Fundamental analysis · SEC EDGAR · TTM through 10/05/2026

Fundamental analysis of Costco Wholesale Corp /new

COST · Nasdaq · Consumer

Fundamental quality

REASONABLE

68

out of 100

Costco Wholesale Corp /new earns a fundamental-quality score of 68 out of 100, profiling it as a company of reasonable quality. Its score rests mainly on its financial strength (net debt -0.96× EBITDA). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

Costco is a warehouse-club chain: customers pay an annual membership to buy at very low prices in large volumes. A big part of its profit comes precisely from those membership fees.

What will shape its future

  • Its very high membership-renewal rate, which gives it recurring, very stable income.
  • Its low-margin, high-volume model, hard to replicate.
  • Expansion into new markets and the growth of its online business.

Breakdown by area

I.Growth
67

EPS growth: 14.9% · Revenue growth: 10.4%

II.Profitability
65

Net margin: 3% · ROE: 26.4% · ROIC: 40.5%

III.Financial health
72

Net debt/EBITDA: -0.96x · FCF: 3%

Source: SEC EDGAR · TTM through 10/05/2026

The score combines growth, profitability and financial strength, and here its pillars hold up evenly.

Versus its sector

Percentile against the other 98 Consumer companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 41%
ROEbeats 68%
Growthbeats 65%
Cash generationbeats 28%
Less debtbeats 91%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Costco Wholesale Corp /new strengths

  • Outstanding return on equity (ROE of 26.4%): it puts shareholder capital to good use.
  • Revenue rising without interruption since 2020.
  • Growing earnings per share (14.9% annualized).
  • Net cash position: more cash than debt.

Costco Wholesale Corp /new risks and weaknesses

  • Thin margins (net margin of 3%), little cushion for setbacks.

Costco Wholesale Corp /new historical evolution

YearRevenueNet incomeFree cash flowNet debt
2020166,7614,0026,051-4,668
2021195,9295,0075,370-3,767
2022226,9545,8443,501-3,646
2023242,2906,2926,745-7,242
2024254,4537,3676,629-4,009
2025275,2358,0997,837-8,373

Between 2020 and 2025, revenue went from $166,761M to $275,235M (+65%) and net income went from $4,002M to $8,099M (+102%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Latest results

Versus the same period a year earlier

Figures for the nine months ended May 10, 2026, versus the nine months ended May 11, 2025 (SEC filings):

  • Revenue+9.7%
  • Net income+13.5%

Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.

Dividend

$0.77

per share, yearly

27% of earnings

Payout

The dividend yield depends on today's price. Compute it in the analyzer → · See all dividend-paying stocks →

Advertising

Want to invest in Costco Wholesale Corp /new?

Open your account in minutes with regulated brokers and buy U.S. and European stocks from small amounts. No paperwork.

Interactive BrokersGlobal markets

The serious investor's standard

Open free account →
WebullCommission-free

Popular in the U.S.

Open free account →

Investing carries risk of loss.

Is Costco Wholesale Corp /new cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

Compute the valuation →

Frequently asked questions

Is Costco Wholesale Corp /new a good company to invest in?

In terms of business quality, Costco Wholesale Corp /new scores 68 out of 100 in our analysis, placing it as a company of reasonable quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Costco Wholesale Corp /new a profitable company?

Costco Wholesale Corp /new is profitable, with a net margin of 3%, though a thin one.

Does Costco Wholesale Corp /new have a lot of debt?

No. Costco Wholesale Corp /new has a net cash position: more cash than debt.

Is Costco Wholesale Corp /new growing?

Its revenue has grown 10.4% annualized in recent years and its earnings per share 14.9%, and without interruption since 2020.

Does Costco Wholesale Corp /new generate cash?

Yes. It converts about 3% of its revenue into free cash flow, and has done so positively year after year.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

Was this page helpful?