Costco Wholesale Corporation
Costco Wholesale Corporation, together with its subsidiaries, engages in the operation of membership warehouses in the United States, Puerto Rico, Canada, Mexico, Japan, the United Kingdom, Korea, Australia, Taiwan, China, Spain, France, Iceland, New Zealand, and Sweden. It offers merchandise, inclu…
What to know about COST
Costco Wholesale Corporation is a Consumer Defensive company with a mixed financial profile. It scores well on size and health, but cash flow is worth keeping an eye on.
Should you consider COST?
Based on 31 financial metrics and sector comparison. Not financial advice.
-
Costco Wholesale Corporation is a Consumer Defensive company with a mixed overall financial profile — it is in the lower half of its Consumer Defensive peers (19 of 35).
-
Profit margins are thin compared to most S&P 500 peers — the company keeps less of each dollar it earns than the average. Watch for signs of margin improvement.
-
The stock trades at a premium — investors are paying more per dollar of earnings than most S&P 500 companies. That's fine if strong growth justifies it, but leaves little room for disappointment.
-
Growth is a clear strength — revenue and earnings are expanding faster than most peers, signalling strong demand for the company's products or services.
-
There is a small dividend (0.01%), but income-focused investors will likely find better yields elsewhere in the market.
-
Risk is relatively low — the stock tends to be less volatile than the broader market, which typically means a smoother ride during uncertain periods.
-
There are several areas of concern. This may suit investors with a higher risk tolerance or a specific contrarian view on the Consumer Defensive sector.
At a glance
How it scores
We look at 31 different financial metrics and group them into categories. Here's how COST compares to the other S&P 500 stocks.
Dive deeper — all 31 metrics 9 categories · valuation, growth, health, dividends & more Show all Hide
Valuation
Is the stock cheap or expensive relative to its earnings, sales, and assets? Lower multiples often mean better value.
| Metric | Value | vs S&P 500 |
|---|---|---|
| P/E Ratio (Trailing) | 47.98 | Below avg |
| Forward P/E | 42.05 | Below avg |
| PEG Ratio | 4.82 | Below avg |
| Price to Sales | 1.44 | Top 25% |
| Price to Book | 25.52 | Below avg |
| EV/EBITDA | 31.61 | Below avg |
| Earnings Yield | 2.08% | Below avg |
Profitability
How efficiently does the company turn revenue into profit? Higher margins mean more money kept from each dollar earned.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Gross Margin | 12.88% | Below avg |
| Operating Margin | 3.67% | Below avg |
| Net Profit Margin | 3.01% | Below avg |
| Return on Equity | 29.15% | Above avg |
| Return on Invested Capital | 8.67% | Above avg |
Growth
How fast is the business expanding? Strong growth in revenue and earnings signals increasing market demand.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Revenue Growth (YoY) | 21.50% | Top 25% |
| Revenue Growth (3Y CAGR) | 6.64% | Above avg |
| EPS Growth (YoY) | 45.50% | Above avg |
| Free Cash Flow Growth | 18.22% | Above avg |
Health
Can the company cover its debts and obligations? A healthy balance sheet reduces the risk of financial trouble.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Current Ratio | 1.07 | Average |
| Debt to Equity | 0.60 | Above avg |
| Interest Coverage | 71.25 | Top 25% |
| Altman Z-Score | 9.75 | Top 25% |
Dividends
Does the company pay shareholders, and is that payment growing and sustainable?
| Metric | Value | vs S&P 500 |
|---|---|---|
| Dividend Yield | 0.60% | Below avg |
| Payout Ratio | 27.01% | Above avg |
| Dividend Growth (5Y) | -2.04% | Top 25% |
Cash Flow
Is real cash flowing into the business — not just accounting profits? Strong cash flow funds growth and dividends.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Free Cash Flow Yield | 2.09% | Below avg |
| OCF to Sales | 5.11% | Below avg |
Risk
How volatile is the stock compared to the broader market? Lower beta and volatility mean a smoother ride.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Beta (1-Year) | 0.87 | Above avg |
| Volatility (30-Day) | 24.63% | Above avg |
Sentiment
What do analysts and short-sellers think? High analyst ratings and low short interest signal broad confidence.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Short % of Float | 1.78% | Top 25% |
| Avg. Analyst Rating | 1.97 | Above avg |
| Target Upside % | 13.76% | Above avg |
Size
How large is the company by market value? Size affects stability, growth potential, and index inclusion.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Market Capitalization | 421.95B | Top 25% |
How does COST compare to…?
Pick another stock and see them side by side in seconds.
You might also look at
Companies in a similar position to COST — based on their financial profile.