Costco Wholesale Corporation - Revision history

>ShaunakS: /* Valuation */

2023-08-11T00:28:46Z

Valuation

@@ Line 304: / Line 304: @@
 '''7. Public Health Events and Natural Disasters:''' The COVID-19 pandemic highlighted the vulnerability of retail businesses to public health events. Additionally, natural disasters could disrupt supply chains, impact store operations, and lead to financial losses.
 {| class="wikitable"
 |+
 |}
 __INDEX__

>ShaunakS: /* Financials */

2023-08-11T00:27:31Z

Financials

@@ Line 173: / Line 173: @@
 |'''2.56'''
 |'''2.58'''
 |}

>ShaunakS: /* Valuation */

2023-08-11T00:25:51Z

Valuation

← Older revision		Revision as of 01:25, 11 August 2023
Line 299:		Line 299:
	\|443,148,481		\|443,148,481
	\|-		\|-
	!Implied Share Price		!Implied Share Price (USD)
	\|387.8334855		\|387.8334855
	\|262.6937584		\|262.6937584

>ShaunakS: /* Risks */

2023-08-11T00:23:25Z

Risks

← Older revision		Revision as of 01:23, 11 August 2023
Line 189:		Line 189:

	'''7. Public Health Events and Natural Disasters:''' The COVID-19 pandemic highlighted the vulnerability of retail businesses to public health events. Additionally, natural disasters could disrupt supply chains, impact store operations, and lead to financial losses.		'''7. Public Health Events and Natural Disasters:''' The COVID-19 pandemic highlighted the vulnerability of retail businesses to public health events. Additionally, natural disasters could disrupt supply chains, impact store operations, and lead to financial losses.

			== Valuation ==
			{\| class="wikitable"
			\|+Relative Valuation/Comparable Company Analysis:
			!
			!TEV/Revenue
			!TEV/EBITDA
			!Price/Earnings
			\|-
			!Walmart Inc.
			\|0.79
			\|12.42
			\|38.54
			\|-
			!Lowe's Companies, Inc.
			\|1.74
			\|10.94
			\|21.4
			\|-
			!Target Corporation
			\|0.71
			\|10.97
			\|22.33
			\|-
			!BJ's Wholesale Club Holdings, Inc.
			\|0.63
			\|9.13
			\|18.19
			\|-
			!Kroger Co.
			\|0.36
			\|6.22
			\|14.11
			\|-
			!
			\|
			\|
			\|
			\|-
			!Highest Value
			\|1.74
			\|12.42
			\|38.54
			\|-
			!75th Percentile
			\|0.79
			\|10.97
			\|22.33
			\|-
			!Average
			\|0.846
			\|9.936
			\|22.914
			\|-
			!Median
			\|0.71
			\|10.94
			\|21.4
			\|-
			!25th Percentile
			\|0.63
			\|9.13
			\|18.19
			\|-
			!Lowest Value
			\|0.36
			\|6.22
			\|14.11
			\|}
			{\| class="wikitable"
			\|+
			!
			!Revenue ($M)
			!EBITDA ($M)
			!Net Income ($M)
			!Shares Outstanding
			\|-
			!Costco Wholesale Corporation
			\|235,442
			\|10,211
			\|6,000
			\|443,148,481
			\|}
			{\| class="wikitable"
			\|+
			!Costco Wholesale Corporation Valuation
			!TEV/Revenue
			!TEV/EBITDA
			!Price/Earnings
			\|-
			!Implied Enterprise Value ($M)
			\|167163.82
			\|111708.34
			\|123696
			\|-
			!Net Debt ($M)
			\| -4704
			\| -4704
			\| -4704
			\|-
			!Implied Equity Value ($M)
			\|171867.82
			\|116412.34
			\|128400
			\|-
			!Shares Outstanding
			\|443,148,481
			\|443,148,481
			\|443,148,481
			\|-
			!Implied Share Price
			\|387.8334855
			\|262.6937584
			\|289.7448722
			\|}
	__INDEX__		__INDEX__

