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COST vs RMCF

COST
Costco Wholesale Corporation
NEUTRAL
Price
$996.43
Market Cap
$442.28B
Sector
Consumer Defensive
AI Confidence
80%
RMCF
Rocky Mountain Chocolate Factory, Inc.
BEARISH
Price
$2.25
Market Cap
$21.0M
Sector
Consumer Defensive
AI Confidence
95%

Valuation

P/E Ratio
COST
51.82
RMCF
--
Forward P/E
COST
44.4
RMCF
2.34
P/B Ratio
COST
13.78
RMCF
2.92
P/S Ratio
COST
1.55
RMCF
0.71
EV/EBITDA
COST
32.11
RMCF
-14.83

Profitability

Gross Margin
COST
12.93%
RMCF
13.86%
Operating Margin
COST
3.74%
RMCF
1.09%
Profit Margin
COST
2.99%
RMCF
-13.62%
ROE
COST
29.65%
RMCF
-50.96%
ROA
COST
8.72%
RMCF
-9.56%

Growth

Revenue Growth
COST
9.2%
RMCF
-4.4%
Earnings Growth
COST
13.9%
RMCF
--

Financial Health

Debt/Equity
COST
0.26
RMCF
1.54
Current Ratio
COST
1.06
RMCF
1.66
Quick Ratio
COST
0.54
RMCF
0.83

Dividends

Dividend Yield
COST
0.52%
RMCF
--
Payout Ratio
COST
27.04%
RMCF
0.0%

AI Verdict

COST NEUTRAL

COST shows neutral fundamentals based on deterministic rules. Financial strength is stable (F-Score 4/9). Mixed signals with both opportunities and risks present.

Strengths
Low debt with D/E ratio of 0.26
Strong ROE of 29.7%
Risks
High valuation with P/E of 51.8
Premium vs Graham Number ($176.89)
Low profit margin of 3.0%
RMCF BEARISH

RMCF exhibits severe financial distress, anchored by a critical Piotroski F-Score of 1/9, indicating a near-total failure of operational health metrics. The company is destroying shareholder value with a staggering ROE of -50.96% and negative profit margins of -13.62%. While the stock has seen a speculative 1-year price increase of 74.4%, this is decoupled from fundamentals as revenue continues to shrink (-4.40% YoY). The combination of high leverage (Debt/Equity 1.54) and bearish insider selling suggests a high risk of further deterioration.

Strengths
Low Price-to-Sales ratio (0.71) suggests low valuation relative to revenue
Current ratio of 1.66 indicates short-term liquidity is currently maintained
Positive operating margin (1.09%) shows the core business is barely breaking even before interest/taxes
Risks
Critical Piotroski F-Score (1/9) signaling extreme financial weakness
Severe equity erosion with an ROE of -50.96%
Negative net profit margins (-13.62%) indicating an unsustainable cost structure

Compare Another Pair

COST vs RMCF: Head-to-Head Comparison

This page compares Costco Wholesale Corporation (COST) and Rocky Mountain Chocolate Factory, Inc. (RMCF) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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