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Key for Investors: New Stores Boost Costco’s Revenue

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Costco’s price movement

Costco (COST) has a market cap of $63.16 billion. Costco’s YTD (year-to-date) price movement is stable. After the earnings report in 4Q15, Costco rose by 0.12% and closed at $143.72 per share. The price movement on a weekly, monthly, and YTD basis is 0.75%, 2.69%, and 5.58%, respectively. It’s trading at -1.18% on a trailing five-day basis.

Technically, it has broken all of the major support. Currently, it’s trading at 1.44% above the 20-day moving average, 0.86% above the 50-day moving average, and 0.93% above the 200-day moving average.

The VanEck Vectors Retail ETF (RTH) invests 5.09% of its holdings in Costco. RTH tracks a market-cap-weighted index of the 25 largest US-listed companies that derive most of their revenue from retail. RTH’s YTD price movement is 1.41%.

Costco’s competitors and their market caps are:

  • Walmart (WMT) – $204.47 billion
  • Target (TGT) – $49.00 billion
  • Big Lots (BIG) – $2.35 billion
  • PriceSmart (PSMT) – $2.31 billion

Costco’s performance in 4Q15 and fiscal 2015

According to Costco’s 4Q15 earnings report, the net revenue rose to $34,993 million in 4Q15—a rise of 37.13% compared to the net revenue of $25,517 million in 3Q15. The company opened 13 new warehouses including six in the US, one in Mexico, one in the United Kingdom, three in Japan, one in Korea, and one in Taiwan in 4Q15. The net income and EPS (earnings per share) rose to $767 million and $1.73 per share in 4Q15—a rise of 48.64% and 47.86% on a quarterly basis.

In fiscal 2015, the company reported net revenue of $113,666 million—a rise of 3.13% on a yearly basis. The net income and EPS rose by 15.50% and 15.48%, respectively, in fiscal 2015. The company increased its short-term investments and merchandise inventories by 2.60% and 5.34% in fiscal 2015. The current ratio fell to 1.04 and the debt-to-equity ratio rose to 2.08 in fiscal 2015—compared to the current ratio of 2.08 and the debt-to-equity ratio of 1.63 in fiscal 2014.

On July 27, 2015, the company announced the quarterly dividend of $0.40 per share on Costco common shares.

About Costco 

Costco is a retailer with warehouse club operations in eight countries. Costco provides extensive merchandise, the convenience of specialty departments, and exclusive member services. Costco’s product line includes food, sundries, Hardlines, fresh food, Softlines, ancillary, photo processing, pharmacy, travel, and business delivery.

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