What Costco's Balance Sheet Says About Its Financial Strength
This cash strength is underpinned by impressive operating efficiency. Over the first 36 weeks of fiscal 2025, Costco generated $9,468 million in operating cash flow while effectively managing financing outflows. Even after distributing $1,030 million in dividends and continuing share repurchases, Costco's net cash position remains strong.
Merchandise inventories totaled $18,606 million, reflecting the company's scale and efficient turnover practices. Total current assets stood at $38,151 million, comfortably covering total current liabilities of $37,579 million, indicating healthy working capital and short-term solvency.
Costco's long-term debt of $5,717 million is modest, especially when weighed against its total asset base of $75,482 million. The company's equity has also grown to $27,125 million as of May 11, 2025 from $23,622 million as of Sept. 1, 2024. This growth in retained earnings signals Costco's ability to internally finance expansion without overreliance on debt.
Costco's balance sheet not only confirms its ability to weather macroeconomic headwinds but also supports its aggressive warehouse expansion and digital initiatives. The company's financial structure — strong liquidity, minimal debt and expanding equity — gives it the flexibility to adapt and invest in a dynamic retail environment.
How BJ and TGT Compare on Financial Strength to COST
BJ's Wholesale Club Holdings, Inc. BJ ended its first quarter of fiscal 2025 with $39.5 million in cash and cash equivalents, $1,928.8 million in current assets and $1,971.6 million in stockholders' equity. However, BJ's Wholesale Club had $2,510.4 million in current liabilities, signaling a working capital shortfall, and carried $398.9 million in long-term debt.
On the other hand, Target Corporation TGT reported $2,887 million in cash and equivalents as of May 3, 2025, with total current assets of $17,759 million and total current liabilities of $18,991 million. Target had a long-term debt and other borrowings of $14,334 million.
Both BJ's Wholesale Club and Target highlight different financial strategies, yet neither matches the fortress-like balance sheet Costco brings to the table.
Costco's Price Performance, Valuation and Estimates
Costco stock has been a standout performer, with shares rallying 14.7% in the past year, outpacing the industry 's growth of 8.3%.
From a valuation standpoint, Costco's forward 12-month price-to-earnings ratio stands at 47.38, higher than the industry's ratio of 31.67. COST carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Costco's current financial-year sales and earnings per share implies year-over-year growth of 8.1% and 11.6%, respectively.
Costco currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They include
Stock #1: A Disruptive Force with Notable Growth and Resilience
Stock #2: Bullish Signs Signaling to Buy the Dip
Stock #3: One of the Most Compelling Investments in the Market
Stock #4: Leader In a Red-Hot Industry Poised for Growth
Stock #5: Modern Omni-Channel Platform Coiled to Spring
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%.
Download Atomic Opportunity: Nuclear Energy's Comeback free today.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.
