COSTCO WHOLESALE CORP (COST) Fundamental Analysis & Valuation

NASDAQ:COST • US22160K1051

Current stock price

1014.96 USD
+18.4 (+1.85%)
At close:
1014 USD
-0.96 (-0.09%)
After Hours:

This COST fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. COST Profitability Analysis

1.1 Basic Checks

  • COST had positive earnings in the past year.
  • In the past year COST had a positive cash flow from operations.
  • In the past 5 years COST has always been profitable.
  • COST had a positive operating cash flow in each of the past 5 years.
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

  • COST has a better Return On Assets (10.22%) than 86.84% of its industry peers.
  • Looking at the Return On Equity, with a value of 26.64%, COST belongs to the top of the industry, outperforming 84.21% of the companies in the same industry.
  • COST has a better Return On Invested Capital (19.20%) than 97.37% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for COST is significantly below the industry average of 34.56%.
  • The 3 year average ROIC (19.04%) for COST is below the current ROIC(19.20%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 10.22%
ROE 26.64%
ROIC 19.2%
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

  • COST has a better Profit Margin (2.99%) than 71.05% of its industry peers.
  • COST's Profit Margin has improved in the last couple of years.
  • COST has a better Operating Margin (3.82%) than 65.79% of its industry peers.
  • COST's Operating Margin has been stable in the last couple of years.
  • COST has a worse Gross Margin (12.93%) than 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 RankSector Rank
OM 3.82%
PM (TTM) 2.99%
GM 12.93%
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

7

2. COST Health Analysis

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.
  • COST has more shares outstanding than it did 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

  • An Altman-Z score of 9.55 indicates that COST is not in any danger for bankruptcy at the moment.
  • COST has a Altman-Z score of 9.55. This is amongst the best in the industry. COST outperforms 97.37% of its industry peers.
  • The Debt to FCF ratio of COST is 0.63, which is an excellent value as it means it would take COST, only 0.63 years of fcf income to pay off all of its debts.
  • COST has a Debt to FCF ratio of 0.63. This is amongst the best in the industry. COST outperforms 86.84% of its industry peers.
  • COST has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
  • COST has a Debt to Equity ratio of 0.18. This is in the better half of the industry: COST outperforms 73.68% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.18
Debt/FCF 0.63
Altman-Z 9.55
ROIC/WACC2.17
WACC8.86%
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 1.06 indicates that COST should not have too much problems paying its short term obligations.
  • With a Current ratio value of 1.06, COST perfoms like the industry average, outperforming 44.74% of the companies in the same industry.
  • COST has a Quick Ratio of 1.06. This is a bad value and indicates that COST is not financially healthy enough and could expect problems in meeting its short term obligations.
  • With a Quick ratio value of 0.59, COST perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.06
Quick Ratio 0.59
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. COST Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 12.26% over the past year.
  • COST shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.76% yearly.
  • COST shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.40%.
  • Measured over the past years, COST shows a quite strong growth in Revenue. The Revenue has been growing by 10.54% on average per year.
EPS 1Y (TTM)12.26%
EPS 3Y11.13%
EPS 5Y15.76%
EPS Q2Q%13.93%
Revenue 1Y (TTM)8.4%
Revenue growth 3Y6.64%
Revenue growth 5Y10.54%
Sales Q2Q%9.22%

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 9.44% yearly.
  • COST is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.18% yearly.
EPS Next Y14.23%
EPS Next 2Y11.89%
EPS Next 3Y11.42%
EPS Next 5Y9.44%
Revenue Next Year8.47%
Revenue Next 2Y8.03%
Revenue Next 3Y8.08%
Revenue Next 5Y7.18%

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.
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. COST Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 52.78, 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 71.05% of the companies are valued more cheaply.
  • The average S&P500 Price/Earnings ratio is at 25.60. COST is valued rather expensively when compared to this.
  • With a Price/Forward Earnings ratio of 44.52, COST can be considered very expensive at the moment.
  • 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.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.84, COST is valued quite expensively.
Industry RankSector Rank
PE 52.78
Fwd PE 44.52
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

  • 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.
  • 60.53% of the companies in the same industry are cheaper than COST, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 49.49
EV/EBITDA 32.46
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 COST does not grow enough to justify the current Price/Earnings ratio.
  • The decent profitability rating of COST may justify a higher PE ratio.
PEG (NY)3.71
PEG (5Y)3.35
EPS Next 2Y11.89%
EPS Next 3Y11.42%

More info and screens

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

5

5. COST Dividend Analysis

5.1 Amount

  • COST has a yearly dividend return of 0.53%, which is pretty low.
  • COST's Dividend Yield is a higher than the industry average which is at 0.70.
  • Compared to an average S&P500 Dividend Yield of 1.90, COST's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.53%

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
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 33.01% of its income as dividend. This is a 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.
DP33.01%
EPS Next 2Y11.89%
EPS Next 3Y11.42%
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

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COST Fundamentals: All Metrics, Ratios and Statistics

