850 USD
-5.62 (-0.66%)
848.52 USD
-1.48 (-0.17%)
Taking everything into account, COST scores 6 out of 10 in our fundamental rating. COST was compared to 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. While showing a medium growth rate, COST is valued expensive at the moment. With these ratings, COST could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
In the past year COST was profitable.
COST had a positive operating cash flow in the past year.
COST had positive earnings in each of the past 5 years.
In the past 5 years COST always reported a positive cash flow from operatings.
1.2 Ratios
COST has a better Return On Assets (10.03%) than 86.84% of its industry peers.
COST has a Return On Equity of 27.40%. This is amongst the best in the industry. COST outperforms 84.21% of its industry peers.
With an excellent Return On Invested Capital value of 19.55%, COST belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for COST is significantly above the industry average of 8.25%.
The 3 year average ROIC (19.04%) for COST is below the current ROIC(19.55%), indicating increased profibility in the last year.
| 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.
COST has a better Operating Margin (3.80%) than 68.42% of its industry peers.
In the last couple of years the Operating Margin of COST has remained more or less at the same level.
COST's Gross Margin of 12.88% is on the low side compared to the rest of the industry. COST is outperformed by 81.58% of its industry peers.
In the last couple of years the Gross Margin of COST has remained more or less at the same level.
| 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
COST has an Altman-Z score of 8.54. This indicates that COST is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of COST (8.54) is better than 92.11% of its industry peers.
COST has a debt to FCF ratio of 0.64. This is a very positive value and a sign of high solvency as it would only need 0.64 years to pay back of all of its debts.
COST has a better Debt to FCF ratio (0.64) than 89.47% of its industry peers.
A Debt/Equity ratio of 0.19 indicates that COST is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.19, COST is doing good in 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 | 8.54 |
ROIC/WACC2.26
WACC8.66%
2.3 Liquidity
A Current Ratio of 1.04 indicates that COST should not have too much problems paying 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.
COST has a Quick ratio of 0.53. This is comparable to the rest of the industry: COST outperforms 47.37% of its industry peers.
COST 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 | 1.04 | ||
| 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.
Looking at the last year, COST shows a quite strong growth in Revenue. The Revenue has grown by 8.34% 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)9.63%
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.
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
A Price/Earnings ratio of 45.53 indicates a quite expensive valuation of COST.
Based on the Price/Earnings ratio, COST is valued a bit more expensive than 71.05% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.61. COST is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 37.33 indicates a quite expensive valuation of COST.
Based on the Price/Forward Earnings ratio, COST is valued a bit more expensive than 60.53% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.01, COST is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.53 | ||
| Fwd PE | 37.33 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, COST is valued a bit more expensive than the industry average as 71.05% 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 63.16% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.84 | ||
| EV/EBITDA | 27.76 |
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)3.23
PEG (5Y)2.89
EPS Next 2Y11.83%
EPS Next 3Y11.43%
5. Dividend
5.1 Amount
COST has a yearly dividend return of 0.61%, which is pretty low.
Compared to an average industry Dividend Yield of 0.77, COST pays a bit more dividend than its industry peers.
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
On average, the dividend of COST grows each year by 7.97%, which is quite nice.
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%
850
-5.62 (-0.66%)
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 Cap376.70B
Revenue(TTM)280.39B
Net Income(TTM)8.30B
Analysts77.73
Price Target1048.64 (23.37%)
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 | 45.53 | ||
| Fwd PE | 37.33 | ||
| P/S | 1.34 | ||
| P/FCF | 41.84 | ||
| P/OCF | 25.52 | ||
| P/B | 12.43 | ||
| P/tB | 12.43 | ||
| EV/EBITDA | 27.76 |
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 | 8.54 |
F-Score7
WACC8.66%
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 45.53 and the Price/Book (PB) ratio is 12.43.
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.