COSTCO WHOLESALE CORP (1COST.MI) Stock Fundamental Analysis
BIT:1COST - Euronext Milan - US22160K1051 - Common Stock - Currency: EUR
Taking everything into account, 1COST scores 6 out of 10 in our fundamental rating. 1COST was compared to 24 industry peers in the Consumer Staples Distribution & Retail industry. 1COST has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. While showing a medium growth rate, 1COST is valued expensive at the moment. These ratings would make 1COST suitable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year 1COST was profitable.
In the past year 1COST had a positive cash flow from operations.
Each year in the past 5 years 1COST has been profitable.
1COST had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1COST has a better Return On Assets (10.39%) than 100.00% of its industry peers.
1COST's Return On Equity of 28.91% is amongst the best of the industry. 1COST outperforms 96.00% of its industry peers.
1COST's Return On Invested Capital of 19.92% is amongst the best of the industry. 1COST outperforms 100.00% 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 9.37%.
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
With an excellent Profit Margin value of 2.92%, 1COST belongs to the best of the industry, outperforming 88.00% 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 68.00% of its industry peers.
1COST's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 12.78%, 1COST is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1COST is creating 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.
The debt/assets ratio for 1COST has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 9.46 indicates that 1COST is not in any danger for bankruptcy at the moment.
1COST's Altman-Z score of 9.46 is amongst the best of the industry. 1COST outperforms 96.00% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 0.78, 1COST belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
1COST has a Debt/Equity ratio of 0.21. This is a healthy value indicating a solid balance between debt and equity.
1COST's Debt to Equity ratio of 0.21 is amongst the best of the industry. 1COST outperforms 96.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 0.78 | ||
| Altman-Z | 9.46 |
ROIC/WACC2.29
WACC8.71%
2.3 Liquidity
A Current Ratio of 1.02 indicates that 1COST should not have too much problems paying its short term obligations.
1COST has a better Current ratio (1.02) than 72.00% of its industry peers.
A Quick Ratio of 0.52 indicates that 1COST may have some problems paying its short term obligations.
1COST's Quick ratio of 0.52 is in line compared to the rest of the industry. 1COST outperforms 44.00% of its industry peers.
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
1COST shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.23%, which is quite good.
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.
Measured over the past years, 1COST shows a quite strong growth in Revenue. The Revenue has been growing by 10.75% on average per year.
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
The Earnings Per Share is expected to grow by 9.41% on average over the next years. This is quite good.
Based on estimates for the next years, 1COST will show a small growth in Revenue. The Revenue will grow by 6.62% on average per year.
EPS Next Y11.92%
EPS Next 2Y11.11%
EPS Next 3Y10.84%
EPS Next 5Y9.41%
Revenue Next Year7.69%
Revenue Next 2Y7.6%
Revenue Next 3Y7.49%
Revenue Next 5Y6.62%
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
Based on the Price/Earnings ratio of 52.18, the valuation of 1COST can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of 1COST indicates a slightly more expensive valuation: 1COST is more expensive than 72.00% of the companies listed in the same industry.
1COST is valuated expensively when we compare the Price/Earnings ratio to 26.54, which is the current average of the S&P500 Index.
1COST is valuated quite expensively with a Price/Forward Earnings ratio of 44.97.
80.00% of the companies in the same industry are cheaper than 1COST, based on the Price/Forward Earnings ratio.
1COST's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 35.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.18 | ||
| Fwd PE | 44.97 |
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 72.00% of the companies listed in the same industry.
1COST's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. 1COST is more expensive than 68.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.76 | ||
| EV/EBITDA | 31.98 |
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)4.38
PEG (5Y)3.45
EPS Next 2Y11.11%
EPS Next 3Y10.84%
5. Dividend
5.1 Amount
With a yearly dividend of 0.55%, 1COST is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.10, 1COST is paying slightly less dividend.
With a Dividend Yield of 0.55, 1COST pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
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.
1COST's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP19.69%
EPS Next 2Y11.11%
EPS Next 3Y10.84%
BIT:1COST (7/23/2025, 7:00:00 PM)
806.7
-108.1 (-11.82%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners71.81%
Inst Owner ChangeN/A
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap357.76B
Analysts78.14
Price Target938.96 (16.4%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
Yearly Dividend17.89
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)-2.51%
Min EPS beat(2)-4.04%
Max EPS beat(2)-0.98%
EPS beat(4)2
Avg EPS beat(4)0.45%
Min EPS beat(4)-4.04%
Max EPS beat(4)4.5%
EPS beat(8)5
Avg EPS beat(8)1.26%
EPS beat(12)6
Avg EPS beat(12)-0.44%
EPS beat(16)10
Avg EPS beat(16)1.2%
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)-1.2%
PT rev (3m)-6.96%
EPS NQ rev (1m)-0.36%
EPS NQ rev (3m)-0.36%
EPS NY rev (1m)0.45%
EPS NY rev (3m)0.04%
Revenue NQ rev (1m)0.61%
Revenue NQ rev (3m)0.61%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.18 | ||
| Fwd PE | 44.97 | ||
| P/S | 1.52 | ||
| P/FCF | 55.76 | ||
| P/OCF | 32.83 | ||
| P/B | 15.04 | ||
| P/tB | 15.04 | ||
| EV/EBITDA | 31.98 |
EPS(TTM)15.46
EY1.92%
EPS(NY)17.94
Fwd EY2.22%
FCF(TTM)14.47
FCFY1.79%
OCF(TTM)24.57
OCFY3.05%
SpS531.45
BVpS53.63
TBVpS53.63
PEG (NY)4.38
PEG (5Y)3.45
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 | 84.03 | ||
| Cash Conversion | 99.87% | ||
| Profit Quality | 93.29% | ||
| Current Ratio | 1.02 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | 9.46 |
F-Score7
WACC8.71%
ROIC/WACC2.29
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 Y11.92%
EPS Next 2Y11.11%
EPS Next 3Y10.84%
EPS Next 5Y9.41%
Revenue 1Y (TTM)5.94%
Revenue growth 3Y9.1%
Revenue growth 5Y10.75%
Sales Q2Q%8.02%
Revenue Next Year7.69%
Revenue Next 2Y7.6%
Revenue Next 3Y7.49%
Revenue Next 5Y6.62%
EBIT growth 1Y11.75%
EBIT growth 3Y8.31%
EBIT growth 5Y14.41%
EBIT Next Year39.54%
EBIT Next 3Y19.39%
EBIT Next 5Y14.7%
FCF growth 1Y25.66%
FCF growth 3Y7.27%
FCF growth 5Y14.57%
OCF growth 1Y26.17%
OCF growth 3Y8.17%
OCF growth 5Y12.27%