COSTCO WHOLESALE CORP

NASDAQ:COST (4/2/2026, 8:16:36 PM)

After market: 1014 -0.96 (-0.09%)

1014.96

+18.4 (+1.85%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)03-05
Earnings (Next)05-27
Inst Owners72.24%
Inst Owner Change3.6%
Ins Owners0.09%
Ins Owner Change-0.31%
Market Cap450.29B
Revenue(TTM)286.26B
Net Income(TTM)8.55B
Analysts79.09
Price Target1088.61 (7.26%)
Short Float %1.42%
Short Ratio3
Dividend
Industry RankSector Rank
Dividend Yield 0.53%
Yearly Dividend4.93
Dividend Growth(5Y)7.97%
DP33.01%
Div Incr Years0
Div Non Decr Years0
Ex-Date01-30
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.87%
Min EPS beat(2)-1.54%
Max EPS beat(2)3.28%
EPS beat(4)1
Avg EPS beat(4)-0.01%
Min EPS beat(4)-1.54%
Max EPS beat(4)3.28%
EPS beat(8)4
Avg EPS beat(8)0.35%
EPS beat(12)6
Avg EPS beat(12)-0.14%
EPS beat(16)8
Avg EPS beat(16)-0.12%
Revenue beat(2)0
Avg Revenue beat(2)-1.62%
Min Revenue beat(2)-1.71%
Max Revenue beat(2)-1.53%
Revenue beat(4)0
Avg Revenue beat(4)-1.76%
Min Revenue beat(4)-1.94%
Max Revenue beat(4)-1.53%
Revenue beat(8)0
Avg Revenue beat(8)-1.72%
Revenue beat(12)0
Avg Revenue beat(12)-1.92%
Revenue beat(16)0
Avg Revenue beat(16)-1.87%
PT rev (1m)3.57%
PT rev (3m)3.81%
EPS NQ rev (1m)0.26%
EPS NQ rev (3m)0.55%
EPS NY rev (1m)0.16%
EPS NY rev (3m)0.11%
Revenue NQ rev (1m)0.64%
Revenue NQ rev (3m)0.51%
Revenue NY rev (1m)0.45%
Revenue NY rev (3m)0.37%
Valuation
Industry RankSector Rank
PE 52.78
Fwd PE 44.52
P/S 1.57
P/FCF 49.49
P/OCF 30
P/B 14.03
P/tB 14.03
EV/EBITDA 32.46
EPS(TTM)19.23
EY1.89%
EPS(NY)22.8
Fwd EY2.25%
FCF(TTM)20.51
FCFY2.02%
OCF(TTM)33.84
OCFY3.33%
SpS645.25
BVpS72.33
TBVpS72.33
PEG (NY)3.71
PEG (5Y)3.35
Graham Number176.9
Profitability
Industry RankSector Rank
ROA 10.22%
ROE 26.64%
ROCE 25.52%
ROIC 19.2%
ROICexc 33.42%
ROICexgc 33.42%
OM 3.82%
PM (TTM) 2.99%
GM 12.93%
FCFM 3.18%
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 Turnover3.42
Health
Industry RankSector Rank
Debt/Equity 0.18
Debt/FCF 0.63
Debt/EBITDA 0.42
Cap/Depr 234.6%
Cap/Sales 2.07%
Interest Coverage 107.26
Cash Conversion 111.52%
Profit Quality 106.43%
Current Ratio 1.06
Quick Ratio 0.59
Altman-Z 9.55
F-Score7
WACC8.86%
ROIC/WACC2.17
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)12.26%
EPS 3Y11.13%
EPS 5Y15.76%
EPS Q2Q%13.93%
EPS Next Y14.23%
EPS Next 2Y11.89%
EPS Next 3Y11.42%
EPS Next 5Y9.44%
Revenue 1Y (TTM)8.4%
Revenue growth 3Y6.64%
Revenue growth 5Y10.54%
Sales Q2Q%9.22%
Revenue Next Year8.47%
Revenue Next 2Y8.03%
Revenue Next 3Y8.08%
Revenue Next 5Y7.18%
EBIT growth 1Y12.19%
EBIT growth 3Y9.49%
EBIT growth 5Y11.2%
EBIT Next Year37.07%
EBIT Next 3Y18.39%
EBIT Next 5Y13.81%
FCF growth 1Y46.73%
FCF growth 3Y30.81%
FCF growth 5Y5.31%
OCF growth 1Y40.97%
OCF growth 3Y21.73%
OCF growth 5Y8.52%

COSTCO WHOLESALE CORP / COST Fundamental Analysis FAQ

What is the fundamental rating for COST stock?

ChartMill assigns a fundamental rating of 6 / 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.


Can you provide the profitability details for COSTCO WHOLESALE CORP?

COSTCO WHOLESALE CORP (COST) has a profitability rating of 7 / 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 52.78 and the Price/Book (PB) ratio is 14.03.


Can you provide the financial health for COST stock?

The financial health rating of COSTCO WHOLESALE CORP (COST) is 7 / 10.