COSTCO WHOLESALE CORP (1COST.MI) Stock Fundamental Analysis
BIT:1COST - Euronext Milan - US22160K1051 - Common Stock - Currency: EUR
Overall 1COST gets a fundamental rating of 6 out of 10. We evaluated 1COST 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 valied quite expensively at the moment, while it does show a decent growth rate. These ratings would make 1COST suitable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year 1COST was profitable.
1COST had a positive operating cash flow in the past year.
In the past 5 years 1COST has always been profitable.
Each year in the past 5 years 1COST had a positive operating cash flow.
1.2 Ratios
1COST has a Return On Assets of 10.39%. This is amongst the best in the industry. 1COST outperforms 96.15% of its industry peers.
1COST has a better Return On Equity (28.91%) than 92.31% of its industry peers.
1COST's Return On Invested Capital of 19.92% is amongst the best of the industry. 1COST outperforms 96.15% of its industry peers.
1COST had an Average Return On Invested Capital over the past 3 years of 18.60%. This is significantly above the industry average of 9.41%.
The 3 year average ROIC (18.60%) for 1COST is below the current ROIC(19.92%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.39% | ||
| ROE | 28.91% | ||
| ROIC | 19.92% |
ROA(3y)9.59%
ROA(5y)8.89%
ROE(3y)28.2%
ROE(5y)27%
ROIC(3y)18.6%
ROIC(5y)17.81%
1.3 Margins
Looking at the Profit Margin, with a value of 2.92%, 1COST belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
1COST's Profit Margin has improved in the last couple of years.
The Operating Margin of 1COST (3.75%) is better than 65.38% of its industry peers.
In the last couple of years the Operating Margin of 1COST has grown nicely.
1COST has a worse Gross Margin (12.78%) 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 | 3.75% | ||
| PM (TTM) | 2.92% | ||
| GM | 12.78% |
OM growth 3Y-0.72%
OM growth 5Y3.3%
PM growth 3Y4.25%
PM growth 5Y3.86%
GM growth 3Y-0.71%
GM growth 5Y-0.57%
2. Health
2.1 Basic Checks
1COST has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
1COST has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for 1COST has been increased compared to 5 years ago.
1COST has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 10.11 indicates that 1COST is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 10.11, 1COST belongs to the top of the industry, outperforming 96.15% of the companies in the same industry.
1COST has a debt to FCF ratio of 0.78. This is a very positive value and a sign of high solvency as it would only need 0.78 years to pay back of all of its debts.
1COST has a better Debt to FCF ratio (0.78) than 100.00% of its industry peers.
1COST has a Debt/Equity ratio of 0.21. This is a healthy value indicating a solid balance between debt and equity.
1COST has a Debt to Equity ratio of 0.21. This is amongst the best in the industry. 1COST outperforms 96.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 0.78 | ||
| Altman-Z | 10.11 |
ROIC/WACC1.26
WACC15.77%
2.3 Liquidity
A Current Ratio of 1.02 indicates that 1COST should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.02, 1COST is doing good in the industry, outperforming 69.23% of the companies in the same industry.
A Quick Ratio of 0.52 indicates that 1COST may have some problems paying its short term obligations.
The Quick ratio of 1COST (0.52) is comparable to the rest of the industry.
The current and quick ratio evaluation for 1COST is rather negative, while it does have 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 | 1.02 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.23% over the past year.
Measured over the past years, 1COST shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.11% on average per year.
The Revenue has been growing slightly by 5.94% in the past year.
1COST shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.75% yearly.
EPS 1Y (TTM)9.23%
EPS 3Y14.32%
EPS 5Y15.11%
EPS Q2Q%13.23%
Revenue 1Y (TTM)5.94%
Revenue growth 3Y9.1%
Revenue growth 5Y10.75%
Sales Q2Q%8.02%
3.2 Future
1COST is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.68% yearly.
1COST is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.74% yearly.
EPS Next Y11.42%
EPS Next 2Y10.85%
EPS Next 3Y10.69%
EPS Next 5Y10.68%
Revenue Next Year7.68%
Revenue Next 2Y7.46%
Revenue Next 3Y7.15%
Revenue Next 5Y6.74%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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
Based on the Price/Earnings ratio of 58.83, the valuation of 1COST can be described as expensive.
Based on the Price/Earnings ratio, 1COST is valued a bit more expensive than the industry average as 73.08% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 26.29, 1COST is valued quite expensively.
1COST is valuated quite expensively with a Price/Forward Earnings ratio of 50.95.
1COST's Price/Forward Earnings ratio is rather expensive when compared to the industry. 1COST is more expensive than 80.77% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.17. 1COST is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58.83 | ||
| Fwd PE | 50.95 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1COST indicates a slightly more expensive valuation: 1COST is more expensive than 73.08% of the companies listed in the same industry.
76.92% of the companies in the same industry are cheaper than 1COST, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 62.9 | ||
| EV/EBITDA | 36.17 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of 1COST may justify a higher PE ratio.
PEG (NY)5.15
PEG (5Y)3.89
EPS Next 2Y10.85%
EPS Next 3Y10.69%
5. Dividend
5.1 Amount
With a yearly dividend of 0.52%, 1COST is not a good candidate for dividend investing.
