899.01 USD
+5.72 (+0.64%)
899.2 USD
+0.19 (+0.02%)
COST gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 39 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
The Return On Assets of COST (10.50%) is better than 89.74% of its industry peers.
The Return On Equity of COST (27.77%) is better than 82.05% of its industry peers.
The Return On Invested Capital of COST (19.54%) is better than 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for COST is significantly above the industry average of 8.70%.
The last Return On Invested Capital (19.54%) for COST is above the 3 year average (19.04%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.5% | ||
| ROE | 27.77% | ||
| ROIC | 19.54% |
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's Profit Margin of 2.94% is fine compared to the rest of the industry. COST outperforms 76.92% of its industry peers.
In the last couple of years the Profit Margin of COST has grown nicely.
With a decent Operating Margin value of 3.77%, COST is doing good in the industry, outperforming 69.23% 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 worse Gross Margin (12.84%) than 82.05% of its industry peers.
COST's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.77% | ||
| PM (TTM) | 2.94% | ||
| GM | 12.84% |
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
COST has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for COST remains at a similar level compared to 1 year ago.
The number of shares outstanding for COST has been increased compared to 5 years ago.
COST has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 9.40 indicates that COST is not in any danger for bankruptcy at the moment.
The Altman-Z score of COST (9.40) is better than 97.44% of its industry peers.
The Debt to FCF ratio of COST is 0.74, which is an excellent value as it means it would take COST, only 0.74 years of fcf income to pay off all of its debts.
COST has a better Debt to FCF ratio (0.74) than 89.74% of its industry peers.
COST has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
COST's Debt to Equity ratio of 0.20 is fine compared to the rest of the industry. COST outperforms 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 0.74 | ||
| Altman-Z | 9.4 |
ROIC/WACC2.27
WACC8.6%
2.3 Liquidity
COST has a Current Ratio of 1.03. 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 1.03, COST is not doing good in the industry: 64.10% of the companies in the same industry are doing better.
COST has a Quick Ratio of 1.03. 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 of 0.55. This is comparable to the rest of the industry: COST outperforms 51.28% of its industry peers.
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 | 1.03 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
COST shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.90%, which is quite good.
The Earnings Per Share has been growing by 15.76% on average over the past years. This is quite good.
Looking at the last year, COST shows a quite strong growth in Revenue. The Revenue has grown by 8.17% in the last year.
The Revenue has been growing by 10.54% on average over the past years. This is quite good.
EPS 1Y (TTM)9.9%
EPS 3Y11.13%
EPS 5Y15.76%
EPS Q2Q%10.96%
Revenue 1Y (TTM)8.17%
Revenue growth 3Y6.64%
Revenue growth 5Y10.54%
Sales Q2Q%8.1%
3.2 Future
The Earnings Per Share is expected to grow by 8.87% on average over the next years. This is quite good.
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 Y12.5%
EPS Next 2Y11.35%
EPS Next 3Y10.99%
EPS Next 5Y8.87%
Revenue Next Year7.93%
Revenue Next 2Y7.75%
Revenue Next 3Y7.48%
Revenue Next 5Y6.26%
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
The Price/Earnings ratio is 49.37, which means the current valuation is very expensive for COST.
Based on the Price/Earnings ratio, COST is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
COST is valuated expensively when we compare the Price/Earnings ratio to 25.45, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 43.88, COST can be considered very expensive at the moment.
64.10% of the companies in the same industry are cheaper than COST, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 34.46. COST is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.37 | ||
| Fwd PE | 43.88 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, COST is valued a bit more expensive than the industry average as 69.23% of the companies are valued more cheaply.
Based on the Price/Free Cash Flow ratio, COST is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50.84 | ||
| EV/EBITDA | 30.08 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates COST does not grow enough to justify the current Price/Earnings ratio.
COST has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.95
PEG (5Y)3.13
EPS Next 2Y11.35%
EPS Next 3Y10.99%
5. Dividend
5.1 Amount
With a yearly dividend of 0.56%, COST is not a good candidate for dividend investing.
COST's Dividend Yield is a higher than the industry average which is at 2.04.
Compared to an average S&P500 Dividend Yield of 2.45, COST's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.56% |
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
26.95% 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.
