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Costco Wholesale

Nasdaq:COST
Snowflake Description

Outstanding track record average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
COST
Nasdaq
$108B
Market Cap
  1. Home
  2. US
  3. Consumer Retailing
Company description

Costco Wholesale Corporation, together with its subsidiaries, operates membership warehouses. The last earnings update was 64 days ago. More info.


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COST Share Price and Events
7 Day Returns
0.5%
NasdaqGS:COST
-2%
US Consumer Retailing
-3.9%
US Market
1 Year Returns
22.6%
NasdaqGS:COST
12.2%
US Consumer Retailing
1.4%
US Market
COST Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Costco Wholesale (COST) 0.5% -0.3% 13% 22.6% 71.5% 113.3%
US Consumer Retailing -2% -0.7% 0.7% 12.2% 26.8% 28.8%
US Market -3.9% -3.6% 1.8% 1.4% 35.8% 40.8%
1 Year Return vs Industry and Market
  • COST outperformed the Consumer Retailing industry which returned 12.2% over the past year.
  • COST outperformed the Market in United States of America which returned 1.4% over the past year.
Price Volatility
COST
Industry
5yr Volatility vs Market

COST Value

 Is Costco Wholesale undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Costco Wholesale to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Costco Wholesale.

NasdaqGS:COST Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 24 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:COST
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Consumer Retailing Unlevered Beta Simply Wall St/ S&P Global 0.48
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.476 (1 + (1- 21%) (6.03%))
0.664
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.8 * 5.96%)
7.5%

Discounted Cash Flow Calculation for NasdaqGS:COST using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Costco Wholesale is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:COST DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.5%)
2019 2,568.59 Analyst x10 2,389.43
2020 2,692.95 Analyst x11 2,330.38
2021 3,327.38 Analyst x5 2,678.56
2022 3,413.00 Analyst x3 2,555.85
2023 4,107.07 Analyst x3 2,861.08
2024 4,508.52 Est @ 9.77% 2,921.67
2025 4,853.93 Est @ 7.66% 2,926.11
2026 5,154.00 Est @ 6.18% 2,890.29
2027 5,419.24 Est @ 5.15% 2,827.06
2028 5,658.85 Est @ 4.42% 2,746.15
Present value of next 10 years cash flows $27,126.58
NasdaqGS:COST DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $5,658.85 × (1 + 2.73%) ÷ (7.5% – 2.73%)
$121,923.98
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $121,923.98 ÷ (1 + 7.5%)10
$59,167.78
NasdaqGS:COST Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $27,126.58 + $59,167.78
$86,294.36
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $86,294.36 / 439.88
$196.18
NasdaqGS:COST Discount to Share Price
Calculation Result
Value per share (USD) From above. $196.18
Current discount Discount to share price of $244.67
= -1 x ($244.67 - $196.18) / $196.18
-24.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Costco Wholesale is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Costco Wholesale's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Costco Wholesale's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:COST PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-02-17) in USD $7.85
NasdaqGS:COST Share Price ** NasdaqGS (2019-05-15) in USD $244.67
United States of America Consumer Retailing Industry PE Ratio Median Figure of 22 Publicly-Listed Consumer Retailing Companies 21.62x
United States of America Market PE Ratio Median Figure of 3,087 Publicly-Listed Companies 17.79x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Costco Wholesale.

NasdaqGS:COST PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:COST Share Price ÷ EPS (both in USD)

= 244.67 ÷ 7.85

31.15x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Costco Wholesale is overvalued based on earnings compared to the US Consumer Retailing industry average.
  • Costco Wholesale is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Costco Wholesale's expected growth come at a high price?
Raw Data
NasdaqGS:COST PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 31.15x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 24 Analysts
6.1%per year
United States of America Consumer Retailing Industry PEG Ratio Median Figure of 14 Publicly-Listed Consumer Retailing Companies 2.49x
United States of America Market PEG Ratio Median Figure of 2,113 Publicly-Listed Companies 1.52x

*Line of best fit is calculated by linear regression .

