COSTCO WHOLESALE CORP (COST) Stock Fundamental Analysis
USA - NASDAQ:COST - US22160K1051 - Common Stock
932.09 USD
-8.65 (-0.92%)
Taking everything into account, COST scores 6 out of 10 in our fundamental rating. COST was compared to 39 industry peers in the Consumer Staples Distribution & Retail industry. COST has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. COST is quite expensive at the moment. It does show a decent growth rate. These ratings would make COST suitable for quality investing!
1. Profitability
1.1 Basic Checks
COST had positive earnings in the past year.
In the past year COST had a positive cash flow from operations.
Each year in the past 5 years COST has been profitable.
In the past 5 years COST always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.50%, COST belongs to the top of the industry, outperforming 89.74% of the companies in the same industry.
With an excellent Return On Equity value of 27.77%, COST belongs to the best of the industry, outperforming 82.05% of the companies in the same industry.
COST has a better Return On Invested Capital (19.54%) than 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for COST is significantly above the industry average of 8.75%.
The 3 year average ROIC (19.04%) for COST is below the current ROIC(19.54%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.5% | ||
| ROE | 27.77% | ||
| ROIC | 19.54% |
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
The Profit Margin of COST (2.94%) is better than 76.92% of its industry peers.
In the last couple of years the Profit Margin of COST has grown nicely.
COST's Operating Margin of 3.77% is fine compared to the rest of the industry. COST outperforms 69.23% of its industry peers.
In the last couple of years the Operating Margin of COST has remained more or less at the same level.
Looking at the Gross Margin, with a value of 12.84%, COST is doing worse than 82.05% of the companies in the same industry.
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 | 3.77% | ||
| PM (TTM) | 2.94% | ||
| GM | 12.84% |
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.
The number of shares outstanding for COST remains at a similar level compared to 1 year ago.
The number of shares outstanding for COST has been increased compared to 5 years ago.
COST has a better debt/assets ratio than last year.
2.2 Solvency
COST has an Altman-Z score of 9.66. This indicates that COST is financially healthy and has little risk of bankruptcy at the moment.
COST has a better Altman-Z score (9.66) than 97.44% of its industry peers.
The Debt to FCF ratio of COST is 0.73, which is an excellent value as it means it would take COST, only 0.73 years of fcf income to pay off all of its debts.
COST has a Debt to FCF ratio of 0.73. This is amongst the best in the industry. COST outperforms 89.74% of its industry peers.
COST has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.20, COST is doing good in the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 0.73 | ||
| Altman-Z | 9.66 |
ROIC/WACC2.25
WACC8.69%
2.3 Liquidity
A Current Ratio of 1.03 indicates that COST should not have too much problems paying its short term obligations.
COST has a worse Current ratio (1.03) than 69.23% of its industry peers.
COST has a Quick Ratio of 1.03. This is a bad value and indicates that COST is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.55, COST perfoms like the industry average, outperforming 51.28% of the companies in the same industry.
COST 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 | 1.03 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.90% 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.
Looking at the last year, COST shows a quite strong growth in Revenue. The Revenue has grown by 8.17% in the last year.
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)9.9%
EPS 3Y11.13%
EPS 5Y15.76%
EPS Q2Q%10.96%
Revenue 1Y (TTM)8.17%
Revenue growth 3Y6.64%
Revenue growth 5Y10.54%
Sales Q2Q%8.1%
3.2 Future
COST is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.40% yearly.
The Revenue is expected to grow by 6.13% on average over the next years.
EPS Next Y12.49%
EPS Next 2Y11.39%
EPS Next 3Y11.39%
EPS Next 5Y9.4%
Revenue Next Year7.9%
Revenue Next 2Y7.74%
Revenue Next 3Y7.38%
Revenue Next 5Y6.13%
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
The Price/Earnings ratio is 51.19, which means the current valuation is very expensive for COST.
Compared to the rest of the industry, the Price/Earnings ratio of COST indicates a slightly more expensive valuation: COST is more expensive than 66.67% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of COST to the average of the S&P500 Index (26.03), we can say COST is valued expensively.
With a Price/Forward Earnings ratio of 45.50, COST can be considered very expensive at the moment.
COST's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. COST is more expensive than 64.10% of the companies in the same industry.
COST's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.19 | ||
| Fwd PE | 45.5 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, COST is valued a bit more expensive than 71.79% of the companies in the same industry.
66.67% 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 | 52.71 | ||
| EV/EBITDA | 31.71 |
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 COST may justify a higher PE ratio.
PEG (NY)4.1
PEG (5Y)3.25
EPS Next 2Y11.39%
EPS Next 3Y11.39%
5. Dividend
5.1 Amount
COST has a yearly dividend return of 0.57%, which is pretty low.
