Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin3.8%
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin2.9%
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Financial Health
C
Years to Pay Off Debt1.0 yrs
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt-$4.4B
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital$1.3B
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Valuation
N/A
Cash Flow
C
Free Cash Flow$7.8B
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income67.9%
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings$16.0B
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Metric Explanations
What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Market Data
Key Margins
Gross Profit12.8%
Operating Margin3.8%
Net Margin2.9%
Company Info
Showing Key Metrics
Income Highlights
Metric
2025
2024
2023
2022
Gross Profit %
12.8%▲
12.6%▲
12.3%▲
12.1%
Operating Margin %
3.8%▲
3.6%▲
3.3%▼
3.4%
Net Income %
2.9%▲
2.9%▲
2.6%▲
2.6%
Diluted EPS
18.21▲
16.56▲
14.16▲
13.14
Balance Sheet Highlights
Metric
2025
2024
2023
2022
Total Assets
$77.1B
$69.8B
$69.0B
$64.2B
Total Debt
$8.2B▲
$8.2B▼
$8.9B▼
$9.0B
Working Capital
$1.3B▲
-$1.2B▼
$2.3B▲
$698M
Years to Pay Debt
1.01
1.11
1.41
1.55
Cash Flow Highlights
Metric
2025
2024
2023
2022
Free Cash Flow
$7.8B▲
$6.6B▼
$6.7B▲
$3.5B
Owner Earnings
$16.0B
$14.3B
$12.7B
$11.6B
CapEx % of Net Income
67.9%
63.9%
68.7%
66.6%
Income Statement
2025
2024
2023
2022
Tax Effect Of Unusual Items
21,084
6,344
7,511
26,076
Tax Rate For Calcs
0
0
0
0
Normalized EBITDA
13,314,000
12,120,000
10,695,000
9,792,000
Total Unusual Items
84,000
26,000
29,000
106,000
Total Unusual Items Excluding Goodwill
84,000
26,000
29,000
106,000
Net Income From Continuing Operation Net Minority Interest
8,099,000
7,367,000
6,292,000
5,844,000
Reconciled Depreciation
2,426,000
2,237,000
2,077,000
1,900,000
Reconciled Cost Of Revenue
239,886,000
222,358,000
212,586,000
199,382,000
EBITDA
13,398,000
12,146,000
10,724,000
9,898,000
EBIT
10,972,000
9,909,000
8,647,000
7,998,000
Net Interest Income
351,000
429,000
344,000
-59,000
Interest Expense
154,000
169,000
160,000
158,000
Interest Income
505,000
533,000
470,000
61,000
Normalized Income
8,036,084
7,347,344
6,270,511
5,764,076
Net Income From Continuing And Discontinued Operation
8,099,000
7,367,000
6,292,000
5,844,000
Total Expenses
264,852,000
245,168,000
234,176,000
219,161,000
Total Operating Income As Reported
10,383,000
9,285,000
8,114,000
7,793,000
Diluted Average Shares
444,803
444,759
444,452
444,757
Basic Average Shares
443,985
443,914
443,854
443,651
Diluted EPS
0
0
0
0
Basic EPS
0
0
0
0
Diluted NI Availto Com Stockholders
8,099,000
7,367,000
6,292,000
5,844,000
Net Income Common Stockholders
8,099,000
7,367,000
6,292,000
5,844,000
Net Income
8,099,000
7,367,000
6,292,000
5,844,000
Minority Interests
0
0
-71,000
Net Income Including Noncontrolling Interests
8,099,000
7,367,000
6,292,000
5,915,000
Net Income Continuous Operations
8,099,000
7,367,000
6,292,000
5,915,000
Tax Provision
2,719,000
2,373,000
2,195,000
1,925,000
Pretax Income
10,818,000
9,740,000
8,487,000
7,840,000
Other Income Expense
84,000
26,000
29,000
106,000
Other Non Operating Income Expenses
38,000
Gain On Sale Of Security
84,000
26,000
29,000
106,000
Net Non Operating Interest Income Expense
351,000
429,000
344,000
-59,000
Total Other Finance Cost
-65,000
-34,000
-38,000
Interest Expense Non Operating
154,000
169,000
160,000
158,000
Interest Income Non Operating
505,000
533,000
470,000
61,000
Operating Income