>ShaunakS: /* Financials */

2023-08-10T19:21:52Z

Financials

← Older revision		Revision as of 20:21, 10 August 2023
Line 86:		Line 86:
	\|12.25		\|12.25
	\|12.38		\|12.38
	\|12.62		\|'''12.62'''
	\|-		\|-
	!EBITDA ($M)		!EBITDA ($M)
Line 125:		Line 125:
	\|-		\|-
	!Total Revenue ($M)		!Total Revenue ($M)
	\|166,761		\|'''166,761'''
	\|195,929		\|'''195,929'''
	\|226,954		\|'''226,954'''
	\|-		\|-
	!Total Revenues, 1 Year Growth (%)		!Total Revenues, 1 Year Growth (%)
	\|9.21		\|'''9.21'''
	\|17.49		\|'''17.49'''
	\|15.84		\|'''15.84'''
	\|-		\|-
	!Gross Profit ($M)		!Gross Profit ($M)
	\|21,822		\|'''21,822'''
	\|25,245		\|'''25,245'''
	\|27,572		\|'''27,572'''
	\|-		\|-
	!Gross Profit Margin (%)		!Gross Profit Margin (%)
	\|13.09		\|'''13.09'''
	\|12.89		\|'''12.89'''
	\|12.15		\|'''12.15'''
	\|-		\|-
	!EBITDA ($M)		!EBITDA ($M)
	\|7,080		\|'''7,080'''
	\|9,004		\|'''9,004'''
	\|9,693		\|'''9,693'''
	\|-		\|-
	!EBITDA Margin (%)		!EBITDA Margin (%)
	\|4.25		\|'''4.25'''
	\|4.60		\|'''4.60'''
	\|4.27		\|'''4.27'''
	\|-		\|-
	!EBIT ($M)		!EBIT ($M)
	\|5,435		\|'''5,435'''
	\|7,223		\|'''7,223'''
	\|7,793		\|'''7,793'''
	\|-		\|-
	!EBIT Margin (%)		!EBIT Margin (%)
	\|3.26		\|'''3.26'''
	\|3.69		\|'''3.69'''
	\|3.43		\|'''3.43'''
	\|-		\|-
	!Net Income ($M)		!Net Income ($M)
	\|4,002		\|'''4,002'''
	\|5,007		\|'''5,007'''
	\|5,844		\|'''5,844'''
	\|-		\|-
	!Net Income Margin (%)		!Net Income Margin (%)
	\|2.40		\|'''2.40'''
	\|2.56		\|'''2.56'''
	\|2.58		\|'''2.58'''
	\|}		\|}

