COSTCO WHOLESALE CORP (COST) Fundamental Analysis & Valuation

NASDAQ:COST • US22160K1051

Current stock price

983.86 USD
+4.21 (+0.43%)
At close:
981.1 USD
-2.76 (-0.28%)
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.
  • 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

  • Looking at the Return On Assets, with a value of 10.22%, COST belongs to the top of the industry, outperforming 86.84% of the companies in the same industry.
  • The Return On Equity of COST (26.64%) is better than 84.21% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 19.20%, COST belongs to the top of the industry, outperforming 97.37% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for COST is significantly below the industry average of 35.75%.
  • 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

  • The Profit Margin of COST (2.99%) is better than 71.05% of its industry peers.
  • In the last couple of years the Profit Margin of COST has grown nicely.
  • COST's Operating Margin of 3.82% is fine compared to the rest 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.
  • COST has a Gross Margin of 12.93%. This is amonst the worse of the industry: COST underperforms 81.58% of its industry peers.
  • COST's Gross Margin has been stable in the last couple of years.
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

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so COST is creating value.
  • COST has about the same amout of shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, COST has more shares outstanding
  • Compared to 1 year ago, COST has an improved debt to assets ratio.
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.
  • Looking at the Altman-Z score, with a value of 9.37, COST belongs to the top of the industry, outperforming 97.37% of the companies in the same industry.
  • 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 better Debt to FCF ratio (0.63) than 89.47% 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 better Debt to Equity ratio (0.18) than 76.32% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.18
Debt/FCF 0.63
Altman-Z 9.37
ROIC/WACC2.15
WACC8.93%
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.
  • The Current ratio of COST (1.06) is comparable to the rest of the 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.
  • The Earnings Per Share has been growing by 15.76% on average over the past years. This is quite good.
  • Looking at the last year, COST shows a quite strong growth in Revenue. The Revenue has grown by 8.40% in the last year.
  • 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

  • Based on estimates for the next years, COST will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.44% on average per year.
  • Based on estimates for the next years, COST will show a small growth in Revenue. The Revenue will grow by 7.18% on average per year.
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

  • Based on the Price/Earnings ratio of 51.16, the valuation of COST can be described as expensive.
  • Compared to the rest of the industry, the Price/Earnings ratio of COST indicates a slightly more expensive valuation: COST is more expensive than 71.05% of the companies listed in the same industry.
  • COST is valuated expensively when we compare the Price/Earnings ratio to 24.88, which is the current average of the S&P500 Index.
  • The Price/Forward Earnings ratio is 43.15, which means the current valuation is very expensive for COST.
  • 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.
  • COST's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.19.
Industry RankSector Rank
PE 51.16
Fwd PE 43.15
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

  • 73.68% 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 60.53% of the companies in the same industry.
Industry RankSector Rank
P/FCF 47.97
EV/EBITDA 31.3
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.
  • COST has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.6
PEG (5Y)3.25
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.
  • Compared to an average industry Dividend Yield of 0.71, COST pays a bit more dividend than its industry peers.
  • 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 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

  • COST pays out 33.01% 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.
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 (3/27/2026, 8:09:18 PM)

After market: 981.1 -2.76 (-0.28%)

983.86

+4.21 (+0.43%)

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-0.55%
Market Cap436.49B
Revenue(TTM)286.26B
Net Income(TTM)8.55B
Analysts79.09
Price Target1067.6 (8.51%)
Short Float %1.45%
Short Ratio2.7
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)1.57%
PT rev (3m)1.81%
EPS NQ rev (1m)0.39%
EPS NQ rev (3m)0.36%
EPS NY rev (1m)0.16%
EPS NY rev (3m)0.11%
Revenue NQ rev (1m)0.48%
Revenue NQ rev (3m)0.44%
Revenue NY rev (1m)0.4%
Revenue NY rev (3m)0.37%
Valuation
Industry RankSector Rank
PE 51.16
Fwd PE 43.15
P/S 1.52
P/FCF 47.97
P/OCF 29.08
P/B 13.6
P/tB 13.6
EV/EBITDA 31.3
EPS(TTM)19.23
EY1.95%
EPS(NY)22.8
Fwd EY2.32%
FCF(TTM)20.51
FCFY2.08%
OCF(TTM)33.84
OCFY3.44%
SpS645.25
BVpS72.33
TBVpS72.33
PEG (NY)3.6
PEG (5Y)3.25
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 9.37
F-Score7
WACC8.93%
ROIC/WACC2.15
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.


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 14.23% 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 33.01%.