Costco Wholesale Corporation, together with its subsidiaries, operates membership warehouses in the United States, Puerto Rico, Canada, the United Kingdom, Mexico, Japan, Korea, Australia, Spain, France, Iceland, China, and Taiwan.
Outstanding track record with adequate balance sheet and pays a dividend.
Share Price & News
How has Costco Wholesale's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: CTO has not had significant price volatility in the past 3 months.
7 Day Return
DE Consumer Retailing
1 Year Return
DE Consumer Retailing
Return vs Industry: CTO exceeded the German Consumer Retailing industry which returned 1.8% over the past year.
Return vs Market: CTO exceeded the German Market which returned 14.1% over the past year.
Price Volatility Vs. Market
How volatile is Costco Wholesale's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Is Costco Wholesale undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CTO (€297.6) is trading below our estimate of fair value (€311.85)
Significantly Below Fair Value: CTO is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: CTO is poor value based on its PE Ratio (38x) compared to the Consumer Retailing industry average (21x).
PE vs Market: CTO is poor value based on its PE Ratio (38x) compared to the German market (20.9x).
Price to Earnings Growth Ratio
PEG Ratio: CTO is poor value based on its PEG Ratio (4.9x)
Price to Book Ratio
PB vs Industry: CTO is overvalued based on its PB Ratio (9x) compared to the XE Consumer Retailing industry average (1.6x).
How is Costco Wholesale forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CTO's forecast earnings growth (7.8% per year) is above the savings rate (-0.4%).
Earnings vs Market: CTO's earnings (7.8% per year) are forecast to grow slower than the German market (13.3% per year).
High Growth Earnings: CTO's earnings are forecast to grow, but not significantly.
Revenue vs Market: CTO's revenue (6.6% per year) is forecast to grow faster than the German market (5% per year).
High Growth Revenue: CTO's revenue (6.6% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: CTO's Return on Equity is forecast to be high in 3 years time (21.5%)
How has Costco Wholesale performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CTO has high quality earnings.
Growing Profit Margin: CTO's current net profit margins (2.4%) are higher than last year (2.3%).
Past Earnings Growth Analysis
Earnings Trend: CTO's earnings have grown by 11.5% per year over the past 5 years.
Accelerating Growth: CTO's earnings growth over the past year (14.6%) exceeds its 5-year average (11.5% per year).
Earnings vs Industry: CTO earnings growth over the past year (14.6%) exceeded the Consumer Retailing industry -0.7%.
Return on Equity
High ROE: CTO's Return on Equity (23.3%) is considered high.
Return on Assets
Return on Capital Employed
How is Costco Wholesale's financial position?
Financial Position Analysis
Short Term Liabilities: CTO's short term assets ($26.6B) exceed its short term liabilities ($26.3B).
Long Term Liabilities: CTO's short term assets ($26.6B) exceed its long term liabilities ($8.9B).
Debt to Equity History and Analysis
Debt Level: CTO's debt to equity ratio (42%) is considered high.
Reducing Debt: CTO's debt to equity ratio has increased from 40.2% to 42% over the past 5 years.
Debt Coverage: CTO's debt is well covered by operating cash flow (92.3%).
Interest Coverage: CTO's interest payments on its debt are well covered by EBIT (323.3x coverage).
Inventory Level: CTO has a high level of physical assets or inventory.
Debt Coverage by Assets: CTO's debt is covered by short term assets (assets are 3.9x debt).
What is Costco Wholesale's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: CTO's dividend (0.81%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.31%).
High Dividend: CTO's dividend (0.81%) is low compared to the top 25% of dividend payers in the German market (3.57%).
Stability and Growth of Payments
Stable Dividend: CTO's dividends per share have been stable in the past 10 years.
Growing Dividend: CTO's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (29.7%), CTO's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: CTO's dividends in 3 years are forecast to be well covered by earnings (27.8% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
W. Jelinek (67yo)
Mr. W. Craig Jelinek has been the President and Chief Executive Officer of Costco Wholesale Corporation since February 2010 and January 1, 2012 respectively and served as its Executive Vice President of Me ...
CEO Compensation Analysis
Compensation vs Market: W.'s total compensation ($USD8.02M) is above average for companies of similar size in the German market ($USD4.36M).