NasdaqGS:COST PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 31.15x ÷ 6.1%

5.14x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Costco Wholesale is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Costco Wholesale's assets?
Raw Data
NasdaqGS:COST PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-02-17) in USD $31.50
NasdaqGS:COST Share Price * NasdaqGS (2019-05-15) in USD $244.67
United States of America Consumer Retailing Industry PB Ratio Median Figure of 30 Publicly-Listed Consumer Retailing Companies 2.38x
United States of America Market PB Ratio Median Figure of 5,195 Publicly-Listed Companies 1.83x
NasdaqGS:COST PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:COST Share Price ÷ Book Value per Share (both in USD)

= 244.67 ÷ 31.50

7.77x

* Primary Listing of Costco Wholesale.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Costco Wholesale is overvalued based on assets compared to the US Consumer Retailing industry average.
X
Value checks
We assess Costco Wholesale's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Consumer Retailing industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Consumer Retailing industry average (and greater than 0)? (1 check)
  5. Costco Wholesale has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

COST Future Performance

 How is Costco Wholesale expected to perform in the next 1 to 3 years based on estimates from 24 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
6.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Costco Wholesale expected to grow at an attractive rate?
  • Costco Wholesale's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Costco Wholesale's earnings growth is positive but not above the United States of America market average.
  • Costco Wholesale's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:COST Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:COST Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 24 Analysts 6.1%
NasdaqGS:COST Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 24 Analysts 6.7%
United States of America Consumer Retailing Industry Earnings Growth Rate Market Cap Weighted Average 16.7%
United States of America Consumer Retailing Industry Revenue Growth Rate Market Cap Weighted Average 3.7%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:COST Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 24 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:COST Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-08-31 199,365 7,933 4,530 4
2022-08-31 187,295 7,133 4,247 5
2021-08-31 174,286 6,575 4,014 13
2020-08-31 163,254 6,029 3,728 24
2019-08-31 152,551 5,728 3,553 24
NasdaqGS:COST Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-02-17 147,237 5,617 3,449
2018-11-25 144,836 5,945 3,261
2018-09-02 141,576 5,774 3,134
2018-05-13 139,465 6,054 3,010
2018-02-18 135,964 5,555 2,960
2017-11-26 132,735 5,939 2,774
2017-09-03 129,025 6,726 2,679
2017-05-07 123,285 4,723 2,539
2017-02-12 121,194 4,976 2,384
2016-11-20 119,598 5,274 2,415
2016-08-28 118,719 3,292 2,350
2016-05-08 117,937 4,489 2,338

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Costco Wholesale's earnings are expected to grow by 6.1% yearly, however this is not considered high growth (20% yearly).
  • Costco Wholesale's revenue is expected to grow by 6.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:COST Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 24 Analyst Estimates (S&P Global) See Below

All data from Costco Wholesale Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:COST Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-08-31 11.43 13.56 9.52 3.00
2022-08-31 10.16 11.66 8.99 4.00
2021-08-31 9.27 10.22 8.48 10.00
2020-08-31 8.54 9.08 8.06 17.00
2019-08-31 8.04 8.27 7.64 17.00
NasdaqGS:COST Past Financials Data
Date (Data in USD Millions) EPS *
2019-02-17 7.85
2018-11-25 7.43
2018-09-02 7.15
2018-05-13 6.87
2018-02-18 6.75
2017-11-26 6.33
2017-09-03 6.11
2017-05-07 5.79
2017-02-12 5.44
2016-11-20 5.51
2016-08-28 5.36
2016-05-08 5.33

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Costco Wholesale is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Costco Wholesale's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Costco Wholesale has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

