COSTCO WHOLESALE CORP (CTO.DE) Stock Fundamental Analysis
FRA:CTO - Deutsche Boerse Ag - US22160K1051 - Common Stock - Currency: EUR
CTO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 24 industry peers in the Consumer Staples Distribution & Retail industry. CTO gets an excellent profitability rating and is at the same time showing great financial health properties. CTO is valied quite expensively at the moment, while it does show a decent growth rate. With these ratings, CTO could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
CTO had positive earnings in the past year.
CTO had a positive operating cash flow in the past year.
In the past 5 years CTO has always been profitable.
Each year in the past 5 years CTO had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 10.39%, CTO belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
With an excellent Return On Equity value of 28.91%, CTO belongs to the best of the industry, outperforming 95.83% of the companies in the same industry.
CTO's Return On Invested Capital of 19.92% is amongst the best of the industry. CTO outperforms 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CTO is significantly above the industry average of 9.41%.
The 3 year average ROIC (18.60%) for CTO 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
CTO has a better Profit Margin (2.92%) than 87.50% of its industry peers.
In the last couple of years the Profit Margin of CTO has grown nicely.
CTO has a Operating Margin of 3.75%. This is in the better half of the industry: CTO outperforms 66.67% of its industry peers.
In the last couple of years the Operating Margin of CTO has grown nicely.
CTO has a Gross Margin of 12.78%. This is amonst the worse of the industry: CTO underperforms 83.33% of its industry peers.
CTO'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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CTO is creating some value.
Compared to 1 year ago, CTO has about the same amount of shares outstanding.
CTO has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, CTO has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 9.99 indicates that CTO is not in any danger for bankruptcy at the moment.
CTO has a Altman-Z score of 9.99. This is amongst the best in the industry. CTO outperforms 100.00% of its industry peers.
CTO 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.
With an excellent Debt to FCF ratio value of 0.78, CTO belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
A Debt/Equity ratio of 0.21 indicates that CTO is not too dependend on debt financing.
The Debt to Equity ratio of CTO (0.21) is better than 95.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 0.78 | ||
| Altman-Z | 9.99 |
ROIC/WACC1.26
WACC15.86%
2.3 Liquidity
CTO has a Current Ratio of 1.02. This is a normal value and indicates that CTO is financially healthy and should not expect problems in meeting its short term obligations.
CTO's Current ratio of 1.02 is fine compared to the rest of the industry. CTO outperforms 70.83% of its industry peers.
A Quick Ratio of 0.52 indicates that CTO may have some problems paying its short term obligations.
CTO has a Quick ratio of 0.52. This is comparable to the rest of the industry: CTO outperforms 41.67% of its industry peers.
CTO 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 | 1.02 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
CTO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.23%, which is quite good.
CTO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.11% yearly.
CTO shows a small growth in Revenue. In the last year, the Revenue has grown by 5.94%.
The Revenue has been growing by 10.75% on average over the past years. This is quite good.
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
Based on estimates for the next years, CTO will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.78% on average per year.
CTO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.84% yearly.
EPS Next Y11.42%
EPS Next 2Y10.85%
EPS Next 3Y10.69%
EPS Next 5Y10.78%
Revenue Next Year7.73%
Revenue Next 2Y7.55%
Revenue Next 3Y7.33%
Revenue Next 5Y6.84%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
With a Price/Earnings ratio of 57.61, CTO can be considered very expensive at the moment.
75.00% of the companies in the same industry are cheaper than CTO, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.52, CTO is valued quite expensively.
CTO is valuated quite expensively with a Price/Forward Earnings ratio of 49.89.
Based on the Price/Forward Earnings ratio, CTO is valued expensively inside the industry as 83.33% of the companies are valued cheaper.
The average S&P500 Price/Forward Earnings ratio is at 22.25. CTO is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 57.61 | ||
| Fwd PE | 49.89 |
4.2 Price Multiples
75.00% of the companies in the same industry are cheaper than CTO, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, CTO is valued a bit more expensive than 79.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 61.59 | ||
| EV/EBITDA | 35.4 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CTO does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of CTO may justify a higher PE ratio.
PEG (NY)5.05
PEG (5Y)3.81
EPS Next 2Y10.85%
EPS Next 3Y10.69%
5. Dividend
5.1 Amount
CTO has a yearly dividend return of 0.51%, which is pretty low.
Compared to an average industry Dividend Yield of 3.81, CTO is paying slightly less dividend.
With a Dividend Yield of 0.51, CTO pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.51% |
5.2 History
The dividend of CTO is nicely growing with an annual growth rate of 53.89%!
Dividend Growth(5Y)53.89%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
CTO pays out 19.69% of its income as dividend. This is a sustainable payout ratio.
CTO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP19.69%
EPS Next 2Y10.85%
EPS Next 3Y10.69%
FRA:CTO (6/6/2025, 7:00:00 PM)
890.1
-6.4 (-0.71%)
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 Cap394.92B
Analysts77.78
Price Target973.87 (9.41%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.51% |
Yearly Dividend17.88
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)2.19%
PT rev (3m)-1.5%
EPS NQ rev (1m)-0.49%
EPS NQ rev (3m)-0.67%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)-0.82%
Revenue NQ rev (1m)0.58%
Revenue NQ rev (3m)1.14%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 57.61 | ||
| Fwd PE | 49.89 | ||
| P/S | 1.68 | ||
| P/FCF | 61.59 | ||
| P/OCF | 36.27 | ||
| P/B | 16.61 | ||
| P/tB | 16.61 | ||
| EV/EBITDA | 35.4 |
EPS(TTM)15.45
EY1.74%
EPS(NY)17.84
Fwd EY2%
FCF(TTM)14.45
FCFY1.62%
OCF(TTM)24.54
OCFY2.76%
SpS530.88
BVpS53.58
TBVpS53.58
PEG (NY)5.05
PEG (5Y)3.81
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 | 9.99 |
F-Score7
WACC15.86%
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 5Y10.78%
Revenue 1Y (TTM)5.94%
Revenue growth 3Y9.1%
Revenue growth 5Y10.75%
Sales Q2Q%8.02%
Revenue Next Year7.73%
Revenue Next 2Y7.55%
Revenue Next 3Y7.33%
Revenue Next 5Y6.84%
EBIT growth 1Y11.75%
EBIT growth 3Y8.31%
EBIT growth 5Y14.41%
EBIT Next Year39.54%
EBIT Next 3Y19.39%
EBIT Next 5Y15.9%
FCF growth 1Y25.66%
FCF growth 3Y7.27%
FCF growth 5Y14.57%
OCF growth 1Y26.17%
OCF growth 3Y8.17%
OCF growth 5Y12.27%