI was 2.60 percent every year (Macrotrends LLC, n.d).
Costco Wholesale’s earnings per share for the past three months ended in May 2020 was $ 1.89. The earnings per share for the trailing 12 months ended in May 2020 with $ 8.36. The organization’s EPS for the three months ended in May 2020 with $ 1.90 with the EPS for the trailing twelve months ended in May 2020 at $ 8.40. The Costco Wholesale’s EPS with no NRI for the three months ended in May 2020 ($ 1.89). The EPS with no NRI for the trailing twelve months ended in May 2020 at $ 8.36. in the past one year, Costco Wholesale’s average EPS with no NRI growth was 2.60 percent every year.
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Cont’d
For the past three years, the average EPS with no growth in NRI was 15.70 percent every year.
The average EPS with no growth rate in NRI was 11.60 percent every year in the last five years.
The average EPS with no growth rate in the NRI was 11.70 percent every year for the last 10 years.
The highest three year average EPD with no growth rate in NRI was 146.60 every year for the past 13 years.
The lowest was -17.90 percent yearly
There was a median of 11.30 percent every year (Macrotrends LLC, n.d).
In the past three years, the average EPS with no NRI growth was 15.70 percent every year. In the past five years, the average EPS with no NRI growth rate was 11.60 percent every year. In the past 10 years, the average EPS without NRI growth rate was 11.70 percent every year. In the past 13 years, Costco wholesale’s highest three year average EPD with no NRI growth rate was 146-60 every year. The lowest was -17.90 percent yearly with a median of 11.30 percent every year.
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The amount of estimated revenues for the next one year
The price forecasts for the Costco wholesale firm is having a median target of 331.50
The highest estimate being 375.00
Lower estimate at 235.
The median estimate is presenting + 1.77 increase for the last price of 325.75 (Macrotrends LLC, n.d.).
The price forecasts for the Costco wholesale firm is having a median target of 331.50 with the highest estimate being 375.00 and lower estimate at 235. This median estimate is presenting + 1.77 increase for the last price of 325.75.
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Cont’d
Revenue from the previous three years
Revenue: amount of money that the organization is receiving from the clients in the exchange for the sales of the goods and services.
It is the top line item on the earning statements.
It is derived from the cost and the expenses which are subtracted to get the net income.
2019 annual revenue: $152.703B, a 7.86% increase from 2018.
2018 annual revenue: $141.576B, a 9.73% increase from 2017.
2017 annual revenue: $129.025B, a 8.68% increase from 2016 (Macrotrends LLC, n.d.).
Revenue is the amount of money that the organization is receiving from the clients in the exchange for the sales of the goods and services. Revenue is always the top line item on the earning statements. It is derived from the cost and the expenses which are subtracted to get the net income. Costco annual revenue for 2019 was $152.703B, a 7.86% increase from 2018. Costco annual revenue for 2018 was $141.576B, a 9.73% increase from 2017. Costco annual revenue for 2017 was $129.025B, a 8.68% increase from 2016.
11
Statement of the cash flow
The Net cash flow based on operating activities in 2017, 2018, and 2019 were 6726, 5774, and 6356 dollars respectively.
The net cash based on the investment activities in 2017, 2018, and 2019 were -2366, -2947, and -2865 respectively.
The net cash based on financial activities in 2017, 2018, and 2019 were -3218, -1281, and -1147 respectively (Costco Wholesale Corp, 2020).
The net cash flow provided by the operating activities in 2017, 2018, and 2019 were 6726, 5774, and 6356 dollars respectively. The net cash used in investing activities in 2017, 2018, and 2019 were -2366, -2947, and -2865 respectively. The net chas used in financing activities in 2017, 2018, and 2019 were -3218, -1281, and -1147 respectively.
12
Average Trade Volume
The average dollar-volume is as per the measurement of the average daily share volume multiplied by the share price
The average dollar volume is $ 283-2 million.
The average volume for Costco Wholesale has been 1.9 million shares on daily basis for the past one month
There is a market cap of $ 64.0 billion.
The part of the services sector and the retail industry.
Costco firm has a beta of 0.81 and float of 1.6 percent with 3.56 days to cover.
The shares are up 1.4 percent yearly as the close of the recent trading (Trade-Ideas LLC, n.d).
Based on the average dollar-volume as per the measurement of the average daily share volume multiplied by the share price is $ 283-2 million. The average volume for Costco Wholesale has been 1.9 million shares every day for the past 30 days. This firm is having a market cap of $ 64.0 billion. This is part of the services sector and the retail industry. The Costco firm is having a beta of 0.81 and float of 1.6 percent with 3.56 days to cover. The shares are up 1.4 percent yearly as the close of the recent trading.
13
The latest stock price, 52 week high, and 1 year approximated stock price
Current closing stock price (July 24, 2020) is 352.78.
The record high Costco stock price (July 22, 2020) is 328.30.
52 week high stock price is 331.49 above the present share price.
The 52 week low stock price is 262.71 and this is 19.4 below the present share price.
The average Costco stock price for the last 52 weeks is 299.83 (Pineville Staff Writer , 2020).
The latest closing stock price for Costco as of July 24, 2020 is 352.78. The all-time high Costco stock closing price on July 22, 2020 is 328.30. The Costco 52 week high stock price is 331.49 and this is above the present share price. The Costco 52 wee low stock price is 262.71 and this is 19.4 below the present share price. The average Costco stock price for the last 52 weeks is 299.83
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The recommendations for the stock (buy, sell, and hold) and the Market Cap
The investors can decide on whether to ease up or stay aggressive.
The management can look for the next positive way
This can help in the creation of the solid breakout.
The management have to research and understand the space
This promotes the process of managing and investment portfolio.
Market Cap: $ 143.84B (Macrotrends LLC, n.d ).
The investors can decide on whether to ease up or stay aggressive. The investors might also closely watch winners and the losers in the technology sector. The management can look for the next positive way of creating a solid breakout. The management have to research and understand the space that is essential in the management of the investment portfolio. The investors attempts to find out the winners in the space and the organizations that are either creating new technology or adapting to the technology. The market cap of the organization as of July 24, 2020 was $ 143.84 B
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References
Cascio, W. F. (2018). A Comparison of Costco to Walmart's Sam's Club. Business Etthics: The Big Picture, 276.
Costco Wholesale Corp. (2020). Cash Flow Statement . Retrieved from Stock Analysis on Net : https://www.stock-analysis-on.net/NASDAQ/Company/Costco-Wholesale-Corp/Financial-Statement/Statement-of-Cash-Flows
Macrotrends LLC. (n.d ). Costco Market Cap 2006-2020 | COST. Retrieved from https://www.macrotrends.net/stocks/charts/COST/costco/market-cap
Macrotrends LLC. (n.d). Costco EPS - Earnings per Share 2006-2020 | COST. Retrieved from https://www.macrotrends.net/stocks/charts/COST/costco/eps-earnings-per-share-diluted
Macrotrends LLC. (n.d.). Costco Revenue 2006-2020 | COST. Retrieved from https://www.macrotrends.net/stocks/charts/COST/costco/revenue
Pineville Staff Writer . (2020, July 1). Analyst Recommendations in Focus on Shares of Costco Wholesale Corporation (NASDAQ:COST). Retrieved from https://pinevillevoice.com/analyst-recommendations-in-focus-on-shares-of-costco-wholesale-corporation-nasdaqcost/
Trade-Ideas LLC. (n.d). Costco Wholesale . Retrieved from https://www.thestreet.com/markets/trade-ideas-costco-wholesale-cost-is-todays-unusual-social-activity-stock-13307120
