COSTCO WHOLESALE CORP (1COST.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1COST - US22160K1051 - Common Stock
732.9 EUR
-90.5 (-10.99%)
1COST gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 24 industry peers in the Consumer Staples Distribution & Retail industry. 1COST gets an excellent profitability rating and is at the same time showing great financial health properties. 1COST is quite expensive at the moment. It does show a decent growth rate. These ratings could make 1COST a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
1COST had positive earnings in the past year.
1COST had a positive operating cash flow in the past year.
1COST had positive earnings in each of the past 5 years.
In the past 5 years 1COST always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.03%, 1COST belongs to the top of the industry, outperforming 96.15% of the companies in the same industry.
The Return On Equity of 1COST (27.40%) is better than 96.15% of its industry peers.
1COST's Return On Invested Capital of 19.55% is amongst the best of the industry. 1COST outperforms 96.15% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1COST is significantly above the industry average of 8.82%.
The last Return On Invested Capital (19.55%) for 1COST is above the 3 year average (19.04%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.03% | ||
| ROE | 27.4% | ||
| ROIC | 19.55% |
ROA(3y)10.06%
ROA(5y)9.55%
ROE(3y)28.02%
ROE(5y)28.18%
ROIC(3y)19.04%
ROIC(5y)18.81%
1.3 Margins
1COST has a Profit Margin of 2.96%. This is in the better half of the industry: 1COST outperforms 73.08% of its industry peers.
In the last couple of years the Profit Margin of 1COST has grown nicely.
1COST's Operating Margin of 3.80% is fine compared to the rest of the industry. 1COST outperforms 61.54% of its industry peers.
In the last couple of years the Operating Margin of 1COST has remained more or less at the same level.
The Gross Margin of 1COST (12.88%) is worse than 80.77% of its industry peers.
1COST's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.8% | ||
| PM (TTM) | 2.96% | ||
| GM | 12.88% |
OM growth 3Y2.67%
OM growth 5Y0.6%
PM growth 3Y4.55%
PM growth 5Y4.16%
GM growth 3Y1.87%
GM growth 5Y-0.47%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1COST is creating value.
The number of shares outstanding for 1COST remains at a similar level compared to 1 year ago.
Compared to 5 years ago, 1COST has more shares outstanding
The debt/assets ratio for 1COST has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 8.61 indicates that 1COST is not in any danger for bankruptcy at the moment.
The Altman-Z score of 1COST (8.61) is better than 100.00% of its industry peers.
1COST has a debt to FCF ratio of 0.64. This is a very positive value and a sign of high solvency as it would only need 0.64 years to pay back of all of its debts.
The Debt to FCF ratio of 1COST (0.64) is better than 96.15% of its industry peers.
1COST has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.19, 1COST belongs to the top of the industry, outperforming 96.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 0.64 | ||
| Altman-Z | 8.61 |
ROIC/WACC2.27
WACC8.61%
2.3 Liquidity
A Current Ratio of 1.04 indicates that 1COST should not have too much problems paying its short term obligations.
The Current ratio of 1COST (1.04) is better than 69.23% of its industry peers.
1COST has a Quick Ratio of 1.04. This is a bad value and indicates that 1COST is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of 1COST (0.53) is better than 61.54% of its industry peers.
1COST does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
1COST shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.63%, which is quite good.
1COST shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.76% yearly.
The Revenue has grown by 8.34% in the past year. This is quite good.
1COST shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.54% yearly.
EPS 1Y (TTM)9.63%
EPS 3Y11.13%
EPS 5Y15.76%
EPS Q2Q%11.39%
Revenue 1Y (TTM)8.34%
Revenue growth 3Y6.64%
Revenue growth 5Y10.54%
Sales Q2Q%8.3%
3.2 Future
Based on estimates for the next years, 1COST will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.87% on average per year.
Based on estimates for the next years, 1COST will show a small growth in Revenue. The Revenue will grow by 6.26% on average per year.
