COSTCO WHOLESALE CORP (1COST.MI) Stock Fundamental Analysis
BIT:1COST - Borsa Italiana Milan - US22160K1051 - Common Stock - Currency: EUR
Taking everything into account, 1COST scores 6 out of 10 in our fundamental rating. 1COST was compared to 27 industry peers in the Consumer Staples Distribution & Retail industry. Both the health and profitability get an excellent rating, making 1COST a very profitable company, without any liquidiy or solvency issues. 1COST is valied quite expensively at the moment, while it does show a decent growth rate. These ratings would make 1COST suitable 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.
In the past 5 years 1COST has always been profitable.
In the past 5 years 1COST always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.32%, 1COST belongs to the top of the industry, outperforming 96.15% of the companies in the same industry.
Looking at the Return On Equity, with a value of 30.98%, 1COST belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
1COST has a Return On Invested Capital of 20.26%. This is amongst the best in the industry. 1COST outperforms 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1COST is significantly above the industry average of 9.71%.
The 3 year average ROIC (18.60%) for 1COST is below the current ROIC(20.26%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.32% | ||
| ROE | 30.98% | ||
| ROIC | 20.26% |
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
1COST has a better Profit Margin (2.93%) than 84.62% of its industry peers.
1COST's Profit Margin has improved in the last couple of years.
1COST's Operating Margin of 3.67% is fine compared to the rest of the industry. 1COST outperforms 65.38% of its industry peers.
1COST's Operating Margin has improved in the last couple of years.
1COST's Gross Margin of 12.67% is on the low side compared to the rest of the industry. 1COST is outperformed by 80.77% of its industry peers.
1COST's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.67% | ||
| PM (TTM) | 2.93% | ||
| GM | 12.67% |
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
1COST has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
1COST has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, 1COST has more shares outstanding
Compared to 1 year ago, 1COST has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 9.49 indicates that 1COST is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 9.49, 1COST belongs to the best of the industry, outperforming 96.15% of the companies in the same industry.
1COST has a debt to FCF ratio of 1.15. This is a very positive value and a sign of high solvency as it would only need 1.15 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 1.15, 1COST belongs to the best of the industry, outperforming 96.15% of the companies in the same industry.
1COST has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
1COST has a better Debt to Equity ratio (0.23) than 96.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.15 | ||
| Altman-Z | 9.49 |
ROIC/WACC2.24
WACC9.04%
2.3 Liquidity
A Current Ratio of 0.98 indicates that 1COST may have some problems paying its short term obligations.
1COST has a better Current ratio (0.98) than 69.23% of its industry peers.
1COST has a Quick Ratio of 0.98. This is a bad value and indicates that 1COST is not financially healthy enough and could expect problems in meeting its short term obligations.
1COST has a Quick ratio of 0.43. This is comparable to the rest of the industry: 1COST outperforms 42.31% of its industry peers.
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 | 0.98 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.59% over the past year.
1COST shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.11% yearly.
1COST shows a small growth in Revenue. In the last year, the Revenue has grown by 5.35%.
Measured over the past years, 1COST shows a quite strong growth in Revenue. The Revenue has been growing by 10.75% on average per year.
EPS 1Y (TTM)14.59%
EPS 3Y14.32%
EPS 5Y15.11%
EPS Q2Q%6.7%
Revenue 1Y (TTM)5.35%
Revenue growth 3Y9.1%
Revenue growth 5Y10.75%
Sales Q2Q%7.53%
3.2 Future
Based on estimates for the next years, 1COST will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.82% on average per year.
1COST is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.21% yearly.
EPS Next Y11.52%
EPS Next 2Y10.72%
EPS Next 3Y11.05%
EPS Next 5Y12.82%
Revenue Next Year6.77%
Revenue Next 2Y6.89%
Revenue Next 3Y6.71%
Revenue Next 5Y6.21%
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 stable.
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
1COST is valuated quite expensively with a Price/Earnings ratio of 56.78.
Compared to the rest of the industry, the Price/Earnings ratio of 1COST indicates a slightly more expensive valuation: 1COST is more expensive than 65.38% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.47, 1COST is valued quite expensively.
Based on the Price/Forward Earnings ratio of 47.00, the valuation of 1COST can be described as expensive.
Based on the Price/Forward Earnings ratio, 1COST is valued more expensive than 80.77% of the companies in the same industry.
1COST is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 92.74, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.78 | ||
| Fwd PE | 47 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1COST is valued a bit more expensive than 69.23% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1COST indicates a slightly more expensive valuation: 1COST is more expensive than 73.08% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 84.53 | ||
| EV/EBITDA | 35.38 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
1COST has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.93
PEG (5Y)3.76
EPS Next 2Y10.72%
EPS Next 3Y11.05%
5. Dividend
5.1 Amount
With a yearly dividend of 0.49%, 1COST is not a good candidate for dividend investing.
