A Business at a Glance
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COSTCO WHOLESALE CORP /NEW
COST
$415.9B
Mkt Cap
$935.03
+0.97%
COSTCO WHOLESALE CORP /NEW (COST) has a current P/E ratio of 50.1, compared to its historical median P/E of 36.0. The stock is currently considered Expensive based on its historical valuation range.
COSTCO WHOLESALE CORP /NEW (COST) has a 5-year average return on invested capital (ROIC) of 39.0%. This indicates strong capital allocation and a potential competitive advantage.
COSTCO WHOLESALE CORP /NEW (COST) has a market capitalization of $414.7B. It is classified as a mega-cap stock.
Yes, COSTCO WHOLESALE CORP /NEW (COST) pays a dividend with a trailing twelve-month yield of 0.53%. The company also returns capital through share buybacks, with a buyback yield of 0.22%.
Based on historical P/E analysis, COSTCO WHOLESALE CORP /NEW (COST) appears expensive. The current P/E of 50.1 is 39% above its historical median of 36.0. The estimated fair value CAGR (P/E method) is 11.7%.
COSTCO WHOLESALE CORP /NEW (COST) operates in the Retail-Variety Stores industry, within the Consumer Defensive sector.
Costco Wholesale operates a membership-based warehouse club model across 914 warehouses in 14 countries, generating revenue through merchandise sales across core categories (foods and sundries, non-foods, fresh foods), warehouse ancillary services (gasoline representing ~10% of net sales, pharmacy, optical, food court), and other businesses including e-commerce (~7% of net sales), business centers, and Costco Travel. The company's unit economics are built on high-volume, rapid inventory turnover enabled by direct supplier relationships, efficient cross-docking distribution through depots, and limited SKU selection (under 4,000 per warehouse), allowing Costco to operate profitably at significantly lower gross margins than traditional retailers and often sell inventory before payment is due. The membership model—with Gold Star and Business tiers at $65 annually in the U.S., plus upgradeable Executive memberships earning 2% rewards—creates recurring revenue and customer loyalty, with 145.2 million total cardholders and a 92.3% renewal rate in the U.S. and Canada as of August 2025. Costco's competitive moat derives from its scale-driven cost structure, proprietary Kirkland Signature private-label brand offering higher margins, limited-selection strategy reducing complexity, and membership-based customer relationships that encourage frequent shopping and reduce shrinkage. The company serves individual consumers and businesses globally, with particular strength in developed markets, and competes against general retailers (Walmart, Target, Amazon), supermarkets, and other warehouse clubs on price, merchandise quality, location, and convenience.
【Warehouse expansion and digital integration】 Management is targeting 30+ net new warehouse openings annually in coming years, with 26 planned for fiscal 2026, while continuing to relocate high-volume locations to larger facilities with expanded amenities to drive member traffic and volumes. The company is prioritizing digital capabilities and personalized member communications to improve renewal rates among digitally-acquired members and drive seamless omnichannel engagement, with retail media and targeted advertising campaigns emerging as incremental value drivers for both members and suppliers. Costco remains committed to its pricing philosophy of being first to lower prices and last to raise them, actively managing cost inflation through global sourcing, supplier diversification, and selective assortment changes, while capital expenditure is expected to grow in fiscal 2026 to support warehouse expansion, remodeling, depot network expansion, and digital member experience enhancements.
| Metric | Target | Period |
|---|---|---|
| Net new warehouse openings | 26 | Fiscal year 2026 |
| Capital expenditure | approximately $6.5 billion | Fiscal year 2026 |
Net new warehouse openings (Fiscal year 2026): “We currently expect to have 26 net new openings in fiscal year 2026, down two buildings from the prior call, with those two buildings now set to open in fiscal year 2027.”
