Costco Wholesale Corp
Exchange: NASDAQSector: Consumer DefensiveIndustry: Discount Stores
Costco Wholesale currently operates 803 warehouses, including 558 in the United States and Puerto Rico, 102 in Canada, 39 in Mexico, 29 in the United Kingdom, 27 in Japan, 16 in Korea, 14 in Taiwan, 12 in Australia, three in Spain, and one each in Iceland, France, and China. Costco also operates e-commerce sites in the U.S., Canada, the United Kingdom, Mexico, Korea, Taiwan, Japan, and Australia.
Did you know?
Pays a 0.48% dividend yield.
Current Price
$1014.96
+1.85%GoodMoat Value
$2043.26
101.3% undervaluedProfile
Valuation (TTM)
Market Cap$450.51B
P/E52.70
EV$418.58B
P/B15.45
Shares Out443.87M
P/Sales1.57
Revenue$286.26B
EV/EBITDA30.63
Costco Wholesale Corp (COST) Stock Analysis
GoodMoat Analysis
Costco operates a high-volume, membership-based warehouse retail model with a durable moat built on scale, pricing power, and a unique membership culture. While the business scores well on quality and moat, its current valuation at a P/E of over 50x appears extremely demanding relative to its growth rate and profit margins.
Read full analysis
Costco Wholesale operates a global chain of membership-only warehouse clubs, generating revenue from the sale of bulk goods at razor-thin margins and, crucially, from membership fees. Applying the GoodMoat framework, the company demonstrates a strong competitive moat. It likely scores highly on criteria such as scale privilege, pricing power (as a low-cost leader), and a unique brand & culture centered on its membership model, which creates high switching costs and customer loyalty. Its financial quality is also strong, evidenced by a high ROE of 29.3% and a conservative balance sheet with a low Debt/Equity ratio of 0.28. However, moving to the Decision Framework reveals a significant hurdle. While the business likely passes the Moat & Quality Gate, the valuation assessment is challenging. The stock trades at a P/E of 50.6x against a profit margin of just 3.0% and a revenue growth rate of 9.2% YoY. This multiple is historically high and appears to price in near-perfect execution far into the future. The provided GoodMoat Target of $2,043.26 suggests a theoretical margin of safety, but achieving it would require substantial multiple expansion or accelerated growth from current levels. For a value investor, this presents a classic case of a wonderful business at a potentially unwonderful price, warranting deep scrutiny of the growth assumptions embedded in that price.
Market Cap$450.51B
Current Price$1014.96
P/E Ratio52.70
Forward P/E—
PEG Ratio3.86
EPS$18.21
Book Value$65.70
P/B Ratio15.45
COST Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 15.2% FCF growth (CAGR)
Cash vs Debt
Net Cash: 6.0B
Revenue
152.7B
FY19
166.8B
FY20
195.9B
FY21
227.0B
FY22
242.3B
FY23
254.5B
FY24
275.2B
FY25
Net Income
3.7B
FY19
4.0B
FY20
5.0B
FY21
5.8B
FY22
6.3B
FY23
7.4B
FY24
8.1B
FY25
COST 52-Week Range
$848.83
$1052.45
50-Day MA: $988.05200-Day MA: $946.55
Did you know?
Profit margin stands at 3.0%.
Costco Wholesale Corp (COST) Financial Summary
Costco Wholesale Corp (COST) is a Consumer Defensive company in the Discount Stores industry, listed on NASDAQ. The stock currently trades at $1014.96 with a market capitalization of $450.51B.
Key valuation metrics include a P/E ratio of 52.70, price-to-book ratio of 15.45, and EPS of $18.21. The company reports a profit margin of 3.0% and return on equity of 29.3%.
COST Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $450.51B |
| P/E Ratio | 52.70 |
| EPS | $18.21 |
| P/B Ratio | 15.45 |
| P/S Ratio | 1.57 |
| EV/EBITDA | 30.63 |
| Dividend Yield | 0.48% |
| Profit Margin | 3.0% |
| Return on Equity | 29.3% |
| Debt/Equity | 0.28 |
COST Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $152.70B | $3.66B |
| FY20 | $166.76B | $4.00B |
| FY21 | $195.93B | $5.01B |
| FY22 | $226.95B | $5.84B |
| FY23 | $242.29B | $6.29B |
| FY24 | $254.45B | $7.37B |
| FY25 | $275.24B | $8.10B |
Costco Wholesale Corp (COST) Valuation
Based on GoodMoat's DCF model, Costco Wholesale Corp has a fair value estimate of $2043.26. At the current price of $1014.96, the stock appears 50.3% undervalued relative to our intrinsic value estimate.
COST Quality Indicators
Costco Wholesale Corp maintains a profit margin of 3.0% and an operating margin of 3.8%. Return on equity stands at 29.3%. The current ratio is 1.03. Debt-to-equity ratio is 0.28.
About Costco Wholesale Corp
Costco Wholesale currently operates 803 warehouses, including 558 in the United States and Puerto Rico, 102 in Canada, 39 in Mexico, 29 in the United Kingdom, 27 in Japan, 16 in Korea, 14 in Taiwan, 12 in Australia, three in Spain, and one each in Iceland, France, and China. Costco also operates e-commerce sites in the U.S., Canada, the United Kingdom, Mexico, Korea, Taiwan, Japan, and Australia.
COST Free Cash Flow
Costco Wholesale Corp generated $7.84B in trailing twelve-month free cash flow, representing an FCF yield of 1.74%. This low FCF yield may reflect heavy reinvestment or growth spending.
COST Shares Outstanding
Costco Wholesale Corp has 0.44 billion shares outstanding at a share price of $1014.96, giving it a market capitalization of $450.51B.
COST Recent Insider Trades
Recent insider transactions at Costco Wholesale Corp include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Adamo Claudine (Executive Vice President) | SELL | 730 | $732205.33 |
| Jones Teresa A. (Executive Vice President) | SELL | 850 | $838318.20 |
| DECKER SUSAN L | SELL | 458 | $437390.00 |