1COST's Dividend Yield is slightly below the industry average, which is at 3.91.
With a Dividend Yield of 0.49, 1COST pays less dividend than the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
5.2 History
The dividend of 1COST 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
114.19% of the earnings are spent on dividend by 1COST. This is not a sustainable payout ratio.
1COST's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP114.19%
EPS Next 2Y10.72%
EPS Next 3Y11.05%
COSTCO WHOLESALE CORP
BIT:1COST (1/29/2025, 7:00:00 PM)
923.8
-19.1 (-2.03%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners71.85%
Inst Owner ChangeN/A
Ins Owners0.17%
Ins Owner ChangeN/A
Market Cap410.11B
Analysts78.67
Price Target1017.36 (10.13%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
Yearly Dividend20.41
Dividend Growth(5Y)53.89%
DP114.19%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.56%
Min EPS beat(2)-1.18%
Max EPS beat(2)2.31%
EPS beat(4)3
Avg EPS beat(4)1.84%
Min EPS beat(4)-1.18%
Max EPS beat(4)6.12%
EPS beat(8)5
Avg EPS beat(8)-0.31%
EPS beat(12)7
Avg EPS beat(12)0.07%
EPS beat(16)10
Avg EPS beat(16)1.23%
Revenue beat(2)0
Avg Revenue beat(2)-2.43%
Min Revenue beat(2)-2.61%
Max Revenue beat(2)-2.25%
Revenue beat(4)0
Avg Revenue beat(4)-2.3%
Min Revenue beat(4)-3.14%
Max Revenue beat(4)-1.21%
Revenue beat(8)0
Avg Revenue beat(8)-2.22%
Revenue beat(12)0
Avg Revenue beat(12)-1.95%
Revenue beat(16)3
Avg Revenue beat(16)-1.35%
PT rev (1m)12.33%
PT rev (3m)25.11%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.35%
EPS NY rev (1m)1.37%
EPS NY rev (3m)1.89%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.37%
Revenue NY rev (1m)-0.28%
Revenue NY rev (3m)-0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.78 | ||
| Fwd PE | 47 | ||
| P/S | 1.64 | ||
| P/FCF | 84.53 | ||
| P/OCF | 42.61 | ||
| P/B | 17.33 | ||
| P/tB | 17.33 | ||
| EV/EBITDA | 35.38 |
EPS(TTM)16.27
EY1.76%
EPS(NY)19.65
Fwd EY2.13%
FCF(TTM)10.93
FCFY1.18%
OCF(TTM)21.68
OCFY2.35%
SpS564.08
BVpS53.29
TBVpS53.29
PEG (NY)4.93
PEG (5Y)3.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.32% | ||
| ROE | 30.98% | ||
| ROCE | 27.06% | ||
| ROIC | 20.26% | ||
| ROICexc | 30.56% | ||
| ROICexgc | 30.56% | ||
| OM | 3.67% | ||
| PM (TTM) | 2.93% | ||
| GM | 12.67% | ||
| FCFM | 1.94% |
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-Score8
Asset Turnover3.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.15 | ||
| Debt/EBITDA | 0.49 | ||
| Cap/Depr | 216.03% | ||
| Cap/Sales | 1.91% | ||
| Interest Coverage | 78.49 | ||
| Cash Conversion | 84.44% | ||
| Profit Quality | 66.18% | ||
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.43 | ||
| Altman-Z | 9.49 |
F-Score8
WACC9.04%
ROIC/WACC2.24
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)14.59%
EPS 3Y14.32%
EPS 5Y15.11%
EPS Q2Q%6.7%
EPS Next Y11.52%
EPS Next 2Y10.72%
EPS Next 3Y11.05%
EPS Next 5Y12.82%
Revenue 1Y (TTM)5.35%
Revenue growth 3Y9.1%
Revenue growth 5Y10.75%
Sales Q2Q%7.53%
Revenue Next Year6.77%
Revenue Next 2Y6.89%
Revenue Next 3Y6.71%
Revenue Next 5Y6.21%
EBIT growth 1Y13.78%
EBIT growth 3Y8.31%
EBIT growth 5Y14.41%
EBIT Next Year39.4%
EBIT Next 3Y19.53%
EBIT Next 5Y18.95%
FCF growth 1Y75.87%
FCF growth 3Y7.27%
FCF growth 5Y14.57%
OCF growth 1Y47.51%
OCF growth 3Y8.17%
OCF growth 5Y12.27%