924.88 USD
+9.57 (+1.05%)
924.7 USD
-0.18 (-0.02%)
Overall COST gets a fundamental rating of 5 out of 10. We evaluated COST against 38 industry peers in the Consumer Staples Distribution & Retail industry. While COST belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. While showing a medium growth rate, COST is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year COST was profitable.
COST had a positive operating cash flow in the past year.
In the past 5 years COST has always been profitable.
In the past 5 years COST always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of COST (10.03%) is better than 84.21% of its industry peers.
COST has a better Return On Equity (27.40%) than 84.21% of its industry peers.
COST's Return On Invested Capital of 19.55% is amongst the best of the industry. COST outperforms 97.37% of its industry peers.
COST had an Average Return On Invested Capital over the past 3 years of 19.04%. This is significantly below the industry average of 28.32%.
The last Return On Invested Capital (19.55%) for COST 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
COST has a Profit Margin of 2.96%. This is in the better half of the industry: COST outperforms 73.68% of its industry peers.
COST's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 3.80%, COST is in the better half of the industry, outperforming 65.79% of the companies in the same industry.
In the last couple of years the Operating Margin of COST has remained more or less at the same level.
COST has a Gross Margin of 12.88%. This is amonst the worse of the industry: COST underperforms 81.58% of its industry peers.
COST's Gross Margin has been stable in the last couple of years.
| 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), COST is creating value.
Compared to 1 year ago, COST has about the same amount of shares outstanding.
Compared to 5 years ago, COST has more shares outstanding
The debt/assets ratio for COST has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 8.92 indicates that COST is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 8.92, COST belongs to the best of the industry, outperforming 94.74% of the companies in the same industry.
The Debt to FCF ratio of COST is 0.64, which is an excellent value as it means it would take COST, only 0.64 years of fcf income to pay off all of its debts.
COST has a Debt to FCF ratio of 0.64. This is amongst the best in the industry. COST outperforms 92.11% of its industry peers.
COST has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
COST has a better Debt to Equity ratio (0.19) than 71.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 0.64 | ||
| Altman-Z | 8.92 |
ROIC/WACC2.25
WACC8.68%
2.3 Liquidity
COST has a Current Ratio of 1.04. This is a normal value and indicates that COST is financially healthy and should not expect problems in meeting its short term obligations.
COST has a worse Current ratio (1.04) than 63.16% of its industry peers.
COST has a Quick Ratio of 1.04. This is a bad value and indicates that COST is not financially healthy enough and could expect problems in meeting its short term obligations.
COST has a Quick ratio (0.53) which is comparable to the rest of the industry.
| 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, COST shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.76% on average per year.
The Revenue has grown by 8.34% in the past year. This is quite good.
The Revenue has been growing by 10.54% on average over the past years. This is quite good.
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
COST is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.37% yearly.
Based on estimates for the next years, COST 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
Based on the Price/Earnings ratio of 49.54, the valuation of COST can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of COST indicates a slightly more expensive valuation: COST is more expensive than 71.05% of the companies listed in the same industry.
COST's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.19.
COST is valuated quite expensively with a Price/Forward Earnings ratio of 40.61.
Based on the Price/Forward Earnings ratio, COST is valued a bit more expensive than 60.53% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of COST to the average of the S&P500 Index (23.92), we can say COST is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.54 | ||
| Fwd PE | 40.61 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, COST is valued a bit more expensive than 73.68% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of COST indicates a slightly more expensive valuation: COST is more expensive than 60.53% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.53 | ||
| EV/EBITDA | 30.28 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of COST may justify a higher PE ratio.
PEG (NY)3.51
PEG (5Y)3.14
EPS Next 2Y11.83%
EPS Next 3Y11.43%
5. Dividend
5.1 Amount
With a yearly dividend of 0.57%, COST is not a good candidate for dividend investing.
COST's Dividend Yield is a higher than the industry average which is at 0.76.
With a Dividend Yield of 0.57, COST pays less dividend than the S&P500 average, which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
5.2 History
The dividend of COST is nicely growing with an annual growth rate of 7.97%!
COST has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)7.97%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
27.04% of the earnings are spent on dividend by COST. This is a low number and sustainable payout ratio.
The dividend of COST is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP27.04%
EPS Next 2Y11.83%
EPS Next 3Y11.43%
924.88
+9.57 (+1.05%)
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 Change0.53%
Ins Owners0.09%
Ins Owner Change0.67%
Market Cap409.89B
Revenue(TTM)280.39B
Net Income(TTM)8.30B
Analysts78.6
Price Target1048.64 (13.38%)
Short Float %1.52%
Short Ratio2.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
Yearly Dividend4.93
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)-2.11%
PT rev (3m)-3.23%
EPS NQ rev (1m)0.38%
EPS NQ rev (3m)0.48%
EPS NY rev (1m)1.46%
EPS NY rev (3m)1.52%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)-0.02%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.54 | ||
| Fwd PE | 40.61 | ||
| P/S | 1.46 | ||
| P/FCF | 45.53 | ||
| P/OCF | 27.76 | ||
| P/B | 13.53 | ||
| P/tB | 13.53 | ||
| EV/EBITDA | 30.28 |
EPS(TTM)18.67
EY2.02%
EPS(NY)22.77
Fwd EY2.46%
FCF(TTM)20.31
FCFY2.2%
OCF(TTM)33.31
OCFY3.6%
SpS632.68
BVpS68.38
TBVpS68.38
PEG (NY)3.51
PEG (5Y)3.14
Graham Number169.48
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 | 8.92 |
F-Score7
WACC8.68%
ROIC/WACC2.25
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 / COST FAQ
What is the fundamental rating for COST stock?
ChartMill assigns a fundamental rating of 5 / 10 to COST.
What is the valuation status of COSTCO WHOLESALE CORP (COST) stock?
ChartMill assigns a valuation rating of 1 / 10 to COSTCO WHOLESALE CORP (COST). This can be considered as Overvalued.
How profitable is COSTCO WHOLESALE CORP (COST) stock?
COSTCO WHOLESALE CORP (COST) has a profitability rating of 7 / 10.
Can you provide the expected EPS growth for COST stock?
The Earnings per Share (EPS) of COSTCO WHOLESALE CORP (COST) 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 (COST) is 5 / 10 and the dividend payout ratio is 27.04%.