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Costco Wholesale Corp
🇺🇸 COST · NYSE/NASDAQ · US22160K1051
Consumer
USD 938.17 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
47.1
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 938.17 ÷ 19.91 = 47.1
TTM period through: 2026-05-31
Forward P/E (estimated): 41.0
Based on analyst estimates
Reference: Provider P/E (Trailing): 47.9
Net Debt/EBITDA (TTM)
-1.0x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2026-05-31
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
ROE
29.1%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
27.5x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Dividend Summary
Powered by EODHDDividend Yield (Fwd)
0.63%
TTM: 0.58%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Forward Yield (estimated): 0.63%
Trailing Yield (TTM, last 12 months): 0.58%
Payout Ratio (Fwd)
29.5%
TTM: 26.1%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (Fwd): 29.5%
Payout (TTM): 26.1%
Cash Flow Payout (TTM): 15.4%
FCF Coverage (TTM): 3.82x
Growth Streak
8 yrs
Consec. increases
Div. Growth (5Y)
13.0%
Dividend History
EODHD Dividends API| Status | Type | Decl. Date | Ex-Div Date | Pay Date | Currency | Amount |
|---|---|---|---|---|---|---|
| Forecast* | Quarterly | — | 01 May 2027 | — | USD | 1.47 |
| Forecast* | Quarterly | — | 30 Jan 2027 | — | USD | 1.3 |
| Forecast* | Quarterly | — | 31 Oct 2026 | — | USD | 1.3 |
| Forecast* | Quarterly | — | 26 Jul 2026 | — | USD | 1.16 |
| Paid | Quarterly | 15 Apr 2026 | 01 May 2026 | 15 May 2026 | USD | 1.47 |
| Paid | Quarterly | 15 Jan 2026 | 30 Jan 2026 | 13 Feb 2026 | USD | 1.3 |
| Paid | Quarterly | 15 Oct 2025 | 31 Oct 2025 | 14 Nov 2025 | USD | 1.3 |
| Paid | Quarterly | 15 Jul 2025 | 01 Aug 2025 | 15 Aug 2025 | USD | 1.3 |
* Extrapolated from past dividend history. Not an official announcement — treat as an estimate, not a confirmed date or amount.
Summary
Costco is an exceptionally high-quality retailer with an unassailable membership moat and a fortress balance sheet. However, the current extreme valuation (P/E 47.1x) and nominal 0.58% dividend yield offer zero margin of safety and fall well short of our strategy's minimum income requirements. Existing shareholders should maintain positions given the phenomenal business quality and potential for special dividends, but new investors should wait for a significant valuation reset before considering.
Sector Context
Costco operates a global chain of membership-based warehouse clubs, offering bulk groceries, merchandise, and services. While consumer staples and grocery retailers provide essential, recession-resistant cash flows ideal for dividend investing, Costco's unique membership model generates highly predictable, high-margin revenue that distinguishes it from traditional low-margin grocery peers and provides immense leverage over suppliers.
📊 Strategy Analysis
- • Exceptional business quality and moat, driven by highly predictable, high-retention membership revenues and immense scale advantages.
- • Fortress balance sheet with extremely low debt (Debt/Equity of 0.17) and a net cash position (Net Debt/EBITDA of -0.99x), providing supreme financial stability.
- • Superb dividend sustainability with a low 26.5% payout ratio and strong free cash flow coverage of 3.8x, enabling 8 consecutive years of double-digit dividend growth.
⚠ What to Watch
- • Extreme valuation with a TTM P/E of 47.1x drastically exceeds the conservative 8-15x target range, pricing in flawless future execution.
- • The current dividend yield of 0.58% falls severely short of the minimum 3% threshold required for income-focused dividend portfolios.
- • Current share price near $938 trades at a massive premium to the estimated monopoly fair value upper bound of $358, offering virtually zero margin of safety.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-07-04
Disclaimer: This information is for educational purposes only. Not financial advice.