Capital expenditure (Fiscal year 2026): “We estimate CapEx for the full year will be approximately $6.5 billion as we continue to invest in building a larger pipeline of new warehouses, remodeling our existing warehouses to drive continued growth in high volume buildings, expanding our depot network to support operational efficiency, and enhancing the member digital experience.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2026 Earnings Call, Q3 FY2026 Earnings Call, Q2 FY2026 Earnings Call, Q1 FY2026 Earnings Call
| Segment | 2021 | 2022 | 2023 | 2024 | 2025 | % of Total |
|---|---|---|---|---|---|---|
Net Sales | — | — | $237.71B | $249.63B | $269.91B | 50% |
Food and Sundries | $77.28B | $85.63B | $96.17B | $101.46B | $109.56B | 20% |
Non-Foods | $55.97B | $61.10B | $60.87B | $63.97B | $71.19B | 13% |
Warehouse ancillary and other businesses | $31.63B | $46.47B | $48.69B | $49.97B | $51.17B | 9% |
Fresh Foods | $27.18B | $29.53B | $31.98B | $34.22B | $37.99B | 7% |
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 0 | 275.2B | 254.5B | 242.3B | 227.0B | 195.9B |
| Net Income | 0 | 8.1B | 7.4B | 6.3B | 5.8B | 5.0B |
| EPS | $0.00 | $18.21 | $16.56 | $14.16 | $13.14 | $11.27 |
| Free Cash Flow | 0 | 7.8B | 6.6B | 6.7B | 3.5B | 5.4B |
| ROIC | - | 39.7% | 40.0% | 36.2% | 40.3% | 38.6% |
| Gross Margin | - | 12.8% | 12.6% | 12.3% | 12.1% | 12.9% |
| Debt/Equity | 0.00 | 0.20 | 0.25 | 0.26 | 0.32 | 0.43 |
| Dividends/Share | $0.00 | $4.92 | $19.36 | $3.84 | $3.37 | $12.94 |
| Operating Income | 0 | 10.4B | 9.3B | 8.1B | 7.8B | 6.7B |
| Operating Margin | 0.0% | 3.8% | 3.6% | 3.3% | 3.4% | 3.4% |
| ROE | 0.0% | 30.7% | 30.3% | 27.5% | 30.6% | 27.9% |
| Shares Outstanding | 443M | 445M | 445M | 444M | 445M | 444M |
COSTCO WHOLESALE CORP /NEW passes 5 of 9 quality checks, suggesting mixed fundamentals.
COSTCO WHOLESALE CORP /NEW trades at 50.1x trailing earnings, compared to its 15-year median P/E of 36.0x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 46.1x vs a median of 35.4x. The company's 5-year average ROIC is 39.0% with a gross margin of 12.5%. Total shareholder yield (dividends + buybacks) is 0.7%. At current prices, the estimated annualized return to fair value is +10.3%.
COSTCO WHOLESALE CORP /NEW (COST) reported annual revenue of $275.2 billion in its most recent fiscal year, based on SEC EDGAR filings.
COSTCO WHOLESALE CORP /NEW (COST) has a net profit margin of 2.9%. This is a modest margin.
COSTCO WHOLESALE CORP /NEW (COST) generated $7.8 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
COSTCO WHOLESALE CORP /NEW (COST) has a debt-to-equity ratio of 0.20. This indicates a conservatively financed balance sheet.
COSTCO WHOLESALE CORP /NEW (COST) reported earnings per share (EPS) of $18.21 in its most recent fiscal year.
COSTCO WHOLESALE CORP /NEW (COST) has a return on equity (ROE) of 30.7%. This indicates the company generates strong returns for shareholders.
COSTCO WHOLESALE CORP /NEW (COST) has a 5-year average gross margin of 12.5%. This lower margin is typical of capital-intensive or commodity businesses.
The Ledger Terminal provides 18 years of financial data for COSTCO WHOLESALE CORP /NEW (COST), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
COSTCO WHOLESALE CORP /NEW (COST) has a book value per share of $65.57, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management is targeting 30+ net new warehouse openings annually in coming years, with 26 planned for fiscal 2026, while continuing to relocate high-volume locations to larger facilities with expanded amenities to drive member traffic and volumes. The company is prioritizing digital capabilities and personalized member communications to improve renewal rates among digitally-acquired members and drive seamless omnichannel engagement, with retail media and targeted advertising campaigns emerging as incremental value drivers for both members and suppliers. Costco remains committed to its pricing philosophy of being first to lower prices and last to raise them, actively managing cost inflation through global sourcing, supplier diversification, and selective assortment changes, while capital expenditure is expected to grow in fiscal 2026 to support warehouse expansion, remodeling, depot network expansion, and digital member experience enhancements.
Based on recent SEC filings and earnings calls, COSTCO WHOLESALE CORP /NEW (COST) has provided the following forward guidance: Net new warehouse openings: 26 (Fiscal year 2026); Capital expenditure: approximately $6.5 billion (Fiscal year 2026).
No recent press releases.