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Earnings transcript
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COST
Costco Wholesale Corporation
$989.11
11.1
(1.13%)
| Exchange: | NASDAQ |
| Market Cap: | 438.304B |
| Shares Outstanding: | 191.667M |
Delayed data
About The Company
| Sector: | Consumer DefensiveView sector performance | |||||
| Industry: | Discount StoresView industry performance | |||||
| CEO: | Ron Vachris | |||||
| Full Time Employees: | 355000 | |||||
| Address: |
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| Website: | https://www.costco.com |
Costco Wholesale Corporation, alongside its group entities, operates membership-based retail warehouses across a broad international scope, spanning the United States, Puerto Rico, Canada, the United Kingdom, Mexico, Japan, South Korea, Australia, Spain, France, Iceland, China, and Taiwan. These outlets provide customers with an extensive array of both well-known branded and proprietary private-label products. Their vast inventory includes household staples, shelf-stable groceries, confectionery, chilled and frozen items, alcoholic beverages, tobacco, and deli selections. Furthermore, the stores stock major appliances, consumer electronics, health and beauty aids, hardware, garden and patio furniture, sporting goods, vehicle tires, toys, seasonal merchandise, office supplies, automotive maintenance products, postage services, event tickets, apparel, small kitchen appliances, home furnishings, domestic textiles, kitchenware, custom-order kiosks, and fine jewelry. Fresh departments offer meat, produce, a service deli, and bakery items. Beyond retail goods, Costco provides in-store amenities such as pharmacies, optical clinics, food courts, hearing aid centers, and tire installation facilities, in addition to managing 636 gas stations. The company also extends its offerings online through business delivery, travel booking, and same-day grocery fulfillment in various countries. As of August 29, 2021, Costco maintained a global network of 815 membership warehouses, with 564 located in the United States and Puerto Rico, 105 in Canada, 39 in Mexico, 30 in Japan, 29 in the United Kingdom, 16 in South Korea, 14 in Taiwan, 12 in Australia, 3 in Spain, and one each in Iceland, France, and China. Digital storefronts facilitate e-commerce operations in the United States, Canada, the United Kingdom, Mexico, South Korea, Taiwan, Japan, and Australia. Founded in 1976, the enterprise was originally known as Costco Companies, Inc. before officially adopting the name Costco Wholesale Corporation in August 1999. Its corporate headquarters are situated in Issaquah, Washington.
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Revenue Segmentation
COST full analysis
Hey everyone, welcome back to MarketSnap. If you're thinking about buying Costco at today's price, stop for a second — because we're running it through the MarketSnap valuation model, the exact checklist we'd use before putting real capital to work. The stock just posted a strong quarter, the business looks as healthy as ever, but the model is flashing something that might surprise you. So does the math actually justify the price, or is the market already way ahead of…
Industry Peers
| TICKER | COMPANY | MKT CAP | P/E | FWD P/E | ROIC |
|---|---|---|---|---|---|
| COST | Costco Wholesale Corporation | 438.3B | 45.6 | 48.3 | 18.6% |
 TGT | Target Corporation | 70.1B | 15.9 | 21.1 | 11.3% |
 DG | Dollar General Corporation | 29.7B | 16.5 | 20.4 | 7.0% |
 DLTR | Dollar Tree, Inc. | 23.3B | 14.5 | 21.6 | 13.8% |
 BJ | BJ's Wholesale Club Holdings, Inc. | 13.0B | 21.4 | 23.6 | 11.9% |
 TBBB | BBB Foods Inc. | 7.0B | — | — | -3.9% |
EPS
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Earnings Call
AI summary
Key takeaways
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Login — it's freeIncome Statement
| Year | 2024 | 2025 | 2026 |
|---|---|---|---|
| Revenue | 254,453,000 | 275,235,000 | 303,154,000 |
| Gross Profit | 32,095,000 | 35,349,000 | 38,875,000 |
| EBITDA | 12,146,000 | 13,398,000 | 14,359,000 |
| Operating Income | 9,285,000 | 10,383,000 | 11,685,000 |
| Net Income | 7,367,000 | 8,099,000 | 9,226,000 |
(* All numbers are in thousands)
Balance Sheet
| Year | 2024 | 2025 | 2026 |
|---|---|---|---|
| Total Assets | 69,831,000 | 77,099,000 | 89,045,000 |
| Total Liabilities | 46,209,000 | 47,935,000 | 53,242,000 |
| Total Stockholders Equity | 23,622,000 | 29,164,000 | 35,803,000 |
| Total Debt | 8,272,000 | 8,173,000 | 4,662,000 |
| Cash and Cash Equivalents | 9,906,000 | 14,161,000 | 20,207,000 |
(* All numbers are in thousands)
Cash Flow Statement
| Year | 2024 | 2025 | 2026 |
|---|---|---|---|
| Operating Cash Flow | 11,339,000 | 13,335,000 | 15,825,000 |
| Capital Expenditure | -4,710,000 | -5,498,000 | -6,435,000 |
| Free Cash Flow | 6,629,000 | 7,837,000 | 9,390,000 |
| Net Income | 7,367,000 | 8,099,000 | 9,226,000 |
| Net Change in Cash | -3,794,000 | 4,255,000 | 6,046,000 |
(* All numbers are in thousands)
Analyst Estimates
| Fiscal Year | 2031 | Research Access | Research Access | Research Access | Research Access |
|---|---|---|---|---|---|
| Estimated Revenue (Low) | 426,093,863.524 | Research Access | Research Access | Research Access | Research Access |
| Estimated Revenue (High) | 448,263,098.115 | Research Access | Research Access | Research Access | Research Access |
| Estimated Revenue (Avg) | 437,072,000 | Research Access | Research Access | Research Access | Research Access |