10,383,000
9,285,000
8,114,000
7,793,000
Operating Expense
24,966,000
22,810,000
21,590,000
19,779,000
Selling General And Administration
24,966,000
22,810,000
21,590,000
19,779,000
Gross Profit
35,349,000
32,095,000
29,704,000
27,572,000
Cost Of Revenue
239,886,000
222,358,000
212,586,000
199,382,000
Total Revenue
275,235,000
254,453,000
242,290,000
226,954,000
Operating Revenue
275,235,000
254,453,000
242,290,000
226,954,000
Balance Sheet
2025
2024
2023
2022
Ordinary Shares Number
443,237
443,126
442,793
442,664
Share Issued
443,237
443,126
442,793
442,664
Total Debt
8,173,000
8,169,000
8,884,000
9,039,000
Tangible Book Value
29,164,000
23,622,000
25,058,000
20,642,000
Invested Capital
34,877,000
29,416,000
31,516,000
27,199,000
Working Capital
1,272,000
-1,218,000
2,296,000
698,000
Net Tangible Assets
29,164,000
23,622,000
25,058,000
20,642,000
Capital Lease Obligations
2,460,000
2,375,000
2,426,000
2,482,000
Common Stock Equity
29,164,000
23,622,000
25,058,000
20,642,000
Total Capitalization
34,877,000
29,416,000
30,435,000
27,126,000
Total Equity Gross Minority Interest
29,164,000
23,622,000
25,058,000
20,647,000
Minority Interest
0
0
0
5,000
Stockholders Equity
29,164,000
23,622,000
25,058,000
20,642,000
Gains Losses Not Affecting Retained Earnings
-1,770,000
-1,828,000
-1,805,000
-1,829,000
Other Equity Adjustments
-1,770,000
-1,828,000
-1,805,000
-1,829,000
Retained Earnings
22,650,000
17,619,000
19,521,000
15,585,000
Additional Paid In Capital
8,282,000
7,829,000
7,340,000
6,884,000
Capital Stock
2,000
2,000
2,000
2,000
Common Stock
2,000
2,000
2,000
2,000
Total Liabilities Net Minority Interest
47,935,000
46,209,000
43,936,000
43,519,000
Total Non Current Liabilities Net Minority Interest
10,827,000
10,745,000
10,353,000
11,521,000
Other Non Current Liabilities
2,654,000
2,576,000
2,550,000
2,555,000
Long Term Debt And Capital Lease Obligation
8,173,000
8,169,000
7,803,000
8,966,000
Long Term Capital Lease Obligation
2,460,000
2,375,000
2,426,000
2,482,000
Long Term Debt
5,713,000
5,794,000
5,377,000
6,484,000
Current Liabilities
37,108,000
35,464,000
33,583,000
31,998,000
Other Current Liabilities
6,589,000
6,313,000
6,254,000
5,611,000
Current Deferred Liabilities
2,854,000
2,501,000
2,337,000
2,174,000
Current Debt And Capital Lease Obligation
103,000
1,081,000
73,000
Current Debt
103,000
1,081,000
73,000
Payables And Accrued Expenses
27,665,000
26,650,000
23,911,000
24,140,000
Current Accrued Expenses
7,882,000
7,229,000
6,428,000
6,292,000
Payables
19,783,000
19,421,000
17,483,000
17,848,000
Accounts Payable
19,783,000
19,421,000
17,483,000
17,848,000
Total Assets
77,099,000
69,831,000
68,994,000
64,166,000
Total Non Current Assets
38,719,000
35,585,000
33,115,000
31,470,000
Other Non Current Assets
4,085,000
3,936,000
3,718,000
4,050,000
Net PPE
34,634,000
31,649,000
29,397,000
27,420,000
Accumulated Depreciation
-18,931,000
-17,918,000
-16,685,000
-15,286,000
Gross PPE
53,565,000
49,567,000
46,082,000
42,706,000
Construction In Progress
1,882,000
1,389,000
1,266,000
1,582,000
Other Properties
2,725,000
2,617,000
2,713,000
2,774,000
Machinery Furniture Equipment
13,127,000
12,387,000
11,512,000
10,275,000
Buildings And Improvements
25,508,000
23,727,000
22,001,000
20,120,000
Land And Improvements
10,323,000
9,447,000
8,590,000
7,955,000
Current Assets
38,380,000
34,246,000
35,879,000
32,696,000
Other Current Assets
1,777,000
1,734,000
1,709,000
1,499,000
Inventory
18,116,000
18,647,000
16,651,000
17,907,000
Finished Goods
18,116,000
18,647,000
