Company Introduction Costco is a wholesale corporation that was officially created on May 12, 1987. It has warehouse club operations in eight countries and territories: United States (U.S.), Puerto Rico, Canada, United Kingdom (U.K.), Mexico, Japan, Australia, and Spain. Last reported in August of 2014, Costco had 663 membership warehouses, which all typically work about a sixty-nine hour week, including weekends (Reuters, 2016). It is a membership warehouse club that establishes low-cost prices on high quality brand- name products in bulk. It provides a wide range of selection for consumers, along with specialty departments and special membership services (Costco, 2016). Among its wide variety of offerings, a few include foods, sundries, hardlines and softlines, and ancillary. Costco’s online business also provides customers with various products and services, including “photo processing, pharmacy, travel, business delivery, and special membership services” (Reuters, 2016). Costco is top leader in this field of retail. It has been recognized for providing high quality and promoting high ethical standards within its company. It has expanded its warehouse operations to the international level as its …show more content…
There is a low volatility (low risk) of the Costco stock with a beta of 0.58. It has a market capitalization of $62,645.91(Mil.) and 439.04(Mil.)shares outstanding. It also has a dividend yield of 45% and a yield to maturity of 1.26%. For the past twelve month period, the P/E ratio is 27.33 and the earnings per share is $5.22. Return on investment and return on equity is 14.69 and 21.78 (Reuters, 2016).(http://www.reuters.com/finance/stocks/companyProfile?symbol=COST.O) In 2014, Costco’s net income was about $2.3 billion. The five year price/earnings to growth is 2.8 and the dividend yield was 1.2%. Finally, the return on equity was 19.9% (Maverick,