COSTCO WHOLESALE CORP (CTO.DE) Stock Fundamental Analysis
FRA:CTO - Deutsche Boerse Ag - US22160K1051 - Common Stock - Currency: EUR
CTO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 27 industry peers in the Consumer Staples Distribution & Retail industry. CTO scores excellent points on both the profitability and health parts. This is a solid base for a good stock. CTO is valied quite expensively at the moment, while it does show a decent growth rate. With these ratings, CTO could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
CTO had positive earnings in the past year.
In the past year CTO had a positive cash flow from operations.
Each year in the past 5 years CTO has been profitable.
In the past 5 years CTO always reported a positive cash flow from operatings.
1.2 Ratios
CTO has a better Return On Assets (10.32%) than 92.31% of its industry peers.
CTO's Return On Equity of 30.98% is amongst the best of the industry. CTO outperforms 88.46% of its industry peers.
CTO's Return On Invested Capital of 20.26% is amongst the best of the industry. CTO outperforms 96.15% of its industry peers.
CTO had an Average Return On Invested Capital over the past 3 years of 18.60%. This is significantly above the industry average of 9.71%.
The 3 year average ROIC (18.60%) for CTO is below the current ROIC(20.26%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.32% | ||
| ROE | 30.98% | ||
| ROIC | 20.26% |
ROA(3y)9.59%
ROA(5y)8.89%
ROE(3y)28.2%
ROE(5y)27%
ROIC(3y)18.6%
ROIC(5y)17.81%
1.3 Margins
The Profit Margin of CTO (2.93%) is better than 80.77% of its industry peers.
CTO's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 3.67%, CTO is doing good in the industry, outperforming 61.54% of the companies in the same industry.
In the last couple of years the Operating Margin of CTO has grown nicely.
CTO has a Gross Margin of 12.67%. This is amonst the worse of the industry: CTO underperforms 84.62% of its industry peers.
In the last couple of years the Gross Margin of CTO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.67% | ||
| PM (TTM) | 2.93% | ||
| GM | 12.67% |
OM growth 3Y-0.72%
OM growth 5Y3.3%
PM growth 3Y4.25%
PM growth 5Y3.86%
GM growth 3Y-0.71%
GM growth 5Y-0.57%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), CTO is creating value.
CTO has about the same amout of shares outstanding than it did 1 year ago.
CTO has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, CTO has an improved debt to assets ratio.
2.2 Solvency
CTO has an Altman-Z score of 9.83. This indicates that CTO is financially healthy and has little risk of bankruptcy at the moment.
CTO has a Altman-Z score of 9.83. This is amongst the best in the industry. CTO outperforms 100.00% of its industry peers.
The Debt to FCF ratio of CTO is 1.15, which is an excellent value as it means it would take CTO, only 1.15 years of fcf income to pay off all of its debts.
CTO's Debt to FCF ratio of 1.15 is amongst the best of the industry. CTO outperforms 92.31% of its industry peers.
CTO has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.23, CTO belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.15 | ||
| Altman-Z | 9.83 |
ROIC/WACC2.24
WACC9.05%
2.3 Liquidity
A Current Ratio of 0.98 indicates that CTO may have some problems paying its short term obligations.
CTO has a better Current ratio (0.98) than 65.38% of its industry peers.
A Quick Ratio of 0.43 indicates that CTO may have some problems paying its short term obligations.
The Quick ratio of CTO (0.43) is worse than 61.54% of its industry peers.
CTO 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 | 0.98 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
CTO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.09%, which is quite good.
CTO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.11% yearly.
Looking at the last year, CTO shows a small growth in Revenue. The Revenue has grown by 5.35% in the last year.
Measured over the past years, CTO shows a quite strong growth in Revenue. The Revenue has been growing by 10.75% on average per year.
EPS 1Y (TTM)16.09%
EPS 3Y14.32%
EPS 5Y15.11%
EPS Q2Q%12.85%
Revenue 1Y (TTM)5.35%
Revenue growth 3Y9.1%
Revenue growth 5Y10.75%
Sales Q2Q%7.53%
3.2 Future
Based on estimates for the next years, CTO will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.46% on average per year.
Based on estimates for the next years, CTO will show a small growth in Revenue. The Revenue will grow by 6.52% on average per year.
EPS Next Y12.12%
EPS Next 2Y10.83%
EPS Next 3Y10.96%
EPS Next 5Y12.46%
Revenue Next Year6.86%
Revenue Next 2Y6.97%
Revenue Next 3Y6.73%
Revenue Next 5Y6.52%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 59.66 indicates a quite expensive valuation of CTO.
Compared to the rest of the industry, the Price/Earnings ratio of CTO indicates a slightly more expensive valuation: CTO is more expensive than 69.23% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of CTO to the average of the S&P500 Index (28.47), we can say CTO is valued expensively.
The Price/Forward Earnings ratio is 49.92, which means the current valuation is very expensive for CTO.
Based on the Price/Forward Earnings ratio, CTO is valued expensively inside the industry as 84.62% of the companies are valued cheaper.
Compared to an average S&P500 Price/Forward Earnings ratio of 92.74, CTO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 59.66 | ||
| Fwd PE | 49.92 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CTO indicates a slightly more expensive valuation: CTO is more expensive than 73.08% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CTO indicates a slightly more expensive valuation: CTO is more expensive than 76.92% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 89.96 | ||
| EV/EBITDA | 37.69 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CTO does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of CTO may justify a higher PE ratio.
PEG (NY)4.92
PEG (5Y)3.95
EPS Next 2Y10.83%
EPS Next 3Y10.96%
5. Dividend
5.1 Amount
CTO has a yearly dividend return of 0.47%, which is pretty low.
