COSTCO WHOLESALE CORP (CTO.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:CTO - US22160K1051 - Common Stock
724.6 EUR
+1 (+0.14%)
Overall CTO gets a fundamental rating of 6 out of 10. We evaluated CTO against 26 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. CTO is quite expensive at the moment. It does show a decent growth rate. These ratings would make CTO suitable 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.
CTO had positive earnings in each of the past 5 years.
In the past 5 years CTO always reported a positive cash flow from operatings.
1.2 Ratios
CTO has a better Return On Assets (10.03%) than 96.15% of its industry peers.
CTO's Return On Equity of 27.40% is amongst the best of the industry. CTO outperforms 92.31% of its industry peers.
Looking at the Return On Invested Capital, with a value of 19.55%, CTO belongs to the top of the industry, outperforming 96.15% of the companies in the same industry.
CTO had an Average Return On Invested Capital over the past 3 years of 19.04%. This is significantly above the industry average of 9.72%.
The last Return On Invested Capital (19.55%) for CTO is above the 3 year average (19.04%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.03% | ||
| ROE | 27.4% | ||
| ROIC | 19.55% |
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 has a better Profit Margin (2.96%) than 76.92% of its industry peers.
In the last couple of years the Profit Margin of CTO has grown nicely.
CTO's Operating Margin of 3.80% is fine compared to the rest of the industry. CTO outperforms 65.38% of its industry peers.
CTO's Operating Margin has been stable in the last couple of years.
The Gross Margin of CTO (12.88%) is worse than 76.92% of its industry peers.
CTO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.8% | ||
| PM (TTM) | 2.96% | ||
| GM | 12.88% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 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
Compared to 1 year ago, CTO has an improved debt to assets ratio.
2.2 Solvency
CTO has an Altman-Z score of 8.57. This indicates that CTO is financially healthy and has little risk of bankruptcy at the moment.
CTO's Altman-Z score of 8.57 is amongst the best of the industry. CTO outperforms 96.15% of its industry peers.
The Debt to FCF ratio of CTO is 0.63, which is an excellent value as it means it would take CTO, only 0.63 years of fcf income to pay off all of its debts.
CTO has a Debt to FCF ratio of 0.63. This is amongst the best in the industry. CTO outperforms 100.00% of its industry peers.
CTO has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
With an excellent Debt to Equity ratio value of 0.19, CTO belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 0.63 | ||
| Altman-Z | 8.57 |
ROIC/WACC2.27
WACC8.62%
2.3 Liquidity
CTO has a Current Ratio of 1.04. This is a normal value and indicates that CTO is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of CTO (1.04) is better than 73.08% of its industry peers.
CTO has a Quick Ratio of 1.04. 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 better Quick ratio (0.53) than 61.54% of 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 | 1.04 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
CTO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.63%, 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 15.76% yearly.
CTO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.34%.
Measured over the past years, CTO shows a quite strong growth in Revenue. The Revenue has been growing by 10.54% on average per year.
EPS 1Y (TTM)9.63%
EPS 3Y11.13%
EPS 5Y15.76%
EPS Q2Q%11.39%
Revenue 1Y (TTM)8.34%
Revenue growth 3Y6.64%
Revenue growth 5Y10.54%
Sales Q2Q%8.3%
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 8.87% on average per year.
Based on estimates for the next years, CTO will show a small growth in Revenue. The Revenue will grow by 6.26% on average per year.
EPS Next Y12.45%
EPS Next 2Y11.33%
EPS Next 3Y11.24%
EPS Next 5Y8.87%
Revenue Next Year7.92%
Revenue Next 2Y7.74%
Revenue Next 3Y7.42%
Revenue Next 5Y6.26%
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
CTO is valuated quite expensively with a Price/Earnings ratio of 45.74.
CTO's Price/Earnings ratio is a bit more expensive when compared to the industry. CTO is more expensive than 73.08% of the companies in the same industry.
When comparing the Price/Earnings ratio of CTO to the average of the S&P500 Index (26.59), we can say CTO is valued expensively.
With a Price/Forward Earnings ratio of 37.84, CTO can be considered very expensive at the moment.
CTO's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. CTO is more expensive than 73.08% of the companies in the same industry.
CTO's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 24.03.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.74 | ||
| Fwd PE | 37.84 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CTO is valued a bit more expensive than 73.08% of the companies in the same industry.
