NASDAQ · Consumer Defensive

Costco Wholesale Corporation

COST · Discount Stores

$1,010.35

▼ -1.35 (-0.13%)

Data cached · refreshes every 10 min

Mr. Market is currently offering Costco Wholesale Corporation at $1,010.35.

The business passes 4 of 7 of Graham's defensive criteria — adequate but not exceptional.

Overall Grade

Defensive

Enterprising

Profitability F

Gross Profit Margin 12.8%

Operating Margin 3.8%

Net Income Margin 2.9%

Fin. Health C

Years to Pay Off Debt 1.0 yrs

Working Capital vs Long-Term Debt -$4.4B

Working Capital $1.3B

Valuation F

Margin of Safety 0.0%

Price-to-Book 15.37x

Cash Flow C

Free Cash Flow $7.8B

CapEx % of Net Income 67.9%

Owner Earnings $16.0B

4/7

Graham Score

Enterprising

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

Market Data

Market Cap $448.2B

Enterprise Value $446.9B

P/E (TTM) 52.57

Dividend Yield 0.51%

Exchange NASDAQ

Key Margins

Gross Profit 12.8%

Operating Margin 3.8%

Net Margin 2.9%

Company Info

Sector Consumer Defensive

Industry Discount Stores

Employees 341000

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Costco Wholesale Corporation at $1,010.35.

The business passes 4 of 7 of Graham's defensive criteria — adequate but not exceptional.

At $1,010.35, the stock trades at a 516% premium to its Graham Number of $164.12. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: This stock is better suited for Graham's Enterprising investor — one willing to devote time and skill to security selection.

About Costco Wholesale Corporation

Costco Wholesale Corporation, together with its subsidiaries, engages in the operation of membership warehouses in the United States, Puerto Rico, Canada, Mexico, Japan, the United Kingdom, Korea, Australia, Taiwan, China, Spain, France, Iceland, New Zealand, and Sweden. It offers merchandise, including sundries, dry groceries, candies, coolers, freezers, deli, liquor, and tobacco; non-food merchandise comprising appliances, small electronics, health and beauty aids, hardware, lawn and garden, sporting goods, tires, toys and seasonal, automotive, stamps, tickets, apparel, furniture, domestics, housewares, special order kiosks, and jewelry; and fresh food, such as meat, produce, service deli, and bakery products. The company is also involved in warehouse ancillary operations, which include gasoline, pharmacies, optical, food courts, hearing-aid centers, and tire installation centers. In addition, it engages in e-commerce, business centers, travel, and other businesses. The company was formerly known as Costco Companies, Inc. and changed its name to Costco Wholesale Corporation in August 1999. Costco Wholesale Corporation was founded in 1976 and is based in Issaquah, Washington.

Showing Key Metrics

Income Highlights

Metric	2025	2024	2023	2022	2021
Gross Profit %	12.8% ▲	12.6%	12.3%	12.1%	N/A
Operating Margin %	3.8% ▲	3.6%	3.3%	3.4%	N/A
Net Income %	2.9% ▲	2.9%	2.6%	2.6%	N/A
Diluted EPS	18.21 ▲	16.56	14.16	13.14	N/A

Balance Sheet Highlights

Metric	2025	2024	2023	2022	2021
Total Assets	$77.1B	$69.8B	$69.0B	$64.2B	N/A
Total Debt	$8.2B ↑	$8.2B	$8.9B	$9.0B	N/A
Working Capital	$1.3B ▲	-$1.2B	$2.3B	$698M	N/A
Years to Pay Debt	1.01	1.11	1.41	1.55	N/A

Cash Flow Highlights

Metric	2025	2024	2023	2022	2021
Free Cash Flow	$7.8B ▲	$6.6B	$6.7B	$3.5B	N/A
Owner Earnings	$16.0B	$14.3B	$12.7B	$11.6B	N/A
CapEx % of Net Income	67.9%	63.9%	68.7%	66.6%	N/A

Income Statement

	2025	2024	2023	2022	2021
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	-72,000
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	46,000
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	-46,000
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
Other Operating Expenses					76,000
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	2021
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	799,000
Current Debt		103,000	1,081,000	73,000	799,000
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	2021
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	-5,748,000
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	59,000
Deferred Income Tax				-37,000	59,000
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

These metrics estimate what Costco Wholesale Corporation is worth based on its fundamentals — independent of what the market currently prices it at. Graham's Fair Value and NCAV are conservative floors rooted in 1930s–60s principles. EPV assumes zero growth. None are price targets — they are reference points for judging whether the current price offers a margin of safety.

