COSTCO WHOLESALE CORP (1COST.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1COST - US22160K1051 - Common Stock
730.3 EUR
-2.6 (-0.35%)
Taking everything into account, 1COST scores 6 out of 10 in our fundamental rating. 1COST was compared to 25 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 quite expensive at the moment. 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.
In the past year 1COST had a positive cash flow from operations.
Each year in the past 5 years 1COST has been profitable.
1COST had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1COST has a better Return On Assets (10.03%) than 100.00% of its industry peers.
1COST has a better Return On Equity (27.40%) than 100.00% of its industry peers.
1COST has a Return On Invested Capital of 19.55%. This is amongst the best in the industry. 1COST outperforms 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1COST is significantly above the industry average of 9.20%.
The last Return On Invested Capital (19.55%) for 1COST is above the 3 year average (19.04%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.03% | ||
| ROE | 27.4% | ||
| ROIC | 19.55% |
ROA(3y)10.06%
ROA(5y)9.55%
ROE(3y)28.02%
ROE(5y)28.18%
ROIC(3y)19.04%
ROIC(5y)18.81%
1.3 Margins
With an excellent Profit Margin value of 2.96%, 1COST belongs to the best of the industry, outperforming 80.77% of the companies in the same industry.
In the last couple of years the Profit Margin of 1COST has grown nicely.
1COST has a better Operating Margin (3.80%) than 65.38% of its industry peers.
In the last couple of years the Operating Margin of 1COST has remained more or less at the same level.
1COST has a worse Gross Margin (12.88%) than 76.92% 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 | 3.8% | ||
| PM (TTM) | 2.96% | ||
| GM | 12.88% |
OM growth 3Y2.67%
OM growth 5Y0.6%
PM growth 3Y4.55%
PM growth 5Y4.16%
GM growth 3Y1.87%
GM growth 5Y-0.47%
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
1COST has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 8.55 indicates that 1COST is not in any danger for bankruptcy at the moment.
1COST has a Altman-Z score of 8.55. This is amongst the best in the industry. 1COST outperforms 96.15% of its industry peers.
The Debt to FCF ratio of 1COST is 0.64, which is an excellent value as it means it would take 1COST, only 0.64 years of fcf income to pay off all of its debts.
1COST has a Debt to FCF ratio of 0.64. This is amongst the best in the industry. 1COST outperforms 100.00% of its industry peers.
A Debt/Equity ratio of 0.19 indicates that 1COST is not too dependend on debt financing.
1COST has a better Debt to Equity ratio (0.19) than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 0.64 | ||
| Altman-Z | 8.55 |
ROIC/WACC2.26
WACC8.65%
2.3 Liquidity
A Current Ratio of 1.04 indicates that 1COST should not have too much problems paying its short term obligations.
1COST's Current ratio of 1.04 is fine compared to the rest of the industry. 1COST outperforms 73.08% of its industry peers.
1COST has a Quick Ratio of 1.04. 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's Quick ratio of 0.53 is fine compared to the rest of the industry. 1COST outperforms 65.38% 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 | 1.04 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.63% over the past year.
Measured over the past years, 1COST shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.76% on average per year.
1COST shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.34%.
1COST shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.54% yearly.
EPS 1Y (TTM)9.63%
EPS 3Y11.13%
EPS 5Y15.76%
EPS Q2Q%11.39%
Revenue 1Y (TTM)8.34%
Revenue growth 3Y6.64%
Revenue growth 5Y10.54%
Sales Q2Q%8.3%
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 9.37% yearly.
1COST is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.09% yearly.
EPS Next Y14.1%
EPS Next 2Y11.83%
EPS Next 3Y11.43%
EPS Next 5Y9.37%
Revenue Next Year8.07%
Revenue Next 2Y7.79%
Revenue Next 3Y7.59%
Revenue Next 5Y7.09%
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
Based on the Price/Earnings ratio of 45.53, the valuation of 1COST can be described as expensive.
73.08% of the companies in the same industry are cheaper than 1COST, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of 1COST to the average of the S&P500 Index (27.19), we can say 1COST is valued expensively.
A Price/Forward Earnings ratio of 37.34 indicates a quite expensive valuation of 1COST.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1COST indicates a slightly more expensive valuation: 1COST is more expensive than 69.23% of the companies listed in the same industry.
1COST's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 23.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.53 | ||
| Fwd PE | 37.34 |
4.2 Price Multiples
1COST's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. 1COST is more expensive than 73.08% of the companies in the same industry.
1COST's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. 1COST is more expensive than 65.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.85 | ||
| EV/EBITDA | 27.76 |
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)3.23
PEG (5Y)2.89
EPS Next 2Y11.83%
EPS Next 3Y11.43%
5. Dividend
5.1 Amount
With a yearly dividend of 0.57%, 1COST is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.84, 1COST is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 1.92, 1COST's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
5.2 History
The dividend of 1COST is nicely growing with an annual growth rate of 7.97%!
Dividend Growth(5Y)7.97%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
27.04% of the earnings are spent on dividend by 1COST. This is a low number and sustainable payout ratio.