Target Corporation (TGT): Free Stock Analysis Report
BJ's Wholesale Club Holdings, Inc. (BJ): Free Stock Analysis Report
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Toronto Star
29 minutes ago
- Toronto Star
PharmaCorp Rx Inc. Reports Q2 2025 Financial Results
SASKATOON, Saskatchewan, Aug. 15, 2025 (GLOBE NEWSWIRE) — PHARMACORP RX INC. ('PharmaCorp' or the 'Corporation') (TSXV: PCRX) a growing national platform for pharmacist-led community pharmacy ownership, today reported its financial results for the three and six months ended June 30, 2025. The second quarter reflected continued operational momentum, expanding pharmacy-level contribution, and disciplined progress on the Corporation's national acquisition strategy. Following quarter-end, PharmaCorp completed the acquisition of a fourth pharmacy in Western Canada, building further scale and reinforcing the platform's coast-to-coast ambitions. Q2 2025 Financial Highlights Revenues generated from three operating pharmacies, with continued growth in both prescription volumes and front-of-store sales Operating infrastructure was successfully deployed to support national scalability, including systems integration, pharmacy onboarding, and co-ownership execution Net loss for the quarter reflects continued investment in corporate infrastructure and the catch-up of executive compensation deferred from 2024 Solid pharmacy-level contribution margins and a consistent weighted average EBITDA multiples across acquisitions support PharmaCorp's long-term accretive growth model A strong balance sheet positions the Corporation to fund additional acquisitions already under letter of intent Same-store sales, a supplementary financial measure, increased 11.3% year-over-year compared to Q2 2024, reflecting continued organic growth across our pharmacy network Prescription volumes continue to grow, with total script count rising 3.5% year-over-year compared to Q2 2024, demonstrating sustained patient engagement and activity across the network Management Commentary 'We are pleased with the momentum we're seeing across our early acquisitions and the continued appetite from independent pharmacy owners exploring succession,' said Alan Simpson, Executive Chairman of PharmaCorp. 'This quarter reflects continued progress in scaling our platform through disciplined execution. We continue to maintain a consistent, disciplined weighted average EBITDA multiple across our acquisitions, which supports our goal of delivering accretive growth. As we expand our national footprint, we remain focused on sourcing high-quality pharmacies that align with our long-term acquisition strategy and contribute meaningfully to accretion.' ARTICLE CONTINUES BELOW Operational Update During the quarter, the Corporation made key investments in systems, personnel, and integration processes necessary to support scalable national growth. The reported net loss includes compensation charges related to deferred 2024 executive remuneration, which were brought current in Q2 as part of aligning leadership incentives with long-term shareholder value. Subsequent Events On July 31, 2025, the Corporation closed the acquisition of its fourth pharmacy, located in Western Canada, further expanding its national footprint and operating base under the PharmaCorp co-ownership platform. On August 13, 2025, the Corporation entered into a credit agreement with Canadian Imperial Bank of Commerce ('CIBC') providing the Corporation with up to $20,500,000 of committed credit facilities (the 'Credit Facilities'), plus a $10,000,000 accordion feature and a $1,000,000 Visa credit facility. The Credit Facilities will support PharmaCorp's acquisition strategy and the expansion of its acquisition and operating platforms. In conjunction with the above Credit Facilities, CIBC is also supporting PharmaCorp's Pharmacist Co-Ownership Program through a separate $5,000,000 credit facility which makes loans available to pharmacists wishing to acquire an ownership position in the PharmaCorp pharmacy where they work. Pipeline Progress PharmaCorp continues to advance its previously announced pipeline of transactions. The Corporation is actively working to finalize definitive purchase and sale agreements in furtherance of the letters of intent announced on May 29, 2025, and expects to close additional transactions in the second half of the year. Further Information For comprehensive disclosure of PharmaCorp's financial performance for the three and six months ended June 30, 2025 and its financial position as at such date, please see PharmaCorp's unaudited Condensed Consolidated Interim Financial Statements and related Management's Discussion and Analysis for the three and six months ended June 30, 2025 filed on SEDAR+ at Supplementary Financial Measures This news release also makes reference to 'same-store sales', which is a supplementary financial measure. 'Same-store sales' is defined as sales from pharmacy locations owned and operated by PharmaCorp as at the current reporting period end and historical sales information from the pharmacies operating systems. It is used to provide investors with a supplemental measure of the Corporation's operating performance and thus highlight trends in its core business that may not otherwise be apparent when relying solely on IFRS financial measures. Management uses supplementary financial measures such as same-store sales in order to facilitate operating performance comparisons from period to period. Management also believes that supplementary financial measures are meaningful to investors because they enable investors to better understand the level of growth of our business. The Corporation cautions readers that same-store sales used in this news release may not be comparable to similar measures used by other issuers. ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW About PharmaCorp Rx Inc. PharmaCorp Rx Inc. is a Canadian pharmacy acquisition and ownership platform focused on empowering pharmacists to become equity partners while supporting continuity of care and succession for retiring pharmacy owners. PharmaCorp combines operational support, capital, and strategic guidance to build a national network of locally rooted community pharmacies. PharmaCorp currently operates four PharmaChoice Canada bannered pharmacies in Canada and will continue to acquire PharmaChoice Canada branded pharmacies as they come to market in conjunction with its strategic alliance agreement with PharmaChoice Canada. The Corporation will also acquire independently owned non-PharmaChoice Canada bannered pharmacies in Canada, and thereafter, continue to operate such acquired pharmacies under a PharmaChoice Canada banner. PharmaCorp shares trade on the TSX Venture Exchange under the symbol: PCRX. PharmaCorp actively welcomes discussions with pharmacy owners considering succession or sale. For more information about our acquisition program and process, please visit or contact our team confidentially. We are committed to seamless transitions that protect your legacy and serve your community. For further information, please contact: Investor Relations info@ Tel: (306) 536-3771 Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Forward-Looking Information: This news release contains 'forward-looking information' regarding the Corporation within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein are forward-looking information. In particular, this news release contains forward-looking information in relation to: the Corporation's continued operational momentum, expanding pharmacy-level contribution, and disciplined progress on the Corporation's national acquisition strategy; the Corporation's coast-to-coast platform and acquisitions ambitions; the Corporation's long-term accretive growth model; the funding available for acquisitions already under letters of intent; the continued appetite from independent pharmacy owners exploring succession; the Corporation's goal of delivering accretive growth; the Corporation's focus on sourcing high-quality pharmacies that align with its long-term acquisition strategy and contribute meaningfully to accretion; the Credit Facilities, including the accordion feature, the impact of the Credit Facilities on the Corporation's acquisition strategy and its acquisition and operating platforms; the Pharmacist Co-Ownership Program including the $5,000,000 credit facility to support the program, the availability of the $5,000,000 credit facility and the terms of this credit facility; the Corporation's work to finalize definitive purchase and sale agreements in furtherance of previously announced letters of intent; the Corporation's expectation to close additional transactions in the second half of the year; and the Corporation's goal to continue to acquire pharmacies as they come to market and to operate such pharmacies under the PharmaChoice Canada banner. This forward-looking information reflects current beliefs and is based on information currently available to the management of the Corporation and on assumptions the Corporation believes are reasonable. These assumptions include, but are not limited to: the completion of previously announce acquisitions; market acceptance of previously announced acquisitions; the continued appetite from independent pharmacy owners exploring succession; market acceptance of the Pharmacist Co-Ownership Program and the terms of the credit facility under such program; the volume of acquisition opportunities presented to the Corporation being equal to or greater than historical volumes; and the continued supply of pharmacies for purchase by the Corporation at prices satisfactory to the Corporation and the ability of the Corporation to acquire such pharmacies. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Corporation to be materially different from those expressed or implied by such forward-looking information. Such risks and other factors may include, but are not limited to: general business, economic, competitive, political and social uncertainties; general capital market conditions and market prices for securities; delay or failure to receive board of directors, third party or regulatory approvals; competition; changes in legislation, including pharmacy regulation, affecting the Corporation; the timing and availability of external financing on acceptable terms; conclusions of economic evaluations and appraisals; and lack of qualified, skilled labour or loss of key individuals. A description of additional risk factors that may cause actual results to differ materially from forward-looking information can be found in the Corporation's disclosure documents on the SEDAR+ website at Although the Corporation has attempted to identify important risks and factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Readers are cautioned that the foregoing list of factors is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking information as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Forward-looking information contained in this news release is expressly qualified by this cautionary statement. The forward-looking information contained in this news release represents the expectations of the Corporation as of the date of this news release and, accordingly, is subject to change after such date. However, the Corporation expressly disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities law.
