COSTCO WHOLESALE CORP (CTO.DE) Stock Fundamental Analysis
FRA:CTO - US22160K1051 - Common Stock
804.9 EUR
-6.2 (-0.76%)
We assign a fundamental rating of 6 out of 10 to CTO. CTO was compared to 27 industry peers in the Consumer Staples Distribution & Retail industry. CTO has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. CTO is valied quite expensively at the moment, while it does show a decent growth rate. 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.
In the past 5 years CTO has always been profitable.
In the past 5 years CTO always reported a positive cash flow from operatings.
1.2 Ratios
CTO's Return On Assets of 10.39% is amongst the best of the industry. CTO outperforms 100.00% of its industry peers.
Looking at the Return On Equity, with a value of 28.91%, CTO belongs to the top of the industry, outperforming 96.30% 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.
CTO had an Average Return On Invested Capital over the past 3 years of 18.60%. This is significantly above the industry average of 9.66%.
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 88.89% of its industry peers.
CTO's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 3.75%, CTO is doing good in the industry, outperforming 70.37% of the companies in the same industry.
In the last couple of years the Operating Margin of CTO has grown nicely.
With a Gross Margin value of 12.78%, CTO is not doing good in the industry: 77.78% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of CTO has remained more or less at the same level.
| 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) well above the Cost of Capital (WACC), CTO 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 9.61 indicates that CTO is not in any danger for bankruptcy at the moment.
CTO's Altman-Z score of 9.61 is amongst the best of the industry. CTO outperforms 96.30% 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.
CTO has a Debt to FCF ratio of 0.78. This is amongst the best in the industry. CTO outperforms 100.00% of its industry peers.
A Debt/Equity ratio of 0.21 indicates that CTO is not too dependend on debt financing.
CTO has a Debt to Equity ratio of 0.21. This is amongst the best in the industry. CTO outperforms 96.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 0.78 | ||
| Altman-Z | 9.61 |
ROIC/WACC2.29
WACC8.71%
2.3 Liquidity
A Current Ratio of 1.02 indicates that CTO should not have too much problems paying its short term obligations.
CTO has a better Current ratio (1.02) than 74.07% 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 (0.52) which is comparable to the rest of the industry.
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
The Earnings Per Share has grown by an nice 9.23% over the past year.
The Earnings Per Share has been growing by 15.11% on average over the past years. This is quite good.
Looking at the last year, CTO shows a small growth in Revenue. The Revenue has grown by 5.94% in the last year.
CTO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.75% yearly.
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
The Earnings Per Share is expected to grow by 9.40% on average over the next years. This is quite good.
Based on estimates for the next years, CTO will show a small growth in Revenue. The Revenue will grow by 6.62% on average per year.
EPS Next Y11.86%
EPS Next 2Y11.17%
EPS Next 3Y10.86%
EPS Next 5Y9.4%
Revenue Next Year7.7%
Revenue Next 2Y7.6%
Revenue Next 3Y7.48%
Revenue Next 5Y6.62%
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
With a Price/Earnings ratio of 53.30, CTO can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of CTO indicates a slightly more expensive valuation: CTO is more expensive than 70.37% of the companies listed in the same industry.
CTO is valuated expensively when we compare the Price/Earnings ratio to 27.08, which is the current average of the S&P500 Index.
CTO is valuated quite expensively with a Price/Forward Earnings ratio of 45.89.
Based on the Price/Forward Earnings ratio, CTO is valued a bit more expensive than the industry average as 77.78% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.72, CTO is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.3 | ||
| Fwd PE | 45.89 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CTO is valued a bit more expensive than the industry average as 74.07% of the companies are valued more cheaply.
Based on the Price/Free Cash Flow ratio, CTO is valued a bit more expensive than the industry average as 74.07% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56.96 | ||
| EV/EBITDA | 32.94 |
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 CTO may justify a higher PE ratio.
PEG (NY)4.49
PEG (5Y)3.53
EPS Next 2Y11.17%
EPS Next 3Y10.86%
5. Dividend
5.1 Amount
With a yearly dividend of 0.55%, CTO is not a good candidate for dividend investing.
CTO's Dividend Yield is slightly below the industry average, which is at 3.69.
With a Dividend Yield of 0.55, CTO pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
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
19.69% of the earnings are spent on dividend by CTO. This is a low number and sustainable payout ratio.
The dividend of CTO is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP19.69%
EPS Next 2Y11.17%
EPS Next 3Y10.86%
FRA:CTO (8/29/2025, 7:00:00 PM)
804.9
-6.2 (-0.76%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners71.83%
Inst Owner ChangeN/A
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap356.96B
Analysts78.14
Price Target931.41 (15.72%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
Yearly Dividend17.5
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)-0.92%
PT rev (3m)-2.92%
EPS NQ rev (1m)-0.12%
EPS NQ rev (3m)-0.47%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)0.4%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)0.65%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.3 | ||
| Fwd PE | 45.89 | ||
| P/S | 1.55 | ||
| P/FCF | 56.96 | ||
| P/OCF | 33.54 | ||
| P/B | 15.37 | ||
| P/tB | 15.37 | ||
| EV/EBITDA | 32.94 |
EPS(TTM)15.1
EY1.88%
EPS(NY)17.54
Fwd EY2.18%
FCF(TTM)14.13
FCFY1.76%
OCF(TTM)24
OCFY2.98%
SpS519.07
BVpS52.38
TBVpS52.38
PEG (NY)4.49
PEG (5Y)3.53
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 | 84.03 | ||
| Cash Conversion | 99.87% | ||
| Profit Quality | 93.29% | ||
| Current Ratio | 1.02 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | 9.61 |
F-Score7
WACC8.71%
ROIC/WACC2.29
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 Y11.86%
EPS Next 2Y11.17%
EPS Next 3Y10.86%
EPS Next 5Y9.4%
Revenue 1Y (TTM)5.94%
Revenue growth 3Y9.1%
Revenue growth 5Y10.75%
Sales Q2Q%8.02%
Revenue Next Year7.7%
Revenue Next 2Y7.6%
Revenue Next 3Y7.48%
Revenue Next 5Y6.62%
EBIT growth 1Y11.75%
EBIT growth 3Y8.31%
EBIT growth 5Y14.41%
EBIT Next Year40.12%
EBIT Next 3Y19.9%
EBIT Next 5Y14.7%
FCF growth 1Y25.66%
FCF growth 3Y7.27%
FCF growth 5Y14.57%
OCF growth 1Y26.17%
OCF growth 3Y8.17%
OCF growth 5Y12.27%