DP26.95%
EPS Next 2Y11.35%
EPS Next 3Y10.99%
899.01
+5.72 (+0.64%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners72.07%
Inst Owner Change-2.2%
Ins Owners0.09%
Ins Owner Change1.36%
Market Cap398.42B
Revenue(TTM)275.24B
Net Income(TTM)8.10B
Analysts78.22
Price Target1083.49 (20.52%)
Short Float %1.57%
Short Ratio2.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.56% |
Yearly Dividend4.93
Dividend Growth(5Y)7.97%
DP26.95%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.9%
Min EPS beat(2)-0.98%
Max EPS beat(2)-0.82%
EPS beat(4)1
Avg EPS beat(4)-0.33%
Min EPS beat(4)-4.04%
Max EPS beat(4)4.5%
EPS beat(8)5
Avg EPS beat(8)1.23%
EPS beat(12)6
Avg EPS beat(12)-0.42%
EPS beat(16)9
Avg EPS beat(16)0.71%
Revenue beat(2)0
Avg Revenue beat(2)-1.89%
Min Revenue beat(2)-1.94%
Max Revenue beat(2)-1.85%
Revenue beat(4)0
Avg Revenue beat(4)-1.67%
Min Revenue beat(4)-1.94%
Max Revenue beat(4)-1.05%
Revenue beat(8)0
Avg Revenue beat(8)-1.94%
Revenue beat(12)0
Avg Revenue beat(12)-2.04%
Revenue beat(16)0
Avg Revenue beat(16)-1.77%
PT rev (1m)-0.01%
PT rev (3m)-0.63%
EPS NQ rev (1m)-0.02%
EPS NQ rev (3m)-0.06%
EPS NY rev (1m)0.1%
EPS NY rev (3m)0.15%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)0.63%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.37 | ||
| Fwd PE | 43.88 | ||
| P/S | 1.45 | ||
| P/FCF | 50.84 | ||
| P/OCF | 29.88 | ||
| P/B | 13.66 | ||
| P/tB | 13.66 | ||
| EV/EBITDA | 30.08 |
EPS(TTM)18.21
EY2.03%
EPS(NY)20.49
Fwd EY2.28%
FCF(TTM)17.68
FCFY1.97%
OCF(TTM)30.09
OCFY3.35%
SpS621.05
BVpS65.81
TBVpS65.81
PEG (NY)3.95
PEG (5Y)3.13
Graham Number164.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.5% | ||
| ROE | 27.77% | ||
| ROCE | 25.96% | ||
| ROIC | 19.54% | ||
| ROICexc | 31.62% | ||
| ROICexgc | 31.62% | ||
| OM | 3.77% | ||
| PM (TTM) | 2.94% | ||
| GM | 12.84% | ||
| FCFM | 2.85% |
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 Turnover3.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 0.74 | ||
| Debt/EBITDA | 0.45 | ||
| Cap/Depr | 226.63% | ||
| Cap/Sales | 2% | ||
| Interest Coverage | 97.95 | ||
| Cash Conversion | 104.11% | ||
| Profit Quality | 96.77% | ||
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.55 | ||
| Altman-Z | 9.4 |
F-Score7
WACC8.6%
ROIC/WACC2.27
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)9.9%
EPS 3Y11.13%
EPS 5Y15.76%
EPS Q2Q%10.96%
EPS Next Y12.5%
EPS Next 2Y11.35%
EPS Next 3Y10.99%
EPS Next 5Y8.87%
Revenue 1Y (TTM)8.17%
Revenue growth 3Y6.64%
Revenue growth 5Y10.54%
Sales Q2Q%8.1%
Revenue Next Year7.93%
Revenue Next 2Y7.75%
Revenue Next 3Y7.48%
Revenue Next 5Y6.26%
EBIT growth 1Y11.83%
EBIT growth 3Y9.49%
EBIT growth 5Y11.2%
EBIT Next Year35.68%
EBIT Next 3Y18.69%
EBIT Next 5Y14.03%
FCF growth 1Y18.22%
FCF growth 3Y30.81%
FCF growth 5Y5.31%
OCF growth 1Y17.6%
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 49.37 and the Price/Book (PB) ratio is 13.66.
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 12.5% in the next year.