COSTCO WHOLESALE CORP (COST) Stock Fundamental Analysis

USA • Nasdaq • NASDAQ:COST • US22160K1051

977.92 USD
+9.56 (+0.99%)
At close: Feb 3, 2026
978.008 USD
+0.09 (+0.01%)
After Hours: 2/3/2026, 8:08:22 PM
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

  • COST had positive earnings in the past year.
  • In the past year COST had a positive cash flow from operations.
  • Each year in the past 5 years COST has been profitable.
  • In the past 5 years COST always reported a positive cash flow from operatings.
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.
  • COST has a better Return On Equity (27.40%) than 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 97.37% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for COST is significantly below the industry average of 28.25%.
  • The 3 year average ROIC (19.04%) for COST is below the current ROIC(19.55%), indicating increased profibility in the last year.
Industry 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

  • COST's Profit Margin of 2.96% is fine compared to the rest of the industry. COST outperforms 73.68% of its industry peers.
  • In the last couple of years the Profit Margin of COST has grown nicely.
  • Looking at the Operating Margin, with a value of 3.80%, COST is in the better half of the industry, outperforming 65.79% of the companies in the same industry.
  • COST's Operating Margin has been stable in the last couple of years.
  • COST has a Gross Margin of 12.88%. This is amonst the worse of the industry: COST underperforms 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 3.8%
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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6

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so COST 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.
  • COST has a better debt/assets ratio than last year.
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 9.14 indicates that COST is not in any danger for bankruptcy at the moment.
  • With an excellent Altman-Z score value of 9.14, COST belongs to the best of the industry, outperforming 94.74% of the companies in the same industry.
  • 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 has a better Debt to FCF ratio (0.64) than 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.
  • COST has a Debt to Equity ratio of 0.19. This is in the better half of the industry: COST outperforms 71.05% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.19
Debt/FCF 0.64
Altman-Z 9.14
ROIC/WACC2.22
WACC8.8%
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

  • COST has a Current Ratio of 1.04. This is a normal value and indicates that COST is financially healthy and should not expect problems in meeting its short term obligations.
  • The Current ratio of COST (1.04) is worse than 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 has a Quick ratio (0.53) which is comparable to the rest of the 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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5

3. Growth

3.1 Past

  • COST shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.63%, which is quite good.
  • 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.
  • 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 Y14.08%
EPS Next 2Y11.77%
EPS Next 3Y11.31%
EPS Next 5Y9.37%
Revenue Next Year8.03%
Revenue Next 2Y7.8%
Revenue Next 3Y7.55%
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.
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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1

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 52.38 indicates a quite expensive valuation of COST.
  • COST's Price/Earnings ratio is a bit more expensive when compared to the industry. COST is more expensive than 71.05% of the companies in the same industry.
  • COST's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.18.
  • With a Price/Forward Earnings ratio of 42.99, COST can be considered very expensive at the moment.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of COST indicates a slightly more expensive valuation: COST is more expensive than 60.53% of the companies listed in the same industry.
  • COST's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.51.
Industry RankSector Rank
PE 52.38
Fwd PE 42.99
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 the industry average as 76.32% of the companies are valued more cheaply.
  • COST's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. COST is more expensive than 63.16% of the companies in the same industry.
Industry RankSector Rank
P/FCF 48.14
EV/EBITDA 31.75
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)3.72
PEG (5Y)3.32
EPS Next 2Y11.77%
EPS Next 3Y11.31%

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5

5. Dividend

5.1 Amount

  • COST has a yearly dividend return of 0.55%, which is pretty low.
  • COST's Dividend Yield is a higher than the industry average which is at 0.74.
  • Compared to an average S&P500 Dividend Yield of 1.83, COST's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.55%

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
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 2Y11.77%
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

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COSTCO WHOLESALE CORP

NASDAQ:COST (2/3/2026, 8:08:22 PM)

After market: 978.008 +0.09 (+0.01%)

977.92

+9.56 (+0.99%)

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 Change-2.78%
Ins Owners0.09%
Ins Owner Change0.81%
Market Cap433.39B
Revenue(TTM)280.39B
Net Income(TTM)8.30B
Analysts78.6
Price Target1048.98 (7.27%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.55%
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)0.03%
PT rev (3m)-3.2%
EPS NQ rev (1m)0.16%
EPS NQ rev (3m)0.48%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)1.41%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)0.12%
Valuation
Industry RankSector Rank
PE 52.38
Fwd PE 42.99
P/S 1.55
P/FCF 48.14
P/OCF 29.36
P/B 14.3
P/tB 14.3
EV/EBITDA 31.75
EPS(TTM)18.67
EY1.91%
EPS(NY)22.75
Fwd EY2.33%
FCF(TTM)20.31
FCFY2.08%
OCF(TTM)33.31
OCFY3.41%
SpS632.68
BVpS68.38
TBVpS68.38
PEG (NY)3.72
PEG (5Y)3.32
Graham Number169.48
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 9.14
F-Score7
WACC8.8%
ROIC/WACC2.22
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 Y14.08%
EPS Next 2Y11.77%
EPS Next 3Y11.31%
EPS Next 5Y9.37%
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 5Y7.09%
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 14.08% 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%.