開場 CEO
l Welcome to 5 Minutes Value investing.
l Today we view COSTCO 2020 annual report.
l ...The now global chain of warehouse stores counts for more than 55 million members around the world and around 90% of them renew their membership each year.
l However, younger generations of consumers has grown up shopping online, and companies such as Amazon has taken some of COSTCO’s secrets and apply them to E-commerce.
主體1 business
l Costco is a combination of 2 companies, and Price Club, founded in 1976, was one of them.
l The store took its name from founder Sol Price, a Bronx born attorney, who in many ways pioneered the club warehouse model more than 2 decades before starting Price club.
l A few years later, 2 men named Jeff Brotman and James Sinegal founded COSTCO in the Seatle Washington area in 1983.
l Price club and COSTCO merged in 1993.
主體2
l The margin from the products on the shelf is extremely thin. Much thinner than those grocery stores, for example.
l Instead, COSTCO’s profit comes from its memberships. Most of their net income comes from membership fee revenue, 88% of their total net income came in the form of membership revenue.
l The company uses its massive number of members as leverage when negotiating with suppliers.
l Because the hours of operation are shorter than other retailers, and due to other efficiencies inherent in a warehouse-type operation, labor costs are lower relative to the volume of sales.
l It’s also known for treating its workers well. Employees of COSTCO stores make better wages than those at many other retailers.
主體3 balance sheets.
l Let’s view balance sheets.
l Total assets are 55.5 billion.
property and equipment is 21.8 billion.
l Total liabilities are 36.8 billion.
l Total shareholder’s equity is 18.7 billion.
主體4 statements of earnings.
l Let’s view statements of income.
l Total revenues are 167 billion.
l Membership fees are 3.5 billion.
l Net income is 4 billion
l
主體5 statements of cash flows
l Let’s view statements of cash flows
l Cash and cash equivalents and restricted cash at end of year is 12 billion.
主體6 statements of changes in shareholder’s equity
l Let’s view statements of changes in shareholder’s equity.
l COSTCO has repurchased common stock for 3 consecutive years.
1.股價
Stock Price 384.32
2. 本益比<15
P/E ratio 38.58 X
3. 股價淨值比<1.5
P/B ratio 10.55 X
4. 股東權益報酬率ROE>10% 26.18% O
5. 大股東持股比例
Insider Ownership >20% 0.10% X
6.市值
Market Capitalization> 10,000,000,000.
169,390,000,000 O
7. 在產業中排名前 Ranking top 30% in the industry - -
8. 負債比<50% Debt ratio 70.63% X
9. 流動資產/流動負債>200% Current ratio 100.00% X
10. 20年連續發放股息 Pay dividends in 20 consecutive years - -
11. 過去十年每年都獲利 Made profit each year in the past 10 years O O
12. 營業現金流/稅後淨利
OCF/NI >80% 571.53% O
13. 過去十年EPS成長30%
EPS growth in past 10 years 141.05% O
14. 每股自由現金流>0
FCF per share 27.75 O
