913.59 USD
+5.33 (+0.59%)
913.2 USD
-0.39 (-0.04%)
COST gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 39 industry peers in the Consumer Staples Distribution & Retail industry. COST scores excellent points on both the profitability and health parts. This is a solid base for a good stock. COST is valied quite expensively at the moment, while it does show a decent growth rate. These ratings would make COST suitable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year COST was profitable.
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
COST's Return On Assets of 10.50% is amongst the best of the industry. COST outperforms 89.74% of its industry peers.
COST has a better Return On Equity (27.77%) than 82.05% of its industry peers.
Looking at the Return On Invested Capital, with a value of 19.54%, COST belongs to the top of the industry, outperforming 97.44% of the companies in the same industry.
COST had an Average Return On Invested Capital over the past 3 years of 19.04%. This is significantly above the industry average of 8.76%.
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
COST has a better Profit Margin (2.94%) than 76.92% of its industry peers.
In the last couple of years the Profit Margin of COST has grown nicely.
COST has a better Operating Margin (3.77%) than 66.67% of its industry peers.
In the last couple of years the Operating Margin of COST has remained more or less at the same level.
With a Gross Margin value of 12.84%, COST is not doing good in the industry: 82.05% of the companies in the same industry are doing better.
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.
Compared to 5 years ago, COST has more shares outstanding
Compared to 1 year ago, COST has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 9.48 indicates that COST is not in any danger for bankruptcy at the moment.
COST's Altman-Z score of 9.48 is amongst the best of the industry. COST outperforms 94.87% of its industry peers.
The Debt to FCF ratio of COST is 0.74, which is an excellent value as it means it would take COST, only 0.74 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.74, COST belongs to the top of the industry, outperforming 89.74% of the companies in the same industry.
A Debt/Equity ratio of 0.20 indicates that COST is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.20, COST is doing good in the industry, outperforming 69.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 0.74 | ||
| Altman-Z | 9.48 |
ROIC/WACC2.3
WACC8.51%
2.3 Liquidity
A Current Ratio of 1.03 indicates that COST should not have too much problems paying its short term obligations.
The Current ratio of COST (1.03) is worse than 64.10% 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.
COST has a Quick ratio (0.55) which is comparable to the rest of the 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
COST shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.90%, which is quite good.
The Earnings Per Share has been growing by 15.76% on average over the past years. This is quite good.
COST shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.17%.
The Revenue has been growing by 10.54% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 8.87% on average over the next years. This is quite good.
COST is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.26% yearly.
EPS Next Y12.5%
EPS Next 2Y11.35%
EPS Next 3Y11.33%
EPS Next 5Y8.87%
Revenue Next Year7.93%
Revenue Next 2Y7.75%
Revenue Next 3Y7.48%
Revenue Next 5Y6.26%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 50.17, the valuation of COST can be described as expensive.
Based on the Price/Earnings ratio, COST is valued a bit more expensive than the industry average as 69.23% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 26.31, COST is valued quite expensively.
Based on the Price/Forward Earnings ratio of 44.60, the valuation of COST can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of COST indicates a slightly more expensive valuation: COST is more expensive than 64.10% of the companies listed in the same industry.
COST's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 36.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.17 | ||
| Fwd PE | 44.6 |
4.2 Price Multiples
COST's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. COST is more expensive than 69.23% of the companies in the same industry.
COST's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. COST is more expensive than 69.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 51.66 | ||
| EV/EBITDA | 30.6 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
COST has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.01
PEG (5Y)3.18
EPS Next 2Y11.35%
EPS Next 3Y11.33%
5. Dividend
5.1 Amount
With a yearly dividend of 0.58%, COST is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.04, COST pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, COST's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
5.2 History
The dividend of COST is nicely growing with an annual growth rate of 7.97%!
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 2Y11.35%
EPS Next 3Y11.33%
913.59
+5.33 (+0.59%)
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-2.2%
Ins Owners0.09%
Ins Owner Change0.68%
Market Cap404.88B
Revenue(TTM)275.24B
Net Income(TTM)8.10B
Analysts78.22
Price Target1076.14 (17.79%)
Short Float %1.57%
Short Ratio2.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
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)-0.69%
PT rev (3m)-1.31%
EPS NQ rev (1m)-0.02%
EPS NQ rev (3m)0.19%
EPS NY rev (1m)0.01%
EPS NY rev (3m)0.15%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)0.61%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.17 | ||
| Fwd PE | 44.6 | ||
| P/S | 1.47 | ||
| P/FCF | 51.66 | ||
| P/OCF | 30.36 | ||
| P/B | 13.88 | ||
| P/tB | 13.88 | ||
| EV/EBITDA | 30.6 |
EPS(TTM)18.21
EY1.99%
EPS(NY)20.49
Fwd EY2.24%
FCF(TTM)17.68
FCFY1.94%
OCF(TTM)30.09
OCFY3.29%
SpS621.05
BVpS65.81
TBVpS65.81
PEG (NY)4.01
PEG (5Y)3.18
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)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 Turnover3.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 0.74 | ||
| Debt/EBITDA | 0.45 | ||
| Cap/Depr | 226.63% | ||
| Cap/Sales | 2% | ||
| Interest Coverage | 97.95 | ||
| Cash Conversion | 104.11% | ||
| Profit Quality | 96.77% | ||
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.55 | ||
| Altman-Z | 9.48 |
F-Score7
WACC8.51%
ROIC/WACC2.3
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 Y12.5%
EPS Next 2Y11.35%
EPS Next 3Y11.33%
EPS Next 5Y8.87%
Revenue 1Y (TTM)8.17%
Revenue growth 3Y6.64%
Revenue growth 5Y10.54%
Sales Q2Q%8.1%
Revenue Next Year7.93%
Revenue Next 2Y7.75%
Revenue Next 3Y7.48%
Revenue Next 5Y6.26%
EBIT growth 1Y11.83%
EBIT growth 3Y9.49%
EBIT growth 5Y11.2%
EBIT Next Year35.68%
EBIT Next 3Y18.69%
EBIT Next 5Y14.03%
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 50.17 and the Price/Book (PB) ratio is 13.88.
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 12.5% in the next year.