1COST's Dividend Yield is slightly below the industry average, which is at 3.78.
Compared to an average S&P500 Dividend Yield of 2.38, 1COST's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
5.2 History
On average, the dividend of 1COST grows each year by 53.89%, which is quite nice.
Dividend Growth(5Y)53.89%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1COST pays out 19.69% of its income as dividend. This is a sustainable payout ratio.
The dividend of 1COST is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP19.69%
EPS Next 2Y10.85%
EPS Next 3Y10.69%
BIT:1COST (5/21/2025, 7:00:00 PM)
914.8
+23.3 (+2.61%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners71.84%
Inst Owner ChangeN/A
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap405.88B
Analysts78.3
Price Target950.33 (3.88%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
Yearly Dividend18
Dividend Growth(5Y)53.89%
DP19.69%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.58%
Min EPS beat(2)-4.04%
Max EPS beat(2)-1.13%
EPS beat(4)2
Avg EPS beat(4)0.41%
Min EPS beat(4)-4.04%
Max EPS beat(4)4.5%
EPS beat(8)5
Avg EPS beat(8)1.25%
EPS beat(12)6
Avg EPS beat(12)-0.46%
EPS beat(16)10
Avg EPS beat(16)1.19%
Revenue beat(2)0
Avg Revenue beat(2)-1.49%
Min Revenue beat(2)-1.94%
Max Revenue beat(2)-1.05%
Revenue beat(4)0
Avg Revenue beat(4)-1.86%
Min Revenue beat(4)-2.61%
Max Revenue beat(4)-1.05%
Revenue beat(8)0
Avg Revenue beat(8)-1.78%
Revenue beat(12)0
Avg Revenue beat(12)-2.05%
Revenue beat(16)1
Avg Revenue beat(16)-1.63%
PT rev (1m)-5.83%
PT rev (3m)-2.81%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.26%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)-0.82%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.55%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)0.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58.83 | ||
| Fwd PE | 50.95 | ||
| P/S | 1.71 | ||
| P/FCF | 62.9 | ||
| P/OCF | 37.04 | ||
| P/B | 16.97 | ||
| P/tB | 16.97 | ||
| EV/EBITDA | 36.17 |
EPS(TTM)15.55
EY1.7%
EPS(NY)17.96
Fwd EY1.96%
FCF(TTM)14.54
FCFY1.59%
OCF(TTM)24.7
OCFY2.7%
SpS534.25
BVpS53.92
TBVpS53.92
PEG (NY)5.15
PEG (5Y)3.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.39% | ||
| ROE | 28.91% | ||
| ROCE | 26.6% | ||
| ROIC | 19.92% | ||
| ROICexc | 32.76% | ||
| ROICexgc | 32.76% | ||
| OM | 3.75% | ||
| PM (TTM) | 2.92% | ||
| GM | 12.78% | ||
| FCFM | 2.72% |
ROA(3y)9.59%
ROA(5y)8.89%
ROE(3y)28.2%
ROE(5y)27%
ROIC(3y)18.6%
ROIC(5y)17.81%
ROICexc(3y)29.37%
ROICexc(5y)29.08%
ROICexgc(3y)30.8%
ROICexgc(5y)30.84%
ROCE(3y)24.84%
ROCE(5y)23.78%
ROICexcg growth 3Y-2.2%
ROICexcg growth 5Y2.32%
ROICexc growth 3Y-1.15%
ROICexc growth 5Y1.43%
OM growth 3Y-0.72%
OM growth 5Y3.3%
PM growth 3Y4.25%
PM growth 5Y3.86%
GM growth 3Y-0.71%
GM growth 5Y-0.57%
F-Score7
Asset Turnover3.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 0.78 | ||
| Debt/EBITDA | 0.46 | ||
| Cap/Depr | 216.67% | ||
| Cap/Sales | 1.9% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 99.87% | ||
| Profit Quality | 93.29% | ||
| Current Ratio | 1.02 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | 10.11 |
F-Score7
WACC15.77%
ROIC/WACC1.26
Cap/Depr(3y)207.83%
Cap/Depr(5y)199.15%
Cap/Sales(3y)1.78%
Cap/Sales(5y)1.77%
Profit Quality(3y)85.7%
Profit Quality(5y)103.11%
High Growth Momentum
Growth
EPS 1Y (TTM)9.23%
EPS 3Y14.32%
EPS 5Y15.11%
EPS Q2Q%13.23%
EPS Next Y11.42%
EPS Next 2Y10.85%
EPS Next 3Y10.69%
EPS Next 5Y10.68%
Revenue 1Y (TTM)5.94%
Revenue growth 3Y9.1%
Revenue growth 5Y10.75%
Sales Q2Q%8.02%
Revenue Next Year7.68%
Revenue Next 2Y7.46%
Revenue Next 3Y7.15%
Revenue Next 5Y6.74%
EBIT growth 1Y11.75%
EBIT growth 3Y8.31%
EBIT growth 5Y14.41%
EBIT Next Year39.54%
EBIT Next 3Y19.39%
EBIT Next 5Y15.88%
FCF growth 1Y25.66%
FCF growth 3Y7.27%
FCF growth 5Y14.57%
OCF growth 1Y26.17%
OCF growth 3Y8.17%
OCF growth 5Y12.27%