NasdaqGS:COST

Stock Analysis Report

Executive Summary

Costco Wholesale Corporation, together with its subsidiaries, operates membership warehouses.

Snowflake

Fundamentals

Outstanding track record with adequate balance sheet and pays a dividend.


Similar Companies

Share Price & News

How has Costco Wholesale's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.9%

NasdaqGS:COST

-0.9%

US Consumer Retailing

1.1%

US Market


1 Year Return

24.3%

NasdaqGS:COST

13.3%

US Consumer Retailing

2.1%

US Market

COST outperformed the Consumer Retailing industry which returned 13.3% over the past year.

COST outperformed the Market in United States of America which returned 2.1% over the past year.


Share holder returns

COSTIndustryMarket
7 Day-1.9%-0.9%1.1%
30 Day6.3%4.1%3.7%
90 Day10.5%6.9%2.3%
1 Year25.6%24.3%15.5%13.3%4.4%2.1%
3 Year105.9%91.5%48.4%38.9%47.0%37.4%
5 Year163.5%132.2%66.9%48.8%61.6%43.8%

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

Valuation

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

35.52x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Costco Wholesale's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Costco Wholesale's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

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

Costco Wholesale is poor value based on expected growth next year.


Price Based on Value of Assets

Costco Wholesale is overvalued based on assets compared to the US Consumer Retailing industry average.


Next Steps

Future Growth

How is Costco Wholesale expected to perform in the next 1 to 3 years based on estimates from 22 analysts?

6.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Costco Wholesale's revenue is expected to grow by 6.8% yearly, however this is not considered high growth (20% yearly).

Costco Wholesale's earnings are expected to grow by 6.3% yearly, however this is not considered high growth (20% yearly).

Costco Wholesale's revenue growth is positive but not above the United States of America market average.

Costco Wholesale's earnings growth is positive but not above the United States of America market average.

Costco Wholesale's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Costco Wholesale is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Costco Wholesale performed over the past 5 years?

10.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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 (19.8% vs 10.8%)

Costco Wholesale's earnings growth has exceeded the US Consumer Retailing industry average in the past year (19.8% vs -14.2%).


Return on Equity

Costco Wholesale has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Costco Wholesale used its assets more efficiently than the US Consumer Retailing industry average last year based on Return on Assets.


Return on Capital Employed

Costco Wholesale has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Costco Wholesale's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Costco Wholesale's level of debt (41.2%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (41.5% vs 41.2% today).

Debt is well covered by operating cash flow (92.1%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 112.4x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 3.7x debt.


Next Steps

Dividend

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

0.97%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Costco Wholesale's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).

Costco Wholesale's dividend is below the markets top 25% of dividend payers in United States of America (3.67%).

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

Dividends paid are well covered by earnings (3.5x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.5x coverage).


Next Steps

Management

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

15.0yrs

Average management tenure


CEO

W. Jelinek (67yo)

7.7yrs

Tenure

US$7,408,513

Compensation

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

W.'s remuneration is lower than average for companies of similar size in United States of America.

W.'s compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

15.0yrs

Average Tenure

67yo

Average Age

The average tenure for the Costco Wholesale management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

9.6yrs

Average Tenure

65.5yo

Average Age

The tenure for the Costco Wholesale board of directors is about average.


Insider Trading

Costco Wholesale individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$441,54005 Jul 19
Susan Decker
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,646
Max PriceUS$268.25
SellUS$988,82324 Jun 19
Ron Vachris
EntityIndividual
Shares3,700
Max PriceUS$267.25
SellUS$2,658,52820 Jun 19
James Murphy
EntityIndividual
Role
Senior Key Executive
Executive VP & COO of International
Shares10,000
Max PriceUS$265.85
SellUS$799,17820 Jun 19
Richard Galanti
EntityIndividual
Role
Member of the Board of Directors
Executive VP
Shares3,000
Max PriceUS$266.39
SellUS$710,39310 Jun 19
Susan Decker
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,790
Max PriceUS$256.00
SellUS$1,515,62610 Jun 19
Daniel Hines
EntityIndividual
Shares6,000
Max PriceUS$252.65
SellUS$504,30810 Jun 19
Patrick Callans
EntityIndividual
Role
Chief Administrative Officer
Executive Vice President of Administration
Shares2,000
Max PriceUS$252.15
SellUS$1,277,66910 Jun 19
James Klauer
EntityIndividual
Shares5,000
Max PriceUS$255.80
BuyUS$727,93502 Apr 19
John Meisenbach
EntityIndividual
Role
Member of the Board of Directors
Director
Shares3,000
Max PriceUS$242.65
SellUS$564,00028 Mar 19
Susan Decker
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,350
Max PriceUS$240.00
SellUS$1,405,62413 Mar 19
Timothy Rose
EntityIndividual
Shares6,000
Max PriceUS$234.27
SellUS$2,688,38813 Mar 19
Joseph Portera
EntityIndividual
Role
Senior Key Executive
Executive VP
Shares11,765
Max PriceUS$228.53
SellUS$1,905,93413 Mar 19
Paul Moulton
EntityIndividual
Role
Chief Information Officer
Executive VP & Chief Information Officer
Shares8,189
Max PriceUS$232.74
SellUS$965,19713 Mar 19
Richard Galanti
EntityIndividual
Role
Member of the Board of Directors
Executive VP
Shares4,188
Max PriceUS$231.40
SellUS$475,36813 Mar 19
Susan Decker
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,049
Max PriceUS$232.00
SellUS$332,10804 Jan 19
Susan Decker
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,611
Max PriceUS$206.50
SellUS$151,49503 Jan 19
Susan Decker
EntityIndividual
Role
Member of the Board of Directors
Director
Shares739
Max PriceUS$205.00
SellUS$945,94001 Nov 18
Richard Galanti
EntityIndividual
Role
Member of the Board of Directors
Executive VP
Shares4,163
Max PriceUS$227.23
SellUS$5,029,10630 Oct 18
W. Jelinek
EntityIndividual
Role
Chief Executive Officer
President
Shares22,500
Max PriceUS$225.60
SellUS$458,97626 Oct 18
Richard Libenson
EntityIndividual
Role
Director Emeritus
Consultant and Director Emeritus
Shares2,049
Max PriceUS$224.00
SellUS$5,215,45526 Oct 18
Franz Lazarus
EntityIndividual
Shares23,000
Max PriceUS$226.76
SellUS$1,490,80816 Oct 18
Ron Vachris
EntityIndividual
Shares6,600
Max PriceUS$225.88

