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 27 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 valied quite expensively at the moment, while 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.
- In the past year 1COST had a positive cash flow from operations.
- 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.
- Looking at the Return On Equity, with a value of 27.40%, 1COST belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 19.55%, 1COST belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- 1COST had an Average Return On Invested Capital over the past 3 years of 19.04%. This is significantly above the industry average of 9.71%.
- 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
- 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.
- Looking at the Operating Margin, with a value of 3.80%, 1COST is in the better half of the industry, outperforming 65.38% of the companies in the same industry.
- 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1COST is creating value.
- The number of shares outstanding for 1COST remains at a similar level compared to 1 year ago.
- The number of shares outstanding for 1COST has been increased compared to 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.
- 1COST has a debt to FCF ratio of 0.64. This is a very positive value and a sign of high solvency as it would only need 0.64 years to pay back of 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.
- 1COST's Debt to Equity ratio of 0.19 is amongst the best of 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
- A Current Ratio of 1.04 indicates that 1COST should not have too much problems paying its short term obligations.
- 1COST has a Current ratio of 1.04. This is in the better half 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.
- 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.
- 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%.
- 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.
- 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
- With a Price/Earnings ratio of 45.53, 1COST can be considered very expensive at the moment.
- 73.08% of the companies in the same industry are cheaper than 1COST, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 27.38. 1COST is valued rather expensively when compared to this.
- With a Price/Forward Earnings ratio of 37.34, 1COST can be considered very expensive at the moment.
- Based on the Price/Forward Earnings ratio, 1COST is valued a bit more expensive than the industry average as 69.23% of the companies are valued more cheaply.
- The average S&P500 Price/Forward Earnings ratio is at 24.29. 1COST is valued rather expensively when compared to this.
| 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.
- 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.
- Compared to an average industry Dividend Yield of 2.88, 1COST is paying slightly less dividend.
- With a Dividend Yield of 0.57, 1COST pays less dividend than the S&P500 average, which is at 1.85.
| 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)12-11 2025-12-11/amc
Earnings (Next)03-04 2026-03-04/amc
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%.