COSTCO WHOLESALE CORP (1COST.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1COST - US22160K1051 - Common Stock
823.4 EUR
-18.9 (-2.24%)
1COST gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 25 industry peers in the Consumer Staples Distribution & Retail industry. 1COST scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 1COST is quite expensive at the moment. It does show a decent growth rate. This makes 1COST very considerable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year 1COST was profitable.
1COST had a positive operating cash flow in the past year.
Each year in the past 5 years 1COST has been profitable.
In the past 5 years 1COST always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 10.39%, 1COST belongs to the best of the industry, outperforming 96.30% of the companies in the same industry.
Looking at the Return On Equity, with a value of 28.91%, 1COST belongs to the top of the industry, outperforming 92.59% of the companies in the same industry.
With an excellent Return On Invested Capital value of 19.92%, 1COST belongs to the best of the industry, outperforming 96.30% of the companies in the same industry.
1COST had an Average Return On Invested Capital over the past 3 years of 18.60%. This is significantly above the industry average of 9.34%.
The 3 year average ROIC (18.60%) for 1COST 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
Looking at the Profit Margin, with a value of 2.92%, 1COST is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
In the last couple of years the Profit Margin of 1COST has grown nicely.
1COST's Operating Margin of 3.75% is fine compared to the rest of the industry. 1COST outperforms 66.67% of its industry peers.
1COST's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 12.78%, 1COST is doing worse than 81.48% of the companies in the same industry.
1COST'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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1COST is creating value.
The number of shares outstanding for 1COST remains at a similar level compared to 1 year ago.
1COST has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, 1COST has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 9.68 indicates that 1COST is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 9.68, 1COST belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Debt to FCF ratio of 1COST is 0.78, which is an excellent value as it means it would take 1COST, only 0.78 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.78, 1COST belongs to the top of the industry, outperforming 96.30% of the companies in the same industry.
A Debt/Equity ratio of 0.21 indicates that 1COST is not too dependend on debt financing.
1COST has a better Debt to Equity ratio (0.21) than 92.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 0.78 | ||
| Altman-Z | 9.68 |
ROIC/WACC2.29
WACC8.71%
2.3 Liquidity
1COST has a Current Ratio of 1.02. This is a normal value and indicates that 1COST is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.02, 1COST is in the better half of the industry, outperforming 70.37% of the companies in the same industry.
1COST has a Quick Ratio of 1.02. This is a bad value and indicates that 1COST is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of 1COST (0.52) is comparable to the rest of the industry.
1COST 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
1COST shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.23%, which is quite good.
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, 1COST shows a small growth in Revenue. The Revenue has grown by 5.94% in the last year.
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
1COST is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.40% yearly.
The Revenue is expected to grow by 6.62% on average over the next years.
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
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
Based on the Price/Earnings ratio of 54.46, the valuation of 1COST can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of 1COST indicates a slightly more expensive valuation: 1COST is more expensive than 74.07% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of 1COST to the average of the S&P500 Index (26.31), we can say 1COST is valued expensively.
With a Price/Forward Earnings ratio of 46.87, 1COST can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, 1COST is valued more expensive than 81.48% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.59, 1COST is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.46 | ||
| Fwd PE | 46.87 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1COST indicates a slightly more expensive valuation: 1COST is more expensive than 77.78% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, 1COST is valued a bit more expensive than 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 58.18 | ||
| EV/EBITDA | 33.4 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1COST does not grow enough to justify the current Price/Earnings ratio.
1COST has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.59
PEG (5Y)3.6
EPS Next 2Y11.17%
EPS Next 3Y10.86%
5. Dividend
5.1 Amount
With a yearly dividend of 0.55%, 1COST is not a good candidate for dividend investing.
1COST's Dividend Yield is slightly below the industry average, which is at 3.90.
Compared to an average S&P500 Dividend Yield of 2.40, 1COST's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
5.2 History
On average, the dividend of 1COST grows each year by 53.89%, which is quite nice.
Dividend Growth(5Y)53.89%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1COST pays out 19.69% of its income as dividend. This is a sustainable payout ratio.
1COST's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP19.69%
EPS Next 2Y11.17%
EPS Next 3Y10.86%
BIT:1COST (8/22/2025, 7:00:00 PM)
823.4
-18.9 (-2.24%)
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 Cap365.16B
Revenue(TTM)268.78B
Net Income(TTM)7.84B
Analysts78.14
Price Target933.16 (13.33%)
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)-1.81%
PT rev (3m)-1.81%
EPS NQ rev (1m)-0.08%
EPS NQ rev (3m)-0.44%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)0.4%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)0.7%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.46 | ||
| Fwd PE | 46.87 | ||
| P/S | 1.58 | ||
| P/FCF | 58.18 | ||
| P/OCF | 34.26 | ||
| P/B | 15.69 | ||
| P/tB | 15.69 | ||
| EV/EBITDA | 33.4 |
EPS(TTM)15.12
EY1.84%
EPS(NY)17.57
Fwd EY2.13%
FCF(TTM)14.15
FCFY1.72%
OCF(TTM)24.03
OCFY2.92%
SpS519.87
BVpS52.47
TBVpS52.47
PEG (NY)4.59
PEG (5Y)3.6
Graham NumberN/A
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%
ROICexgc growth 3Y-2.2%
ROICexgc 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 | 9.68 |
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%
COSTCO WHOLESALE CORP / 1COST.MI FAQ
What is the fundamental rating for 1COST stock?
ChartMill assigns a fundamental rating of 6 / 10 to 1COST.MI.
Can you provide the valuation status for COSTCO WHOLESALE CORP?
ChartMill assigns a valuation rating of 1 / 10 to COSTCO WHOLESALE CORP (1COST.MI). This can be considered as Overvalued.
Can you provide the profitability details for COSTCO WHOLESALE CORP?
COSTCO WHOLESALE CORP (1COST.MI) has a profitability rating of 8 / 10.
What is the valuation of COSTCO WHOLESALE CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for COSTCO WHOLESALE CORP (1COST.MI) is 54.46 and the Price/Book (PB) ratio is 15.69.
Can you provide the financial health for 1COST stock?
The financial health rating of COSTCO WHOLESALE CORP (1COST.MI) is 8 / 10.