COST

Costco Wholesale Corporation

Fundamental data last updated:May 12, 2026

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company profile

SECTOR

Consumer Defensive

industry

Discount Stores

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

05/28/2026

Business Summary

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. It also operates pharmacies, opticals, food courts, hearing-aid centers, and tire installation centers, as well as 636 gas stations; and offers business delivery, travel, same-day grocery, and various other services online in various countries. As of August 29, 2021, the company operated 815 membership warehouses, including 564 in the United States and Puerto Rico, 105 in Canada, 39 in Mexico, 30 in Japan, 29 in the United Kingdom, 16 in South Korea, 14 in Taiwan, 12 in Australia, 3 in Spain, 1 in Iceland, 1 in France, and 1 in China. It also operates e-commerce websites in the United States, Canada, the United Kingdom, Mexico, South Korea, Taiwan, Japan, and Australia. The company was formerly known as Costco Companies, Inc. and changed its name to Costco Wholesale Corporation in August 1999. Costco Wholesale Corporation was founded in 1976 and is based in Issaquah, Washington.

 


VALUATION

P/E

51.38

Market Cap ($M USD)

$438.95B

Forward P/E

35.37

PEG

0.78

PRICE TO SALES

1.53

PRICE TO BOOK

13.69

EV / EBITDA

30.55

5-Year Average P/E

Free Cash Flow Yield

2.07%

DCF Value

$324.21

Graham Number

$176.96

Price to FCF

48.24

EV to FCF

47.24

Earnings Yield

1.95%

FCF Yield

2.07%

DIVIDEND

Yield

0.54%

Annual Payout

$5.37

Payout Ratio

33.01%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$19.26

Next Year EPS Growth Estimate

$27.98

Next Year Revenue Growth Estimate

$38.57T

Return on Equity (ROE)

28.81%

FREE CASH FLOW

Operating Margin

3.82%

Debt-to-Equity

0.28

Piotroski F-Score

8

Altman Z-Score

9.54

Return on Invested Capital (ROIC)

25.52%

Current Ratio

1.06

Quick Ratio

0.59

Net Debt to EBITDA

-0.65

Interest Coverage

73.42

Gross Profit margin

12.93%

FCF PER SHARE

$20.50

REVENUE PER SHARE

$644.80

Gainseekers Quantitative Analysis

Summary

Costco’s valuation paints a complex picture. Despite a staggering market cap, the stock traded significantly above its DCF Value and Graham Number, suggesting a potential overvaluation. However, a Forward P/E of 36.06 and an impressive Altman Z-score of 9.54 indicate robust growth prospects and financial safety. The Earnings Yield of 1.91% is modest, but the company’s strong Return on Equity of 28.81% highlights effective management. Overall, the market may be pricing in Costco’s future growth rather than its current fundamentals.

AI Exposure / Tech Reliance

In the realm of AI and tech adaptation, Costco's position in the Consumer Defensive sector provides a buffer against rapid tech shifts. As a discount retailer, its focus remains on operational efficiency and supply chain optimization rather than cutting-edge tech. However, its scale and logistics prowess could enable it to integrate AI for inventory management and customer insights.

The Bull Case

For the value-driven investor, Costco offers compelling reasons to buy. The company boasts a high ROIC of 25.52%, indicating efficient capital use and strong competitive positioning. A Piotroski F-Score of 8 signals solid financial health, while a low Debt/Equity ratio of 0.28 underscores fiscal prudence. Despite a modest FCF Yield of 2.03%, Costco's operating margin of 3.82% and consistent cash flow generation reflect its pricing power and operational resilience.

The Bear Case

On the flip side, Costco's valuation metrics raise eyebrows. A Price/Book ratio of 13.96 and Price/Sales of 1.56 suggest the stock is priced for perfection. The EV to EBITDA of 31.16 further underscores its premium valuation, potentially limiting upside. Trading near its 52-week high, the stock appears technically overextended, and with a Price to FCF of 49.19, investors might question its cash flow efficiency.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$1,070.13

Institutional Ownership %

1-Year Beta

0.91

Insider Buying % (6 Mo)

Distance to 52-Week High

7.85%

Distance to 52-Week Low

14.69%

EARNINGS SURPRISE %

0.66%

50-DAY SMA

$998.77

200-DAY SMA

$952.11

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.