Costco Wholesale Corporation, together with its subsidiaries, engages in the operation of membership warehouses in the United States, Puerto Rico, Canada, the United Kingdom, Mexico, Japan, Korea, Australia, Spain, France, Iceland, China, and Taiwan. More Details
Solid track record average dividend payer.
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: COST is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: COST's weekly volatility (3%) has been stable over the past year.
7 Day Return
US Consumer Retailing
1 Year Return
US Consumer Retailing
Return vs Industry: COST exceeded the US Consumer Retailing industry which returned 22.5% over the past year.
Return vs Market: COST underperformed the US Market which returned 51.8% over the past year.
Long-Term 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
2 days ago | Simply Wall StIs There An Opportunity With Costco Wholesale Corporation's (NASDAQ:COST) 30% Undervaluation?
1 week ago | Simply Wall StIs It Smart To Buy Costco Wholesale Corporation (NASDAQ:COST) Before It Goes Ex-Dividend?
1 month ago | Simply Wall StCostco Wholesale (NASDAQ:COST) Has Gifted Shareholders With A Fantastic 163% Total Return On Their Investment
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: COST ($382.76) is trading below our estimate of fair value ($535.69)
Significantly Below Fair Value: COST is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: COST is poor value based on its PE Ratio (39x) compared to the US Consumer Retailing industry average (15.1x).
PE vs Market: COST is poor value based on its PE Ratio (39x) compared to the US market (20.2x).
Price to Earnings Growth Ratio
PEG Ratio: COST is poor value based on its PEG Ratio (4.5x)
Price to Book Ratio
PB vs Industry: COST is overvalued based on its PB Ratio (10.8x) compared to the US Consumer Retailing industry average (2.9x).
How is Costco Wholesale forecast to perform in the next 1 to 3 years based on estimates from 26 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: COST's forecast earnings growth (8.8% per year) is above the savings rate (2%).
Earnings vs Market: COST's earnings (8.8% per year) are forecast to grow slower than the US market (15.4% per year).
High Growth Earnings: COST's earnings are forecast to grow, but not significantly.
Revenue vs Market: COST's revenue (6.7% per year) is forecast to grow slower than the US market (9.2% per year).
High Growth Revenue: COST's revenue (6.7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: COST's Return on Equity is forecast to be high in 3 years time (23.6%)
How has Costco Wholesale performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: COST has high quality earnings.
Growing Profit Margin: COST's current net profit margins (2.4%) are higher than last year (2.4%).
Past Earnings Growth Analysis
Earnings Trend: COST's earnings have grown by 13.4% per year over the past 5 years.
Accelerating Growth: COST's earnings growth over the past year (15%) exceeds its 5-year average (13.4% per year).
Earnings vs Industry: COST earnings growth over the past year (15%) underperformed the Consumer Retailing industry 59.8%.
Return on Equity
High ROE: COST's Return on Equity (27.3%) is considered high.
How is Costco Wholesale's financial position?
Financial Position Analysis
Short Term Liabilities: COST's short term assets ($26.3B) do not cover its short term liabilities ($26.6B).
Long Term Liabilities: COST's short term assets ($26.3B) exceed its long term liabilities ($12.2B).
Debt to Equity History and Analysis
Debt Level: COST's debt to equity ratio (45.6%) is considered high.
Reducing Debt: COST's debt to equity ratio has increased from 44.3% to 45.6% over the past 5 years.
Debt Coverage: COST's debt is well covered by operating cash flow (120%).
Interest Coverage: COST's interest payments on its debt are well covered by EBIT (54.3x coverage).
What is Costco Wholesale current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: COST's dividend (0.83%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.24%).
High Dividend: COST's dividend (0.83%) is low compared to the top 25% of dividend payers in the US market (3.42%).
Stability and Growth of Payments
Stable Dividend: COST's dividends per share have been stable in the past 10 years.
Growing Dividend: COST's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (28.5%), COST's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: COST's dividends in 3 years are forecast to be well covered by earnings (26.1% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
W. Jelinek (68 yo)
Mr. W. Craig Jelinek has been the President and Chief Executive Officer of Costco Wholesale Corporation since February 2010 and January 1, 2012 respectively and served as its Executive Vice President of Me...
CEO Compensation Analysis
Compensation vs Market: W.'s total compensation ($USD8.28M) is about average for companies of similar size in the US market ($USD11.15M).
Compensation vs Earnings: W.'s compensation has been consistent with company performance over the past year.
Experienced Management: COST's management team is seasoned and experienced (14 years average tenure).
Experienced Board: COST's board of directors are considered experienced (5.6 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: COST 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: COST
- Exchange: NasdaqGS
- Founded: 1976
- Industry: Hypermarkets and Super Centers
- Sector: Consumer Retailing
- Market Cap: US$164.844b
- Shares outstanding: 442.53m
- Website: https://www.costco.com
Number of Employees
- Costco Wholesale Corporation
- 999 Lake Drive
- United States
Costco Wholesale Corporation, together with its subsidiaries, engages in the operation of membership warehouses in the United States, Puerto Rico, Canada, the United Kingdom, Mexico, Japan, Korea, Australi...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/05/07 03:58|
|End of Day Share Price||2021/05/06 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.