>ShaunakS: /* Financials */

2023-08-10T19:19:49Z

Financials

← Older revision		Revision as of 20:19, 10 August 2023
Line 68:		Line 68:
	! rowspan="1" \|2023 FQ3		! rowspan="1" \|2023 FQ3
	\|-		\|-
	\|Total Revenue ($M)		!Total Revenue ($M)
	\|54,437		\|54,437
	\|55,266		\|55,266
	\|53,648		\|53,648
	\|-		\|-
	\|Total Revenues, 1 Year Growth (%)		!Total Revenues, 1 Year Growth (%)
	\|8.09		\|8.09
	\|6.48		\|6.48
	\|2.00		\|2.00
	\|-		\|-
	\|Gross Profit ($M)		!Gross Profit ($M)
	\|6,668		\|6,668
	\|6,843		\|6,843
	\|6,771		\|6,771
	\|-		\|-
	\|Gross Profit Margin (%)		!Gross Profit Margin (%)
	\|12.25		\|12.25
	\|12.38		\|12.38
	\|12.62		\|12.62
	\|-		\|-
	\|EBITDA ($M)		!EBITDA ($M)
	\|2,198		\|2,198
	\|2,373		\|2,373
	\|2,449		\|2,449
	\|-		\|-
	\|EBITDA Margin (%)		!EBITDA Margin (%)
	\|4.04		\|4.04
	\|4.29		\|4.29
	\|4.57		\|4.57
	\|-		\|-
	\|EBIT ($M)		!EBIT ($M)
	\|1,751		\|1,751
	\|1,903		\|1,903
	\|1,977		\|1,977
	\|-		\|-
	\|EBIT Margin (%)		!EBIT Margin (%)
	\|3.22		\|3.22
	\|3.44		\|3.44
	\|3.69		\|3.69
	\|-		\|-
	\|Net Income ($M)		!Net Income ($M)
	\|1,364		\|1,364
	\|1,466		\|1,466
	\|1,302		\|1,302
	\|-		\|-
	\|Net Income Margin (%)		!Net Income Margin (%)
	\|2.51		\|2.51
	\|2.65		\|2.65
Line 124:		Line 124:
	! rowspan="1" \|2022 FY		! rowspan="1" \|2022 FY
	\|-		\|-
	\|Total Revenue ($M)		!Total Revenue ($M)
	\|166,761		\|166,761
	\|195,929		\|195,929
	\|226,954		\|226,954
	\|-		\|-
	\|Total Revenues, 1 Year Growth (%)		!Total Revenues, 1 Year Growth (%)
	\|9.21		\|9.21
	\|17.49		\|17.49
	\|15.84		\|15.84
	\|-		\|-
	\|Gross Profit ($M)		!Gross Profit ($M)
	\|21,822		\|21,822
	\|25,245		\|25,245
	\|27,572		\|27,572
	\|-		\|-
	\|Gross Profit Margin (%)		!Gross Profit Margin (%)
	\|13.09		\|13.09
	\|12.89		\|12.89
	\|12.15		\|12.15
	\|-		\|-
	\|EBITDA ($M)		!EBITDA ($M)
	\|7,080		\|7,080
	\|9,004		\|9,004
	\|9,693		\|9,693
	\|-		\|-
	\|EBITDA Margin (%)		!EBITDA Margin (%)
	\|4.25		\|4.25
	\|4.60		\|4.60
	\|4.27		\|4.27
	\|-		\|-
	\|EBIT ($M)		!EBIT ($M)
	\|5,435		\|5,435
	\|7,223		\|7,223
	\|7,793		\|7,793
	\|-		\|-
	\|EBIT Margin (%)		!EBIT Margin (%)
	\|3.26		\|3.26
	\|3.69		\|3.69
	\|3.43		\|3.43
	\|-		\|-
	\|Net Income ($M)		!Net Income ($M)
	\|4,002		\|4,002
	\|5,007		\|5,007
	\|5,844		\|5,844
	\|-		\|-
	\|Net Income Margin (%)		!Net Income Margin (%)
	\|2.40		\|2.40
	\|2.56		\|2.56

>ShaunakS: /* Competition */

2023-08-10T19:18:41Z

Competition

@@ Line 57: / Line 57: @@
 #* '''Pricing Pressure:''' Intense competition on pricing can impact profit margins and necessitate constant adjustments to remain competitive.
 #* '''Changing Consumer Preferences:''' Evolving consumer preferences, such as sustainability and convenience, require Costco to adapt its offerings and practices.
 == Risks ==

>ShaunakS: /* Competition */

2023-08-09T19:07:14Z

Competition

@@ Line 57: / Line 57: @@
 #* '''Pricing Pressure:''' Intense competition on pricing can impact profit margins and necessitate constant adjustments to remain competitive.
 #* '''Changing Consumer Preferences:''' Evolving consumer preferences, such as sustainability and convenience, require Costco to adapt its offerings and practices.
 __INDEX__

>ShaunakS: /* Summary */

2023-08-09T19:01:35Z

Summary

← Older revision		Revision as of 20:01, 9 August 2023
Line 1:		Line 1:
	== Summary ==		== Summary ==