CTO's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. CTO is more expensive than 69.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.04 | ||
| EV/EBITDA | 27.89 |
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)3.67
PEG (5Y)2.9
EPS Next 2Y11.33%
EPS Next 3Y11.24%
5. Dividend
5.1 Amount
With a yearly dividend of 0.61%, CTO is not a good candidate for dividend investing.
CTO's Dividend Yield is slightly below the industry average, which is at 2.79.
With a Dividend Yield of 0.61, CTO pays less dividend than the S&P500 average, which is at 1.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
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 27.04% of its income as dividend. This is a sustainable payout ratio.
The dividend of CTO is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP27.04%
EPS Next 2Y11.33%
EPS Next 3Y11.24%
FRA:CTO (12/23/2025, 7:00:00 PM)
724.6
+1 (+0.14%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners71.7%
Inst Owner ChangeN/A
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap321.13B
Revenue(TTM)280.39B
Net Income(TTM)8.30B
Analysts77.73
Price Target913.66 (26.09%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
Yearly Dividend4.21
Dividend Growth(5Y)7.97%
DP27.04%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.23%
Min EPS beat(2)-0.82%
Max EPS beat(2)3.28%
EPS beat(4)1
Avg EPS beat(4)-0.64%
Min EPS beat(4)-4.04%
Max EPS beat(4)3.28%
EPS beat(8)5
Avg EPS beat(8)1.31%
EPS beat(12)7
Avg EPS beat(12)0.06%
EPS beat(16)9
Avg EPS beat(16)0.25%
Revenue beat(2)0
Avg Revenue beat(2)-1.78%
Min Revenue beat(2)-1.85%
Max Revenue beat(2)-1.71%
Revenue beat(4)0
Avg Revenue beat(4)-1.64%
Min Revenue beat(4)-1.94%
Max Revenue beat(4)-1.05%
Revenue beat(8)0
Avg Revenue beat(8)-1.92%
Revenue beat(12)0
Avg Revenue beat(12)-1.99%
Revenue beat(16)0
Avg Revenue beat(16)-1.84%
PT rev (1m)-2.95%
PT rev (3m)-1.66%
EPS NQ rev (1m)0.1%
EPS NQ rev (3m)0.36%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)-0.01%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)0.1%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.74 | ||
| Fwd PE | 37.84 | ||
| P/S | 1.35 | ||
| P/FCF | 42.04 | ||
| P/OCF | 25.64 | ||
| P/B | 12.49 | ||
| P/tB | 12.49 | ||
| EV/EBITDA | 27.89 |
EPS(TTM)15.84
EY2.19%
EPS(NY)19.15
Fwd EY2.64%
FCF(TTM)17.23
FCFY2.38%
OCF(TTM)28.26
OCFY3.9%
SpS536.76
BVpS58.01
TBVpS58.01
PEG (NY)3.67
PEG (5Y)2.9
Graham Number143.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.03% | ||
| ROE | 27.4% | ||
| ROCE | 25.99% | ||
| ROIC | 19.55% | ||
| ROICexc | 33.67% | ||
| ROICexgc | 33.67% | ||
| OM | 3.8% | ||
| PM (TTM) | 2.96% | ||
| GM | 12.88% | ||
| FCFM | 3.21% |
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 Turnover3.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 0.63 | ||
| Debt/EBITDA | 0.43 | ||
| Cap/Depr | 232.73% | ||
| Cap/Sales | 2.05% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 112.48% | ||
| Profit Quality | 108.44% | ||
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.53 | ||
| Altman-Z | 8.57 |
F-Score7
WACC8.62%
ROIC/WACC2.27
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)9.63%
EPS 3Y11.13%
EPS 5Y15.76%
EPS Q2Q%11.39%
EPS Next Y12.45%
EPS Next 2Y11.33%
EPS Next 3Y11.24%
EPS Next 5Y8.87%
Revenue 1Y (TTM)8.34%
Revenue growth 3Y6.64%
Revenue growth 5Y10.54%
Sales Q2Q%8.3%
Revenue Next Year7.92%
Revenue Next 2Y7.74%
Revenue Next 3Y7.42%
Revenue Next 5Y6.26%
EBIT growth 1Y12.14%
EBIT growth 3Y9.49%
EBIT growth 5Y11.2%
EBIT Next Year35.49%
EBIT Next 3Y18.83%
EBIT Next 5Y14.04%
FCF growth 1Y2.27%
FCF growth 3Y30.81%
FCF growth 5Y5.31%
OCF growth 1Y12.62%
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 27.04%.