COST's Dividend Yield is a higher than the industry average which is at 2.00.
Compared to an average S&P500 Dividend Yield of 2.38, COST's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
5.2 History
On average, the dividend of COST grows each year by 7.97%, which is quite nice.
COST has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)7.97%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
COST pays out 26.95% of its income as dividend. This is a sustainable payout ratio.
COST's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP26.95%
EPS Next 2Y11.39%
EPS Next 3Y11.39%
NASDAQ:COST (11/5/2025, 10:43:05 AM)
932.09
-8.65 (-0.92%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners72.07%
Inst Owner Change-1.96%
Ins Owners0.09%
Ins Owner Change1.02%
Market Cap413.08B
Revenue(TTM)275.24B
Net Income(TTM)8.10B
Analysts78.14
Price Target1083.49 (16.24%)
Short Float %1.57%
Short Ratio2.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
Yearly Dividend4.93
Dividend Growth(5Y)7.97%
DP26.95%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.9%
Min EPS beat(2)-0.98%
Max EPS beat(2)-0.82%
EPS beat(4)1
Avg EPS beat(4)-0.33%
Min EPS beat(4)-4.04%
Max EPS beat(4)4.5%
EPS beat(8)5
Avg EPS beat(8)1.23%
EPS beat(12)6
Avg EPS beat(12)-0.42%
EPS beat(16)9
Avg EPS beat(16)0.71%
Revenue beat(2)0
Avg Revenue beat(2)-1.89%
Min Revenue beat(2)-1.94%
Max Revenue beat(2)-1.85%
Revenue beat(4)0
Avg Revenue beat(4)-1.67%
Min Revenue beat(4)-1.94%
Max Revenue beat(4)-1.05%
Revenue beat(8)0
Avg Revenue beat(8)-1.94%
Revenue beat(12)0
Avg Revenue beat(12)-2.04%
Revenue beat(16)0
Avg Revenue beat(16)-1.77%
PT rev (1m)-0.01%
PT rev (3m)-0.63%
EPS NQ rev (1m)0.23%
EPS NQ rev (3m)-0.02%
EPS NY rev (1m)0.09%
EPS NY rev (3m)0.14%
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)0.59%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.19 | ||
| Fwd PE | 45.5 | ||
| P/S | 1.5 | ||
| P/FCF | 52.71 | ||
| P/OCF | 30.98 | ||
| P/B | 14.16 | ||
| P/tB | 14.16 | ||
| EV/EBITDA | 31.71 |
EPS(TTM)18.21
EY1.95%
EPS(NY)20.48
Fwd EY2.2%
FCF(TTM)17.68
FCFY1.9%
OCF(TTM)30.09
OCFY3.23%
SpS621.05
BVpS65.81
TBVpS65.81
PEG (NY)4.1
PEG (5Y)3.25
Graham Number164.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.5% | ||
| ROE | 27.77% | ||
| ROCE | 25.96% | ||
| ROIC | 19.54% | ||
| ROICexc | 31.62% | ||
| ROICexgc | 31.62% | ||
| OM | 3.77% | ||
| PM (TTM) | 2.94% | ||
| GM | 12.84% | ||
| FCFM | 2.85% |
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)31.63%
ROICexgc(5y)31.61%
ROCE(3y)25.3%
ROCE(5y)25%
ROICexgc growth 3Y2.25%
ROICexgc growth 5Y2.12%
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 Turnover3.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 0.73 | ||
| Debt/EBITDA | 0.45 | ||
| Cap/Depr | 226.63% | ||
| Cap/Sales | 2% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 104.11% | ||
| Profit Quality | 96.77% | ||
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.55 | ||
| Altman-Z | 9.66 |
F-Score7
WACC8.69%
ROIC/WACC2.25
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)9.9%
EPS 3Y11.13%
EPS 5Y15.76%
EPS Q2Q%10.96%
EPS Next Y12.49%
EPS Next 2Y11.39%
EPS Next 3Y11.39%
EPS Next 5Y9.4%
Revenue 1Y (TTM)8.17%
Revenue growth 3Y6.64%
Revenue growth 5Y10.54%
Sales Q2Q%8.1%
Revenue Next Year7.9%
Revenue Next 2Y7.74%
Revenue Next 3Y7.38%
Revenue Next 5Y6.13%
EBIT growth 1Y11.83%
EBIT growth 3Y9.49%
EBIT growth 5Y11.2%
EBIT Next Year35.68%
EBIT Next 3Y19.03%
EBIT Next 5Y14.39%
FCF growth 1Y18.22%
FCF growth 3Y30.81%
FCF growth 5Y5.31%
OCF growth 1Y17.6%
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 6 / 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 8 / 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 51.19 and the Price/Book (PB) ratio is 14.16.
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 12.49% in the next year.