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Costco Wholesale (COST) Stock Analysis

This is a peer-relative look at Costco Wholesale (COST): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Consumer Staples Distribution & Retail peers, so every number reads in context rather than in isolation.

Company Profile

Company profile fields for Costco Wholesale (COST)
Profile ItemCOST
NameCostco Wholesale Corp
Country/RegionUnited States
GICS SectorConsumer Staples
GICS Industry GroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
GICS Sub-IndustryConsumer Staples Merchandise Retail
Market Capitalization444.60 billion USD
CurrencyUSD
ExchangeNasdaq
Listing DateJuly 9, 1986
Security TypeCommon Stock

Price Performance

Cumulative Growth

COST
GSPC
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Costco Wholesale (COST) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Costco Wholesale (COST) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Costco Wholesale (COST) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Costco Wholesale (COST) metric values compared with Consumer Staples Distribution & Retail industry-group medians
MetricCurrent stock: COSTIndustry group median
Total Return (1Y)7.13%17.64%
Total Return (3Y, Annualized)23.65%17.38%
Total Return (5Y, Annualized)17.04%13.09%

Risk Profile

Drawdown History

COST
GSPC
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Costco Wholesale (COST) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Costco Wholesale (COST) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Costco Wholesale (COST) metric values compared with Consumer Staples Distribution & Retail industry-group medians
MetricCurrent stock: COSTIndustry group median
Volatility (1Y, Annualized)19.80%36.21%
Beta (5Y)0.850.64
Max Drawdown (5Y)-31.40%-37.11%

Risk-Adjusted Performance

Risk-Return Positioning

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Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. COST is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

Costco Wholesale (COST) metric values compared with Consumer Staples Distribution & Retail industry-group medians
MetricCurrent stock: COSTIndustry group median
Sharpe Ratio (1Y)0.140.48
Sortino Ratio (1Y)0.200.71

Profitability

ROE (TTM)

Costco Wholesale (COST) posts ROE of 28.40%, in the upper peer quartile. That suggests the company earns more from each dollar of shareholders’ equity than most industry peers, a useful capital-efficiency signal.

COST

Consumer Staples Distribution & Retail industry group

28.40%

Group distribution
Max
35.20%
COST
28.40%
Q3
22.31%
Median
15.25%
Q1
7.33%
Min
-2.27%
Largest peers
SYY
77.69%
COST
28.40%
TGT
26.41%
WMT
22.31%
CASY
19.98%
DG
19.69%
KR
14.44%
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Where Costco Wholesale (COST) stands on ROE within its Consumer Staples Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

Costco Wholesale (COST) keeps 3.04% of revenue as net profit, roughly in line with the peer group’s normal net margin range. Its full cost stack is taking a typical share of sales for the industry.

COST

Consumer Staples Distribution & Retail industry group

3.04%

Group distribution
Max
5.59%
Q3
3.42%
COST
3.04%
Median
2.39%
Q1
1.67%
Min
-0.06%
Largest peers
CASY
4.14%
TGT
4.08%
DG
3.90%
COST
3.04%
WMT
3.00%
SYY
2.08%
KR
0.73%
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Where Costco Wholesale (COST) stands on net margin within its Consumer Staples Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

Costco Wholesale (COST) turns 3.79% of revenue into operating profit, roughly in line with the peer group’s normal operating margin range. Its core cost structure looks typical for the industry.

COST

Consumer Staples Distribution & Retail industry group

3.79%

Group distribution
Max
7.49%
Q3
5.61%
Median
3.84%
COST
3.79%
Q1
2.10%
Min
0.97%
Largest peers
DG
6.81%
CASY
6.50%
TGT
6.04%
SYY
4.85%
COST
3.79%
WMT
3.45%
KR
2.98%
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Where Costco Wholesale (COST) stands on operating margin within its Consumer Staples Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

Costco Wholesale (COST) metric values compared with Consumer Staples Distribution & Retail industry-group medians
MetricCurrent stock: COSTIndustry group median
ROE (TTM)28.40%15.25%
ROA (TTM)8.66%5.69%
Net Margin (TTM)3.04%2.39%
Operating Margin (TTM)3.79%3.84%
Gross Margin (TTM)12.77%24.38%

Growth

Revenue Growth

Costco Wholesale (COST) grew revenue 10.14%, in the upper peer quartile. The top line is expanding faster than at most industry peers, which points to share gains or stronger pricing.

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Costco Wholesale (COST): Revenue Growth across different time periods, set against Consumer Staples Distribution & Retail industry-group medians.

EPS Growth

No usable EPS growth is available for Costco Wholesale (COST) this period, so the earnings-momentum read is skipped.

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Costco Wholesale (COST) doesn't report EPS Growth this period; the bars show the Consumer Staples Distribution & Retail industry-group medians on their own.

Growth Metrics

Costco Wholesale (COST) metric values compared with Consumer Staples Distribution & Retail industry-group medians
MetricCurrent stock: COSTIndustry group median
Revenue Growth (YoY)10.14%5.61%
Revenue Growth (3Y CAGR)7.76%5.00%
EPS Growth (YoY)---0.31%
EPS Growth (3Y CAGR)--8.00%

Financial Strength

Current Ratio (MRQ)

Costco Wholesale (COST) has current ratio of 1.06, in the healthier middle range for its industry. The short-term asset cushion looks balanced relative to peers rather than stretched thin.

