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COST

Costco WholesaleNasdaqGS:COST Stock Report

Market Cap

US$238.3b

7D

-3.6%

1Y

38.2%

Updated

01 Dec, 2021

Data

Company Financials +
COST fundamental analysis
Snowflake Score
Valuation1/6
Future Growth2/6
Past Performance6/6
Financial Health6/6
Dividends0/6

COST Stock Overview

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.

Costco Wholesale Competitors

Walmart

NYSE:WMT

US$392.1b

BJ's Wholesale Club Holdings

NYSE:BJ

US$9.0b

Apple

NasdaqGS:AAPL

US$2.7t

Amazon.com

NasdaqGS:AMZN

US$1.8t

Price History & Performance

Summary of all time highs, changes and price drops for Costco Wholesale
Historical stock prices
Current Share PriceUS$529.84
52 Week HighUS$560.78
52 Week LowUS$307.00
Beta0.65
1 Month Change7.72%
3 Month Change14.94%
1 Year Change38.16%
3 Year Change134.08%
5 Year Change244.39%
Change since IPO5,477.26%

Recent News & Updates

Nov 27
Is Costco Wholesale (NASDAQ:COST) Using Too Much Debt?

Is Costco Wholesale (NASDAQ:COST) Using Too Much Debt?

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' When we think about how risky a company...

Nov 15
With EPS Growth And More, Costco Wholesale (NASDAQ:COST) Is Interesting

With EPS Growth And More, Costco Wholesale (NASDAQ:COST) Is Interesting

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

Nov 03
Estimating The Intrinsic Value Of Costco Wholesale Corporation (NASDAQ:COST)

Estimating The Intrinsic Value Of Costco Wholesale Corporation (NASDAQ:COST)

Today we will run through one way of estimating the intrinsic value of Costco Wholesale Corporation ( NASDAQ:COST ) by...

Oct 14

The Shine And The Shadow For Costco Investors

On a dollar basis the warehouses sold out of inventory 14 times last year, improving from last year's 13 turns. Pay raises ate up 15% of earnings growth for 2021 when calculated on a full-year basis. Thin margins, high sales volume, rapid inventory turnover, and increasing labor costs multiply the chances that Costco stock may lose its growth stock valuation while shipping and fuel costs rise. Costco broke both its annual sales and earnings records during 2021 and the company celebrated by returning more capital to shareholders than it earned for the year.

Sep 28
A Look Behind Costco's (NASDAQ:COST) High Valuation

A Look Behind Costco's (NASDAQ:COST) High Valuation

After a slump in the first quarter, Costco Wholesale (NASDAQ: COST) rallied to make new highs. While the company has many positives going on, with growing revenues and consumer loyalty, there are challenges on the horizon. In this article, we will examine its profitability to check how it compares to the current valuation.

Shareholder Returns

COSTUS Consumer RetailingUS Market
7D-3.6%-5.8%-4.9%
1Y38.2%6.3%17.8%

Return vs Industry: COST exceeded the US Consumer Retailing industry which returned 6.3% over the past year.

Return vs Market: COST exceeded the US Market which returned 17.8% over the past year.

Price Volatility

Is COST's price volatile compared to industry and market?
COST volatility
COST Average Weekly Movement2.6%
Consumer Retailing Industry Average Movement5.4%
Market Average Movement6.0%
10% most volatile stocks in US Market15.1%
10% least volatile stocks in US Market2.4%

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.

About the Company

FoundedEmployeesCEOWebsite
1976288,000W. Jelinekhttps://www.costco.com

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. It offers branded and private-label products in a range of merchandise categories. The company offers sundries, dry groceries, candies, coolers, freezers, liquor, and tobacco and deli products; appliances, electronics, health and beauty aids, hardware, garden and patio products, sporting goods, tires, toys and seasonal products, office supplies, automotive care products, postages, tickets, apparel, small appliances, furniture, domestics, housewares, special order kiosks, and jewelry; and meat, produce, service deli, and bakery products.

