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 22 industry peers in the Consumer Staples Distribution & Retail industry. 1COST has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 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.
1COST had a positive operating cash flow in the past year.
1COST had positive earnings in each of the past 5 years.
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 10.39%, 1COST belongs to the top 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.
Measured over the past 3 years, the Average Return On Invested Capital for 1COST is significantly above the industry average of 9.17%.
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.
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.
1COST's Gross Margin of 12.78% is on the low side compared to the rest of the industry. 1COST is outperformed by 81.48% of its industry peers.
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.
The number of shares outstanding for 1COST remains at a similar level compared to 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 9.68 indicates that 1COST is not in any danger for bankruptcy at the moment.
1COST's Altman-Z score of 9.68 is amongst the best of 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.
The Debt to FCF ratio of 1COST (0.78) is better than 96.30% of its industry peers.
A Debt/Equity ratio of 0.21 indicates that 1COST is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.21, 1COST belongs to the top of the industry, outperforming 92.59% of the companies in the same industry.
| 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.
A Quick Ratio of 0.52 indicates that 1COST may have some problems paying its short term obligations.
1COST has a Quick ratio (0.52) which is in line with 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 | 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.
The Revenue has been growing slightly by 5.94% in the past year.
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)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.
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
A Price/Earnings ratio of 54.46 indicates a quite expensive valuation of 1COST.
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 27.20. 1COST is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 46.87, 1COST can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1COST indicates a rather expensive valuation: 1COST more expensive than 81.48% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.71, 1COST is valued quite 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 77.78% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, 1COST is valued a bit more expensive than the industry average as 77.78% of the companies are valued more cheaply.
| 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.
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.
Compared to an average industry Dividend Yield of 4.06, 1COST is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.38, 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
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
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%
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-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%