Costco Wholesale (COST) Risk Assessment

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What is Costco Wholesale Risk Assessment?

Risk Assessment represents the investment risk of a stock derived from our exclusive method. It suggests how risky the investment opportunity is based on the valuation and the fundamental performance of the stock. It is derived from following key aspects:

1. GuruFocus internally developed valuations of the stock, such as GF valuation.
2. Quality Rank, a business quality indicator developed by GuruFocus.
3. Fundamental performance: Piotroski F-Score, Altman Z-Score, Beneish M-Score, etc.
4. Growth opportunities: 5-year revenue growth rate, 5-Year EPS without NRI Growth Rate, etc.

Value investors are always willing to find undervalued stocks. However, not all the undervalued stocks are good deals, we should also be careful of how risky the investment opportunity is. We believe that if the company's financial strength and profitability are strong, and the stock price is within a reasonable range of the GF valuation, or stock has a high return with its price being undervalued, then it might be a good investment opportunity with low risk.

Based on those aspects listed above, GuruFocus believes the risk assessment of Costco Wholesale is: Low Risk: Strong fundamentals, worth long-term holding.

Competitive Comparison of Costco Wholesale's Risk Assessment

For the Discount Stores subindustry, Costco Wholesale's Risk Assessment, along with its competitors' market caps and Risk Assessment data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Costco Wholesale's Risk Assessment Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Costco Wholesale's Risk Assessment distribution charts can be found below:

* The bar in red indicates where Costco Wholesale's Risk Assessment falls into.

Costco Wholesale (NAS:COST) Risk Assessment Explanation

Based on the four aspects listed above, GuruFocus provides the following 7 evaluations:

All-in-One Screener Examples (1)
Low Risk: Strong fundamentals, worth long-term holding
Moderate Risk: Sensitive, better choose undervalued stock
High Risk: High uncertainty with risk-return tradeoff
High Risk: Good fundamentals, beware of shrinking business
High Risk: Sensitive to economic or industry trends
High Risk: High uncertainty
No Data: Cannot be evaluated

(1) These are some simple examples. You can access our Risk Assessment filter under All-in-One Screener’s Fundamental tab and set your own criteria.

Costco Wholesale Risk Assessment Related Terms

Thank you for viewing the detailed overview of Costco Wholesale's Risk Assessment provided by GuruFocus.com. Please click on the following links to see related term pages.

Costco Wholesale (COST) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » Costco Wholesale Corp (NAS:COST) » Definitions » Risk Assessment

Comparable Companies

Traded in Other Exchanges

COST:Mexico CTO0:Germany CTO:Germany CTO:Germany CTO:Germany CTO:Germany COST:Chile COST:Canada COWC34:Brazil COST:Argentina

Address

999 Lake Drive, Issaquah, WA, USA, 98027

Website

https://www.costco.com

Costco operates a membership-based, no-frills retail model, predicated on offering a select product assortment in bulk quantities at bargain prices. The firm avoids maintaining costly product displays by keeping inventory on pallets and limits distribution expenses by storing its inventory at point of sale in the warehouse. Given Costco's frugal cost structure, the firm is able to price its merchandise below competing retailers, driving high sales volume per warehouse and allowing the retailer to generate strong profits on thin margins. Costco operates nearly 600 warehouses in the United States and boasts over 60% market share in the domestic warehouse club industry. Internationally, Costco operates another 270 warehouses, primarily in markets such as Canada, Mexico, Japan, and the U.K.

Executives

W Craig Jelinek	officer: Executive VP	999 LAKE DRIVE, ISSAQUAH WA 98027
Yoram Rubananko	officer: Executive VP	999 LAKE DRIVE, ISSAQUAH WA 98027
Caton Frates	officer: Executive Vice President	999 LAKE DRIVE, ISSAQUAH WA 98027
Daniel M. Hines	other: Principal Acctg Officer	999 LAKE DRIVE, ISSAQUAH WA 98027
Richard A Galanti	director, officer: Executive VP and CFO	999 LAKE DRIVE, ISSAQUAH WA 98027
Pierre Riel	officer: EVP	999 LAKE DRIVE, ISSAQUAH WA 98027
Russell D Miller	officer: Executive Vice President	999 LAKE DRIVE, ISSAQUAH WA 98027
Claudine Adamo	officer: Executive Vice President	999 LAKE DRIVE, ISSAQUAH WA 98027
James C Klauer	officer: Executive Vice President	999 LAKE DRIVE, ISSAQUAH WA 98027
Patrick J Callans	officer: Executive VP	999 LAKE DRIVE, ISSAQUAH WA 98027
Helena Foulkes	director	ONE CVS DRIVE, WOONSOCKET RI 02895
Susan L Decker	director	C/O YAHOO INC, 701 FIRST AVE, SUNNYVALE CA 94089
Roland Michael Vachris	officer: Executive VP	999 LAKE DRIVE, ISSAQUAH WA 98027
James P. Murphy	officer: Executive VP	999 LAKE DRIVE, ISSAQUAH WA 98027
Kenneth D Denman	director