| Estimated Ebitda (Low) | 24,758,286.765 | Research Access | Research Access | Research Access | Research Access |
| Estimated Ebitda (High) | 26,034,994.844 | Research Access | Research Access | Research Access | Research Access |
| Estimated Ebitda (Avg) | 25,390,508.233 | Research Access | Research Access | Research Access | Research Access |
| Estimated Net Income (Low) | 14,028,133.850 | Research Access | Research Access | Research Access | Research Access |
| Estimated Net Income (High) | 14,984,358.541 | Research Access | Research Access | Research Access | Research Access |
| Estimated Net Income (Avg) | 14,501,653.042 | Research Access | Research Access | Research Access | Research Access |
| Estimated SGA Expense (Low) | 38,033,096.960 | Research Access | Research Access | Research Access | Research Access |
| Estimated SGA Expense (High) | 40,011,920.690 | Research Access | Research Access | Research Access | Research Access |
| Estimated SGA Expense (Avg) | 39,013,004.357 | Research Access | Research Access | Research Access | Research Access |
| Estimated EPS (Avg) | 32.630 | Research Access | Research Access | Research Access | Research Access |
| Estimated EPS (High) | 33.720 | Research Access | Research Access | Research Access | Research Access |
| Estimated EPS (Low) | 31.560 | Research Access | Research Access | Research Access | Research Access |
| Number of Analysts (Estimated Revenue) | 5 | Research Access | Research Access | Research Access | Research Access |
| Number of Analysts (Estimated EPS) | 9 | Research Access | Research Access | Research Access | Research Access |
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Current Key Metrics
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Login — it's freeSWOT Analysis
Strengths (preview)
- Scale and Membership Model Resilience: Costco's business model continues to demonstrate defensive characteristics, with Q2 2025 net income of $1.788 billion ($4.02 per diluted share) reflecting steady profitability despite a challenging macroeconomic backdrop. The company's membership-based structure provides recurring high-margin fee income and strong customer loyalty, supporting consistent cash flow generation.
- Strong Cash Flow and Balance Sheet Position: The company maintains robust free cash flow generation driven by high inventory turnover and negative working capital dynamics typical of warehouse club models. This supports consistent dividend payments and share repurchases, as evidenced by ongoing net dividends paid and financing activities in the cash flow statement.
- Global Footprint and Revenue Diversification: Costco's revenue streams span multiple product categories and geographic regions, reducing dependence on any single market. The company's stated focus on "expanding its global footprint" indicates an established international presence that provides growth optionality beyond saturated domestic markets.
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At what price to buy it? -
Intrinsic Value Calculator
Based on current fundamentals and analyst forecasts, MarketSnap estimates COST intrinsic value between $404.75 – $429.62 per share. This depends on revenue growth, margins, and discount rate.
This is an automatic estimate. The most reliable way to know fair value for your own assumptions is to run the calculator below.
Common questions about COST valuation
Is Costco Wholesale Corporation (COST) overvalued or undervalued right now?
MarketSnap estimates intrinsic value for Costco Wholesale Corporation (COST) using its proprietary valuation methodology, which incorporates discounted cash flow (DCF) analysis together with long-term earnings and fundamentals assumptions. By comparing intrinsic value to the current market price, long-term investors can see whether the stock screens as potentially overvalued, fairly valued, or undervalued today.
Is COST a buy, hold, or sell for long-term investors?
MarketSnap does not give one-word “buy” or “sell” calls. Instead, it shows whether COST trades at a premium or discount to its estimated intrinsic value, how sensitive that value is to growth and margin assumptions, and how the stock fits into a diversified, long-term portfolio so investors can make their own buy, hold, or sell decision.
What is COST’s P/E ratio?
You can see COST’s trailing P/E (TTM) and forward P/E estimates in the Current Key Metrics and Forward P/E Ratios sections above. The P/E ratio compares the current share price to earnings per share and helps investors gauge valuation relative to earnings.
How is intrinsic value calculated for COST?
MarketSnap uses its own valuation framework—not a generic spreadsheet DCF alone. Future cash flows and earnings are projected, discounted, and combined with MarketSnap’s methodology so intrinsic value reflects fundamentals and long-term assumptions. You can run your own inputs and see the result using the Intrinsic Value Calculator above.
Is COST a good long-term investment?
Whether COST fits a long-term portfolio depends on your assumptions about growth, margins, and risk. MarketSnap provides the metrics, intrinsic value calculator, and SWOT context so you can form your own view rather than rely on a single buy/sell rating.
COST
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Daily snapshot
1.13
Trading Metrics:
| Open: | 982.49 | Previous Close: | 978.01 | |
| Day Low: | 980.67 | Day High: | 990.85 | |
| Year Low: | 844.06 | Year High: | 1096.5 | |
| Price Avg 50: | 932.99 | Price Avg 200: | 965.5 | |
| Volume: | 2.383M | Average Volume: | 2.21M |
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