Compensation vs Earnings: W.'s compensation has been consistent with company performance over the past year.
|Executive VP||25.1yrs||US$4.44m||0.0073% $9.7m|
|Executive VP & Chief Information Officer||0yrs||US$4.09m||0.0068% $9.0m|
|Executive VP||25.5yrs||US$4.15m||0.0027% $3.6m|
|Executive VP & COO of International Division||15.4yrs||US$4.04m||0.0097% $12.8m|
|Executive Vice President of Administration||1.1yrs||no data||0.0096% $12.7m|
|Senior Vice President of Financial Planning & Investor Relations||0yrs||no data||no data|
|Senior VP||0yrs||no data||no data|
|Senior Vice President of Costco Wholesale Industries & Business Development||0yrs||no data||no data|
|Senior Vice President of Membership||0yrs||no data||no data|
Experienced Management: CTO's management team is seasoned and experienced (15.4 years average tenure).
|Executive VP||25.1yrs||US$4.44m||0.0073% $9.7m|
|Consultant and Director Emeritus||3.1yrs||US$689.17k||0.017% $23.0m|
|Independent Director||11.2yrs||US$305.07k||0.0072% $9.5m|
|Independent Director||2.9yrs||US$313.07k||0.00049% $647.9k|
|Independent Director||15.3yrs||US$308.07k||0.0073% $9.7m|
|Independent Director||4.3yrs||US$305.07k||0.0014% $1.8m|
|Independent Director||23.1yrs||US$308.07k||0.041% $54.8m|
|Independent Director||4.3yrs||US$300.07k||0.0044% $5.8m|
|Independent Chairman of the Board||2.5yrs||US$298.07k||0.0085% $11.3m|
Experienced Board: CTO's board of directors are considered experienced (7.2 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: CTO insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Costco Wholesale Corporation's company bio, employee growth, exchange listings and data sources
- Name: Costco Wholesale Corporation
- Ticker: CTO
- Exchange: DB
- Founded: 1976
- Industry: Hypermarkets and Super Centers
- Sector: Consumer Retailing
- Market Cap: US$142.697b
- Listing Market Cap: US$132.223b
- Shares outstanding: 441.76m
- Website: https://www.costco.com
Number of Employees
- Costco Wholesale Corporation
- 999 Lake Drive
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|COST||NasdaqGS (Nasdaq Global Select)||Yes||Common Stock||US||USD||Oct 1993|
|CTO||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Oct 1993|
|COST *||BMV (Bolsa Mexicana de Valores)||Yes||Common Stock||MX||MXN||Oct 1993|
|COST||SNSE (Santiago Stock Exchange)||Yes||Common Stock||CL||USD||Oct 1993|
|0I47||LSE (London Stock Exchange)||Yes||Common Stock||GB||USD||Oct 1993|
|COST||WBAG (Wiener Boerse AG)||Yes||Common Stock||AT||EUR||Oct 1993|
|CTO||ETLX (Eurotlx)||Yes||Common Stock||IT||EUR||Oct 1993|
|COWC34||BOVESPA (Bolsa de Valores de Sao Paulo)||BDR EACH REPR 1/4 COM USD0.005||BR||BRL||Apr 2016|
Costco Wholesale Corporation, together with its subsidiaries, operates membership warehouses in the United States, Puerto Rico, Canada, the United Kingdom, Mexico, Japan, Korea, Australia, Spain, France, Iceland, China, and Taiwan. It offers branded and private-label products in a range of merchandise categories. The company provides dry and packaged foods, and groceries; snack foods, candies, alcoholic and nonalcoholic beverages, and cleaning supplies; appliances, electronics, health and beauty aids, hardware, and garden and patio products; meat, bakery, and deli products, as well as produce; and apparel and small appliances. It also operates gas stations, pharmacies, optical dispensing centers, food courts, and hearing-aid centers; and offers business delivery, travel, and various other services online in various countries. As of September 1, 2019, the company operated 782 warehouses, including 543 in the United States and Puerto Rico, 100 in Canada, 39 in Mexico, 29 in the United Kingdom, 26 in Japan, 16 in South Korea, 13 in Taiwan, 11 in Australia, 2 in Spain, 1 in Iceland, 1 in France, and 1 in China. It also operates e-commerce Websites in the United States, Canada, the United Kingdom, Mexico, South Korea, and Taiwan. The company was formerly known as Costco Companies, Inc. and changed its name to Costco Wholesale Corporation in August 1999. Costco Wholesale Corporation was founded in 1976 and is based in Issaquah, Washington.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/20 21:00|
|End of Day Share Price||2020/02/20 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.