16,651,000
17,907,000
Receivables
3,203,000
2,721,000
2,285,000
2,241,000
Accounts Receivable
3,203,000
2,721,000
2,285,000
2,241,000
Cash Cash Equivalents And Short Term Investments
15,284,000
11,144,000
15,234,000
11,049,000
Other Short Term Investments
1,123,000
1,238,000
1,534,000
846,000
Cash And Cash Equivalents
14,161,000
9,906,000
13,700,000
10,203,000
Cash Flow
2025
2024
2023
2022
Free Cash Flow
7,837,000
6,629,000
6,745,000
3,501,000
Repurchase Of Capital Stock
-903,000
-700,000
-676,000
-439,000
Repayment Of Debt
-1,112,000
-2,134,000
-1,301,000
-986,000
Issuance Of Debt
816,000
1,426,000
917,000
53,000
Capital Expenditure
-5,498,000
-4,710,000
-4,323,000
-3,891,000
Interest Paid Supplemental Data
106,000
129,000
125,000
145,000
Income Tax Paid Supplemental Data
2,917,000
2,319,000
2,234,000
1,940,000
End Cash Position
14,161,000
9,906,000
13,700,000
10,203,000
Beginning Cash Position
9,906,000
13,700,000
10,203,000
11,258,000
Effect Of Exchange Rate Changes
6,000
40,000
15,000
-249,000
Changes In Cash
4,249,000
-3,834,000
3,482,000
-806,000
Financing Cash Flow
-3,775,000
-10,764,000
-2,614,000
-4,283,000
Cash Flow From Continuing Financing Activities
-3,775,000
-10,764,000
-2,614,000
-4,283,000
Net Other Financing Charges
-393,000
-315,000
-303,000
-1,413,000
Cash Dividends Paid
-2,183,000
-9,041,000
-1,251,000
-1,498,000
Common Stock Dividend Paid
-1,251,000
-1,498,000
Net Common Stock Issuance
-903,000
-700,000
-676,000
-439,000
Common Stock Payments
-903,000
-700,000
-676,000
-439,000
Net Issuance Payments Of Debt
-296,000
-708,000
-384,000
-933,000
Net Short Term Debt Issuance
-46,000
8,000
-18,000
47,000
Short Term Debt Payments
-862,000
-920,000
-935,000
-6,000
Short Term Debt Issuance
816,000
928,000
917,000
53,000
Net Long Term Debt Issuance
-250,000
-716,000
-366,000
-980,000
Long Term Debt Payments
-250,000
-1,214,000
-366,000
-980,000
Long Term Debt Issuance
0
498,000
0
0
Investing Cash Flow
-5,311,000
-4,409,000
-4,972,000
-3,915,000
Cash Flow From Continuing Investing Activities
-5,311,000
-4,409,000
-4,972,000
-3,915,000
Net Other Investing Changes
74,000
-19,000
36,000
-48,000
Net Investment Purchase And Sale
113,000
320,000
-685,000
24,000
Sale Of Investment
1,141,000
1,790,000
937,000
1,145,000
Purchase Of Investment
-1,028,000
-1,470,000
-1,622,000
-1,121,000
Net PPE Purchase And Sale
-5,498,000
-4,710,000
-4,323,000
-3,891,000
Purchase Of PPE
-5,498,000
-4,710,000
-4,323,000
-3,891,000
Operating Cash Flow
13,335,000
11,339,000
11,068,000
7,392,000
Cash Flow From Continuing Operating Activities
13,335,000
11,339,000
11,068,000
7,392,000
Change In Working Capital
1,764,000
611,000
1,018,000
-1,563,000
Change In Other Working Capital
801,000
741,000
172,000
549,000
Change In Payables And Accrued Expense
404,000
1,938,000
-382,000
1,891,000
Change In Payable
404,000
1,938,000
-382,000
1,891,000
Change In Account Payable
404,000
1,938,000
-382,000
1,891,000
Change In Inventory
559,000
-2,068,000
1,228,000
-4,003,000
Other Non Cash Items
303,000
315,000
412,000
377,000
Stock Based Compensation
860,000
818,000
774,000
724,000
Asset Impairment Charge
-117,000
-9,000
495,000
39,000
Deferred Tax
-37,000
Deferred Income Tax
-37,000
Depreciation Amortization Depletion
2,426,000
2,237,000
2,077,000
1,900,000
Depreciation And Amortization
2,426,000
2,237,000
2,077,000
1,900,000
Net Income From Continuing Operations
8,099,000
7,367,000
6,292,000
5,915,000
3/5
Graham Score
Speculative Investor
Fails most of Graham's safety criteria. Treat with caution.
