Obermatt

Costco

NSQ:COST · US22160K1051
Food & Staples RetailingXX-Large

360

55
EV / EBIT3
Price / Owner Earnings15
Owner Earnings Yield36
Dividend Yield67
Price/Sales27
EV / Gross Profit2
Price/Book9
Return on Capital100
Cash Return on Capital98
Return on Equity89
EBIT Margin27
Gross Profitability53
Cash Conversion16
Accruals34
Owner Earnings Margin55
Sales growth76
Profit Growth98
Long-Term EPS Growth53
Owner Earnings Growth51
Reinvestment70
Price momentum45
Debt load90
Refinancing13
Debt Payback100
Liquidity91
Analyst ratings64
Opinion Changes52
Price Target Upside43
Market mood100
Value Creation12/20creating some value
  • Creates more value than its capital costs
  • Owner earnings growing
  • Owner earnings per share growing
  • Reinvests at strong returns
  • Solid earnings base

What this means

Costco clears its cost of capital, but the record is mixed across the five tests. Real value creation, just not yet consistent.

Profile

CountryUSA
IndustryFood & Staples Retailing
SizeXX-Large
TypePublic Company
ExchangeNASDAQGS
Founded1987
Employees42,255
Websitecostco.com
ISINUS22160K1051
Last UpdateApr 2, 2026
Themes
Online GroceryUtility Scale SolarFast-Moving Consumer GoodsRetailSportsTicketing

Description

Costco Wholesale Corporation and its subsidiaries (Costco) principally engages in the operation of membership warehouses in the United States (U.S.), Puerto Rico, Canada, Mexico, Japan, the United Kingdom (U.K.), Korea, Australia, Taiwan, China, Spai…

Analysis

Hope premium

Costco Wholesale Corporation carries what we call a hope premium: an average business trading at an ambitious price. One caution: reported profits have recently run ahead of actual cash, which we track closely.

The price is expensive. You pay 83.3× its owner earnings: the cash an owner could take out each year, which is in the historically expensive zone. At today's price, the market is assuming roughly 26% yearly growth; analysts expect 10%. The market is pricing in far more than analysts expect: heroic expectations.

The trajectory is moderate and the balance sheet is sturdy. The company scores 12/20 on our value-creation score: creating some value.

What to watch: Reported profits have run ahead of actual cash for several periods. As always: this describes the company's numbers; it is not a recommendation.

360° rank · history

1007550250
70
2023202420252026

All-time high

93

Mar 2024

All-time low

34

Feb 2026

Average rank

79

across all years

Detailed & Historical Ranks

Deep dive into 15 detailed ranks and 3 years of history.

Current202520242023
Price/Sales
27
19
27
37
Price/Earnings
1
5
13
5
Price/Book
9
3
6
16
Dividend Yield
67
58
54
55
Value (overall)
24
29
7
21

Cells are coloured by rank band (red weak → green strong). Sentiment & 360° history begins 2023.

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Make Sense of the Ranks

Every rank runs 1–100 against true peers. Higher is always better.

360° View
1 · Watch OutGood· 100
Value
1 · ExpensiveGood Value· 100
Quality
1 · Weak FundamentalsHigh Quality· 100
Growth
1 · Tough TimesHigh Growth· 100
Safety
1 · High LeverageWell-Financed· 100
Sentiment
1 · SkepticismPositive· 100
Learn More →