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Costco Wholesale Corp
🇺🇸 COST · NYSE/NASDAQ · US22160K1051
Consumer
USD 957.30 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
48.3
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: 957.30 ÷ 19.91 = 48.3
TTM period through: 2026-05-31
Forward P/E (estimated): 42.0
Based on analyst estimates
Reference: Provider P/E (Trailing): 48.3
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
28.4x
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)
0.56%
TTM: 0.56%
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): 0.56%
Trailing Yield (TTM, last 12 months): 0.56%
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 | — | 24 Jul 2027 | — | USD | 1.47 |
| Forecast* | Quarterly | — | 01 May 2027 | — | USD | 1.47 |
| Forecast* | Quarterly | — | 30 Jan 2027 | — | USD | 1.3 |
| Forecast* | Quarterly | — | 31 Oct 2026 | — | USD | 1.3 |
| Paid | Quarterly | 08 Jul 2026 | 24 Jul 2026 | 07 Aug 2026 | USD | 1.47 |
| 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 |
* 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 pristine balance sheet. However, the extreme valuation (48.3x P/E) and nominal yield make it a terrible entry deal right now. Existing holders should maintain, but it is not recommended for new positions until a significant market correction offers a better margin of safety.
Sector Context
Costco operates within the consumer defensive sector as a dominant warehouse club retailer. For DGI investors, Costco represents a pure 'dividend growth compounder' rather than an income provider, relying on its sticky membership fee model, high-volume/low-margin merchandise sales, and periodic massive special dividends to generate total shareholder returns.
📊 Strategy Analysis
- • Exceptional profitability with an ROE of 29.15% and a fortress balance sheet (Net Debt/EBITDA of -0.99x).
- • Unassailable membership moat and high volume scale driving robust free cash flow, with FCF dividend coverage at a phenomenal 3.82x.
- • Consistent double-digit dividend growth (13.0% 5-year CAGR) supported by a very safe TTM payout ratio of 27.4%.
⚠ What to Watch
- • Extreme valuation with a TTM P/E of 48.3x drastically exceeds value-oriented ranges, leaving virtually no margin of safety.
- • The nominal regular dividend yield of 0.56% falls severely short of the current income requirements for standard DGI portfolios.
- • Structural regulatory headwinds, including Extended Producer Responsibility (EPR) packaging laws and rapid localized minimum wage escalations, may pressure future SG&A expenses.
📊 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: 2026-08-15
Disclaimer: This information is for educational purposes only. Not financial advice.