Graham's Fair Value
N/A
N/A — requires
positive EPS and positive book value per share. Check the Financials tab for earnings history.
Margin of Safety
—
Market Cap / Net Assets
N/A
Net Assets: $29.2B
Warren's Owner Earnings
$16.0B
Latest fiscal year
Graham's 7 Criteria
Defensive Investor Checklist
3/5 — Speculative Investor
✅
Adequate Size
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
$275.2B
vs > $1.5B revenue
❌
Strong Financial Condition
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
1.03x
vs Current Ratio > 2.0x
✅
Earnings Stability
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
No loss years (4 yrs data)
vs No negative EPS years
❌
Dividend Record
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
No dividend
vs Uninterrupted dividends
✅
Earnings Growth
EPS grew from $13.14 to $18.21 over 3 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.
+38.6% EPS growth
vs > 33% EPS growth
Graham's 7 Criteria — Explained
What each criterion measures and why it matters.
✅ Adequate Size — $275.2Bvs > $1.5B revenue
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
"The minimum size of an enterprise should be not less than $100 million of annual sales."
❌ Strong Financial Condition — 1.03xvs Current Ratio > 2.0x
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
"For industrial companies, current assets should be at least twice current liabilities."
✅ Earnings Stability — No loss years (4 yrs data)vs No negative EPS years
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
"The company should have shown no deficit in the past ten years."
❌ Dividend Record — No dividendvs Uninterrupted dividends
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
"Some current dividend payments — for at least the past 20 years."
EPS grew from $13.14 to $18.21 over 3 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.
"A minimum increase of at least one-third in per-share earnings over ten years."
These metrics estimate what COST is worth based on fundamentals — independent of what the market prices it at.
Graham's Fair Value and NCAV are conservative floors.
EPV assumes zero growth. These are reference points, not price targets.
Net Current Asset Value
N/A
"Buy at two-thirds of net current assets." — Graham
Earnings Power Value
N/A
Per share, no-growth floor. Compare to current price.
ROIC — Return on Invested Capital
20.5%
Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.
Cash Flow Analysis
Metric
2025
2024
2023
2022
Capital Expenditure % of Net Income
67.9%
63.9%
68.7%
66.6%
Repurchase of Capital Stock
-$903M
-$700M
-$676M
-$439M
Free Cash Flow
$7.8B▲
$6.6B▼
$6.7B▲
$3.5B•
Warren's Owner Earnings
$16.0B
$14.3B
$12.7B
$11.6B
Peers & Industry
No auto-detected peers for this industry. You can manually compare COST against any stock using the Compare tool.
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
No management data available.
Risk Analysis
COST (COST) fundamental analysis — Overall grade D based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: N/A. Gross profit margin: 12.8%. Operating margin: 3.8%. Net margin: 2.9%. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
Disclaimer: 360investing is provided for informational and educational purposes only and does not constitute financial, investment, legal, or tax advice. All data is sourced from public third-party providers
and may be delayed, inaccurate, or incomplete. Past performance is not indicative of future results. Analysis, scores, and valuations are algorithmic and do not represent professional investment recommendations. Always conduct your own due
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