Ownership Breakdown


Management Team

  • Richard Galanti (63yo)

    Executive VP

    • Tenure: 24.7yrs
    • Compensation: US$4.29m
  • W. Jelinek (67yo)

    President

    • Tenure: 7.7yrs
    • Compensation: US$7.41m
  • Joseph Portera (67yo)

    Executive VP

    • Tenure: 25.1yrs
    • Compensation: US$4.10m
  • Paul Moulton (68yo)

    Executive VP & Chief Information Officer

    • Tenure: 0yrs
    • Compensation: US$4.02m
  • James Murphy (66yo)

    Executive VP & COO of International

    • Tenure: 15yrs
    • Compensation: US$3.98m
  • Richard Chavez

    Senior Vice President of Costco Wholesale Industries & Business Development

    • Tenure: 0yrs
  • Bob Nelson

    Senior Vice President of Financial Planning & Investor Relations

    • Tenure: 0yrs
  • John Sullivan

    Senior VP

    • Tenure: 0yrs
  • Pat Callans

    Executive Vice President of Administration

    • Tenure: 0.7yrs
  • Paul Latham

    Senior Vice President of Membership

    • Tenure: 0yrs

Board Members

  • Jeff Raikes (61yo)

    Director

    • Tenure: 10.8yrs
    • Compensation: US$302.50k
  • Richard Galanti (63yo)

    Executive VP

    • Tenure: 24.7yrs
    • Compensation: US$4.29m
  • W. Jelinek (67yo)

    President

    • Tenure: 7.7yrs
    • Compensation: US$7.41m
  • Sue Decker (56yo)

    Director

    • Tenure: 14.9yrs
    • Compensation: US$305.50k
  • Maggie Wilderotter (64yo)

    Director

    • Tenure: 3.9yrs
    • Compensation: US$308.50k
  • Charlie Munger (95yo)

    Director

    • Tenure: 22.7yrs
    • Compensation: US$309.50k
  • John Stanton (64yo)

    Director

    • Tenure: 3.9yrs
    • Compensation: US$311.50k
  • John Meisenbach (83yo)

    Director

    • Tenure: 0yrs
    • Compensation: US$297.50k
  • Tony James (68yo)

    Chairman of the Board

    • Tenure: 2.1yrs
    • Compensation: US$297.50k
  • Richard Libenson (77yo)

    Consultant and Director Emeritus

    • Tenure: 2.7yrs
    • Compensation: US$689.17k

Company Information

Costco Wholesale Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Costco Wholesale Corporation
  • Ticker: COST
  • Exchange: NasdaqGS
  • Founded: 1976
  • Industry: Hypermarkets and Super Centers
  • Sector: Consumer Retailing
  • Market Cap: US$128.159b
  • Shares outstanding: 439.79m
  • Website: https://www.costco.com

Number of Employees


Location

  • Costco Wholesale Corporation
  • 999 Lake Drive
  • Issaquah
  • Washington
  • 98027
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
COSTNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDOct 1993
CTODB (Deutsche Boerse AG)YesCommon StockDEEUROct 1993
COST *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNOct 1993
COSTSNSE (Santiago Stock Exchange)YesCommon StockCLUSDOct 1993
COSTWBAG (Wiener Boerse AG)YesCommon StockATEUROct 1993
COWC34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1/4 COM USD0.005BRBRLApr 2016

Biography

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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/17 23:34
End of Day Share Price2019/09/17 00:00
Earnings2019/05/12
Annual Earnings2018/09/02


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.