5 minutes value investing-COSTCO 2020 annual report

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