COSTCO WHOLESALE CORP (1COST.MI) Stock Fundamental Analysis
Europe - 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 24 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. While showing a medium growth rate, 1COST is valued expensive at the moment. This makes 1COST very considerable for quality investing!
1. Profitability
1.1 Basic Checks
1COST had positive earnings in the past year.
In the past year 1COST had a positive cash flow from operations.
1COST had positive earnings in each of the past 5 years.
Each year in the past 5 years 1COST had a positive operating cash flow.
1.2 Ratios
The Return On Assets of 1COST (10.39%) is better than 96.30% of its industry peers.
1COST has a better Return On Equity (28.91%) than 92.59% of its industry peers.
1COST has a Return On Invested Capital of 19.92%. This is amongst the best in the industry. 1COST outperforms 96.30% of its industry peers.
1COST had an Average Return On Invested Capital over the past 3 years of 18.60%. This is significantly above the industry average of 9.51%.
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
1COST has a better Profit Margin (2.92%) than 77.78% of its industry peers.
1COST's Profit Margin has improved in the last couple of years.
1COST has a Operating Margin of 3.75%. This is in the better half of the industry: 1COST outperforms 66.67% of its industry peers.
In the last couple of years the Operating Margin of 1COST has grown nicely.
1COST has a worse Gross Margin (12.78%) than 81.48% of its industry peers.
In the last couple of years the Gross Margin of 1COST 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), 1COST is creating value.
Compared to 1 year ago, 1COST has about the same amount of shares outstanding.
1COST has more shares outstanding than it did 5 years ago.
The debt/assets ratio for 1COST has been reduced compared to a year ago.
2.2 Solvency
1COST has an Altman-Z score of 9.68. This indicates that 1COST is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of 1COST (9.68) is better than 100.00% of its industry peers.
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.
1COST has a Debt to FCF ratio of 0.78. This is amongst the best in the industry. 1COST outperforms 96.30% of its industry peers.
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
A Current Ratio of 1.02 indicates that 1COST should not have too much problems paying its short term obligations.
The Current ratio of 1COST (1.02) is better than 70.37% of its industry peers.
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.
The current and quick ratio evaluation for 1COST 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 | 1.02 | ||
| 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.
Measured over the past years, 1COST shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.11% on average per year.
1COST shows a small growth in Revenue. In the last year, the Revenue has grown by 5.94%.
1COST 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, 1COST 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 54.46, 1COST can be considered very expensive at the moment.
Based on the Price/Earnings ratio, 1COST is valued a bit more expensive than the industry average as 74.07% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 25.51. 1COST is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 46.87 indicates a quite expensive valuation of 1COST.
1COST's Price/Forward Earnings ratio is rather expensive when compared to the industry. 1COST is more expensive than 81.48% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of 1COST to the average of the S&P500 Index (34.98), we can say 1COST is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.46 | ||
| Fwd PE | 46.87 |
4.2 Price Multiples
77.78% of the companies in the same industry are cheaper than 1COST, based on the Enterprise Value to EBITDA ratio.
1COST's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. 1COST is 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 an expensive valuation of the company.
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 3.85.
Compared to an average S&P500 Dividend Yield of 2.44, 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.
The dividend of 1COST 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%
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.