886.842 USD
-7.84 (-0.88%)
We assign a fundamental rating of 6 out of 10 to COST. COST was compared to 39 industry peers in the Consumer Staples Distribution & Retail industry. COST scores excellent points on both the profitability and health parts. This is a solid base for a good stock. COST is quite expensive at the moment. It does show a decent growth rate. These ratings would make COST suitable 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.
In the past 5 years COST has always been profitable.
Each year in the past 5 years COST had a positive operating cash flow.
1.2 Ratios
COST's Return On Assets of 10.50% is amongst the best of the industry. COST outperforms 87.18% of its industry peers.
The Return On Equity of COST (27.77%) is better than 82.05% of its industry peers.
Looking at the Return On Invested Capital, with a value of 19.54%, COST belongs to the top of the industry, outperforming 97.44% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for COST is significantly above the industry average of 8.83%.
The last Return On Invested Capital (19.54%) for COST is above the 3 year average (19.04%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.5% | ||
| ROE | 27.77% | ||
| ROIC | 19.54% |
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 2.94%. This is in the better half of the industry: COST outperforms 76.92% of its industry peers.
In the last couple of years the Profit Margin of COST has grown nicely.
COST has a Operating Margin of 3.77%. This is in the better half of the industry: COST outperforms 66.67% 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 has a worse Gross Margin (12.84%) than 82.05% 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 | 3.77% | ||
| PM (TTM) | 2.94% | ||
| GM | 12.84% |
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
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.
The debt/assets ratio for COST has been reduced compared to a year ago.
2.2 Solvency
COST has an Altman-Z score of 9.41. This indicates that COST is financially healthy and has little risk of bankruptcy at the moment.
COST's Altman-Z score of 9.41 is amongst the best of the industry. COST outperforms 94.87% of its industry peers.
COST has a debt to FCF ratio of 0.74. This is a very positive value and a sign of high solvency as it would only need 0.74 years to pay back of all of its debts.
COST's Debt to FCF ratio of 0.74 is amongst the best of the industry. COST outperforms 87.18% of its industry peers.
A Debt/Equity ratio of 0.20 indicates that COST is not too dependend on debt financing.
COST has a better Debt to Equity ratio (0.20) than 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 0.74 | ||
| Altman-Z | 9.41 |
ROIC/WACC2.26
WACC8.64%
2.3 Liquidity
COST has a Current Ratio of 1.03. This is a normal value and indicates that COST is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.03, COST is not doing good in the industry: 61.54% of the companies in the same industry are doing better.
A Quick Ratio of 0.55 indicates that COST may have some problems paying its short term obligations.
COST has a Quick ratio (0.55) which is comparable to the rest of the industry.
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 | 1.03 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.90% 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.
The Revenue has grown by 8.17% 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)9.9%
EPS 3Y11.13%
EPS 5Y15.76%
EPS Q2Q%10.96%
Revenue 1Y (TTM)8.17%
Revenue growth 3Y6.64%
Revenue growth 5Y10.54%
Sales Q2Q%8.1%
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 Y12.45%
EPS Next 2Y11.33%
EPS Next 3Y11.24%
EPS Next 5Y8.87%
Revenue Next Year7.92%
Revenue Next 2Y7.74%
Revenue Next 3Y7.42%
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 48.70 indicates a quite expensive valuation of COST.
Based on the Price/Earnings ratio, COST is valued a bit more expensive than 71.79% of the companies in the same industry.
When comparing the Price/Earnings ratio of COST to the average of the S&P500 Index (26.49), we can say COST is valued expensively.
With a Price/Forward Earnings ratio of 43.31, 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 64.10% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of COST to the average of the S&P500 Index (23.69), we can say COST is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.7 | ||
| Fwd PE | 43.31 |
4.2 Price Multiples
69.23% of the companies in the same industry are cheaper than COST, based on the Enterprise Value to EBITDA ratio.
COST's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. COST is more expensive than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50.15 | ||
| EV/EBITDA | 30.13 |
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 excellent profitability rating of COST may justify a higher PE ratio.
PEG (NY)3.91
PEG (5Y)3.09
EPS Next 2Y11.33%
EPS Next 3Y11.24%
5. Dividend
5.1 Amount
COST has a yearly dividend return of 0.58%, which is pretty low.
