COSTCO WHOLESALE CORP (1COST.MI) Stock Fundamental Analysis
Europe • Euronext Milan • BIT:1COST • US22160K1051
730.3 EUR
-2.6 (-0.35%)
Last: Jan 2, 2026, 07:00 PM
Overall 1COST gets a fundamental rating of 6 out of 10. We evaluated 1COST 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. 1COST is quite expensive at the moment. It does show a decent growth rate. With these ratings, 1COST could be worth investigating further 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 10.03%, 1COST belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- 1COST has a better Return On Equity (27.40%) than 100.00% of its industry peers.
- 1COST has a better Return On Invested Capital (19.55%) than 100.00% of its industry peers.
- 1COST had an Average Return On Invested Capital over the past 3 years of 19.04%. This is significantly above the industry average of 9.20%.
- The 3 year average ROIC (19.04%) for 1COST is below the current ROIC(19.55%), indicating increased profibility in the last year.
| 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
- 1COST has a better Profit Margin (2.96%) than 80.77% of its industry peers.
- 1COST's Profit Margin has improved in the last couple of years.
- The Operating Margin of 1COST (3.80%) is better 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's Gross Margin of 12.88% is on the low side compared to the rest of the industry. 1COST is outperformed by 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1COST is creating value.
- The number of shares outstanding for 1COST remains at a similar level compared to 1 year ago.
- 1COST has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, 1COST has an improved debt to assets ratio.
2.2 Solvency
- 1COST has an Altman-Z score of 8.55. This indicates that 1COST is financially healthy and has little risk of bankruptcy at the moment.
- 1COST's Altman-Z score of 8.55 is amongst the best of 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 better Debt to FCF ratio (0.64) than 100.00% of its industry peers.
- 1COST has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
- 1COST has a Debt to Equity ratio of 0.19. This is amongst the best in the industry. 1COST outperforms 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
- 1COST has a Current Ratio of 1.04. This is a normal value and indicates that 1COST is financially healthy and should not expect problems in meeting 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.
- With a decent Quick ratio value of 0.53, 1COST is doing good in the industry, outperforming 65.38% 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 | 1.04 | ||
| 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%.
- Measured over the past years, 1COST shows a quite strong growth in Revenue. The Revenue has been growing by 10.54% on average per year.
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
- Based on estimates for the next years, 1COST will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.37% on average per year.
- The Revenue is expected to grow by 7.09% on average over the next years.
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
- 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
- A Price/Earnings ratio of 45.53 indicates a quite expensive valuation of 1COST.
- 1COST's Price/Earnings 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.
- When comparing the Price/Earnings ratio of 1COST to the average of the S&P500 Index (28.39), we can say 1COST is valued expensively.
- 1COST is valuated quite expensively with a Price/Forward Earnings ratio of 37.34.
- 69.23% of the companies in the same industry are cheaper than 1COST, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of 1COST to the average of the S&P500 Index (25.72), we can say 1COST is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.53 | ||
| Fwd PE | 37.34 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, 1COST is valued a bit more expensive than the industry average as 73.08% of the companies are valued more cheaply.
- 65.38% of the companies in the same industry are cheaper than 1COST, based on the Price/Free Cash Flow ratio.
| 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 an expensive valuation of the company.
- 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.
- 1COST's Dividend Yield is slightly below the industry average, which is at 2.82.
- With a Dividend Yield of 0.57, 1COST pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
5.2 History
- On average, the dividend of 1COST grows each year by 7.97%, which is quite nice.
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%
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%.