COSTCO WHOLESALE CORP (1COST.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1COST - US22160K1051 - Common Stock
732.9 EUR
-90.5 (-10.99%)
We assign a fundamental rating of 6 out of 10 to 1COST. 1COST was compared to 26 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 could make 1COST a good candidate 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.
In the past 5 years 1COST always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 10.39%, 1COST belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
1COST has a better Return On Equity (28.91%) than 96.15% of its industry peers.
With an excellent Return On Invested Capital value of 19.92%, 1COST belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for 1COST is significantly above the industry average of 9.72%.
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
With a decent Profit Margin value of 2.92%, 1COST is doing good in the industry, outperforming 73.08% of the companies in the same industry.
1COST's Profit Margin has improved in the last couple of years.
The Operating Margin of 1COST (3.75%) is better than 61.54% of its industry peers.
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 80.77% 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.
Compared to 1 year ago, 1COST has about the same amount of shares outstanding.
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
An Altman-Z score of 9.15 indicates that 1COST is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 9.15, 1COST belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
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 96.15% of its industry peers.
A Debt/Equity ratio of 0.21 indicates that 1COST is not too dependend on debt financing.
1COST has a Debt to Equity ratio of 0.21. This is amongst the best in the industry. 1COST outperforms 92.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 0.78 | ||
| Altman-Z | 9.15 |
ROIC/WACC2.3
WACC8.65%
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 Current ratio of 1.02. This is in the better half of the industry: 1COST outperforms 69.23% of its industry peers.
A Quick Ratio of 0.52 indicates that 1COST may have some problems paying its short term obligations.
1COST's Quick ratio of 0.52 is in line compared to the rest of the industry. 1COST outperforms 53.85% 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 | 1.02 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.23% over the past year.
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.
1COST shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.75% yearly.
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.
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
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 48.99, the valuation of 1COST can be described as expensive.
Based on the Price/Earnings ratio, 1COST is valued a bit more expensive than 76.92% 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 26.59.
A Price/Forward Earnings ratio of 42.18 indicates a quite expensive valuation of 1COST.
80.77% of the companies in the same industry are cheaper than 1COST, based on the Price/Forward Earnings ratio.
1COST is valuated expensively when we compare the Price/Forward Earnings ratio to 24.03, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.99 | ||
| Fwd PE | 42.18 |
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 76.92% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, 1COST is valued a bit more expensive than 73.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 52.35 | ||
| EV/EBITDA | 29.97 |
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)4.13
PEG (5Y)3.24
EPS Next 2Y11.17%
EPS Next 3Y10.86%
5. Dividend
5.1 Amount
With a yearly dividend of 0.55%, 1COST is not a good candidate for dividend investing.
1COST's Dividend Yield is slightly below the industry average, which is at 2.79.
With a Dividend Yield of 0.55, 1COST pays less dividend than the S&P500 average, which is at 1.87.
| 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.
The dividend of 1COST is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP19.69%
EPS Next 2Y11.17%
EPS Next 3Y10.86%
BIT:1COST (12/18/2025, 7:00:00 PM)
732.9
-90.5 (-10.99%)
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 Cap325.03B
Revenue(TTM)268.78B
Net Income(TTM)7.84B
Analysts78.14
Price Target933.16 (27.32%)
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 | 48.99 | ||
| Fwd PE | 42.18 | ||
| P/S | 1.43 | ||
| P/FCF | 52.35 | ||
| P/OCF | 30.83 | ||
| P/B | 14.12 | ||
| P/tB | 14.12 | ||
| EV/EBITDA | 29.97 |
EPS(TTM)14.96
EY2.04%
EPS(NY)17.38
Fwd EY2.37%
FCF(TTM)14
FCFY1.91%
OCF(TTM)23.77
OCFY3.24%
SpS514.22
BVpS51.9
TBVpS51.9
PEG (NY)4.13
PEG (5Y)3.24
Graham Number132.17
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 | 9.15 |
F-Score7
WACC8.65%
ROIC/WACC2.3
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 48.99 and the Price/Book (PB) ratio is 14.12.
Can you provide the financial health for 1COST stock?
The financial health rating of COSTCO WHOLESALE CORP (1COST.MI) is 8 / 10.