COSTCO WHOLESALE CORP (1COST.MI) Stock Fundamental Analysis
Europe - BIT:1COST - US22160K1051 - Common Stock
823.4 EUR
-18.9 (-2.24%)
Taking everything into account, 1COST scores 6 out of 10 in our fundamental rating. 1COST was compared to 24 industry peers in the Consumer Staples Distribution & Retail industry. 1COST gets an excellent profitability rating and is at the same time showing great financial health properties. 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
1COST had positive earnings in the past year.
1COST had a positive operating cash flow in the past year.
In the past 5 years 1COST has always been profitable.
Each year in the past 5 years 1COST had a positive operating cash flow.
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.
The Return On Equity of 1COST (28.91%) is better 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.
Looking at the Operating Margin, with a value of 3.75%, 1COST is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
In the last couple of years the Operating Margin of 1COST has grown nicely.
With a Gross Margin value of 12.78%, 1COST is not doing good in the industry: 81.48% of the companies in the same industry are doing better.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1COST 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
1COST has a better debt/assets ratio than last year.
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.
1COST has a Altman-Z score of 9.68. This is amongst the best in the industry. 1COST outperforms 100.00% of its industry peers.
1COST 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.
With an excellent Debt to FCF ratio value of 0.78, 1COST belongs to the best 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.
The Debt to Equity ratio of 1COST (0.21) is better 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.
1COST has a better Current ratio (1.02) than 70.37% of its industry peers.
A Quick Ratio of 0.52 indicates that 1COST may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.52, 1COST is in line with its industry, outperforming 40.74% of the companies in the same 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.
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 5.94%.
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
Based on estimates for the next years, 1COST will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.40% on average per year.
1COST is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.62% yearly.
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
1COST is valuated quite expensively with a Price/Earnings ratio of 54.46.
74.07% of the companies in the same industry are cheaper than 1COST, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 25.89. 1COST is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 46.87, the valuation of 1COST can be described as expensive.
Based on the Price/Forward Earnings ratio, 1COST is valued expensively inside the industry as 81.48% of the companies are valued cheaper.
When comparing the Price/Forward Earnings ratio of 1COST to the average of the S&P500 Index (34.59), we can say 1COST is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.46 | ||
| Fwd PE | 46.87 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1COST is valued a bit more expensive than the industry average as 77.78% of the companies are valued more cheaply.
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 77.78% of the companies listed 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.
The excellent profitability rating of 1COST 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
1COST has a yearly dividend return of 0.55%, which is pretty low.
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
19.69% of the earnings are spent on dividend by 1COST. This is a low number and 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.