COSTCO WHOLESALE CORP (COST) Stock Fundamental Analysis

NASDAQ:COST • US22160K1051

989.515 USD
-6.57 (-0.66%)
Last: Feb 19, 2026, 02:11 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

Taking everything into account, COST scores 5 out of 10 in our fundamental rating. COST was compared to 38 industry peers in the Consumer Staples Distribution & Retail industry. COST scores excellent on profitability, but there are some minor concerns on its financial health. While showing a medium growth rate, COST is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

7

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.
  • COST had positive earnings in each of the past 5 years.
  • Each year in the past 5 years COST had a positive operating cash flow.
COST Yearly Net Income VS EBIT VS OCF VS FCFCOST Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

1.2 Ratios

  • With an excellent Return On Assets value of 10.03%, COST belongs to the best of the industry, outperforming 84.21% 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.
  • The Return On Invested Capital of COST (19.55%) is better than 97.37% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for COST is significantly below the industry average of 28.34%.
  • 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 RankSector 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%
COST Yearly ROA, ROE, ROICCOST Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

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.
  • COST has a better Operating Margin (3.80%) than 65.79% of its industry peers.
  • In the last couple of years the Operating Margin of COST has remained more or less at the same level.
  • With a Gross Margin value of 12.88%, COST is not doing good in the industry: 81.58% of the companies in the same industry are doing better.
  • In the last couple of years the Gross Margin of COST has remained more or less at the same level.
Industry RankSector 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%
COST Yearly Profit, Operating, Gross MarginsCOST Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6 8 10

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ROAROEROICOperating and Profit MarginShow most profitable peers

6

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), COST 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.
  • The debt/assets ratio for COST has been reduced compared to a year ago.
COST Yearly Shares OutstandingCOST Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M
COST Yearly Total Debt VS Total AssetsCOST Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B

2.2 Solvency

  • COST has an Altman-Z score of 9.29. This indicates that COST is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of COST (9.29) is better than 94.74% 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 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.
  • The Debt to Equity ratio of COST (0.19) is better than 71.05% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.19
Debt/FCF 0.64
Altman-Z 9.29
ROIC/WACC2.28
WACC8.57%
COST Yearly LT Debt VS Equity VS FCFCOST Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B 25B

2.3 Liquidity

  • A Current Ratio of 1.04 indicates that COST should not have too much problems paying its short term obligations.
  • COST's Current ratio of 1.04 is on the low side compared to the rest of the industry. COST is outperformed by 63.16% of its industry peers.
  • 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 44.74% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.04
Quick Ratio 0.53
COST Yearly Current Assets VS Current LiabilitesCOST Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

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

  • COST is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.41% yearly.
  • Based on estimates for the next years, COST will show a small growth in Revenue. The Revenue will grow by 7.17% on average per year.
EPS Next Y14.05%
EPS Next 2Y11.75%
EPS Next 3Y11.31%
EPS Next 5Y9.41%
Revenue Next Year8.03%
Revenue Next 2Y7.8%
Revenue Next 3Y7.55%
Revenue Next 5Y7.17%

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.
COST Yearly Revenue VS EstimatesCOST Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 100B 200B 300B 400B 500B
COST Yearly EPS VS EstimatesCOST Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 10 20 30 40

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Find the best growth stocksShow best growing peers

1

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 53.00 indicates a quite expensive valuation of COST.
  • 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.
  • The average S&P500 Price/Earnings ratio is at 27.27. COST is valued rather expensively when compared to this.
  • With a Price/Forward Earnings ratio of 43.51, COST can be considered very expensive at the moment.
  • 60.53% of the companies in the same industry are cheaper than COST, based on the Price/Forward Earnings ratio.
  • COST is valuated expensively when we compare the Price/Forward Earnings ratio to 28.16, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 53
Fwd PE 43.51
COST Price Earnings VS Forward Price EarningsCOST Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of COST indicates a slightly more expensive valuation: COST is more expensive than 73.68% of the companies listed 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 RankSector Rank
P/FCF 48.79
EV/EBITDA 32.74
COST Per share dataCOST EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 200 400 600

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)3.77
PEG (5Y)3.36
EPS Next 2Y11.75%
EPS Next 3Y11.31%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. Dividend

5.1 Amount

  • With a yearly dividend of 0.52%, COST is not a good candidate for dividend investing.
  • COST's Dividend Yield is a higher than the industry average which is at 0.69.
  • Compared to an average S&P500 Dividend Yield of 1.85, COST's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.52%

5.2 History

  • On average, the dividend of COST grows each year by 7.97%, which is quite nice.
  • 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
COST Yearly Dividends per shareCOST Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 5 10 15

5.3 Sustainability

  • COST pays out 27.04% of its income as dividend. This is a 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 2Y11.75%
EPS Next 3Y11.31%
COST Yearly Income VS Free CF VS DividendCOST Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B
COST Dividend Payout.COST Dividend Payout, showing the Payout Ratio.COST Dividend Payout.PayoutRetained Earnings

More info and screens

Find the best dividend stocksShow peers with best dividend

COSTCO WHOLESALE CORP

NASDAQ:COST (2/19/2026, 2:11:08 PM)

989.515

-6.57 (-0.66%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)12-11
Earnings (Next)03-05
Inst Owners71.58%
Inst Owner Change0.7%
Ins Owners0.09%
Ins Owner Change0.81%
Market Cap439.22B
Revenue(TTM)280.39B
Net Income(TTM)8.30B
Analysts79.09
Price Target1051.06 (6.22%)
Short Float %1.61%
Short Ratio2.56
Dividend
Industry RankSector Rank
Dividend Yield 0.52%
Yearly Dividend4.93
Dividend Growth(5Y)7.97%
DP27.04%
Div Incr Years0
Div Non Decr Years0
Ex-Date01-30
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)0.23%
PT rev (3m)-2.99%
EPS NQ rev (1m)0.48%
EPS NQ rev (3m)0.99%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)1.38%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)0.13%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.09%
Valuation
Industry RankSector Rank
PE 53
Fwd PE 43.51
P/S 1.57
P/FCF 48.79
P/OCF 29.75
P/B 14.49
P/tB 14.49
EV/EBITDA 32.74
EPS(TTM)18.67
EY1.89%
EPS(NY)22.74
Fwd EY2.3%
FCF(TTM)20.28
FCFY2.05%
OCF(TTM)33.26
OCFY3.36%
SpS631.7
BVpS68.27
TBVpS68.27
PEG (NY)3.77
PEG (5Y)3.36
Graham Number169.35
Profitability
Industry RankSector 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 RankSector 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 9.29
F-Score7
WACC8.57%
ROIC/WACC2.28
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 Y14.05%
EPS Next 2Y11.75%
EPS Next 3Y11.31%
EPS Next 5Y9.41%
Revenue 1Y (TTM)8.34%
Revenue growth 3Y6.64%
Revenue growth 5Y10.54%
Sales Q2Q%8.3%
Revenue Next Year8.03%
Revenue Next 2Y7.8%
Revenue Next 3Y7.55%
Revenue Next 5Y7.17%
EBIT growth 1Y12.14%
EBIT growth 3Y9.49%
EBIT growth 5Y11.2%
EBIT Next Year38.14%
EBIT Next 3Y18.59%
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 14.05% 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%.