COST Past Performance

  How has Costco Wholesale performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Costco Wholesale's growth in the last year to its industry (Consumer Retailing).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Costco Wholesale's year on year earnings growth rate has been positive over the past 5 years.
  • Costco Wholesale's 1-year earnings growth exceeds its 5-year average (16.6% vs 10.2%)
  • Costco Wholesale's earnings growth has exceeded the US Consumer Retailing industry average in the past year (16.6% vs -5%).
Earnings and Revenue History
Costco Wholesale's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Costco Wholesale Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:COST Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-02-17 147,237.00 3,449.00 14,427.00
2018-11-25 144,836.00 3,261.00 14,200.00
2018-09-02 141,576.00 3,134.00 13,944.00
2018-05-13 139,465.00 3,010.00 13,803.00
2018-02-18 135,964.00 2,960.00 13,562.00
2017-11-26 132,735.00 2,774.00 13,311.00
2017-09-03 129,025.00 2,679.00 13,032.00
2017-05-07 123,285.00 2,539.00 12,599.00
2017-02-12 121,194.00 2,384.00 12,426.00
2016-11-20 119,598.00 2,415.00 12,276.00
2016-08-28 118,719.00 2,350.00 12,146.00
2016-05-08 117,937.00 2,338.00 11,952.00
2016-02-14 117,269.00 2,309.00 11,796.00
2015-11-22 116,553.00 2,361.00 11,631.00
2015-08-30 116,199.00 2,377.00 11,510.00
2015-05-10 115,944.00 2,307.00 11,379.00
2015-02-15 115,637.00 2,264.00 11,289.00
2014-11-23 114,489.00 2,129.00 11,148.00
2014-08-31 112,640.00 2,058.00 10,962.00
2014-05-11 109,604.00 1,978.00 10,682.00
2014-02-16 107,893.00 1,964.00 10,502.00
2013-11-24 106,458.00 2,048.00 10,330.00
2013-09-01 105,156.00 2,039.00 10,155.00
2013-05-12 104,887.00 2,031.00 10,099.00
2013-02-17 103,128.00 1,958.00 9,934.00
2012-11-25 101,224.00 1,805.00 9,751.00
2012-09-02 99,137.00 1,709.00 9,555.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Costco Wholesale has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Costco Wholesale used its assets more efficiently than the US Consumer Retailing industry average last year based on Return on Assets.
  • Costco Wholesale has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Costco Wholesale's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Consumer Retailing industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Costco Wholesale has a total score of 6/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

COST Health

 How is Costco Wholesale's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Costco Wholesale's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Costco Wholesale's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Costco Wholesale's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Costco Wholesale's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 3.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Costco Wholesale Company Filings, last reported 2 months ago.

NasdaqGS:COST Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-02-17 14,183.00 6,492.00 7,122.00
2018-11-25 13,479.00 6,480.00 7,953.00
2018-09-02 13,103.00 6,974.00 7,259.00
2018-05-13 12,447.00 6,492.00 7,044.00
2018-02-18 12,053.00 6,505.00 5,830.00
2017-11-26 11,356.00 6,478.00 6,885.00
2017-09-03 11,079.00 6,659.00 5,779.00
2017-05-07 10,185.00 3,979.00 5,725.00
2017-02-12 12,712.00 5,072.00 5,965.00
2016-11-20 12,231.00 5,092.00 6,116.00
2016-08-28 12,332.00 5,161.00 4,729.00
2016-05-08 11,748.00 5,114.00 6,021.00
2016-02-14 11,234.00 4,975.00 4,855.00
2015-11-22 11,080.00 6,126.00 6,283.00
2015-08-30 10,843.00 6,135.00 6,419.00
2015-05-10 10,814.00 6,026.00 6,805.00
2015-02-15 10,425.00 5,030.00 7,453.00
2014-11-23 12,570.00 5,034.00 7,619.00
2014-08-31 12,515.00 5,093.00 7,315.00
2014-05-11 12,021.00 4,985.00 7,275.00
2014-02-16 11,709.00 4,985.00 6,482.00
2013-11-24 11,409.00 4,987.00 6,439.00
2013-09-01 11,012.00 4,998.00 6,124.00
2013-05-12 10,647.00 4,941.00 6,510.00
2013-02-17 10,283.00 4,871.00 5,651.00
2012-11-25 12,832.00 1,379.00 5,576.00
2012-09-02 12,518.00 1,381.00 4,854.00
  • Costco Wholesale's level of debt (45.8%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (42.5% vs 45.8% today).
  • Debt is well covered by operating cash flow (86.5%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 84.8x coverage).
X
Financial health checks
We assess Costco Wholesale's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Costco Wholesale has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

