COSTCO WHOLESALE CORP (CTO.DE) Stock Fundamental Analysis
Europe - FRA:CTO - US22160K1051 - Common Stock
802.1 EUR
-16.8 (-2.05%)
Taking everything into account, CTO scores 6 out of 10 in our fundamental rating. CTO was compared to 23 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. While showing a medium growth rate, CTO is valued expensive at the moment. 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.
In the past year CTO had a positive cash flow from operations.
In the past 5 years CTO has always been profitable.
CTO 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 10.50%, CTO belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
CTO has a better Return On Equity (27.77%) than 100.00% of its industry peers.
CTO's Return On Invested Capital of 19.54% is amongst the best of the industry. CTO outperforms 100.00% of its industry peers.
CTO had an Average Return On Invested Capital over the past 3 years of 19.04%. This is significantly above the industry average of 9.23%.
The 3 year average ROIC (19.04%) for CTO 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
With a decent Profit Margin value of 2.94%, CTO is doing good in the industry, outperforming 78.26% of the companies in the same industry.
In the last couple of years the Profit Margin of CTO has grown nicely.
CTO's Operating Margin of 3.77% is fine compared to the rest of the industry. CTO outperforms 69.57% of its industry peers.
CTO's Operating Margin has been stable in the last couple of years.
CTO has a Gross Margin of 12.84%. This is in the lower half of the industry: CTO underperforms 78.26% of its industry peers.
CTO's Gross Margin has been stable in the last couple of years.
| 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
CTO has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
CTO has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, CTO has more shares outstanding
The debt/assets ratio for CTO has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 9.64 indicates that CTO is not in any danger for bankruptcy at the moment.
The Altman-Z score of CTO (9.64) is better than 100.00% of its industry peers.
The Debt to FCF ratio of CTO is 0.73, which is an excellent value as it means it would take CTO, only 0.73 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.73, CTO belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
A Debt/Equity ratio of 0.20 indicates that CTO is not too dependend on debt financing.
CTO has a better Debt to Equity ratio (0.20) than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 0.73 | ||
| Altman-Z | 9.64 |
ROIC/WACC2.28
WACC8.57%
2.3 Liquidity
A Current Ratio of 1.03 indicates that CTO should not have too much problems paying its short term obligations.
CTO has a Current ratio of 1.03. This is in the better half of the industry: CTO outperforms 73.91% of its industry peers.
A Quick Ratio of 0.55 indicates that CTO may have some problems paying its short term obligations.
CTO has a Quick ratio (0.55) which is in line with its industry peers.
The current and quick ratio evaluation for CTO 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 | 1.03 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.90% over the past year.
The Earnings Per Share has been growing by 15.76% on average over the past years. This is quite good.
CTO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.17%.
CTO 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
The Earnings Per Share is expected to grow by 9.40% on average over the next years. This is quite good.
CTO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.13% yearly.
EPS Next Y12.39%
EPS Next 2Y11.34%
EPS Next 3Y11.64%
EPS Next 5Y9.4%
Revenue Next Year7.79%
Revenue Next 2Y7.62%
Revenue Next 3Y7.46%
Revenue Next 5Y6.13%
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.
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 51.45, which means the current valuation is very expensive for CTO.
73.91% of the companies in the same industry are cheaper than CTO, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.42. CTO is valued rather expensively when compared to this.
CTO is valuated quite expensively with a Price/Forward Earnings ratio of 45.78.
78.26% of the companies in the same industry are cheaper than CTO, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.94. CTO is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.45 | ||
| Fwd PE | 45.78 |
4.2 Price Multiples
CTO's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. CTO is more expensive than 73.91% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CTO indicates a slightly more expensive valuation: CTO is more expensive than 69.57% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 52.98 | ||
| EV/EBITDA | 31.58 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
CTO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.15
PEG (5Y)3.26
EPS Next 2Y11.34%
EPS Next 3Y11.64%
5. Dividend
5.1 Amount
CTO has a yearly dividend return of 0.56%, which is pretty low.
CTO's Dividend Yield is slightly below the industry average, which is at 3.76.
With a Dividend Yield of 0.56, CTO pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.56% |
5.2 History
The dividend of CTO is nicely growing with an annual growth rate of 7.97%!
Dividend Growth(5Y)7.97%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
CTO pays out 26.95% of its income as dividend. This is a sustainable payout ratio.
CTO'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 2Y11.34%
EPS Next 3Y11.64%
FRA:CTO (10/17/2025, 7:00:00 PM)
802.1
-16.8 (-2.05%)
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 ChangeN/A
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap355.47B
Analysts78.14
Price Target933.56 (16.39%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.56% |
Yearly Dividend4.22
Dividend Growth(5Y)7.97%
DP26.95%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)0.48%
PT rev (3m)-1.89%
EPS NQ rev (1m)0.15%
EPS NQ rev (3m)0.22%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)0.05%
Revenue NQ rev (1m)0.58%
Revenue NQ rev (3m)0.66%
Revenue NY rev (1m)0.31%
Revenue NY rev (3m)0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.45 | ||
| Fwd PE | 45.78 | ||
| P/S | 1.51 | ||
| P/FCF | 52.98 | ||
| P/OCF | 31.14 | ||
| P/B | 14.24 | ||
| P/tB | 14.24 | ||
| EV/EBITDA | 31.58 |
EPS(TTM)15.59
EY1.94%
EPS(NY)17.52
Fwd EY2.18%
FCF(TTM)15.14
FCFY1.89%
OCF(TTM)25.76
OCFY3.21%
SpS531.67
BVpS56.34
TBVpS56.34
PEG (NY)4.15
PEG (5Y)3.26
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%
ROICexcg growth 3Y2.25%
ROICexcg 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 | 9.64 |
F-Score7
WACC8.57%
ROIC/WACC2.28
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 Y12.39%
EPS Next 2Y11.34%
EPS Next 3Y11.64%
EPS Next 5Y9.4%
Revenue 1Y (TTM)8.17%
Revenue growth 3Y6.64%
Revenue growth 5Y10.54%
Sales Q2Q%8.1%
Revenue Next Year7.79%
Revenue Next 2Y7.62%
Revenue Next 3Y7.46%
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%