COST's Dividend Yield is a higher than the industry average which is at 2.00.
With a Dividend Yield of 0.58, COST pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
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
26.95% 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.
DP26.95%
EPS Next 2Y11.33%
EPS Next 3Y11.24%
NASDAQ:COST (12/8/2025, 3:14:06 PM)
886.842
-7.84 (-0.88%)
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-2.17%
Ins Owners0.09%
Ins Owner Change0.78%
Market Cap393.03B
Revenue(TTM)275.24B
Net Income(TTM)8.10B
Analysts77.73
Price Target1071.2 (20.79%)
Short Float %1.63%
Short Ratio2.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
Yearly Dividend4.93
Dividend Growth(5Y)7.97%
DP26.95%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.9%
Min EPS beat(2)-0.98%
Max EPS beat(2)-0.82%
EPS beat(4)1
Avg EPS beat(4)-0.33%
Min EPS beat(4)-4.04%
Max EPS beat(4)4.5%
EPS beat(8)5
Avg EPS beat(8)1.23%
EPS beat(12)6
Avg EPS beat(12)-0.42%
EPS beat(16)9
Avg EPS beat(16)0.71%
Revenue beat(2)0
Avg Revenue beat(2)-1.89%
Min Revenue beat(2)-1.94%
Max Revenue beat(2)-1.85%
Revenue beat(4)0
Avg Revenue beat(4)-1.67%
Min Revenue beat(4)-1.94%
Max Revenue beat(4)-1.05%
Revenue beat(8)0
Avg Revenue beat(8)-1.94%
Revenue beat(12)0
Avg Revenue beat(12)-2.04%
Revenue beat(16)0
Avg Revenue beat(16)-1.77%
PT rev (1m)-1.13%
PT rev (3m)-1.71%
EPS NQ rev (1m)0.08%
EPS NQ rev (3m)-0.08%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)-0.01%
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)0.75%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.7 | ||
| Fwd PE | 43.31 | ||
| P/S | 1.43 | ||
| P/FCF | 50.15 | ||
| P/OCF | 29.47 | ||
| P/B | 13.48 | ||
| P/tB | 13.48 | ||
| EV/EBITDA | 30.13 |
EPS(TTM)18.21
EY2.05%
EPS(NY)20.48
Fwd EY2.31%
FCF(TTM)17.68
FCFY1.99%
OCF(TTM)30.09
OCFY3.39%
SpS621.05
BVpS65.81
TBVpS65.81
PEG (NY)3.91
PEG (5Y)3.09
Graham Number164.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.5% | ||
| ROE | 27.77% | ||
| ROCE | 25.96% | ||
| ROIC | 19.54% | ||
| ROICexc | 31.62% | ||
| ROICexgc | 31.62% | ||
| OM | 3.77% | ||
| PM (TTM) | 2.94% | ||
| GM | 12.84% | ||
| FCFM | 2.85% |
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 Turnover3.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 0.74 | ||
| Debt/EBITDA | 0.45 | ||
| Cap/Depr | 226.63% | ||
| Cap/Sales | 2% | ||
| Interest Coverage | 97.95 | ||
| Cash Conversion | 104.11% | ||
| Profit Quality | 96.77% | ||
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.55 | ||
| Altman-Z | 9.41 |
F-Score7
WACC8.64%
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)9.9%
EPS 3Y11.13%
EPS 5Y15.76%
EPS Q2Q%10.96%
EPS Next Y12.45%
EPS Next 2Y11.33%
EPS Next 3Y11.24%
EPS Next 5Y8.87%
Revenue 1Y (TTM)8.17%
Revenue growth 3Y6.64%
Revenue growth 5Y10.54%
Sales Q2Q%8.1%
Revenue Next Year7.92%
Revenue Next 2Y7.74%
Revenue Next 3Y7.42%
Revenue Next 5Y6.26%
EBIT growth 1Y11.83%
EBIT growth 3Y9.49%
EBIT growth 5Y11.2%
EBIT Next Year35.49%
EBIT Next 3Y18.83%
EBIT Next 5Y14.04%
FCF growth 1Y18.22%
FCF growth 3Y30.81%
FCF growth 5Y5.31%
OCF growth 1Y17.6%
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 48.7 and the Price/Book (PB) ratio is 13.48.
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 12.45% in the next year.