COST Dividends

 What is Costco Wholesale's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.06%
Current annual income from Costco Wholesale dividends. Estimated to be 1.09% next year.
If you bought $2,000 of Costco Wholesale shares you are expected to receive $21 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Costco Wholesale's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.46%).
  • Costco Wholesale's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:COST Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 24 Analyst Estimates (S&P Global) See Below
United States of America Consumer Retailing Industry Average Dividend Yield Market Cap Weighted Average of 12 Stocks 2%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1997 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:COST Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-08-31 3.01 2.00
2022-08-31 2.88 2.00
2021-08-31 2.88 8.00
2020-08-31 2.66 14.00
2019-08-31 2.44 13.00
NasdaqGS:COST Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-04-26 2.600 1.068
2019-01-24 2.280 1.002
2018-10-24 2.280 1.047
2018-08-17 2.280 0.985
2018-04-24 2.280 1.101
2018-01-30 2.000 1.066
2017-10-30 2.000 1.099
2017-07-31 2.000 1.255
2017-04-25 2.000 1.201
2017-01-27 1.800 1.062
2016-10-12 1.800 1.161
2016-07-25 1.800 1.133
2016-04-14 1.800 1.170
2016-01-29 1.600 1.056
2015-10-29 1.600 1.012
2015-07-27 1.600 1.098
2015-04-17 1.600 1.124
2015-01-29 1.420 0.952
2014-10-28 1.420 1.014
2014-06-23 1.420 1.165
2014-04-29 1.420 1.230
2014-01-30 1.240 1.091
2013-10-29 1.240 1.040
2013-07-22 1.240 1.071
2013-04-30 1.240 1.110
2013-01-24 1.100 1.060
2012-10-31 1.100 1.109
2012-07-23 1.100 1.123
2012-05-09 1.100 1.231
2012-01-26 0.960 1.107
2011-10-25 0.960 1.154
2011-07-18 0.960 1.207
2011-04-26 0.960 1.190
2011-01-27 0.820 1.110
2010-10-07 0.820 1.206
2010-07-20 0.820 1.401
2010-04-22 0.820 1.431
2010-01-28 0.720 1.198
2009-10-08 0.720 1.219
2009-07-27 0.720 1.367

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Costco Wholesale's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.4x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.4x coverage).
X
Income/ dividend checks
We assess Costco Wholesale's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Costco Wholesale afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Costco Wholesale has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

COST Management

 What is the CEO of Costco Wholesale's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
W. Jelinek
COMPENSATION $7,408,513
AGE 66
TENURE AS CEO 7.3 years
CEO Bio

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 Merchandising since 2004. Mr. Jelinek served as an Executive Vice President and Chief Operating Officer of Merchandising of Costco Wholesale Corp. since February 2004 until February 2010. He served as Chief Operating Officer of Costco Wholesale Corporation from February 2010 to December 2011. Mr. Jelinek served as Chief Operating Officer of Northern Division at Costco Wholesale Corp. since September 1995. He served as Senior Vice President of Operations - Northwest Region at Costco Wholesale Corp. since September 1994. From May 1986 to September 1994, he served as Vice President of Regional Operations and Manager of Los Angeles Region. He joined Costco Wholesale Corporation in April 1984. Mr. Jelinek has been a Director at Costco Wholesale Corporation since February 2010. He has been a Director of Costco Wholesale Australia, Pty Limited since June 5, 2015.

