COSTCO WHOLESALE CORP (CTO.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:CTO - US22160K1051 - Common Stock
777.5 EUR
-1.3 (-0.17%)
Overall CTO gets a fundamental rating of 6 out of 10. We evaluated CTO against 24 industry peers in the Consumer Staples Distribution & Retail industry. CTO scores excellent points on both the profitability and health parts. This is a solid base for a good stock. While showing a medium growth rate, CTO is valued expensive at the moment. This makes CTO very considerable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year CTO was profitable.
In the past year CTO had a positive cash flow from operations.
Each year in the past 5 years CTO has been profitable.
CTO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CTO has a better Return On Assets (10.50%) than 100.00% of its industry peers.
The Return On Equity of CTO (27.77%) is better than 100.00% of its industry peers.
CTO has a better Return On Invested Capital (19.54%) than 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 9.51%.
The last Return On Invested Capital (19.54%) for CTO is above the 3 year average (19.04%), which is a sign of increasing profitability.
| 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
CTO's Profit Margin of 2.94% is fine compared to the rest of the industry. CTO outperforms 75.00% of its industry peers.
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 66.67% of its industry peers.
CTO's Operating Margin has been stable in the last couple of years.
The Gross Margin of CTO (12.84%) is worse than 79.17% 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), CTO is creating 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
CTO has an Altman-Z score of 9.42. This indicates that CTO is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 9.42, CTO belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
CTO has a debt to FCF ratio of 0.74. This is a very positive value and a sign of high solvency as it would only need 0.74 years to pay back of all of its debts.
CTO has a better Debt to FCF ratio (0.74) than 100.00% of its industry peers.
CTO has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.20, CTO belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 0.74 | ||
| Altman-Z | 9.42 |
ROIC/WACC2.29
WACC8.54%
2.3 Liquidity
CTO has a Current Ratio of 1.03. This is a normal value and indicates that CTO is financially healthy and should not expect problems in meeting its short term obligations.
CTO has a better Current ratio (1.03) than 75.00% of its industry peers.
CTO has a Quick Ratio of 1.03. This is a bad value and indicates that CTO is not financially healthy enough and could expect problems in meeting its short term obligations.
CTO has a Quick ratio of 0.55. This is in the better half of the industry: CTO outperforms 66.67% 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 | 1.03 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
CTO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.90%, which is quite good.
Measured over the past years, CTO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.76% on average per year.
CTO 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
CTO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.87% yearly.
CTO 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 3Y10.99%
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 49.15, the valuation of CTO can be described as expensive.
Based on the Price/Earnings ratio, CTO is valued a bit more expensive than 75.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.45, CTO is valued quite expensively.
A Price/Forward Earnings ratio of 43.70 indicates a quite expensive valuation of CTO.
Based on the Price/Forward Earnings ratio, CTO is valued a bit more expensive than the industry average as 79.17% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of CTO to the average of the S&P500 Index (34.46), we can say CTO is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.15 | ||
| Fwd PE | 43.7 |
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 75.00% 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 70.83% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50.62 | ||
| EV/EBITDA | 30.2 |
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)3.93
PEG (5Y)3.12
EPS Next 2Y11.35%
EPS Next 3Y10.99%
5. Dividend
5.1 Amount
CTO has a yearly dividend return of 0.58%, which is pretty low.
CTO's Dividend Yield is slightly below the industry average, which is at 3.98.
Compared to an average S&P500 Dividend Yield of 2.42, CTO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
5.2 History
On average, the dividend of CTO grows each year by 7.97%, which is quite nice.
Dividend Growth(5Y)7.97%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
26.95% of the earnings are spent on dividend by CTO. This is a low number and 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 2Y11.35%
EPS Next 3Y10.99%
FRA:CTO (11/21/2025, 7:00:00 PM)
777.5
-1.3 (-0.17%)
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 Cap344.57B
Revenue(TTM)275.24B
Net Income(TTM)8.10B
Analysts78.22
Price Target923.78 (18.81%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
Yearly Dividend4.28
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)0.85%
PT rev (3m)0.19%
EPS NQ rev (1m)-0.02%
EPS NQ rev (3m)-0.06%
EPS NY rev (1m)0.1%
EPS NY rev (3m)0.15%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)0.63%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.15 | ||
| Fwd PE | 43.7 | ||
| P/S | 1.44 | ||
| P/FCF | 50.62 | ||
| P/OCF | 29.75 | ||
| P/B | 13.6 | ||
| P/tB | 13.6 | ||
| EV/EBITDA | 30.2 |
EPS(TTM)15.82
EY2.03%
EPS(NY)17.79
Fwd EY2.29%
FCF(TTM)15.36
FCFY1.98%
OCF(TTM)26.13
OCFY3.36%
SpS539.38
BVpS57.15
TBVpS57.15
PEG (NY)3.93
PEG (5Y)3.12
Graham Number142.63
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 | 9.42 |
F-Score7
WACC8.54%
ROIC/WACC2.29
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 3Y10.99%
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 / CTO.DE FAQ
What is the ChartMill fundamental rating of COSTCO WHOLESALE CORP (CTO.DE) stock?
ChartMill assigns a fundamental rating of 6 / 10 to CTO.DE.
What is the valuation status of COSTCO WHOLESALE CORP (CTO.DE) stock?
ChartMill assigns a valuation rating of 1 / 10 to COSTCO WHOLESALE CORP (CTO.DE). This can be considered as Overvalued.
What is the profitability of CTO stock?
COSTCO WHOLESALE CORP (CTO.DE) has a profitability rating of 8 / 10.
How financially healthy is COSTCO WHOLESALE CORP?
The financial health rating of COSTCO WHOLESALE CORP (CTO.DE) is 8 / 10.
Can you provide the dividend sustainability for CTO stock?
The dividend rating of COSTCO WHOLESALE CORP (CTO.DE) is 3 / 10 and the dividend payout ratio is 26.95%.