Costco Wholesale Corporation
- Open
- 913.74
- Day high
- 916.73
- Day low
- 907.21
- Prev close
- 912.97
- Volume
- 2.1M
- Mkt cap
- $406.5B
- P/E (TTM)
- 46.0
- EPS (TTM)
- $19.91
- P/B
- 12.1
- P/S
- 1.4
- Yield
- 0.59%
- Per share
- $5.37
- ▼Insiders net selling -$847K over the last 3 months (0 open-market buys, 1 sale)
- 🏛Institutions mixed (13F)
Costco Wholesale Corporation (COST) is a Consumer Defensive company listed on NASDAQ. The stock is down 6% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 1 sale (SEC Form 4). Drillr has 11 published research articles covering COST.
Costco Wholesale Corporation (COST) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 9 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
COST earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 28, 2026 | $4.94 | $4.93 | -0.2% | $70.5B | +0.6% |
| Mar 5, 2026 | $4.55 | $4.58 | +0.7% | $69.6B | +0.4% |
| Dec 11, 2025 | $4.27 | $4.34 | +1.6% | $67.3B | +0.2% |
| Sep 25, 2025 | $5.80 | $5.87 | +1.2% | $86.2B | +0.2% |
| May 29, 2025 | $4.24 | $4.28 | +0.9% | $63.2B | +0.1% |
| Mar 6, 2025 | $4.09 | $4.02 | -1.7% | $63.7B | +1.0% |
| Dec 12, 2024 | $3.79 | $3.82 | +0.8% | $62.2B | +0.2% |
| Sep 26, 2024 | $5.08 | $5.29 | +4.1% | $79.7B | -0.3% |
| May 30, 2024 | $3.70 | $3.78 | +2.2% | $58.5B | +0.8% |
| Mar 7, 2024 | $3.62 | $3.92 | +8.3% | $58.4B | -1.1% |
| Dec 14, 2023 | $3.42 | $3.58 | +4.7% | $57.8B | +0.2% |
| May 25, 2023 | $3.29 | $2.93 | -10.9% | $53.6B | -31.2% |
COST insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jun 25, 2026 | DENMAN KENNETH Ddirector | Sell | 885 | $957.45 |
| Apr 1, 2026 | Frates Catonofficer: Executive Vice President | Sell | 700 | $993.00 |
| Mar 13, 2026 | MILLERCHIP GARYofficer: Executive Vice President | Tax | 1,154 | $992.23 |
| Mar 11, 2026 | Adamo Claudineofficer: Executive Vice President | Sell | 730 | $1003.02 |
| Jan 23, 2026 | Jones Teresa A.officer: Executive Vice President | Sell | 850 | $986.26 |
| Jan 20, 2026 | DECKER SUSAN Ldirector | Sell | 458 | $955.00 |
| Jan 20, 2026 | Raimondo Gina Mariedirector | Grant | 215 | — |
| Jan 15, 2026 | Klauer James Cofficer: Executive Vice President | Sell | 1,500 | $939.00 |
| Jan 12, 2026 | Miller Russell Dofficer: Sr. Executive Vice President | Sell | 1,500 | $916.32 |
| Dec 31, 2025 | POLIT JAVIERofficer: Executive Vice President | Sell | 2,049 | $867.21 |
| Dec 31, 2025 | POLIT JAVIERofficer: Executive Vice President | Sell | 558 | $862.89 |
| Nov 12, 2025 | Wilcox William Richardofficer: Executive Vice President | Sell | 2,400 | $930.13 |
| Oct 24, 2025 | Callans Patrick Jofficer: Executive Vice President | Tax | 191 | $944.68 |
| Oct 24, 2025 | Sullivan John Christopherofficer: Executive VP | Grant | 4,654 | — |
| Oct 24, 2025 | Sullivan John Christopherofficer: Executive VP | Tax | 421 | $944.68 |
Source: COST SEC Form 4 filings, latest Jun 25, 2026. For informational purposes only — not investment advice.