CEO Compensation
  • W.'s compensation has been consistent with company performance over the past year.
  • W.'s remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Costco Wholesale management team in years:

19.7
Average Tenure
66
Average Age
  • The average tenure for the Costco Wholesale management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

W. Jelinek

TITLE
President
COMPENSATION
$7M
AGE
66
TENURE
7.3 yrs

Richard Galanti

TITLE
Executive VP
COMPENSATION
$4M
AGE
62
TENURE
25.6 yrs

Paul Moulton

TITLE
Executive VP & Chief Information Officer
COMPENSATION
$4M
AGE
67

Joseph Portera

TITLE
Executive VP
COMPENSATION
$4M
AGE
66
TENURE
24.8 yrs

James Murphy

TITLE
Executive VP & COO of International
COMPENSATION
$4M
AGE
65
TENURE
14.7 yrs

Franz Lazarus

TITLE
Executive Vice President of Administration & Human Resources
COMPENSATION
$557K
AGE
71

Bob Nelson

TITLE
Senior Vice President of Financial Planning & Investor Relations

John Sullivan

TITLE
Senior VP

Richard Chavez

TITLE
Senior Vice President of Costco Wholesale Industries & Business Development

Paul Latham

TITLE
Senior Vice President of Membership
Board of Directors Tenure

Average tenure and age of the Costco Wholesale board of directors in years:

9.3
Average Tenure
64.5
Average Age
  • The tenure for the Costco Wholesale board of directors is about average.
Board of Directors

