953.4 USD
+2.42 (+0.25%)
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. While COST has a great profitability rating, there are some minor concerns on its financial health. COST is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year COST was profitable.
- COST had a positive operating cash flow in the past year.
- Each year in the past 5 years COST has been profitable.
- COST had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 10.03%, COST belongs to the top 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 28.32%.
- 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
- 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.
- COST's Profit Margin has improved in the last couple of years.
- 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.
- The Gross Margin of COST (12.88%) is worse 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 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
- COST has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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
- Compared to 1 year ago, COST has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 9.06 indicates that COST is not in any danger for bankruptcy at the moment.
- COST's Altman-Z score of 9.06 is amongst the best of the industry. COST outperforms 94.74% 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.
- Looking at the Debt to FCF ratio, with a value of 0.64, COST belongs to the top of the industry, outperforming 92.11% of the companies in the same industry.
- 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 71.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 0.64 | ||
| Altman-Z | 9.06 |
ROIC/WACC2.25
WACC8.69%
2.3 Liquidity
- A Current Ratio of 1.04 indicates that COST should not have too much problems paying its short term obligations.
- COST has a Current ratio of 1.04. This is in the lower half of the industry: COST underperforms 63.16% of its industry peers.
- COST has a Quick Ratio of 1.04. 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's Quick ratio of 0.53 is in line compared to the rest of the industry. COST outperforms 44.74% of its industry peers.
| 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.
- COST shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.76% yearly.
- The Revenue has grown by 8.34% in the past year. This is quite good.
- COST shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.54% yearly.
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 9.37% on average per year.
- Based on estimates for the next years, COST will show a small growth in Revenue. The Revenue will grow by 7.09% on average per year.
EPS Next Y14.1%
EPS Next 2Y11.83%
EPS Next 3Y11.43%
EPS Next 5Y9.37%
Revenue Next Year8.07%
Revenue Next 2Y7.79%
Revenue Next 3Y7.59%
Revenue Next 5Y7.09%
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
- With a Price/Earnings ratio of 51.07, COST can be considered very expensive at the moment.
- 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.
- COST's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.33.
- With a Price/Forward Earnings ratio of 41.87, COST can be considered very expensive at the moment.
- Based on the Price/Forward Earnings ratio, COST is valued a bit more expensive than 60.53% of the companies in the same industry.
- COST is valuated expensively when we compare the Price/Forward Earnings ratio to 24.12, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.07 | ||
| Fwd PE | 41.87 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, COST is valued a bit more expensive than the industry average as 73.68% 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 | 46.93 | ||
| EV/EBITDA | 31.17 |
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)3.62
PEG (5Y)3.24
EPS Next 2Y11.83%
EPS Next 3Y11.43%
5. Dividend
5.1 Amount
- COST has a yearly dividend return of 0.57%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.76, COST pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.91, COST's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
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
- 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 (1/15/2026, 10:01:01 AM)
953.4
+2.42 (+0.25%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)12-11 2025-12-11/amc
Earnings (Next)03-04 2026-03-04/amc
Inst Owners71.58%
Inst Owner Change0.53%
Ins Owners0.09%
Ins Owner Change0.67%
Market Cap422.53B
Revenue(TTM)280.39B
Net Income(TTM)8.30B
Analysts78.6
Price Target1048.64 (9.99%)
Short Float %1.52%
Short Ratio2.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
Yearly Dividend4.93
Dividend Growth(5Y)7.97%
DP27.04%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)-2.11%
PT rev (3m)-3.23%
EPS NQ rev (1m)0.38%
EPS NQ rev (3m)0.48%
EPS NY rev (1m)1.46%
EPS NY rev (3m)1.52%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)-0.02%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.07 | ||
| Fwd PE | 41.87 | ||
| P/S | 1.51 | ||
| P/FCF | 46.93 | ||
| P/OCF | 28.62 | ||
| P/B | 13.94 | ||
| P/tB | 13.94 | ||
| EV/EBITDA | 31.17 |
EPS(TTM)18.67
EY1.96%
EPS(NY)22.77
Fwd EY2.39%
FCF(TTM)20.31
FCFY2.13%
OCF(TTM)33.31
OCFY3.49%
SpS632.68
BVpS68.38
TBVpS68.38
PEG (NY)3.62
PEG (5Y)3.24
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 | 9.06 |
F-Score7
WACC8.69%
ROIC/WACC2.25
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 5Y9.37%
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 5Y7.09%
EBIT growth 1Y12.14%
EBIT growth 3Y9.49%
EBIT growth 5Y11.2%
EBIT Next Year38.32%
EBIT Next 3Y18.66%
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 14.1% 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%.