	Costco ~~Wholesale Corporation, together with its subsidiaries, engages in the operation~~ of membership ~~warehouses in the United States~~, ~~Puerto Rico~~, ~~Canada~~, ~~the United Kingdom~~, ~~Mexico, Japan, Korea, Australia, Spain, France, Iceland, China~~, and ~~Taiwan~~. ~~It offers branded~~ and ~~private-label products in a~~ range of ~~merchandise~~ categories. ~~The company offers sundries, dry~~ groceries, ~~candies, coolers, freezers, liquor~~, ~~and tobacco and deli products;~~ appliances, ~~electronics, health~~ and ~~beauty aids~~, ~~hardware, garden and patio products, sporting goods~~, tires, toys ~~and seasonal products~~, ~~office supplies~~, ~~automotive care products~~, ~~postages, tickets, apparel~~, ~~small appliances~~, ~~furniture~~, ~~domestics~~, housewares, ~~special order kiosks~~, and ~~jewelry; and meat~~, ~~produce~~, ~~service deli~~, and ~~bakery~~ products. ~~It also operates pharmacies~~, ~~opticals, food courts~~, ~~hearing-aid centers~~, ~~and tire installation centers~~, ~~as well as 636 gas stations; and offers business delivery~~, ~~travel~~, ~~same-day grocery~~, and ~~various other services online~~ in ~~various~~ countries. As of ~~August 29~~, ~~2021, the company operated 815 membership~~ warehouses~~, including 564~~ in ~~the United~~ States ~~and~~ Puerto Rico~~, 105~~ in ~~Canada, 39 in Mexico, 30 in Japan,~~ 29 in the United Kingdom~~, 16~~ in ~~South~~ Korea~~, 14~~ in ~~Taiwan, 12~~ in Australia~~, 3~~ in Spain, 1 in Iceland~~, 1~~ in France~~, and 1~~ in China~~. It also operates e-commerce websites~~ in the United States, Canada, the United Kingdom, Mexico, South Korea, Taiwan, Japan, and Australia. The company was formerly known as Costco Companies, Inc. and changed its name to Costco Wholesale Corporation in ~~August 1999. Costco Wholesale Corporation was founded in 1976 and is based in Issaquah, Washington~~.		Costco operates a chain of membership-based warehouse clubs, offering an extensive array of products ranging from groceries and electronics to clothing and home goods. The company's business model centers on bulk purchasing, allowing members to access quality products at discounted prices, setting it apart from traditional retailers. Costco's success is rooted in its dedication to customer satisfaction, employee well-being, and responsible corporate practices.

			Costco warehouses offer an extensive and exclusive range of product categories, all housed under a single roof. These categories encompass groceries, confectionery, household appliances, televisions and media, automotive supplies, tires, toys, hardware, sporting goods, jewelry, timepieces, cameras, literature, housewares, clothing, health and beauty products, furniture, office supplies, and equipment.In addition, members have the opportunity to explore the selection of Kirkland Signature™ private label products, carefully designed to match or exceed the quality of well-known national brands. These products span a variety of categories, including beverages, cookies, coffee, household items, luggage, apparel, and laundry detergent. Costco also operates self-service gasoline stations in several countries around the world.

			As of July 2023, Costco has 858 warehouses worldwide: 590 in 46 U.S. States & Puerto Rico; 107 in nine Canadian provinces; 29 in the United Kingdom; 14 in Taiwan; 18 in Korea; 32 in Japan; 15 in Australia; 40 in Mexico; 4 in Spain; 1 in Iceland; 2 in France; 4 in China; 1 in New Zealand; 1 in Sweden.

	== Operations ==		== Operations ==

>ShaunakS: /* Summary */

2023-08-09T18:40:02Z

Summary

← Older revision		Revision as of 19:40, 9 August 2023
Line 2:		Line 2:

