COST Stock Analysis: Costco Wholesale | NASDAQ
Discount Stores | NASDAQ, USA | Market Cap: 433.385m USD | 12M Return: 6.9% | US22160K1051 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 2.06B
EPS Trend: 99.7%
Qual. Beats: 0
Rev. Trend: 99.1%
Qual. Beats: 2
Warnings
No concerns identified
Tailwinds
Seasonality 11.7 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Costco Wholesale Corporation operates a global chain of membership-based warehouse clubs across 15 countries, including the United States, Canada, Mexico, Japan, the United Kingdom, and several other markets. The company sells a wide assortment of merchandise, ranging from dry groceries, fresh produce, and bakery items to non-food categories such as appliances, apparel, hardware, and jewelry. It also runs ancillary in-warehouse services like gasoline stations, pharmacies, optical centers, food courts, hearing-aid centers, and tire installation, along with e-commerce, business centers, and travel services. Costco was founded in 1976, is headquartered in Issaquah, Washington, and adopted its current name in August 1999 after previously being known as Costco Companies, Inc.
As a consumer staples retailer, Costco sits in a sector known for selling essential goods such as food, beverages, and household products, which typically generate steady demand across economic cycles. Its membership warehouse model differentiates it from traditional grocers and general merchandise retailers, with paid annual memberships serving as a key element of the business alongside low-margin product sales.
- Membership fee increases boost recurring revenue and operating margins
- Gasoline and ancillary services drive high-margin ancillary revenue growth
- International warehouse expansion accelerates across Europe and Asia markets
| Net Income: 9.23b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.11 > 0.02 and ΔFCF/TA 0.38 > 1.0 |
| NWC/Revenue: 0.87% < 20% (prev 0.46%; Δ 0.41% < -1%) |
| CFO/TA 0.18 > 3% & CFO 15.8b > Net Income 9.23b |
| Net Debt (-10.3b) to EBITDA (14.4b): -0.71 < 3 |
| Current Ratio: 1.06 > 1.5 & < 3 |
| Outstanding Shares: last quarter (444.4m) vs 12m ago -0.08% < -2% |
| Gross Margin: 12.82% > 18% (prev 12.84%; Δ -0.02% > 0.5%) |
| Asset Turnover: 364.9% > 50% (prev 357.0%; Δ 7.94% > 0%) |
| Interest Coverage Ratio: 80.59 > 6 (EBIT TTM 11.7b / Interest Expense TTM 145.0m) |
| A: 0.03 (Total Current Assets 46.6b - Total Current Liabilities 44.0b) / Total Assets 89.0b |
| B: 0.32 (Retained Earnings 28.6b / Total Assets 89.0b) |
| C: 0.14 (EBIT TTM 11.7b / Avg Total Assets 83.1b) |
| D: 0.67 (Book Value of Equity 35.8b / Total Liabilities 53.2b) |
| Altman-Z'' = 2.89 = A |
| DSRI: 1.12 (Receivables 3.96b/3.20b, Revenue 303b/275b) |
| GMI: 1.00 (GM 12.84% / 12.82%) |
| AQI: 0.88 (AQ_t 0.05 / AQ_t-1 0.05) |
| SGI: 1.10 (Revenue 303b / 275b) |
| TATA: -0.07 (NI 9.23b - CFO 15.8b) / TA 89.0b) |
| Beneish M = -2.93 (Cap -4..+1) = A |
As of October 21, 2026, the stock is trading at USD 994.61 with a total of 2,167,504 shares traded. Over the past week, the price has changed by +4.19%, over one month by +10.70%, over three months by +6.45% and over the past year by +6.87%.
Current recommended Stop Loss: 959.10 (which is 3.6% or 2.2 ATR below the current price).
Costco Wholesale has received a consensus analysts rating of 4.05. Therefore, it is recommended to buy COST.
