COSTCO WHOLESALE CORP (COST) Stock Fundamental Analysis

NASDAQ:COST • US22160K1051

1010.79 USD
+24.05 (+2.44%)
At close: Feb 27, 2026
1005.41 USD
-5.38 (-0.53%)
After Hours: 2/27/2026, 8:00:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
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. 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.


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

  • In the past year COST was profitable.
  • 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

  • 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 Return On Equity of 27.40%. This is amongst the best in the industry. COST outperforms 84.21% of its industry peers.
  • COST's Return On Invested Capital of 19.55% is amongst the best of the industry. COST outperforms 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 28.42%.
  • The last Return On Invested Capital (19.55%) for COST is above the 3 year average (19.04%), which is a sign of increasing profitability.
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 has a Profit Margin of 2.96%. This is in the better half 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.
  • COST has a Operating Margin of 3.80%. This is in the better half of the industry: COST outperforms 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.
  • Looking at the Gross Margin, with a value of 12.88%, COST is doing worse than 81.58% of the companies in the same industry.
  • 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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ROAROEROICOperating and Profit MarginShow most profitable peers

6

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.
  • 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

  • COST has an Altman-Z score of 9.37. This indicates that COST is financially healthy and has little risk of bankruptcy at the moment.
  • COST has a better Altman-Z score (9.37) than 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.
  • COST's Debt to FCF ratio of 0.64 is amongst the best of the industry. COST outperforms 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.
  • The Debt to Equity ratio of COST (0.19) is better than 71.05% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.19
Debt/FCF 0.64
Altman-Z 9.37
ROIC/WACC2.3
WACC8.49%
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 1.04 indicates that COST should not have too much problems paying its short term obligations.
  • COST's Current ratio of 1.04 is on the low side compared to the rest of the industry. COST is outperformed by 60.53% of its industry peers.
  • 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.
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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

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.
  • The Revenue has grown by 8.34% in the past year. This is quite good.
  • 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)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

  • COST is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.41% yearly.
  • COST is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.17% yearly.
EPS Next Y14.05%
EPS Next 2Y11.75%
EPS Next 3Y11.31%
EPS Next 5Y9.41%
Revenue Next Year7.98%
Revenue Next 2Y7.7%
Revenue Next 3Y7.58%
Revenue Next 5Y7.17%

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.
  • 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. Valuation

4.1 Price/Earnings Ratio

  • COST is valuated quite expensively with a Price/Earnings ratio of 54.14.
  • 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.
  • When comparing the Price/Earnings ratio of COST to the average of the S&P500 Index (27.07), we can say COST is valued expensively.
  • With a Price/Forward Earnings ratio of 44.45, COST can be considered very expensive at the moment.
  • Based on the Price/Forward Earnings ratio, COST is valued a bit more expensive than the industry average as 60.53% of the companies are valued more cheaply.
  • COST's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.05.
Industry RankSector Rank
PE 54.14
Fwd PE 44.45
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 73.68% of the companies are valued more cheaply.
  • COST's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 49.83
EV/EBITDA 33.24
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 an expensive valuation of the company.
  • The decent profitability rating of COST may justify a higher PE ratio.
PEG (NY)3.85
PEG (5Y)3.44
EPS Next 2Y11.75%
EPS Next 3Y11.31%

More info and screens

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

5

5. Dividend

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 0.69.
  • With a Dividend Yield of 0.53, COST pays less dividend than the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 0.53%

5.2 History

  • On average, the dividend of COST grows each year by 7.97%, which is quite nice.
  • COST has been paying a dividend for at least 10 years, so it has 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

  • 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 2Y11.75%
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

More info and screens

Find the best dividend stocksShow peers with best dividend

COSTCO WHOLESALE CORP

NASDAQ:COST (2/27/2026, 8:00:00 PM)

After market: 1005.41 -5.38 (-0.53%)

1010.79

+24.05 (+2.44%)

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 Change3.47%
Ins Owners0.09%
Ins Owner Change0.84%
Market Cap448.66B
Revenue(TTM)280.39B
Net Income(TTM)8.30B
Analysts79.09
Price Target1067.6 (5.62%)
Short Float %1.61%
Short Ratio2.56
Dividend
Industry RankSector Rank
Dividend Yield 0.53%
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)1.77%
PT rev (3m)-0.79%
EPS NQ rev (1m)0.56%
EPS NQ rev (3m)1.08%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)1.38%
Revenue NQ rev (1m)0.22%
Revenue NQ rev (3m)0.27%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)0.04%
Valuation
Industry RankSector Rank
PE 54.14
Fwd PE 44.45
P/S 1.6
P/FCF 49.83
P/OCF 30.39
P/B 14.81
P/tB 14.81
EV/EBITDA 33.24
EPS(TTM)18.67
EY1.85%
EPS(NY)22.74
Fwd EY2.25%
FCF(TTM)20.28
FCFY2.01%
OCF(TTM)33.26
OCFY3.29%
SpS631.7
BVpS68.27
TBVpS68.27
PEG (NY)3.85
PEG (5Y)3.44
Graham Number169.35
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 9.37
F-Score7
WACC8.49%
ROIC/WACC2.3
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 Y14.05%
EPS Next 2Y11.75%
EPS Next 3Y11.31%
EPS Next 5Y9.41%
Revenue 1Y (TTM)8.34%
Revenue growth 3Y6.64%
Revenue growth 5Y10.54%
Sales Q2Q%8.3%
Revenue Next Year7.98%
Revenue Next 2Y7.7%
Revenue Next 3Y7.58%
Revenue Next 5Y7.17%
EBIT growth 1Y12.14%
EBIT growth 3Y9.49%
EBIT growth 5Y11.2%
EBIT Next Year37.2%
EBIT Next 3Y18.49%
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 14.05% 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%.