COSTCO WHOLESALE CORP /NEW (COST) Factsheet
COSTCO WHOLESALE CORP /NEW (COST) Stock Analysis
Analysis from 10-Q filed 2025-12-17. Data as of Q2 2026.
Overall Grade: F (Concerning)
Grade F (Concerning). ROIC 22.7%. FCF margin 3.0%. D/E 0.2x. Source: 10-Q filed 2025-12-17.
| Metric | Value | Context |
|---|---|---|
| ROIC | 22.7% | Above industry average |
| FCF Margin | 3.0% | Cash flow pressure |
| Debt/Equity | 0.2x | Conservative leverage |
ROIC 22.7% — Top 25% of sector peers. FCF margin 3.0% — Top 50%.
Explore COSTCO WHOLESALE CORP /NEW: Earnings History | Filings | ROIC Analysis
Programmatic access: Available via MCP at mcp.metricduck.com. Tools for COST: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.
Profitability: COSTCO WHOLESALE CORP /NEW earns 22.7% ROIC, Top 25% in Consumer Discretionary
ROIC TTM 22.7%, sector median 8.1%, Top 25%. DuPont: NOPAT margin 2.9% × asset turnover 3.6x. Gross margin 12.9%. Operating margin 3.8%. Source: 10-Q filed 2025-12-17.
| Metric | COST | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 22.7% | Excellent | Above sector median of 8.1% |
| Return on Equity (ROE) | 29.0% | Excellent | Efficient use of shareholder equity |
| Gross Margin | 12.9% | Warning | Competitive pricing environment |
| Operating Margin | 3.8% | Warning | Moderate operational efficiency |
Cash Flow: COSTCO WHOLESALE CORP /NEW generates $8.8B FCF at 3.0% margin, positive NaN/8 quarters
FCF TTM $8.8B. FCF margin 3.0%, Top 50%. OCF/Net income 1.7x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-12-17.
| Metric | COST | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 3.0% | Warning | Thin cash margins |
| Free Cash Flow (TTM) | $8.8B | Good | Positive cash generation |
| OCF/Net Income | 1.7x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: COSTCO WHOLESALE CORP /NEW at 0.2x leverage
Debt/Equity 0.2x. Net cash $14.3B. Source: 10-Q filed 2025-12-17.
| Metric | COST | Rating | Context |
|---|---|---|---|
| Debt to Equity | 0.2x | Excellent | Conservative capital structure |
| Net Cash Position | $14.3B | Excellent | Net cash positive |
Valuation: COSTCO WHOLESALE CORP /NEW trades at 50.7x earnings
P/E 50.7x. EV/Sales 1.5x. FCF yield 2.0%. Dividend yield 0.5%. Source: 10-Q filed 2025-12-17.
| Metric | COST | Rating | Context |
|---|---|---|---|
| P/E Ratio | 50.7x | Warning | Premium valuation |
| EV/Sales | 1.5x | Excellent | Attractive revenue multiple |
| FCF Yield | 2.0% | Warning | Lower cash yield |
| Dividend Yield | 0.5% | Adequate | Growth focus over income |
Capital Allocation: COSTCO WHOLESALE CORP /NEW returns 0.7% shareholder yield
Total shareholder yield 0.7% (div 0.5% + buyback 0.2%). Capital returned $883.0M TTM. Source: 10-Q filed 2025-12-17.
| Metric | COST | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 0.7% | Adequate | Dividend + buyback yield combined |
| Buyback Yield | 0.2% | Adequate | Minimal buyback activity |
| Total Capital Returned (TTM) | $883.0M | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 22.7% | Top 25% | 2.8x above |
| Free Cash Flow Margin | 3.0% | Top 50% | 1.3x above |
| Gross Margin | 12.9% | Bottom 25% | 0.3x below |
| Operating Margin | 3.8% | Bottom 50% | 0.9x below |
| Return on Equity (ROE) | 29.0% | Top 25% | 2.8x above |
| P/E Ratio | 50.7x | N/A | - |
Financial Scorecard
| Metric | COST | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 22.7% | Excellent | Top 25% of sector (median: 8.1%) |
| Free Cash Flow Margin | 3.0% | Warning | Top 50% of sector (median: 2.3%) |
| Gross Margin | 12.9% | Warning | Bottom 25% of sector (median: 39.3%) |
| Debt to Equity Ratio | 16.9% | Excellent | Conservative capital structure |
| P/E Ratio (Price-to-Earnings) | 50.7x | Warning | High expectations priced in |
| Free Cash Flow Yield | 2.0% | Warning | Growth-focused valuation |
Frequently Asked Questions
Q: What is COSTCO WHOLESALE CORP /NEW's Return on Invested Capital (ROIC)?
COSTCO WHOLESALE CORP /NEW (COST) has a trailing twelve-month Return on Invested Capital (ROIC) of 22.7%. Sector median 8.1%. Source: 10-Q filed 2025-12-17.
Q: What is COSTCO WHOLESALE CORP /NEW's Free Cash Flow Margin?
COSTCO WHOLESALE CORP /NEW (COST) has a free cash flow margin of 3.0%, generating $8.8 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-12-17.
Q: What is COSTCO WHOLESALE CORP /NEW's P/E ratio and how does it compare to peers?
COSTCO WHOLESALE CORP /NEW (COST) trades at a P/E ratio of 50.7x, which is above the sector median of N/A. EV/Sales 1.5x. FCF yield 2.0%. Source: 10-Q filed 2025-12-17.
Q: Does COSTCO WHOLESALE CORP /NEW pay a dividend?
COSTCO WHOLESALE CORP /NEW (COST) currently pays a dividend yield of 0.5%. Total shareholder yield (dividend + buybacks) 0.7%. Source: 10-Q filed 2025-12-17.
Q: What is COSTCO WHOLESALE CORP /NEW's revenue and earnings growth?
COSTCO WHOLESALE CORP /NEW (COST) grew revenue by 9.2% year-over-year. EPS +12.8% YoY. Source: 10-Q filed 2025-12-17.
Q: Is COSTCO WHOLESALE CORP /NEW buying back stock?
COSTCO WHOLESALE CORP /NEW (COST) repurchased $883.0 million of stock over the trailing twelve months. This represents a buyback yield of 0.2%. Source: 10-Q filed 2025-12-17.
Q: How does COSTCO WHOLESALE CORP /NEW compare to competitors in Consumer Discretionary?
Compared to other companies in Consumer Discretionary, COSTCO WHOLESALE CORP /NEW (COST) shows: ROIC 22.7%, sector median 8.1% (Top 25%). FCF margin 3.0%, sector median 2.3% (Top 50%). Gross margin 12.9%, 26.5pp below sector median. These rankings are based on MetricDuck's analysis of all Consumer Discretionary companies with available SEC filings.
Q: What warning signs should I watch for with COSTCO WHOLESALE CORP /NEW?
Quantitative warning flags for COSTCO WHOLESALE CORP /NEW (COST): 1) FCF margin 3.0% (below 5%); 2) ROIC declining -5.7% over 8 quarters. Source: 10-Q filed 2025-12-17.
Data Source: Data sourced from 10-Q filed 2025-12-17. TTM metrics as of Q2 2026.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.