Graham's Fair Value

$164.12

Margin of Safety

Market Cap ÷ Company Value

1.20

P/B Ratio

15.37

Warren's Owner Earnings

$16.0B

Latest fiscal year

Graham's 7 Criteria

Defensive Investor Checklist

4/7 — Enterprising Investor

✅ Adequate Size

$275.2B

vs > $1.5B revenue

❌ Strong Financial Condition

1.03x

vs Current Ratio > 2.0x

✅ Earnings Stability

No loss years (4 yrs data)

vs No negative EPS years

✅ Dividend Record

0.51%

vs Uninterrupted dividends

✅ Earnings Growth

+38.6% EPS growth

vs > 33% EPS growth

❌ Moderate P/E Ratio

52.6x

vs P/E ≤ 15.0x

❌ Moderate Price-to-Book

15.37x P/B (P/E×P/B: 808.0)

vs P/B ≤ 1.5x | P/E × P/B ≤ 22.5

Net Current Asset Value

$-21.54

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign.

"Buy at two-thirds of net current assets." — Graham

Earnings Power Value

$260.04

Per share, no-growth floor. Compare to current price.

Cash Flow Analysis

Metric	2025	2024	2023	2022	2021
Capital Expenditure % of Net Income	67.9%	63.9%	68.7%	66.6%	N/A
Repurchase of Capital Stock	-$903M	-$700M	-$676M	-$439M	N/A
Free Cash Flow	$7.8B ▲	$6.6B ▼	$6.7B ▲	$3.5B •	N/A •
Warren's Owner Earnings	$16.0B	$14.3B	$12.7B	$11.6B	N/A

Peers & Industry

No auto-detected peers for Discount Stores. 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

Capital Allocation & Alignment

Insider Ownership

0.17%

Low — management has little skin in the game

Return on Equity (ROE)

27.8%

Excellent — management generates strong returns on equity

Return on Assets (ROA)

10.5%

Strong — management uses assets efficiently

Share Buybacks (Latest Year)

$903M

Management is returning capital to shareholders via buybacks

Debt Trend YoY

+0.0% YoY

Debt is roughly stable

Leadership Team

Ron Vachris

President, CEO & Director

Age 60

Pay: $1,841,901

0.023% of net income

Gary Millerchip

Executive VP & CFO

Age 53

Pay: $1,316,800

0.016% of net income

Pierre Riel

Executive VP & COO of International Division

Age 62

Pay: $1,162,886

0.014% of net income

Claudine Adamo

Executive Vice President of Administration

Age 54

Sheri Flies

Senior Vice President of Global Sustainability & Compliance

Top Institutional Holders

Institution	% Owned	Shares
Vanguard Group Inc	9.83%	43,620,717
Blackrock Inc.	7.91%	35,099,521
State Street Corporation	4.09%	18,147,159
Geode Capital Management, LLC	2.34%	10,388,519
Morgan Stanley	2.15%	9,523,423
Bank of America Corporation	1.52%	6,741,380
FMR, LLC	1.51%	6,693,144
NORGES BANK	1.36%	6,024,787

Risk Analysis

Beta (Market Risk)

0.91

Low volatility — more stable than the market

Short Interest

1.5% of float

Low short interest — market is not heavily bearish

Debt-to-Equity

0.60x

Conservative balance sheet — low financial risk

Current Ratio

1.06x

Adequate liquidity

52-Week Price Range

Low: $844.06 Current: $1,010.35 High: $1,067.08

Currently at 75% of 52-week range

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