EPS Next Y14.1%
EPS Next 2Y11.83%
EPS Next 3Y11.43%
EPS Next 5Y8.87%
Revenue Next Year8.07%
Revenue Next 2Y7.79%
Revenue Next 3Y7.59%
Revenue Next 5Y6.26%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
1COST is valuated quite expensively with a Price/Earnings ratio of 46.27.
1COST's Price/Earnings ratio is a bit more expensive when compared to the industry. 1COST is more expensive than 76.92% of the companies in the same industry.
1COST's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.51.
1COST is valuated quite expensively with a Price/Forward Earnings ratio of 37.94.
Based on the Price/Forward Earnings ratio, 1COST is valued a bit more expensive than the industry average as 76.92% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 23.13. 1COST is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.27 | ||
| Fwd PE | 37.94 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1COST is valued a bit more expensive than 76.92% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, 1COST is valued a bit more expensive than the industry average as 73.08% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.52 | ||
| EV/EBITDA | 28.22 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1COST does not grow enough to justify the current Price/Earnings ratio.
1COST has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.28
PEG (5Y)2.94
EPS Next 2Y11.83%
EPS Next 3Y11.43%
5. Dividend
5.1 Amount
With a yearly dividend of 0.60%, 1COST is not a good candidate for dividend investing.
1COST's Dividend Yield is slightly below the industry average, which is at 2.98.
Compared to an average S&P500 Dividend Yield of 2.00, 1COST's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
5.2 History
On average, the dividend of 1COST grows each year by 7.97%, which is quite nice.
Dividend Growth(5Y)7.97%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
27.04% of the earnings are spent on dividend by 1COST. This is a low number and sustainable payout ratio.
The dividend of 1COST is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP27.04%
EPS Next 2Y11.83%
EPS Next 3Y11.43%
BIT:1COST (12/18/2025, 7:00:00 PM)
732.9
-90.5 (-10.99%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners71.7%
Inst Owner ChangeN/A
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap324.81B
Revenue(TTM)280.39B
Net Income(TTM)8.30B
Analysts77.73
Price Target899.58 (22.74%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
Yearly Dividend4.18
Dividend Growth(5Y)7.97%
DP27.04%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.23%
Min EPS beat(2)-0.82%
Max EPS beat(2)3.28%
EPS beat(4)1
Avg EPS beat(4)-0.64%
Min EPS beat(4)-4.04%
Max EPS beat(4)3.28%
EPS beat(8)5
Avg EPS beat(8)1.31%
EPS beat(12)7
Avg EPS beat(12)0.06%
EPS beat(16)9
Avg EPS beat(16)0.25%
Revenue beat(2)0
Avg Revenue beat(2)-1.78%
Min Revenue beat(2)-1.85%
Max Revenue beat(2)-1.71%
Revenue beat(4)0
Avg Revenue beat(4)-1.64%
Min Revenue beat(4)-1.94%
Max Revenue beat(4)-1.05%
Revenue beat(8)0
Avg Revenue beat(8)-1.92%
Revenue beat(12)0
Avg Revenue beat(12)-1.99%
Revenue beat(16)0
Avg Revenue beat(16)-1.84%
PT rev (1m)-3.6%
