by Euro347
It’s a great company but it’s valuation at 60x earnings makes zeros sense.
There seems to be some speculation that they will spit their stock but on the last earnings call in Dec analysts asked CFO Gary Millerchip about this, he said that at least for the near-term, the answer was no.
-Costco net profit margin for the quarter ending November 30, 2024 was only 2.93%.
-sales growth is barley single digits
-too dependant on membership fees for income
-strike was averted but they will have to pay employees more and add benefits. This cost the company $$
-min wage was raised to $30hr, another high cost eating into profits.
-One of the biggest importers in the US especially from China, now facing a tariff, higher cost on goods sold.
- membership fee was raised recently, likley to see some members not renew.
- data shows higher income individuals are shopping at Walmart.
I like the company but it has a tech company valuation for a retail business
NOTE: This is not financial advice. Please conduct your own due diligence.