COST

Consumer Staples Distribution & Retail industry group

1.06

Group distribution
Max
2.03
Q3
1.44
Median
1.17
COST
1.06
Q1
1.00
Min
0.68
Largest peers
SYY
1.28
DG
1.21
COST
1.06
CASY
1.02
TGT
0.99
WMT
0.77
KR
0.70
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Where Costco Wholesale (COST) stands on current ratio within its Consumer Staples Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Debt / Equity (MRQ)

Costco Wholesale (COST) has debt-to-equity ratio of 0.28, in the lower-leverage quartile for its industry. Borrowing is modest relative to equity compared with most peers, which can leave more flexibility through a cycle.

COST

Consumer Staples Distribution & Retail industry group

0.28

Group distribution
Max
2.65
Q3
1.83
Median
1.26
Q1
0.62
COST
0.28
Min
0.01
Largest peers
SYY
5.65
KR
4.13
DG
1.70
TGT
1.08
WMT
0.72
CASY
0.71
COST
0.28
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Where Costco Wholesale (COST) stands on debt-to-equity ratio within its Consumer Staples Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength Metrics

Costco Wholesale (COST) metric values compared with Consumer Staples Distribution & Retail industry-group medians
MetricCurrent stock: COSTIndustry group median
Current Ratio (MRQ)1.061.17
Debt / Equity (MRQ)0.281.26
Net Debt / EBITDA-0.782.64

Dividends

Dividend Yield (TTM)

Costco Wholesale (COST) has dividend yield of 0.54%, in the industry’s normal income range. It provides a meaningful dividend without the red flag of an unusually high headline yield.

COST

Consumer Staples Distribution & Retail industry group

0.54%

Group distribution
Max
2.88%
Q3
1.70%
COST
0.54%
Median
0.44%
Q1
0.00%
Min
0.00%
Largest peers
TGT
2.88%
SYY
2.58%
KR
2.12%
DG
1.70%
WMT
0.80%
COST
0.54%
CASY
0.33%
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Where Costco Wholesale (COST) stands on dividend yield within its Consumer Staples Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Costco Wholesale (COST) has payout ratio of 26.69%, within the industry’s typical payout band. The dividend shares profits with investors while leaving earnings coverage that looks normal for the peer group.

COST

Consumer Staples Distribution & Retail industry group

26.69%

Group distribution
Max
59.29%
Q3
30.05%
COST
26.69%
Median
11.72%
Q1
0.00%
Min
0.00%
Largest peers
KR
77.78%
SYY
59.29%
TGT
47.35%
WMT
34.96%
DG
30.65%
COST
26.69%
CASY
11.37%
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Where Costco Wholesale (COST) stands on payout ratio within its Consumer Staples Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

Costco Wholesale (COST) metric values compared with Consumer Staples Distribution & Retail industry-group medians
MetricCurrent stock: COSTIndustry group median
Dividend Yield (TTM)0.54%0.44%
Dividend Payout Ratio (TTM)26.69%11.72%

Valuation

P/E Ratio (TTM)

Costco Wholesale (COST) trades at P/E ratio of 48.33, in the richer earnings-multiple quartile for its industry. That premium needs support from growth, durable earnings, or stronger business quality.

COST

Consumer Staples Distribution & Retail industry group

48.33

Group distribution
Max
50.42
COST
48.33
Q3
34.66
Median
22.23
Q1
15.91
Min
12.53
Largest peers
COST
48.33
WMT
43.44
KR
37.09
CASY
33.68
SYY
22.23
DG
17.23
TGT
15.86
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Where Costco Wholesale (COST) stands on P/E ratio within its Consumer Staples Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

Costco Wholesale (COST) trades at 1.47 on P/S ratio, in the higher sales-valuation quartile. Investors are paying up for each dollar of revenue, so stronger margins, growth, or revenue quality need to carry that price.

COST

Consumer Staples Distribution & Retail industry group

1.47

Group distribution
COST
1.47
Max
1.47
Q3
0.87
Median
0.51
Q1
0.26
Min
0.02
Largest peers
COST
1.47
CASY
1.38
WMT
1.30
DG
0.67
TGT
0.64
SYY
0.47
KR
0.26
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Where Costco Wholesale (COST) stands on P/S ratio within its Consumer Staples Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

Costco Wholesale (COST) trades at 12.42 on P/B ratio, in the higher book-value quartile. The market is paying a premium to book, so stronger ROE, cleaner assets, or a better growth profile need to justify it.

COST

Consumer Staples Distribution & Retail industry group

12.42

Group distribution
COST
12.42
Max
12.42
Q3
6.58
Median
4.06
Q1
1.96
Min
0.99
Largest peers
SYY
14.61
COST
12.42
WMT
9.69
KR
6.81
CASY
6.32
TGT
3.89
DG
3.15
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Where Costco Wholesale (COST) stands on P/B ratio within its Consumer Staples Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

Costco Wholesale (COST) metric values compared with Consumer Staples Distribution & Retail industry-group medians
MetricCurrent stock: COSTIndustry group median
P/E Ratio (TTM)48.3322.23
P/S Ratio (TTM)1.470.51
P/B Ratio (MRQ)12.424.06
Free Cash Flow Yield (TTM)1.52%4.46%