COSTCO WHOLESALE CORP (1COST.MI) Stock Fundamental Analysis
BIT:1COST - Euronext Milan - US22160K1051 - Common Stock - Currency: EUR
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. While showing a medium growth rate, 1COST is valued expensive at the moment. 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.
Each year in the past 5 years 1COST had a positive operating cash flow.
1.2 Ratios
1COST has a Return On Assets of 10.39%. This is amongst the best in the industry. 1COST outperforms 96.15% of its industry peers.
1COST has a Return On Equity of 28.91%. This is amongst the best in the industry. 1COST outperforms 92.31% of its industry peers.
The Return On Invested Capital of 1COST (19.92%) is better than 96.15% of its industry peers.
1COST had an Average Return On Invested Capital over the past 3 years of 18.60%. This is significantly above the industry average of 9.88%.
The last Return On Invested Capital (19.92%) for 1COST is above the 3 year average (18.60%), which is a sign of increasing profitability.
| 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
1COST has a better Profit Margin (2.92%) than 84.62% of its industry peers.
1COST's Profit Margin has improved in the last couple of years.
1COST has a Operating Margin of 3.75%. This is in the better half of the industry: 1COST outperforms 65.38% of its industry peers.
In the last couple of years the Operating Margin of 1COST has grown nicely.
1COST has a Gross Margin of 12.78%. This is amonst the worse of the industry: 1COST underperforms 80.77% 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 | 3.75% | ||
| 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) just above the Cost of Capital (WACC), 1COST is creating some 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
1COST has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 10.11 indicates that 1COST is not in any danger for bankruptcy at the moment.
1COST has a better Altman-Z score (10.11) than 96.15% of its industry peers.
The Debt to FCF ratio of 1COST is 0.78, which is an excellent value as it means it would take 1COST, only 0.78 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.78, 1COST belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
1COST has a Debt/Equity ratio of 0.21. This is a healthy value indicating a solid balance between debt and equity.
1COST has a better Debt to Equity ratio (0.21) than 96.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 0.78 | ||
| Altman-Z | 10.11 |
ROIC/WACC1.26
WACC15.77%
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.
The Current ratio of 1COST (1.02) is better than 69.23% of its industry peers.
1COST has a Quick Ratio of 1.02. 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 has a Quick ratio of 0.52. This is comparable to the rest of the industry: 1COST outperforms 46.15% 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.
1COST shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.11% yearly.
The Revenue has been growing slightly by 5.94% in the past year.
The Revenue has been growing by 10.75% on average over the past years. This is quite good.
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 10.68% yearly.
1COST is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.74% yearly.
EPS Next Y11.42%
EPS Next 2Y10.85%
EPS Next 3Y10.69%
EPS Next 5Y10.68%
Revenue Next Year7.68%
Revenue Next 2Y7.46%
Revenue Next 3Y7.15%
Revenue Next 5Y6.74%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
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
Based on the Price/Earnings ratio of 58.83, the valuation of 1COST can be described as expensive.
Based on the Price/Earnings ratio, 1COST is valued a bit more expensive than the industry average as 73.08% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of 1COST to the average of the S&P500 Index (27.29), we can say 1COST is valued expensively.
With a Price/Forward Earnings ratio of 50.95, 1COST can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, 1COST is valued more expensive than 80.77% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.74, 1COST is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58.83 | ||
| Fwd PE | 50.95 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1COST indicates a slightly more expensive valuation: 1COST is more expensive than 73.08% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, 1COST is valued a bit more expensive than the industry average as 76.92% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 62.9 | ||
| EV/EBITDA | 36.17 |
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)5.15
PEG (5Y)3.89
EPS Next 2Y10.85%
EPS Next 3Y10.69%
5. Dividend
5.1 Amount
With a yearly dividend of 0.52%, 1COST is not a good candidate for dividend investing.
1COST's Dividend Yield is slightly below the industry average, which is at 3.85.
With a Dividend Yield of 0.52, 1COST pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
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
1COST pays out 19.69% of its income as dividend. This is a 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 2Y10.85%
EPS Next 3Y10.69%
BIT:1COST (5/21/2025, 7:00:00 PM)
914.8
+23.3 (+2.61%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners71.84%
Inst Owner ChangeN/A
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap405.88B
Analysts78.3
Price Target950.33 (3.88%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
Yearly Dividend18
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)-2.58%
Min EPS beat(2)-4.04%
Max EPS beat(2)-1.13%
EPS beat(4)2
Avg EPS beat(4)0.41%
Min EPS beat(4)-4.04%
Max EPS beat(4)4.5%
EPS beat(8)5
Avg EPS beat(8)1.25%
EPS beat(12)6
Avg EPS beat(12)-0.46%
EPS beat(16)10
Avg EPS beat(16)1.19%
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)-5.83%
PT rev (3m)-2.81%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.26%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)-0.82%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.55%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)0.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58.83 | ||
| Fwd PE | 50.95 | ||
| P/S | 1.71 | ||
| P/FCF | 62.9 | ||
| P/OCF | 37.04 | ||
| P/B | 16.97 | ||
| P/tB | 16.97 | ||
| EV/EBITDA | 36.17 |
EPS(TTM)15.55
EY1.7%
EPS(NY)17.96
Fwd EY1.96%
FCF(TTM)14.54
FCFY1.59%
OCF(TTM)24.7
OCFY2.7%
SpS534.25
BVpS53.92
TBVpS53.92
PEG (NY)5.15
PEG (5Y)3.89
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 | 250 | ||
| Cash Conversion | 99.87% | ||
| Profit Quality | 93.29% | ||
| Current Ratio | 1.02 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | 10.11 |
F-Score7
WACC15.77%
ROIC/WACC1.26
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 Y11.42%
EPS Next 2Y10.85%
EPS Next 3Y10.69%
EPS Next 5Y10.68%
Revenue 1Y (TTM)5.94%
Revenue growth 3Y9.1%
Revenue growth 5Y10.75%
Sales Q2Q%8.02%
Revenue Next Year7.68%
Revenue Next 2Y7.46%
Revenue Next 3Y7.15%
Revenue Next 5Y6.74%
EBIT growth 1Y11.75%
EBIT growth 3Y8.31%
EBIT growth 5Y14.41%
EBIT Next Year39.54%
EBIT Next 3Y19.39%
EBIT Next 5Y15.88%
FCF growth 1Y25.66%
FCF growth 3Y7.27%
FCF growth 5Y14.57%
OCF growth 1Y26.17%
OCF growth 3Y8.17%
OCF growth 5Y12.27%