Tony James

TITLE
Chairman of the Board
COMPENSATION
$298K
AGE
67
TENURE
1.8 yrs

W. Jelinek

TITLE
President
COMPENSATION
$7M
AGE
66
TENURE
9.3 yrs

Richard Galanti

TITLE
Executive VP
COMPENSATION
$4M
AGE
62
TENURE
24.3 yrs

Richard Libenson

TITLE
Consultant and Director Emeritus
COMPENSATION
$689K
AGE
76
TENURE
2.3 yrs

Charlie Munger

TITLE
Director
COMPENSATION
$310K
AGE
94
TENURE
22.3 yrs

Jeff Raikes

TITLE
Director
COMPENSATION
$303K
AGE
60
TENURE
10.4 yrs

John Stanton

TITLE
Director
COMPENSATION
$312K
AGE
63
TENURE
3.6 yrs

John Meisenbach

TITLE
Director
COMPENSATION
$298K
AGE
82

Sue Decker

TITLE
Director
COMPENSATION
$306K
AGE
55
TENURE
14.6 yrs

Maggie Wilderotter

TITLE
Director
COMPENSATION
$309K
AGE
63
TENURE
3.6 yrs
Who owns this company?
Recent Insider Trading
  • Costco Wholesale insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
02. Apr 19 Buy John Meisenbach Individual 01. Apr 19 01. Apr 19 3,000 $242.65 $727,935
28. Mar 19 Sell Susan Decker Individual 26. Mar 19 26. Mar 19 -2,350 $240.00 $-564,000
13. Mar 19 Sell Timothy Rose Individual 13. Mar 19 13. Mar 19 -6,000 $234.27 $-1,405,624
13. Mar 19 Sell Susan Decker Individual 12. Mar 19 12. Mar 19 -2,049 $232.00 $-475,368
13. Mar 19 Sell Joseph Portera Individual 11. Mar 19 11. Mar 19 -11,765 $228.53 $-2,688,388
13. Mar 19 Sell Paul Moulton Individual 12. Mar 19 12. Mar 19 -8,189 $232.74 $-1,905,934
13. Mar 19 Sell Richard Galanti Individual 11. Mar 19 12. Mar 19 -4,188 $231.40 $-965,197
04. Jan 19 Sell Susan Decker Individual 04. Jan 19 04. Jan 19 -1,611 $206.50 $-332,108
03. Jan 19 Sell Susan Decker Individual 02. Jan 19 02. Jan 19 -739 $205.00 $-151,495
01. Nov 18 Sell Richard Galanti Individual 30. Oct 18 30. Oct 18 -4,163 $227.23 $-945,940
30. Oct 18 Sell W. Jelinek Individual 29. Oct 18 30. Oct 18 -22,500 $225.60 $-5,029,106
26. Oct 18 Sell Richard Libenson Individual 25. Oct 18 25. Oct 18 -2,049 $224.00 $-458,976
26. Oct 18 Sell Franz Lazarus Individual 25. Oct 18 25. Oct 18 -23,000 $226.76 $-5,215,455
16. Oct 18 Sell Ron Vachris Individual 15. Oct 18 15. Oct 18 -6,600 $225.88 $-1,490,808
24. Jul 18 Sell James Murphy Individual 23. Jul 18 23. Jul 18 -15,000 $219.22 $-3,288,252
19. Jun 18 Sell Richard Galanti Individual 15. Jun 18 15. Jun 18 -2,406 $207.11 $-498,315
19. Jun 18 Sell Paul Moulton Individual 18. Jun 18 18. Jun 18 -5,585 $206.83 $-1,155,135
13. Jun 18 Sell Daniel Hines Individual 13. Jun 18 13. Jun 18 -7,000 $204.67 $-1,432,676
13. Jun 18 Sell Timothy Rose Individual 13. Jun 18 13. Jun 18 -2,500 $205.19 $-512,970
X
Management checks
We assess Costco Wholesale's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Costco Wholesale has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

COST News

Simply Wall St News

Costco Wholesale Corporation (NASDAQ:COST) Has Got What It Takes To Be An Attractive Dividend Stock

Today we'll take a closer look at Costco Wholesale Corporation (NASDAQ:COST) from a dividend investor's perspective. Owning a strong business and reinvesting the dividends is widely seen as an attractive way of growing your wealth. Yet sometimes, investors buy a popular dividend stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations. While Costco Wholesale's 1.1% dividend yield is not the highest, we think its lengthy payment history is quite interesting. The company also bought back stock during the year, equivalent to approximately 0.5% of the company's market capitalisation at the time. Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1. … NasdaqGS:COST Historical Dividend Yield, May 14th 2019 Payout ratios Dividends are usually paid out of company earnings. … Earnings growth generally bodes well for the future value of company dividend payments.

Simply Wall St -

Here's Why I Think Costco Wholesale (NASDAQ:COST) Is An Interesting Stock

If, on the other hand, you like companies that have revenue, and even earn profits, then you may well be interested in Costco Wholesale (NASDAQ:COST). … I like to take a look at earnings before interest and (EBIT) tax margins, as well as revenue growth, to get another take on the quality of the company's growth. … Costco Wholesale maintained stable EBIT margins over the last year, all while growing revenue 8.3% to US$147b.

Simply Wall St -

Is Costco Wholesale's (NASDAQ:COST) 113% Share Price Increase Well Justified?

One great example is Costco Wholesale Corporation (NASDAQ:COST) which saw its share price drive 113% higher over five years. … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … Over half a decade, Costco Wholesale managed to grow its earnings per share at 12% a year.

Simply Wall St -

Does This Valuation Of Costco Wholesale Corporation (NASDAQ:COST) Imply Investors Are Overpaying?

I will be using the Discounted Cash Flow (DCF) model. … If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model. … We're using the 2-stage growth model, which simply means we take in account two stages of company's growth

Simply Wall St -

Does Costco Wholesale Corporation's (NASDAQ:COST) CEO Salary Compare Well With Others?

This analysis aims first to contrast CEO compensation with other large companies. … Our data indicates that Costco Wholesale Corporation is worth US$108b, and total annual CEO compensation is US$7.4m? … We took a group of companies with market capitalizations over US$8.0b, and calculated the median CEO total compensation to be US$11m.

Simply Wall St -

Have Insiders Been Selling Costco Wholesale Corporation (NASDAQ:COST) Shares?