PT rev (3m)-3.6%
EPS NQ rev (1m)0.32%
EPS NQ rev (3m)0.32%
EPS NY rev (1m)1.45%
EPS NY rev (3m)1.45%
Revenue NQ rev (1m)0.22%
Revenue NQ rev (3m)0.22%
Revenue NY rev (1m)0.6%
Revenue NY rev (3m)0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.27 | ||
| Fwd PE | 37.94 | ||
| P/S | 1.37 | ||
| P/FCF | 42.52 | ||
| P/OCF | 25.93 | ||
| P/B | 12.63 | ||
| P/tB | 12.63 | ||
| EV/EBITDA | 28.22 |
EPS(TTM)15.84
EY2.16%
EPS(NY)19.32
Fwd EY2.64%
FCF(TTM)17.23
FCFY2.35%
OCF(TTM)28.26
OCFY3.86%
SpS536.76
BVpS58.01
TBVpS58.01
PEG (NY)3.28
PEG (5Y)2.94
Graham Number143.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.03% | ||
| ROE | 27.4% | ||
| ROCE | 25.99% | ||
| ROIC | 19.55% | ||
| ROICexc | 33.67% | ||
| ROICexgc | 33.67% | ||
| OM | 3.8% | ||
| PM (TTM) | 2.96% | ||
| GM | 12.88% | ||
| FCFM | 3.21% |
ROA(3y)10.06%
ROA(5y)9.55%
ROE(3y)28.02%
ROE(5y)28.18%
ROIC(3y)19.04%
ROIC(5y)18.81%
ROICexc(3y)30.66%
ROICexc(5y)30.26%
ROICexgc(3y)32.07%
ROICexgc(5y)31.88%
ROCE(3y)25.3%
ROCE(5y)25%
ROICexgc growth 3Y3.66%
ROICexgc growth 5Y2.96%
ROICexc growth 3Y3.91%
ROICexc growth 5Y3.68%
OM growth 3Y2.67%
OM growth 5Y0.6%
PM growth 3Y4.55%
PM growth 5Y4.16%
GM growth 3Y1.87%
GM growth 5Y-0.47%
F-Score7
Asset Turnover3.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 0.64 | ||
| Debt/EBITDA | 0.43 | ||
| Cap/Depr | 232.73% | ||
| Cap/Sales | 2.05% | ||
| Interest Coverage | 101.43 | ||
| Cash Conversion | 112.48% | ||
| Profit Quality | 108.44% | ||
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.53 | ||
| Altman-Z | 8.61 |
F-Score7
WACC8.61%
ROIC/WACC2.27
Cap/Depr(3y)215.11%
Cap/Depr(5y)210.31%
Cap/Sales(3y)1.88%
Cap/Sales(5y)1.84%
Profit Quality(3y)97.98%
Profit Quality(5y)92.22%
High Growth Momentum
Growth
EPS 1Y (TTM)9.63%
EPS 3Y11.13%
EPS 5Y15.76%
EPS Q2Q%11.39%
EPS Next Y14.1%
EPS Next 2Y11.83%
EPS Next 3Y11.43%
EPS Next 5Y8.87%
Revenue 1Y (TTM)8.34%
Revenue growth 3Y6.64%
Revenue growth 5Y10.54%
Sales Q2Q%8.3%
Revenue Next Year8.07%
Revenue Next 2Y7.79%
Revenue Next 3Y7.59%
Revenue Next 5Y6.26%
EBIT growth 1Y12.14%
EBIT growth 3Y9.49%
EBIT growth 5Y11.2%
EBIT Next Year38.32%
EBIT Next 3Y18.66%
EBIT Next 5Y14.04%
FCF growth 1Y2.27%
FCF growth 3Y30.81%
FCF growth 5Y5.31%
OCF growth 1Y12.62%
OCF growth 3Y21.73%
OCF growth 5Y8.52%
COSTCO WHOLESALE CORP / 1COST.MI FAQ
What is the fundamental rating for 1COST stock?
ChartMill assigns a fundamental rating of 6 / 10 to 1COST.MI.
What is the valuation status of COSTCO WHOLESALE CORP (1COST.MI) stock?
ChartMill assigns a valuation rating of 1 / 10 to COSTCO WHOLESALE CORP (1COST.MI). This can be considered as Overvalued.
Can you provide the profitability details for COSTCO WHOLESALE CORP?
COSTCO WHOLESALE CORP (1COST.MI) has a profitability rating of 8 / 10.
What is the expected EPS growth for COSTCO WHOLESALE CORP (1COST.MI) stock?
The Earnings per Share (EPS) of COSTCO WHOLESALE CORP (1COST.MI) is expected to grow by 14.1% in the next year.
Is the dividend of COSTCO WHOLESALE CORP sustainable?
The dividend rating of COSTCO WHOLESALE CORP (1COST.MI) is 3 / 10 and the dividend payout ratio is 27.04%.