CTO's Dividend Yield is slightly below the industry average, which is at 3.91.
Compared to an average S&P500 Dividend Yield of 2.28, CTO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
5.2 History
The dividend of CTO is nicely growing with an annual growth rate of 53.89%!
Dividend Growth(5Y)53.89%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
114.19% of the earnings are spent on dividend by CTO. This is not a sustainable payout ratio.
The dividend of CTO is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP114.19%
EPS Next 2Y10.83%
EPS Next 3Y10.96%
COSTCO WHOLESALE CORP
FRA:CTO (2/4/2025, 7:00:00 PM)
983.2
+16 (+1.65%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners71.85%
Inst Owner ChangeN/A
Ins Owners0.17%
Ins Owner ChangeN/A
Market Cap436.44B
Analysts78.67
Price Target988.67 (0.56%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
Yearly Dividend20.41
Dividend Growth(5Y)53.89%
DP114.19%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.4%
Min EPS beat(2)2.31%
Max EPS beat(2)4.5%
EPS beat(4)4
Avg EPS beat(4)3.26%
Min EPS beat(4)0.1%
Max EPS beat(4)6.12%
EPS beat(8)6
Avg EPS beat(8)0.4%
EPS beat(12)8
Avg EPS beat(12)0.54%
EPS beat(16)11
Avg EPS beat(16)1.58%
Revenue beat(2)0
Avg Revenue beat(2)-2.23%
Min Revenue beat(2)-2.61%
Max Revenue beat(2)-1.85%
Revenue beat(4)0
Avg Revenue beat(4)-2.2%
Min Revenue beat(4)-3.14%
Max Revenue beat(4)-1.21%
Revenue beat(8)0
Avg Revenue beat(8)-2.17%
Revenue beat(12)0
Avg Revenue beat(12)-1.91%
Revenue beat(16)3
Avg Revenue beat(16)-1.33%
PT rev (1m)-3.53%
PT rev (3m)12.62%
EPS NQ rev (1m)1.2%
EPS NQ rev (3m)0.84%
EPS NY rev (1m)0.54%
EPS NY rev (3m)2.44%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)-0.33%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)-0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 59.66 | ||
| Fwd PE | 49.92 | ||
| P/S | 1.74 | ||
| P/FCF | 89.96 | ||
| P/OCF | 45.34 | ||
| P/B | 18.45 | ||
| P/tB | 18.45 | ||
| EV/EBITDA | 37.69 |
EPS(TTM)16.48
EY1.68%
EPS(NY)19.69
Fwd EY2%
FCF(TTM)10.93
FCFY1.11%
OCF(TTM)21.68
OCFY2.21%
SpS564.13
BVpS53.3
TBVpS53.3
PEG (NY)4.92
PEG (5Y)3.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.32% | ||
| ROE | 30.98% | ||
| ROCE | 27.06% | ||
| ROIC | 20.26% | ||
| ROICexc | 30.56% | ||
| ROICexgc | 30.56% | ||
| OM | 3.67% | ||
| PM (TTM) | 2.93% | ||
| GM | 12.67% | ||
| FCFM | 1.94% |
ROA(3y)9.59%
ROA(5y)8.89%
ROE(3y)28.2%
ROE(5y)27%
ROIC(3y)18.6%
ROIC(5y)17.81%
ROICexc(3y)29.37%
ROICexc(5y)29.08%
ROICexgc(3y)30.8%
ROICexgc(5y)30.84%
ROCE(3y)24.84%
ROCE(5y)23.78%
ROICexcg growth 3Y-2.2%
ROICexcg growth 5Y2.32%
ROICexc growth 3Y-1.15%
ROICexc growth 5Y1.43%
OM growth 3Y-0.72%
OM growth 5Y3.3%
PM growth 3Y4.25%
PM growth 5Y3.86%
GM growth 3Y-0.71%
GM growth 5Y-0.57%
F-Score8
Asset Turnover3.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.15 | ||
| Debt/EBITDA | 0.49 | ||
| Cap/Depr | 216.03% | ||
| Cap/Sales | 1.91% | ||
| Interest Coverage | 78.49 | ||
| Cash Conversion | 84.44% | ||
| Profit Quality | 66.18% | ||
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.43 | ||
| Altman-Z | 9.83 |
F-Score8
WACC9.05%
ROIC/WACC2.24
Cap/Depr(3y)207.83%
Cap/Depr(5y)199.15%
Cap/Sales(3y)1.78%
Cap/Sales(5y)1.77%
Profit Quality(3y)85.7%
Profit Quality(5y)103.11%
High Growth Momentum
Growth
EPS 1Y (TTM)16.09%
EPS 3Y14.32%
EPS 5Y15.11%
EPS Q2Q%12.85%
EPS Next Y12.12%
EPS Next 2Y10.83%
EPS Next 3Y10.96%
EPS Next 5Y12.46%
Revenue 1Y (TTM)5.35%
Revenue growth 3Y9.1%
Revenue growth 5Y10.75%
Sales Q2Q%7.53%
Revenue Next Year6.86%
Revenue Next 2Y6.97%
Revenue Next 3Y6.73%
Revenue Next 5Y6.52%
EBIT growth 1Y13.78%
EBIT growth 3Y8.31%
EBIT growth 5Y14.41%
EBIT Next Year39.64%
EBIT Next 3Y19.62%
EBIT Next 5Y17.81%
FCF growth 1Y75.87%
FCF growth 3Y7.27%
FCF growth 5Y14.57%
OCF growth 1Y47.51%
OCF growth 3Y8.17%
OCF growth 5Y12.27%