Costco Wholesale Fundamentals Summary

How do Costco Wholesale's earnings and revenue compare to its market cap?
COST fundamental statistics
Market CapUS$238.31b
Earnings (TTM)US$5.01b
Revenue (TTM)US$195.93b

46.8x

P/E Ratio

1.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
COST income statement (TTM)
RevenueUS$195.93b
Cost of RevenueUS$170.68b
Gross ProfitUS$25.25b
ExpensesUS$20.24b
EarningsUS$5.01b

Last Reported Earnings

Aug 29, 2021

Next Earnings Date

Dec 09, 2021

Earnings per share (EPS)11.33
Gross Margin12.88%
Net Profit Margin2.56%
Debt/Equity Ratio41.4%

How did COST perform over the long term?

See historical performance and comparison

Dividends

0.6%

Current Dividend Yield

26%

Payout Ratio

Valuation

Is Costco Wholesale undervalued compared to its fair value and its price relative to the market?

10.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: COST ($529.84) is trading below our estimate of fair value ($588.93)

Significantly Below Fair Value: COST is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: COST is poor value based on its PE Ratio (46.8x) compared to the US Consumer Retailing industry average (20x).

PE vs Market: COST is poor value based on its PE Ratio (46.8x) compared to the US market (16.6x).


Price to Earnings Growth Ratio

PEG Ratio: COST is poor value based on its PEG Ratio (5.5x)


Price to Book Ratio

PB vs Industry: COST is overvalued based on its PB Ratio (13.3x) compared to the US Consumer Retailing industry average (1.8x).


Future Growth

How is Costco Wholesale forecast to perform in the next 1 to 3 years based on estimates from 26 analysts?

8.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: COST's forecast earnings growth (8.4% per year) is above the savings rate (2%).

Earnings vs Market: COST's earnings (8.4% per year) are forecast to grow slower than the US market (14.3% per year).

High Growth Earnings: COST's earnings are forecast to grow, but not significantly.

Revenue vs Market: COST's revenue (7.6% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: COST's revenue (7.6% 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 (23.9%)


Past Performance

How has Costco Wholesale performed over the past 5 years?

14.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: COST has high quality earnings.

Growing Profit Margin: COST's current net profit margins (2.6%) are higher than last year (2.4%).


Past Earnings Growth Analysis

Earnings Trend: COST's earnings have grown by 14.4% per year over the past 5 years.

Accelerating Growth: COST's earnings growth over the past year (25.2%) exceeds its 5-year average (14.4% per year).

Earnings vs Industry: COST earnings growth over the past year (25.2%) exceeded the Consumer Retailing industry 3.6%.


Return on Equity

High ROE: COST's Return on Equity (28.1%) is considered high.


Financial Health

How is Costco Wholesale's financial position?


Financial Position Analysis

Short Term Liabilities: COST's short term assets ($29.5B) exceed its short term liabilities ($29.4B).

Long Term Liabilities: COST's short term assets ($29.5B) exceed its long term liabilities ($11.7B).


Debt to Equity History and Analysis

Debt Level: COST has more cash than its total debt.

Reducing Debt: COST's debt to equity ratio has reduced from 41.8% to 41.4% over the past 5 years.

Debt Coverage: COST's debt is well covered by operating cash flow (119.6%).

Interest Coverage: COST's interest payments on its debt are well covered by EBIT (55.6x coverage).


Balance Sheet


Dividend

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

0.60%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: COST's dividend (0.6%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.37%).

High Dividend: COST's dividend (0.6%) is low compared to the top 25% of dividend payers in the US market (3.69%).


Stability and Growth of Payments

Stable Dividend: COST is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: COST is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: COST is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of COST's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

14.5yrs

Average management tenure


CEO

W. Jelinek (69 yo)

9.83yrs

Tenure

US$8,279,552

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

Compensation vs Market: W.'s total compensation ($USD8.28M) is about average for companies of similar size in the US market ($USD11.11M).

Compensation vs Earnings: W.'s compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: COST's management team is seasoned and experienced (14.5 years average tenure).


Board Members

Experienced Board: COST's board of directors are considered experienced (6.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Costco Wholesale Corporation's 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$238.311b
  • Shares outstanding: 441.82m
  • Website: https://www.costco.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/01 23:52
End of Day Share Price2021/12/01 00:00
Earnings2021/08/29
Annual Earnings2021/08/29


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.