Costco (COST)
Consumer Staples · $472B market cap · SEC CIK 0000909832
ahead of 58% of the S&P 500 · #16 of 36 in Consumer Staples
Next reports on Dec 10, 2026, with analysts expecting $5.03 in earnings per share.
52-week range $844.06 to $1,097. 3% below its 52-week high and 26% above its low.
The case for COST
- Earns 28% back on shareholder equity.
- Holds more cash ($20.2B) than long-term debt ($3.9B).
- Revenue growing 10.1% year over year.
- Barely leveraged. Debt is 0.17× equity.
The case against
- Expensive for its growth: 51.2× earnings, where 11% a year of growth plus a 0.7% dividend would justify about 25×.
- Net margin of 3.0% leaves very little room for error.
- Free-cash-flow yield of 2.0% is lower than 91% of Consumer Staples companies.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Consumer Staples companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings and cash, against the growth you get | 24 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 79 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 46 |
| Momentumhow the price has behaved lately | 76 |
| Stabilityhow violently it moves, what it owes and what it pays you | 81 |
- Each factor except momentum is half fixed thresholds, half rank among the 36 Consumer Staples companies.
The financials
Revenue growth
Is the business growing? Yes
| Last 12 months | +10.1% |
|---|---|
| Over 5 years | +9.1% a year |
| FY2026 revenue | $303B (+10%) |
Free cash flow
Is it generating real cash? A little
| FY2026 free cash flow | $9.4B |
|---|---|
| Of revenue | 3% |
| Of profit | 102% |
Profit margins
Is profitability improving? Holding steady
| Gross margin | 13% |
|---|---|
| Operating margin | 4% |
| Net margin, FY25 → FY26 → now | 2.9% → 3.0% → 3.0% |
Debt vs. cash
Is the balance sheet healthy? Yes, more cash than debt
| Cash | $20.2B |
|---|---|
| Long-term debt | $3.9B |
| Net cash | $16.3B |
| Years to repay | 0.2 yrs |
Valuation
Is the stock price reasonable? No, expensive
| P/E | 51.2× |
|---|---|
| Fair P/E for its growth | 25× |
| P/FCF | 50.4× |
| Forward P/E | 43.7× |
| EV / EBITDA | 31.9× |
At 51.2× earnings it trades well above the 25× that 11% a year of growth plus a 0.7% dividend would justify. At 50.4× free cash flow it trades well above that same mark.
The financials, five years deep
Pulled from Costco's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.
| FY2026 | FY2025 | FY2024 | FY2023 | FY2022 | |
|---|---|---|---|---|---|
| Revenue growth | |||||
| Revenue | $303B | $275B | $254B | $242B | $227B |
| Change on the year | +10% | +8% | +5% | +7% | — |
| Free cash flow | |||||
| Free cash flow | $9.4B | $7.8B | $6.6B | $6.7B | $3.5B |
| Of revenue | 3% | 3% | 3% | 3% | 2% |
| Profit margins | |||||
| Operating margin | 3.9% | 3.8% | 3.6% | 3.3% | 3.4% |
| Net margin | 3.0% | 2.9% | 2.9% | 2.6% | 2.6% |
| Debt vs. cash | |||||
| Cash | $20.2B | $14.2B | $9.9B | $13.7B | $10.2B |
| Long-term debt | $3.9B | $5.7B | $5.8B | $5.4B | $6.5B |
| Net cash (debt) | $16.3B | $8.4B | $4.1B | $8.3B | $3.7B |
Filings
The text of this 10-K could not be read automatically. The original is linked below.