- StrongBuy: 20
- Buy: 4
- Hold: 13
- Sell: 1
- StrongSell: 1
| Analysts Target Price | 1060.8 | 6.7% |
P/E Trailing = 45.9807
P/E Forward = 40.3226
P/S = 1.4296
P/B = 11.9734
P/EG = 4.4343
Revenue TTM = 303b USD
EBIT TTM = 11.7b USD
EBITDA TTM = 14.4b USD
Long Term Debt = 5.67b USD (from longTermDebt, two quarters ago)
Short Term Debt = 2.25b USD (from shortTermDebt, last quarter)
Debt = 11.0b USD (from shortLongTermDebtTotal, last quarter) + Leases 2.47b
Net Debt = -10.3b USD (calculated: Debt 11.0b - CCE 21.3b)
Enterprise Value = 423b USD (433b + Debt 11.0b - CCE 21.3b)
Interest Coverage Ratio = 80.59 (Ebit TTM 11.7b / Interest Expense TTM 145.0m)
EV/FCF = 45.06x (Enterprise Value 423b / FCF TTM 9.39b)
FCF Yield = 2.22% (FCF TTM 9.39b / Enterprise Value 423b)
FCF Margin = 3.10% (FCF TTM 9.39b / Revenue TTM 303b)
Net Margin = 3.04% (Net Income TTM 9.23b / Revenue TTM 303b)
Gross Margin = 12.82% ((Revenue TTM 303b - Cost of Revenue TTM 264b) / Revenue TTM)
Gross Margin QoQ = 12.74% (prev 12.77%)
Tobins Q-Ratio = 4.75 (Enterprise Value 423b / Total Assets 89.0b)
Interest Expense / Debt = 1.31% (Interest Expense 145.0m / Debt 11.0b)
Taxrate = 25.22% (1.01b / 4.01b)
NOPAT = 8.74b (EBIT 11.7b * (1 - 25.22%))
Current Ratio = 1.06 (Total Current Assets 46.6b / Total Current Liabilities 44.0b)
Debt / Equity = 0.31 (Debt 11.0b / totalStockholderEquity, last quarter 35.8b)
Debt / EBITDA = -0.71 (Net Debt -10.3b / EBITDA 14.4b)
Debt / FCF = -1.09 (Net Debt -10.3b / FCF TTM 9.39b)
Total Stockholder Equity = 32.9b (last 4 quarters mean from totalStockholderEquity)
RoA = 11.11% (Net Income 9.23b / Total Assets 89.0b)
RoE = 28.02% (Net Income TTM 9.23b / Total Stockholder Equity 32.9b)
RoCE = 30.28% (EBIT 11.7b / Capital Employed (Equity 32.9b + L.T.Debt 5.67b))
RoIC = 27.15% (NOPAT 8.74b / Invested Capital 32.2b)
WACC = 5.68% (E(433b)/V(444b) * Re(5.80%) + D(11.0b)/V(444b) * Rd(1.31%) * (1-Tc(0.25)))
Discount Rate = 5.80% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -78.10 | Cagr: -0.05%
[DCF] Terminal Value 77.97% ; FCFF base≈8.77b ; Y1≈10.1b ; Y5≈14.8b
[DCF] Fair Price = 525.5 (EV 223b - Net Debt -10.3b = Equity 233b / Shares 443.1m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 99.72 | EPS CAGR: 12.58% | SUE: 0.77 | # QB: 0
Revenue Correlation: 99.05 | Revenue CAGR: 7.75% | SUE: 2.98 | # QB: 2
EPS current Quarter (2026-11-30): EPS=4.91 | Chg30d=+1.10% | Revisions=+79% | Analysts=23
EPS next Quarter (2027-02-28): EPS=5.12 | Chg30d=+0.66% | Revisions=+17% | Analysts=23
EPS current Year (2027-08-31): EPS=22.79 | Chg30d=+0.53% | Revisions=+56% | GrowthEPS=+9.8% | GrowthRev=+8.6%
EPS next Year (2028-08-31): EPS=25.07 | Chg30d=+0.67% | Revisions=+56% | GrowthEPS=+10.0% | GrowthRev=+7.3%
[Analyst] Revisions Ratio: +58% (up=49, down=12)