National Post
29 minutes ago
- National Post
Canadians' view of leadership in Washington plunges: Gallup poll
In the wake of a stormy stretch in Canada-U.S. relations, the Canadian view of American leadership has plummeted. Article content Gallup's latest survey of Canadian opinion, conducted in May and June, found approval of Washington slipping to 15 per cent, statistically in line with sentiment when Donald Trump was president the first time. Article content Article content Canadian opinion of leaders in Washington has fluctuated over time, showing a clear connection with who is sitting in the White House. For example, Canadian approval of American leadership averaged 61 per cent under Barack Obama, compared with 19 per cent in Trump's first term and 41 per cent under Joe Biden. Article content Aside from an uptick in 2021, only a minority of Canadians have approved of Washington since 2017. Article content Article content The latest downturn comes in the midst of diplomatic and trade tensions. Since returning to the White House, Trump has introduced high tariffs and continued with rhetoric suggesting Canada should become the '51st state.' Article content Gallup asked about four global powers during it recent World Poll. Germany's leadership received the most positive ratings from Canadians. A slim majority of Canadians (54 per cent) approve of Berlin. Article content Canadians have a higher approval rating for Beijing than they do for Washington. It sits at 23 per cent, up eight points from last year's poll. Article content Otherwise, the 79 per cent of Canadians who disapprove of U.S. leadership is statistically close to the 82 per cent who disapprove of Russia's. Article content Meanwhile, Canadians' view of their own leadership has improved considerably, rising 19 points from last year to 59 per cent now. The increase followed Mark Carney replacing Justin Trudeau as Liberal party leader and prime minister in March and his election victory in April. Article content Article content Approval of Trudeau fell from 64 per cent in 2016 — his first full year in office — to a low of 40 per cent in 2024. Article content Article content However, Canadians are gloomy about the state of the economy. Their optimism dropped to a new low in 2025, with 27 per cent saying their local economy is getting better, compared to 63 per cent who think it's getting worse. Article content The share of Canadians who say it's a good time to find a new job has fallen sharply down from 74 per cent in 2022 to 32 per cent in 2025. This is the lowest level of job optimism since the COVID-19 pandemic started in 2020 and the 2009 financial crisis. Article content The housing affordability crisis also remains widespread in Canada. One in four adults are satisfied with the availability of good, affordable housing, compared with 72 per cent who are dissatisfied. Article content Weak economic sentiment poses a test for Carney, says the folks at Gallup. 'Sustaining public support may depend on whether his administration can reverse declining optimism and navigate a complicated relationship with Washington.' Article content
Globe and Mail
29 minutes ago
- Globe and Mail
Schrödinger Reports Inducement Grants under Nasdaq Listing Rule 5635(c)(4)
Schrödinger, Inc. (Nasdaq: SDGR) today reported that on August 15, 2025, the company granted restricted stock units (RSUs) with respect to 1,875 shares of the company's common stock to two newly hired employees. These grants were made pursuant to the company's 2021 Inducement Equity Incentive Plan, were approved by the compensation committee of the board of directors pursuant to a delegation by the company's board of directors, and were made as a material inducement to such employees' acceptance of employment with the company in accordance with Nasdaq Listing Rule 5635(c)(4) as a component of his or her employment compensation. The RSUs vest over four years, with 25 percent of such RSUs vesting when such employee completes 12 months of continuous service measured from the vesting commencement date, and the balance of the RSUs vesting in a series of successive equal yearly installments of 1/4 of the original number of RSUs upon each such employee's completion of each additional year of service over the three-year period following the first anniversary of the vesting commencement date. The inducement grants are subject to the terms and conditions of award agreements covering the grants and the company's 2021 Inducement Equity Incentive Plan. About Schrödinger Schrödinger is transforming molecular discovery with its computational platform, which enables the discovery of novel, highly optimized molecules for drug development and materials design. Schrödinger's software platform is built on more than 30 years of R&D investment and is licensed by biotechnology, pharmaceutical and industrial companies, and academic institutions around the world. Schrödinger also leverages the platform to advance a portfolio of collaborative and proprietary programs. Founded in 1990, Schrödinger has approximately 800 employees operating from 15 locations globally. To learn more, visit follow us on LinkedIn and Instagram, or visit our blog,
