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 scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 1COST is valied quite expensively at the moment, while it does show a decent growth rate. These ratings would make 1COST suitable 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
Looking at the Return On Assets, with a value of 10.39%, 1COST belongs to the top of the industry, outperforming 96.15% of the companies in the same industry.
1COST has a better Return On Equity (28.91%) than 92.31% of its industry peers.
With an excellent Return On Invested Capital value of 19.92%, 1COST belongs to the best of the industry, outperforming 96.15% 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 9.19%.
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
Looking at the Profit Margin, with a value of 2.92%, 1COST belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
1COST's Profit Margin has improved in the last couple of years.
1COST has a better Operating Margin (3.75%) than 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.
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
1COST has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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
The debt/assets ratio for 1COST has been reduced compared to a year ago.
2.2 Solvency
1COST has an Altman-Z score of 10.11. This indicates that 1COST is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 10.11, 1COST belongs to the top of the industry, outperforming 96.15% 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.
Looking at the Debt to FCF ratio, with a value of 0.78, 1COST belongs to the top 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 Debt to Equity ratio of 0.21. This is amongst the best in the industry. 1COST outperforms 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.
Looking at the Current ratio, with a value of 1.02, 1COST is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
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 (0.52) which is comparable to the rest of the 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 | 1.02 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
1COST shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.23%, 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 15.11% on average per year.
Looking at the last year, 1COST shows a small growth in Revenue. The Revenue has grown by 5.94% in the last 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
The Earnings Per Share is expected to grow by 10.68% 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 6.74% on average per year.
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.
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
1COST is valuated quite expensively with a Price/Earnings ratio of 58.83.
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 27.50.
1COST is valuated quite expensively with a Price/Forward Earnings ratio of 50.95.
80.77% of the companies in the same industry are cheaper than 1COST, based on the Price/Forward Earnings ratio.
1COST is valuated rather expensively when we compare the Price/Forward Earnings ratio to 36.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58.83 | ||
| Fwd PE | 50.95 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1COST indicates a slightly more expensive valuation: 1COST is more expensive than 76.92% of the companies listed in the same industry.
| 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.
1COST has an outstanding profitability rating, which 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
1COST has a yearly dividend return of 0.52%, which is pretty low.
1COST's Dividend Yield is slightly below the industry average, which is at 3.86.
With a Dividend Yield of 0.52, 1COST pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
5.2 History
The dividend of 1COST is nicely growing with an annual growth rate of 53.89%!
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.
1COST's earnings are growing slower than its dividend. 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%