So shareholders might well want to know whether insiders have been buying or selling shares in Costco Wholesale Corporation (NASDAQ:COST). … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … In total, Costco Wholesale insiders sold more than they bought over the last year

Simply Wall St -

What Can We Make Of Costco Wholesale Corporation’s (NASDAQ:COST) High Return On Capital?

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Return On Capital Employed (ROCE): What is it? … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.

Simply Wall St -

Costco Wholesale Corporation (NASDAQ:COST): How Much Money Comes Back To Investors?

I will take you through Costco Wholesale’s cash flow health and the risk-return concept based on the stock’s cash flow yield, using the most recent financial data. … Costco Wholesale’s free cash flow (FCF) is the level of cash flow the business generates from its operational activities, after it reinvests in the company as capital expenditure. … I will be analysing Costco Wholesale’s FCF by looking at its FCF yield and its operating cash flow growth.

Simply Wall St -

Costco Wholesale Corporation (NASDAQ:COST): Has Recent Earnings Growth Beaten Long-Term Trend?

In this article, I will take a look at Costco Wholesale Corporation's (NASDAQ:COST) most recent earnings update (17 February 2019) and compare these latest figures against its performance over the past few years, along with how the rest of COST's industry performed. … COST's trailing twelve-month earnings (from 17 February 2019) of US$3.4b has. … Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 10%, indicating the rate at which COST is growing has accelerated

Simply Wall St -

Is Costco Wholesale Corporation's (NASDAQ:COST) Balance Sheet A Threat To Its Future?

I will provide an overview of Costco Wholesale’s financial liquidity and leverage to give you an idea of Costco Wholesale’s position to take advantage of potential acquisitions or comfortably endure future downturns. … Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysis … View our latest analysis for Costco Wholesale

Simply Wall St -

COST Company Info

Description

Costco Wholesale Corporation, together with its subsidiaries, operates membership warehouses. 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, deli, and produces; and apparel and small appliances. It also operates gas stations, pharmacies, optical dispensing centers, food courts, and hearing-aid centers; and engages in the travel business. In addition, the company provides gold star individual and business membership services. As of September 2, 2018, it operated 762 membership warehouses, including 527 warehouses in the United States, 100 in Canada, 39 in Mexico, 28 in the United Kingdom, 26 in Japan, 15 in Korea, 13 in Taiwan, 10 in Australia, 2 in Spain, 1 in Iceland, and 1 in France. Further, the company sells its products through online. The company was formerly known as Costco Companies, Inc. Costco Wholesale Corporation was founded in 1976 and is based in Issaquah, Washington.

Details
Name: Costco Wholesale Corporation
COST
Exchange: NasdaqGS
Founded: 1976
$107,625,502,480
439,880,257
Website: http://www.costco.com
Address: Costco Wholesale Corporation
999 Lake Drive,
Issaquah,
Washington, 98027,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS COST Common Stock Nasdaq Global Select US USD 22. Oct 1993
DB CTO Common Stock Deutsche Boerse AG DE EUR 22. Oct 1993
WBAG COST Common Stock Wiener Boerse AG AT EUR 22. Oct 1993
SNSE COST Common Stock Santiago Stock Exchange CL USD 22. Oct 1993
BMV COST * Common Stock Bolsa Mexicana de Valores MX MXN 22. Oct 1993
BOVESPA COWC34 BDR EACH REPR 1/4 COM USD0.005 Bolsa de Valores de Sao Paulo BR BRL 25. Apr 2016
Number of employees
Current staff
Staff numbers
194,000
Costco Wholesale employees.
Industry
Hypermarkets and Super Centers
Consumer Retailing
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/16 01:20
End of day share price update: 2019/05/15 00:00
Last estimates confirmation: 2019/05/13
Last earnings filing: 2019/03/13
Last earnings reported: 2019/02/17
Last annual earnings reported: 2018/09/02


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.