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. Both the health and profitability get an excellent rating, making 1COST a very profitable company, without any liquidiy or solvency issues. 1COST is valied quite expensively at the moment, while it does show a decent growth rate. 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.
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
The Return On Assets of 1COST (10.03%) is better than 100.00% of its industry peers.
The Return On Equity of 1COST (27.40%) is better than 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 19.55%, 1COST belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital 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
Looking at the Profit Margin, with a value of 2.96%, 1COST belongs to the top of the industry, outperforming 80.77% of the companies in the same industry.
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.
1COST's Operating Margin has been stable in the last couple of years.
The Gross Margin of 1COST (12.88%) is worse 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
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 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's Debt to FCF ratio of 0.64 is amongst the best of 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.
With an excellent Debt to Equity ratio value of 0.19, 1COST belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
| 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.
A Quick Ratio of 0.53 indicates that 1COST may have some problems paying its short term obligations.
1COST has a better Quick ratio (0.53) than 65.38% of its industry peers.
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
1COST shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.63%, 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 15.76% 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
The Earnings Per Share is expected to grow by 9.37% 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 7.09% on average per year.
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.
1COST's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.30.
A Price/Forward Earnings ratio of 37.34 indicates a quite expensive valuation of 1COST.
Based on the Price/Forward Earnings ratio, 1COST is valued a bit more expensive than 69.23% of the companies in the same industry.
1COST is valuated expensively when we compare the Price/Forward Earnings ratio to 24.04, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.53 | ||
| Fwd PE | 37.34 |
4.2 Price Multiples
73.08% of the companies in the same industry are cheaper than 1COST, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, 1COST is valued a bit more expensive than the industry average as 65.38% of the companies are valued more cheaply.
| 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.
1COST has an outstanding profitability rating, which 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 2.84.
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
1COST pays out 27.04% of its income as dividend. This is a 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%.