COSTCO STOCK ANALYSIS: Third Largest RETAILER


Costco is the third largest retailer in the world after Walmart and Amazon, but it has a very different model from these two If you are new to this channel, please consider subscribing for one video every day to help you become a better investor When you think of e-commerce to think of Amazon when you think of brick-and-mortar you think of wallboard supermarket? But what about cusco was so different about them? All their sales are based on membership only Warehouses, but right by this is that there are warehouses and in these warehouses cause cope with sell products in turn It’s just like the Sam’s Club actin up to you about Miranda Raja Yoga for body So let’s say you have a small shop and you need these products to sell there and you can go to cusco Anybody these things will burn and bring to your small shop. So we’ll order for you to do this. You need first a membership It’s a yearly membership it cost $60 for one membership. And with the code you can have an additional member rien cusco has 94 million members and And this membership they actually come to only 3% of the total sales So it’s the total rely only on the membership, but if you look on the other members, there’s a 90% hidden world rate Which is not bad initial existed that the disabled person of the sales come from the United States and Canada but they have 768 warehouses in 11 countries catechist could sell merchandisers in 6 main categories The first one is food and seungri’s second one is hotline These are major appliances electrical electronics all the things that is fresh foods for is supplies These are apartments and small appliances 15 us. The reason is gasoline and for Massey business so what do I mean by the Doctor course could operate gas station. So it’s usually on the side where there is a warehouse there is a gas station nearby So you can put gas in your car. Now. Let’s have a look at the fundamentals that we refer 13 1.56 The prosper book is severed from n 0 the returns on equity is 7.16% returns on assets is 7.16% the returns on equity is 26.6% the profit margin is DuPont 2 3 4 % the debt to equity ratio is 0.45 the current ratio is 0.96 and the dividend is 0.93% looking at all these parameters and also other constant back of Course Co I can say that the company is going Yes, the revenues great operating income is buried free cash flows going Net profit is growing. So it looks clean but we should also the sense that there are big facts coming for this companies Mainly two big one. The first one is 1 mod. So how long what will affect this business? I told you that were not has something called Sam’s Club so this Sam’s Club the basically work the Coach porters and well what has more resources to fight for scope and the reciprocal Fred? Focus Cola is Amazon and Amazon is a fret none or mythical scholar for all these retailers. So the correct price Lugia to what the future of course coal looks like in lose expensive to me say let me know in the comments What do you think about good school? Thank you for watching this video Please like subscribe and share subscribe for one new video every day to help you become a better investor Have a nice day and good. Bye

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1 Response

  1. Ishfaaq Peerally - Popular Investor says:

    What do you think of Costco ?

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