COSTCO WHOLESALE CORP /NEW (COST) Factsheet

COSTCO WHOLESALE CORP /NEW (COST) Stock Analysis

Analysis from 10-Q filed 2025-12-17. Data as of Q1 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 23.1%. FCF margin 3.2%. D/E 0.2x. Source: 10-Q filed 2025-12-17.

Metric Value Context
ROIC 23.1% Above industry average
FCF Margin 3.2% Cash flow pressure
Debt/Equity 0.2x Conservative leverage

ROIC 23.1% — Top 25% of sector peers. FCF margin 3.2% — 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 23.1% ROIC, Top 25% in Consumer Discretionary

ROIC TTM 23.1%, 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) 23.1% Excellent Above sector median of 8.1%
Return on Equity (ROE) 29.6% 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 $9.1B FCF at 3.2% margin, positive NaN/8 quarters

FCF TTM $9.1B. FCF margin 3.2%, Top 50%. OCF/Net income 1.8x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-12-17.

Metric COST Rating Context
Free Cash Flow Margin 3.2% Warning Thin cash margins
Free Cash Flow (TTM) $9.1B Good Positive cash generation
OCF/Net Income 1.8x 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 $12.5B. Source: 10-Q filed 2025-12-17.

Metric COST Rating Context
Debt to Equity 0.2x Excellent Conservative capital structure
Net Cash Position $12.5B Excellent Net cash positive

Valuation: COSTCO WHOLESALE CORP /NEW trades at 52.9x earnings

P/E 52.9x. 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 52.9x Warning Premium valuation
EV/Sales 1.5x Excellent Attractive revenue multiple
FCF Yield 2.0% Adequate 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 $910.0M 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) $910.0M Good Dividends + buybacks returned to shareholders

Sector Rankings

Metric Value Percentile vs Median
Return on Invested Capital (ROIC) 23.1% Top 25% 2.9x above
Free Cash Flow Margin 3.2% Top 50% 1.4x above
Gross Margin 12.9% Bottom 25% 0.3x below
Operating Margin 3.8% Bottom 50% 0.9x below
Return on Equity (ROE) 29.6% Top 25% 2.9x above
P/E Ratio 52.9x N/A -

Financial Scorecard

Metric COST Rating Sector Context
Return on Invested Capital (ROIC) 23.1% Excellent Top 25% of sector (median: 8.1%)
Free Cash Flow Margin 3.2% Warning Top 50% of sector (median: 2.2%)
Gross Margin 12.9% Warning Bottom 25% of sector (median: 39.1%)
Debt to Equity Ratio 18.0% Excellent Conservative capital structure
P/E Ratio (Price-to-Earnings) 52.9x 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 23.1%. 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 3.2%, generating $9.1 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 52.9x, 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 8.4% year-over-year. EPS +12.3% YoY. Source: 10-Q filed 2025-12-17.

Q: Is COSTCO WHOLESALE CORP /NEW buying back stock?

COSTCO WHOLESALE CORP /NEW (COST) repurchased $910.0 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 23.1%, sector median 8.1% (Top 25%). FCF margin 3.2%, sector median 2.2% (Top 50%). Gross margin 12.9%, 26.2pp 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 3.2% (below 5%); 2) ROIC declining -3.7% 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 Q1 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.