849.17 USD
-6.45 (-0.75%)
COST gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 38 industry peers in the Consumer Staples Distribution & Retail industry. Both the health and profitability get an excellent rating, making COST a very profitable company, without any liquidiy or solvency issues. COST is valied quite expensively at the moment, while it does show a decent growth rate. These ratings could make COST a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
In the past year COST was profitable.
In the past year COST had a positive cash flow from operations.
In the past 5 years COST has always been profitable.
Each year in the past 5 years COST had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 10.03%, COST belongs to the best of the industry, outperforming 86.84% of the companies in the same industry.
Looking at the Return On Equity, with a value of 27.40%, COST belongs to the top of the industry, outperforming 84.21% of the companies in the same industry.
COST has a Return On Invested Capital of 19.55%. This is amongst the best in the industry. COST outperforms 100.00% of its industry peers.
COST had an Average Return On Invested Capital over the past 3 years of 19.04%. This is significantly above the industry average of 8.25%.
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
Looking at the Profit Margin, with a value of 2.96%, COST is in the better half of the industry, outperforming 73.68% of the companies in the same industry.
In the last couple of years the Profit Margin of COST has grown nicely.
Looking at the Operating Margin, with a value of 3.80%, COST is in the better half of the industry, outperforming 68.42% of the companies in the same industry.
COST's Operating Margin has been stable in the last couple of years.
COST has a worse Gross Margin (12.88%) than 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.
COST has about the same amout of shares outstanding than it did 1 year ago.
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
COST has an Altman-Z score of 8.57. This indicates that COST is financially healthy and has little risk of bankruptcy at the moment.
COST's Altman-Z score of 8.57 is amongst the best of the industry. COST outperforms 92.11% of its industry peers.
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's Debt to FCF ratio of 0.64 is amongst the best of the industry. COST outperforms 89.47% of its industry peers.
A Debt/Equity ratio of 0.19 indicates that COST is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.19, COST is in the better half of the industry, outperforming 73.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 0.64 | ||
| Altman-Z | 8.57 |
ROIC/WACC2.26
WACC8.65%
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.
With a Current ratio value of 1.04, COST perfoms like the industry average, outperforming 42.11% of the companies in the same industry.
A Quick Ratio of 0.53 indicates that COST may have some problems paying its short term obligations.
With a Quick ratio value of 0.53, COST perfoms like the industry average, outperforming 47.37% of the companies in the same industry.
The current and quick ratio evaluation for COST 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 | 1.04 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.63% over the past year.
The Earnings Per Share has been growing by 15.76% on average over the past years. This is quite good.
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
Based on estimates for the next years, COST will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.87% on average per year.
Based on estimates for the next years, COST will show a small growth in Revenue. The Revenue will grow by 6.26% on average per year.
EPS Next Y14.1%
EPS Next 2Y11.83%
EPS Next 3Y11.43%
EPS Next 5Y8.87%
Revenue Next Year8.07%
Revenue Next 2Y7.79%
Revenue Next 3Y7.59%
Revenue Next 5Y6.26%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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 45.48, the valuation of COST can be described as expensive.
Based on the Price/Earnings ratio, COST is valued a bit more expensive than the industry average as 71.05% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of COST to the average of the S&P500 Index (26.39), we can say COST is valued expensively.
COST is valuated quite expensively with a Price/Forward Earnings ratio of 37.29.
COST's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. COST is more expensive than 60.53% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.84. COST is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.48 | ||
| Fwd PE | 37.29 |
4.2 Price Multiples
COST's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. COST is more expensive than 71.05% of the companies in the same industry.
COST's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. COST is more expensive than 63.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.8 | ||
| EV/EBITDA | 27.95 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
COST 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 0.61%, COST is not a good candidate for dividend investing.
COST's Dividend Yield is a higher than the industry average which is at 0.77.
With a Dividend Yield of 0.61, COST pays less dividend than the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
5.2 History
The dividend of COST is nicely growing with an annual growth rate of 7.97%!
COST has been paying a dividend for at least 10 years, so it has 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.
COST'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%
NASDAQ:COST (12/22/2025, 2:52:02 PM)
849.17
-6.45 (-0.75%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners71.7%
Inst Owner Change-2.18%
Ins Owners0.09%
Ins Owner Change0.82%
Market Cap376.34B
Revenue(TTM)280.39B
Net Income(TTM)8.30B
Analysts77.73
Price Target1048.64 (23.49%)
Short Float %1.74%
Short Ratio3.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
Yearly Dividend4.93
Dividend Growth(5Y)7.97%
DP27.04%
Div Incr Years0
Div Non Decr Years0
Ex-Date
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)-3.22%
PT rev (3m)-3.78%
EPS NQ rev (1m)0.34%
EPS NQ rev (3m)0.6%
EPS NY rev (1m)1.42%
EPS NY rev (3m)1.45%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)0.2%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.48 | ||
| Fwd PE | 37.29 | ||
| P/S | 1.34 | ||
| P/FCF | 41.8 | ||
| P/OCF | 25.49 | ||
| P/B | 12.42 | ||
| P/tB | 12.42 | ||
| EV/EBITDA | 27.95 |
EPS(TTM)18.67
EY2.2%
EPS(NY)22.77
Fwd EY2.68%
FCF(TTM)20.31
FCFY2.39%
OCF(TTM)33.31
OCFY3.92%
SpS632.68
BVpS68.38
TBVpS68.38
PEG (NY)3.23
PEG (5Y)2.89
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 | 8.57 |
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 5Y8.87%
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 5Y6.26%
EBIT growth 1Y12.14%
EBIT growth 3Y9.49%
EBIT growth 5Y11.2%
EBIT Next Year35.49%
EBIT Next 3Y18.83%
EBIT Next 5Y14.04%
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 6 / 10 to COST.
Can you provide the valuation status for COSTCO WHOLESALE CORP?
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 8 / 10.
What are the PE and PB ratios of COSTCO WHOLESALE CORP (COST) stock?
The Price/Earnings (PE) ratio for COSTCO WHOLESALE CORP (COST) is 45.48 and the Price/Book (PB) ratio is 12.42.
What is the expected EPS growth for COSTCO WHOLESALE CORP (COST) stock?
The Earnings per Share (EPS) of COSTCO WHOLESALE CORP (COST) is expected to grow by 14.1% in the next year.