(COST) Costco Wholesale - NASDAQ
Sector: Consumer Defensive | Industry: Discount Stores | Exchange: NASDAQ (USA) | Market Cap: 432.698m USD | Total Return: 0.1% in 12m
Avg Turnover: 2.38B
EPS Trend: 99.7%
Qual. Beats: 0
Rev. Trend: 99.2%
Qual. Beats: 1
Warnings
No concerns identified
Tailwinds
Confidence
Costco Wholesale Corporation operates a global network of membership-only warehouses across North America, Europe, and Asia. The company utilizes a high-volume, low-margin business model, generating significant revenue from annual membership fees rather than traditional retail markups. This structure allows the company to offer a curated selection of bulk groceries, electronics, and apparel at competitive prices.
The company maintains diverse revenue streams through ancillary services, including gasoline stations, pharmacies, and optical centers, which drive recurring foot traffic. Within the Consumer Staples Merchandise Retail sector, this membership model creates high customer loyalty and predictable cash flows. For a deeper look into these financial metrics, evaluate the companys performance trends on ValueRay. Costco’s operations also extend to e-commerce and specialized business centers to capture both individual and commercial market segments.
- High membership renewal rates and fee increases drive core operating income
- Low product margins and bulk purchasing power sustain competitive market share
- Gasoline price volatility and volume fluctuations impact short term revenue growth
- International warehouse expansion strategy accelerates long term top line diversification
- Consumer shift toward private label Kirkland Signature brand improves gross margins
| Net Income: 8.84b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.10 > 0.02 and ΔFCF/TA 0.49 > 1.0 |
| NWC/Revenue: 1.04% < 20% (prev 0.21%; Δ 0.83% < -1%) |
| CFO/TA 0.17 > 3% & CFO 15.0b > Net Income 8.84b |
| Net Debt (-8.31b) to EBITDA (13.8b): -0.60 < 3 |
| Current Ratio: 1.07 > 1.5 & < 3 |
| Outstanding Shares: last quarter (443.5m) vs 12m ago -0.29% < -2% |
| Gross Margin: 12.88% > 18% (prev 12.78%; Δ 0.10% > 0.5%) |
| Asset Turnover: 362.7% > 50% (prev 356.1%; Δ 6.57% > 0%) |
| Interest Coverage Ratio: 76.88 > 6 (EBIT TTM 11.2b / Interest Expense TTM 146.0m) |
| A: 0.04 (Total Current Assets 45.2b - Total Current Liabilities 42.1b) / Total Assets 86.4b |
| B: 0.31 (Retained Earnings 26.5b / Total Assets 86.4b) |
| C: 0.14 (EBIT TTM 11.2b / Avg Total Assets 81.0b) |
| D: 0.63 (Book Value of Equity 33.5b / Total Liabilities 52.9b) |
| Altman-Z'' = 2.83 = A |
| DSRI: 1.19 (Receivables 3.75b/2.88b, Revenue 294b/269b) |
| GMI: 0.99 (GM 12.78% / 12.88%) |
| AQI: 0.91 (AQ_t 0.05 / AQ_t-1 0.05) |
| SGI: 1.09 (Revenue 294b / 269b) |
| TATA: -0.07 (NI 8.84b - CFO 15.0b) / TA 86.4b) |
| Beneish M = -2.87 (Cap -4..+1) = A |
As of June 17, 2026, the stock is trading at USD 979.45 with a total of 1,847,589 shares traded.
Over the past week, the price has changed by +0.48%,
over one month by -6.63%,
over three months by -2.08% and
over the past year by +0.06%.
Costco Wholesale has received a consensus analysts rating of 3.97. Therefore, it is recommended to buy COST.