1COST's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP27.04%
EPS Next 2Y11.83%
EPS Next 3Y11.43%
BIT:1COST (1/2/2026, 7:00:00 PM)
730.3
-2.6 (-0.35%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners71.58%
Inst Owner ChangeN/A
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap323.65B
Revenue(TTM)280.39B
Net Income(TTM)8.30B
Analysts78.6
Price Target899.58 (23.18%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
Yearly Dividend4.23
Dividend Growth(5Y)7.97%
DP27.04%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.23%
Min EPS beat(2)-0.82%
Max EPS beat(2)3.28%
EPS beat(4)1
Avg EPS beat(4)-0.64%
Min EPS beat(4)-4.04%
Max EPS beat(4)3.28%
EPS beat(8)5
Avg EPS beat(8)1.31%
EPS beat(12)7
Avg EPS beat(12)0.06%
EPS beat(16)9
Avg EPS beat(16)0.25%
Revenue beat(2)0
Avg Revenue beat(2)-1.78%
Min Revenue beat(2)-1.85%
Max Revenue beat(2)-1.71%
Revenue beat(4)0
Avg Revenue beat(4)-1.64%
Min Revenue beat(4)-1.94%
Max Revenue beat(4)-1.05%
Revenue beat(8)0
Avg Revenue beat(8)-1.92%
Revenue beat(12)0
Avg Revenue beat(12)-1.99%
Revenue beat(16)0
Avg Revenue beat(16)-1.84%
PT rev (1m)-3.6%
PT rev (3m)-3.6%
EPS NQ rev (1m)0.32%
EPS NQ rev (3m)0.32%
EPS NY rev (1m)1.45%
EPS NY rev (3m)1.45%
Revenue NQ rev (1m)0.22%
Revenue NQ rev (3m)0.22%
Revenue NY rev (1m)0.6%
Revenue NY rev (3m)0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.53 | ||
| Fwd PE | 37.34 | ||
| P/S | 1.34 | ||
| P/FCF | 41.85 | ||
| P/OCF | 25.52 | ||
| P/B | 12.43 | ||
| P/tB | 12.43 | ||
| EV/EBITDA | 27.76 |
EPS(TTM)16.04
EY2.2%
EPS(NY)19.56
Fwd EY2.68%
FCF(TTM)17.45
FCFY2.39%
OCF(TTM)28.61
OCFY3.92%
SpS543.45
BVpS58.73
TBVpS58.73
PEG (NY)3.23
PEG (5Y)2.89
Graham Number145.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.03% | ||
| ROE | 27.4% | ||
| ROCE | 25.99% | ||
| ROIC | 19.55% | ||
| ROICexc | 33.67% | ||
| ROICexgc | 33.67% | ||
| OM | 3.8% | ||
| PM (TTM) | 2.96% | ||
| GM | 12.88% | ||
| FCFM | 3.21% |
ROA(3y)10.06%
ROA(5y)9.55%
ROE(3y)28.02%
ROE(5y)28.18%
ROIC(3y)19.04%
ROIC(5y)18.81%
ROICexc(3y)30.66%
ROICexc(5y)30.26%
ROICexgc(3y)32.07%
ROICexgc(5y)31.88%
ROCE(3y)25.3%
ROCE(5y)25%
ROICexgc growth 3Y3.66%
ROICexgc growth 5Y2.96%
ROICexc growth 3Y3.91%
ROICexc growth 5Y3.68%
OM growth 3Y2.67%
OM growth 5Y0.6%
PM growth 3Y4.55%
PM growth 5Y4.16%
GM growth 3Y1.87%
GM growth 5Y-0.47%
F-Score7
Asset Turnover3.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 0.64 | ||
| Debt/EBITDA | 0.43 | ||
| Cap/Depr | 232.73% | ||
| Cap/Sales | 2.05% | ||
| Interest Coverage | 101.43 | ||
| Cash Conversion | 112.48% | ||
| Profit Quality | 108.44% | ||
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.53 | ||
| Altman-Z | 8.55 |
F-Score7
WACC8.65%
ROIC/WACC2.26
Cap/Depr(3y)215.11%
Cap/Depr(5y)210.31%
Cap/Sales(3y)1.88%
Cap/Sales(5y)1.84%
Profit Quality(3y)97.98%
Profit Quality(5y)92.22%
High Growth Momentum
Growth
EPS 1Y (TTM)9.63%
EPS 3Y11.13%
EPS 5Y15.76%
EPS Q2Q%11.39%
EPS Next Y14.1%
EPS Next 2Y11.83%
EPS Next 3Y11.43%
EPS Next 5Y9.37%
Revenue 1Y (TTM)8.34%
Revenue growth 3Y6.64%
Revenue growth 5Y10.54%
Sales Q2Q%8.3%
Revenue Next Year8.07%
Revenue Next 2Y7.79%
Revenue Next 3Y7.59%
Revenue Next 5Y7.09%
EBIT growth 1Y12.14%
EBIT growth 3Y9.49%
EBIT growth 5Y11.2%
EBIT Next Year38.32%
EBIT Next 3Y18.66%
EBIT Next 5Y13.78%
FCF growth 1Y2.27%
FCF growth 3Y30.81%
FCF growth 5Y5.31%
OCF growth 1Y12.62%
OCF growth 3Y21.73%
OCF growth 5Y8.52%
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.
What is the valuation status of COSTCO WHOLESALE CORP (1COST.MI) stock?
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 expected EPS growth for COSTCO WHOLESALE CORP (1COST.MI) stock?
The Earnings per Share (EPS) of COSTCO WHOLESALE CORP (1COST.MI) is expected to grow by 14.1% in the next year.
Is the dividend of COSTCO WHOLESALE CORP sustainable?
The dividend rating of COSTCO WHOLESALE CORP (1COST.MI) is 3 / 10 and the dividend payout ratio is 27.04%.