Benzinga
Published Feb 28, 2024 16:00
Updated Feb 28, 2024 17:10
Market Analysis: Costco Wholesale And Competitors In Consumer Staples Distribution & Retail Industry
Benzinga - by Benzinga Insights, Benzinga Staff Writer.
In the ever-changing and fiercely competitive business landscape, conducting thorough company analysis is crucial for investors and industry experts. In this article, we will undertake a comprehensive industry comparison, evaluating Costco Wholesale (NASDAQ:COST) and its primary competitors in the Consumer Staples Distribution & Retail industry. By closely examining key financial metrics, market position, and growth prospects, our aim is to provide valuable insights for investors and shed light on company's performance within the industry.
Costco Wholesale Background 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.
Costco Wholesale Corp | 50.77 | 12.64 | 1.35 | 6.21% | $2.65 | $7.34 | 6.18% |
Walmart Inc | 31.14 | 5.72 | 0.75 | 6.73% | $11.33 | $41.56 | 7.83% |
Target Corp | 19.36 | 5.61 | 0.66 | 7.93% | $2.06 | $7.25 | -4.22% |
Dollar Tree Inc | 28.25 | 3.61 | 1.11 | 2.35% | $0.52 | $2.18 | 5.4% |
Dollar General Corp | 16.61 | 4.91 | 0.82 | 4.33% | $0.65 | $2.81 | 2.42% |
BJ's Wholesale Club Holdings Inc | 19.43 | 7.16 | 0.50 | 10.09% | $0.26 | $0.9 | 2.91% |
Sendas Distribuidora SA | 28.37 | 4.34 | 0.30 | 6.63% | $1.42 | $3.07 | 8.35% |
Pricesmart Inc | 22.70 | 2.36 | 0.57 | 3.42% | $0.08 | $0.2 | 10.59% |
Average | 23.69 | 4.82 | 0.67 | 5.93% | $2.33 | $8.28 | 4.75% |
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.dividend-frequency { font-size: 12px; color: #6c757d; } Through a detailed examination of Costco Wholesale, we can deduce the following trends:
The debt-to-equity (D/E) ratio measures the financial leverage of a company by evaluating its debt relative to its equity.
Considering the debt-to-equity ratio in industry comparisons allows for a concise evaluation of a company's financial health and risk profile, aiding in informed decision-making.
In terms of the Debt-to-Equity ratio, Costco Wholesale can be assessed by comparing it to its top 4 peers, resulting in the following observations:
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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