- StrongBuy: 17
- Buy: 5
- Hold: 15
- Sell: 0
- StrongSell: 1
| Analysts Target Price | 1082.3 | 10.5% |
P/E Trailing = 49.0296
P/E Forward = 43.6681
P/S = 1.4738
P/B = 13.0145
P/EG = 4.7996
Revenue TTM = 294b USD
EBIT TTM = 11.2b USD
EBITDA TTM = 13.8b USD
Long Term Debt = 5.67b USD (from longTermDebt, last quarter)
Short Term Debt = 361.0m USD (from shortTermDebt, last fiscal year)
Debt = 10.6b USD (from shortLongTermDebtTotal, last fiscal year) + Leases 2.47b
Net Debt = -8.31b USD (calculated: Debt 10.6b - CCE 18.9b)
Enterprise Value = 424b USD (433b + Debt 10.6b - CCE 18.9b)
Interest Coverage Ratio = 76.88 (Ebit TTM 11.2b / Interest Expense TTM 146.0m)
EV/FCF = 48.19x (Enterprise Value 424b / FCF TTM 8.81b)
FCF Yield = 2.07% (FCF TTM 8.81b / Enterprise Value 424b)
FCF Margin = 3.00% (FCF TTM 8.81b / Revenue TTM 294b)
Net Margin = 3.01% (Net Income TTM 8.84b / Revenue TTM 294b)
Gross Margin = 12.88% ((Revenue TTM 294b - Cost of Revenue TTM 256b) / Revenue TTM)
Gross Margin QoQ = 12.77% (prev 12.76%)
Tobins Q-Ratio = 4.91 (Enterprise Value 424b / Total Assets 86.4b)
Interest Expense / Debt = 1.37% (Interest Expense 146.0m / Debt 10.6b)
Taxrate = 24.80% (2.91b / 11.8b)
NOPAT = 8.44b (EBIT 11.2b * (1 - 24.80%))
Current Ratio = 1.07 (Total Current Assets 45.2b / Total Current Liabilities 42.1b)
Debt / Equity = 0.32 (Debt 10.6b / totalStockholderEquity, last quarter 33.5b)
Debt / EBITDA = -0.60 (Net Debt -8.31b / EBITDA 13.8b)
Debt / FCF = -0.94 (Net Debt -8.31b / FCF TTM 8.81b)
Total Stockholder Equity = 31.3b (last 4 quarters mean from totalStockholderEquity)
RoA = 10.92% (Net Income 8.84b / Total Assets 86.4b)
RoE = 28.27% (Net Income TTM 8.84b / Total Stockholder Equity 31.3b)
RoCE = 30.39% (EBIT 11.2b / Capital Employed (Equity 31.3b + L.T.Debt 5.67b))
RoIC = 28.15% (NOPAT 8.44b / Invested Capital 30.0b)
WACC = 6.90% (E(433b)/V(443b) * Re(7.04%) + D(10.6b)/V(443b) * Rd(1.37%) * (1-Tc(0.25)))
Discount Rate = 7.04% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -62.93 | Cagr: -0.13%
[DCF] Terminal Value 77.97% ; FCFF base≈8.21b ; Y1≈9.41b ; Y5≈13.9b
[DCF] Fair Price = 488.8 (EV 208b - Net Debt -8.31b = Equity 217b / Shares 443.5m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 99.67 | EPS CAGR: 12.74% | SUE: -0.34 | # QB: 0
Revenue Correlation: 99.25 | Revenue CAGR: 7.12% | SUE: 2.60 | # QB: 1
EPS next Quarter (2026-11-30): EPS=4.86 | Chg30d=+1.15% | Revisions=+47% | Analysts=15
EPS current Year (2026-08-31): EPS=20.58 | Chg30d=+0.50% | Revisions=+48% | GrowthEPS=+13.0% | GrowthRev=+9.4%
EPS next Year (2027-08-31): EPS=22.66 | Chg30d=+0.70% | Revisions=+55% | GrowthEPS=+10.1% | GrowthRev=+8.1%
[Analyst] Revisions Ratio: +55%