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.
No risks detected for COST from our risk checks.
Costco Wholesale Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$529.84|
|52 Week High||US$560.78|
|52 Week Low||US$307.00|
|1 Month Change||7.72%|
|3 Month Change||14.94%|
|1 Year Change||38.16%|
|3 Year Change||134.08%|
|5 Year Change||244.39%|
|Change since IPO||5,477.26%|
Recent News & Updates
Is Costco Wholesale (NASDAQ:COST) Using Too Much Debt?
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With EPS Growth And More, Costco Wholesale (NASDAQ:COST) Is Interesting
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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...
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.
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.
|COST||US Consumer Retailing||US Market|
Return vs Industry: COST exceeded the US Consumer Retailing industry which returned 7.7% over the past year.
Return vs Market: COST exceeded the US Market which returned 20% over the past year.
|COST Average Weekly Movement||2.6%|
|Consumer Retailing Industry Average Movement||5.4%|
|Market Average Movement||6.0%|
|10% most volatile stocks in US Market||15.1%|
|10% least volatile stocks in US Market||2.4%|
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
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
|COST fundamental statistics|
Is COST overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|COST income statement (TTM)|
|Cost of Revenue||US$170.68b|
Last Reported Earnings
Aug 29, 2021
Next Earnings Date
Dec 09, 2021
|Earnings per share (EPS)||11.33|
|Net Profit Margin||2.56%|
How did COST perform over the long term?See historical performance and comparison
0.6%Current Dividend Yield
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 ($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 (20.9x).
PE vs Market: COST is poor value based on its PE Ratio (46.8x) compared to the US market (16.8x).
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 (1.9x).
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 (8.4% 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 (14.2% 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%)
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 (2.6%) 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.
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 ($11.7B).
Debt to Equity History and Analysis
Debt Level: COST has more cash than its total debt.
Reducing Debt: COST's debt to equity ratio has reduced from 41.8% to 41.4% over the past 5 years.
Debt Coverage: COST's debt is well covered by operating cash flow (119.6%).
Interest Coverage: COST's interest payments on its debt are well covered by EBIT (55.6x coverage).
What is Costco Wholesale current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: COST's dividend (0.6%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.35%).
High Dividend: COST's dividend (0.6%) is low compared to the top 25% of dividend payers in the US market (3.63%).
Stability and Growth of Payments
Stable Dividend: COST is not paying a notable dividend for the US market, therefore no need to check if payments are stable.
Growing Dividend: COST is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: COST is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of COST's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
W. Jelinek (69 yo)
Mr. W. Craig Jelinek has been the President and Chief Executive Officer of Costco Wholesale Corporation since February 2010 and January 1, 2012 respectively and served as its Executive Vice President of Me...
CEO Compensation Analysis
Compensation vs Market: W.'s total compensation ($USD8.28M) is about average for companies of similar size in the US market ($USD11.14M).
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 (14.5 years average tenure).
Experienced Board: COST's board of directors are considered experienced (6.1 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Costco Wholesale Corporation's 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$238.311b
- Shares outstanding: 441.82m
- Website: https://www.costco.com
Number of Employees
- Costco Wholesale Corporation
- 999 Lake Drive
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/12/01 23:52|
|End of Day Share Price||2021/12/01 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.