867.25 USD
-0.59 (-0.07%)
Overall COST gets a fundamental rating of 5 out of 10. We evaluated COST against 38 industry peers in the Consumer Staples Distribution & Retail industry. While COST belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. While showing a medium growth rate, COST is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
COST had positive earnings in the past year.
COST had a positive operating cash flow in the past year.
Each year in the past 5 years COST has been profitable.
COST had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.03%, COST belongs to the top of the industry, outperforming 84.21% of the companies in the same industry.
The Return On Equity of COST (27.40%) is better than 84.21% of its industry peers.
COST has a Return On Invested Capital of 19.55%. This is amongst the best in the industry. COST outperforms 97.37% of its industry peers.
COST had an Average Return On Invested Capital over the past 3 years of 19.04%. This is significantly below the industry average of 28.32%.
The 3 year average ROIC (19.04%) for COST is below the current ROIC(19.55%), indicating increased profibility in the last year.
| 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
COST's Profit Margin of 2.96% is fine compared to the rest of the industry. COST outperforms 73.68% of its industry peers.
In the last couple of years the Profit Margin of COST has grown nicely.
COST's Operating Margin of 3.80% is fine compared to the rest of the industry. COST outperforms 65.79% of its industry peers.
COST's Operating Margin has been stable in the last couple of years.
COST has a worse Gross Margin (12.88%) than 81.58% of its industry peers.
In the last couple of years the Gross Margin of COST has remained more or less at the same level.
| 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), COST is creating value.
COST has about the same amout of shares outstanding than it did 1 year ago.
COST has more shares outstanding than it did 5 years ago.
COST has a better debt/assets ratio than last year.
2.2 Solvency
COST has an Altman-Z score of 8.63. This indicates that COST is financially healthy and has little risk of bankruptcy at the moment.
COST's Altman-Z score of 8.63 is amongst the best of the industry. COST outperforms 89.47% of its industry peers.
The Debt to FCF ratio of COST is 0.64, which is an excellent value as it means it would take COST, only 0.64 years of fcf income to pay off all of its debts.
COST has a Debt to FCF ratio of 0.64. This is amongst the best in the industry. COST outperforms 89.47% of its industry peers.
A Debt/Equity ratio of 0.19 indicates that COST is not too dependend on debt financing.
The Debt to Equity ratio of COST (0.19) is better than 73.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 0.64 | ||
| Altman-Z | 8.63 |
ROIC/WACC2.26
WACC8.64%
2.3 Liquidity
COST has a Current Ratio of 1.04. This is a normal value and indicates that COST is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of COST (1.04) is worse than 65.79% of its industry peers.
COST has a Quick Ratio of 1.04. This is a bad value and indicates that COST is not financially healthy enough and could expect problems in meeting its short term obligations.
COST has a Quick ratio (0.53) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.63% over the past year.
COST shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.76% yearly.
COST shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.34%.
COST 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
The Earnings Per Share is expected to grow by 8.87% on average over the next years. This is quite good.
Based on estimates for the next years, COST 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
A Price/Earnings ratio of 46.45 indicates a quite expensive valuation of COST.
Based on the Price/Earnings ratio, COST is valued a bit more expensive than the industry average as 71.05% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 26.84. COST is valued rather expensively when compared to this.
COST is valuated quite expensively with a Price/Forward Earnings ratio of 38.08.
Based on the Price/Forward Earnings ratio, COST is valued a bit more expensive than the industry average as 60.53% of the companies are valued more cheaply.
COST is valuated expensively when we compare the Price/Forward Earnings ratio to 23.40, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.45 | ||
| Fwd PE | 38.08 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, COST is valued a bit more expensive than the industry average as 73.68% of the companies are valued more cheaply.
63.16% of the companies in the same industry are cheaper than COST, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.69 | ||
| EV/EBITDA | 28.36 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates COST does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of COST may justify a higher PE ratio.
PEG (NY)3.29
PEG (5Y)2.95
EPS Next 2Y11.83%
EPS Next 3Y11.43%
5. Dividend
5.1 Amount
COST has a yearly dividend return of 0.60%, which is pretty low.
COST's Dividend Yield is a higher than the industry average which is at 0.78.
Compared to an average S&P500 Dividend Yield of 2.00, COST'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 COST grows each year by 7.97%, which is quite nice.
COST has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)7.97%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
COST pays out 27.04% of its income as dividend. This is a sustainable payout ratio.
The dividend of COST 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%
NASDAQ:COST (12/30/2025, 3:42:04 PM)
867.25
-0.59 (-0.07%)
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 Change-2.18%
Ins Owners0.09%
Ins Owner Change0.8%
Market Cap384.35B
Revenue(TTM)280.39B
Net Income(TTM)8.30B
Analysts77.73
Price Target1048.64 (20.92%)
Short Float %1.52%
Short Ratio2.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
Yearly Dividend4.93
Dividend Growth(5Y)7.97%
DP27.04%
Div Incr Years0
Div Non Decr Years0
Ex-Date
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)-2.56%
PT rev (3m)-3.78%
EPS NQ rev (1m)0.35%
EPS NQ rev (3m)0.61%
EPS NY rev (1m)1.42%
EPS NY rev (3m)1.52%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)0.2%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.45 | ||
| Fwd PE | 38.08 | ||
| P/S | 1.37 | ||
| P/FCF | 42.69 | ||
| P/OCF | 26.03 | ||
| P/B | 12.68 | ||
| P/tB | 12.68 | ||
| EV/EBITDA | 28.36 |
EPS(TTM)18.67
EY2.15%
EPS(NY)22.77
Fwd EY2.63%
FCF(TTM)20.31
FCFY2.34%
OCF(TTM)33.31
OCFY3.84%
SpS632.68
BVpS68.38
TBVpS68.38
PEG (NY)3.29
PEG (5Y)2.95
Graham Number169.48
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 | 8.63 |
F-Score7
WACC8.64%
ROIC/WACC2.26
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 / COST FAQ
What is the fundamental rating for COST stock?
ChartMill assigns a fundamental rating of 5 / 10 to COST.
Can you provide the valuation status for COSTCO WHOLESALE CORP?
ChartMill assigns a valuation rating of 1 / 10 to COSTCO WHOLESALE CORP (COST). This can be considered as Overvalued.
How profitable is COSTCO WHOLESALE CORP (COST) stock?
COSTCO WHOLESALE CORP (COST) has a profitability rating of 7 / 10.
What are the PE and PB ratios of COSTCO WHOLESALE CORP (COST) stock?
The Price/Earnings (PE) ratio for COSTCO WHOLESALE CORP (COST) is 46.45 and the Price/Book (PB) ratio is 12.68.
What is the expected EPS growth for COSTCO WHOLESALE CORP (COST) stock?
The Earnings per Share (EPS) of COSTCO WHOLESALE CORP (COST) is expected to grow by 14.1% in the next year.