	Costco Wholesale Corporation, together with its subsidiaries, engages in the operation of membership warehouses in the United States, Puerto Rico, Canada, the United Kingdom, Mexico, Japan, Korea, Australia, Spain, France, Iceland, China, and Taiwan. It offers branded and private-label products in a range of merchandise categories. The company offers sundries, dry groceries, candies, coolers, freezers, liquor, and tobacco and deli products; appliances, electronics, health and beauty aids, hardware, garden and patio products, sporting goods, tires, toys and seasonal products, office supplies, automotive care products, postages, tickets, apparel, small appliances, furniture, domestics, housewares, special order kiosks, and jewelry; and meat, produce, service deli, and bakery products. It also operates pharmacies, opticals, food courts, hearing-aid centers, and tire installation centers, as well as 636 gas stations; and offers business delivery, travel, same-day grocery, and various other services online in various countries. As of August 29, 2021, the company operated 815 membership warehouses, including 564 in the United States and Puerto Rico, 105 in Canada, 39 in Mexico, 30 in Japan, 29 in the United Kingdom, 16 in South Korea, 14 in Taiwan, 12 in Australia, 3 in Spain, 1 in Iceland, 1 in France, and 1 in China. It also operates e-commerce websites in the United States, Canada, the United Kingdom, Mexico, South Korea, Taiwan, Japan, and Australia. The company was formerly known as Costco Companies, Inc. and changed its name to Costco Wholesale Corporation in August 1999. Costco Wholesale Corporation was founded in 1976 and is based in Issaquah, Washington.		Costco Wholesale Corporation, together with its subsidiaries, engages in the operation of membership warehouses in the United States, Puerto Rico, Canada, the United Kingdom, Mexico, Japan, Korea, Australia, Spain, France, Iceland, China, and Taiwan. It offers branded and private-label products in a range of merchandise categories. The company offers sundries, dry groceries, candies, coolers, freezers, liquor, and tobacco and deli products; appliances, electronics, health and beauty aids, hardware, garden and patio products, sporting goods, tires, toys and seasonal products, office supplies, automotive care products, postages, tickets, apparel, small appliances, furniture, domestics, housewares, special order kiosks, and jewelry; and meat, produce, service deli, and bakery products. It also operates pharmacies, opticals, food courts, hearing-aid centers, and tire installation centers, as well as 636 gas stations; and offers business delivery, travel, same-day grocery, and various other services online in various countries. As of August 29, 2021, the company operated 815 membership warehouses, including 564 in the United States and Puerto Rico, 105 in Canada, 39 in Mexico, 30 in Japan, 29 in the United Kingdom, 16 in South Korea, 14 in Taiwan, 12 in Australia, 3 in Spain, 1 in Iceland, 1 in France, and 1 in China. It also operates e-commerce websites in the United States, Canada, the United Kingdom, Mexico, South Korea, Taiwan, Japan, and Australia. The company was formerly known as Costco Companies, Inc. and changed its name to Costco Wholesale Corporation in August 1999. Costco Wholesale Corporation was founded in 1976 and is based in Issaquah, Washington.

			== Operations ==
			'''Supply Chain Management:''' Costco's supply chain management is a cornerstone of its operations, contributing to the company's ability to offer competitive prices and maintain product quality. Key aspects include:

			# '''Vendor Relationships:''' Costco emphasizes strong relationships with suppliers. The company's limited SKU (stock-keeping unit) approach ensures that only products with high demand and quality standards are offered, allowing Costco to negotiate favorable terms with suppliers.
			# '''Bulk Purchasing:''' The practice of buying products in bulk enables Costco to secure lower prices from suppliers, passing these savings on to its members. This strategy aligns with the company's value proposition.
			# '''Just-in-Time Inventory:''' While operating in a bulk retail model, Costco employs a just-in-time inventory system to minimize excess inventory costs and improve inventory turnover rates.

			'''Store Formats and Layout:''' Costco operates a consistent store format characterized by efficient layouts and limited product selection. Key elements of its store design include:

			# '''Warehouse Concept:''' Costco stores are designed as warehouse-style outlets, optimized for space efficiency and easy navigation. This minimalist approach allows for quicker customer flows and efficient restocking.
			# '''Product Placement:''' Products are often displayed on pallets or racks, reducing the need for extensive shelving. This setup minimizes handling and restocking efforts.
			# '''Treasure Hunt Experience:''' Costco's ever-changing product offerings encourage the "treasure hunt" experience, enticing customers to explore the store for unexpected deals and new items.

			'''Technological Integration:''' Costco leverages technology to streamline operations, enhance customer experience, and maintain efficient inventory management:

			# '''Point of Sale Systems:''' Advanced POS systems facilitate quick checkouts, reduce transaction times, and enable real-time inventory tracking.
			# '''E-commerce Integration:''' Costco's online presence allows customers to shop for select items, supporting the company's omni-channel strategy and catering to evolving shopping habits.
			# '''Data Analytics:''' Utilizing customer data helps Costco understand purchasing patterns, preferences, and trends, enabling informed decision-making regarding inventory and promotions.

			'''Sustainability Initiatives:''' Costco is committed to sustainability efforts that align with its responsible corporate practices:

			# '''Supply Chain Responsibility:''' The company emphasizes responsible sourcing, focusing on ethical and sustainable practices in its supply chain to reduce its environmental footprint.
			# '''Renewable Energy:''' Costco invests in renewable energy sources, such as solar installations on warehouse rooftops, to decrease energy consumption and emissions.
			# '''Waste Reduction:''' Efforts to minimize waste include recycling programs, composting initiatives, and partnerships to donate unsold food to charitable organizations.

	== Competition ==		== Competition ==