See the full COST insider & 13F page →COST research & analysis
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VLOMPCXOM
Costco Wholesale Corporation company profile
Overview
Costco Wholesale Corporation (NASDAQ:COST) is a membership-only warehouse club that operates one of the largest retail chains in the world. Founded in 1976 and headquartered in Issaquah, Washington, the company went public in 1986. Costco operates over 800 warehouse locations across 14 countries and territories, serving more than 76 million paid household members. The company has built its reputation on a unique business model that combines bulk purchasing, membership fees, and a limited selection of high-quality products sold at low margins to deliver exceptional value to its members.
Business
Costco operates membership-only warehouse clubs that sell a wide variety of merchandise in bulk quantities at discounted prices. The warehouse club industry represents a unique retail format where customers pay annual membership fees for the privilege to shop at large-format stores that offer products in larger package sizes than traditional retailers. The company's core offering revolves around warehouse retail, where members can purchase everything from groceries and household essentials to electronics, appliances, and luxury items. Costco's warehouses typically stock around 4,000 different products (compared to 40,000+ at traditional supermarkets), focusing on high-velocity items that can be purchased in bulk. The company's private label brand, Kirkland Signature, represents roughly 25-30% of total sales and covers categories from food and beverages to clothing and household goods. Beyond basic retail, Costco operates several ancillary services within its warehouses: 1. Food services including pharmacies, optical centers, hearing aid centers, food courts, and service delis that generate additional revenue and drive member visits. 2. Gasoline stations at over 630 locations, typically offering fuel at prices below market rates as a member benefit. 3. E-commerce operations that complement the warehouse experience, with particular strength in large appliances, furniture, and specialty items like precious metals. 4. Business services including travel booking, auto and home insurance, and business delivery services primarily targeting small and medium enterprises. The company generates revenue from two primary sources: merchandise sales (approximately 98% of total revenue) and membership fees (approximately 2% of total revenue). While membership fees represent a small percentage of total revenue, they contribute significantly to profitability as they carry virtually no associated costs.
Revenue model
Costco's business model is built on the concept of high-volume, low-margin retail combined with membership fee income. The company makes money through two primary revenue streams: product sales and annual membership fees. The membership fee structure creates a predictable, recurring revenue base. Members pay either $60 annually for a basic Gold Star membership or $120 for an Executive membership that includes 2% rewards on purchases. With over 76 million paid household members and renewal rates consistently above 90%, membership fees generate approximately $4.5-5 billion annually. These fees are essentially pure profit, as they require minimal incremental costs to collect. On the merchandise side, Costco operates on deliberately thin margins, typically marking up products by only 10-15% compared to 25-50% at traditional retailers. This low-margin strategy is sustainable because of the company's massive purchasing power and high inventory turnover. The company negotiates volume discounts with suppliers and passes most savings to members, creating a value proposition that justifies the membership fee. Several factors influence Costco's profitability margins. Positive factors include economies of scale from growing membership base, increased penetration of higher-margin Kirkland Signature products, and operational leverage as sales grow faster than fixed costs. The company also benefits from membership mix shift toward Executive memberships, which generate double the annual fee revenue. Negative margin pressures include commodity price inflation that affects food and gas sales, wage inflation as Costco maintains above-market compensation for employees, and investments in new warehouse construction and technology infrastructure. Currency fluctuations also impact international operations, while competitive pressures in retail require continuous investment in pricing to maintain the value proposition that justifies membership fees. The company's gas stations operate as a member benefit rather than a profit center, often selling fuel at or near cost to drive warehouse visits and member loyalty.
Competitive moat
Costco's competitive moat centers on its membership-based ecosystem and the resulting network effects, though the strength of this moat is moderate rather than insurmountable. The company's primary defensive advantage lies in member switching costs and habit formation. Once customers pay the annual membership fee, they are incentivized to concentrate their shopping at Costco to justify the expense, creating behavioral lock-in. The scale advantages provide meaningful but not unassailable protection. Costco's massive purchasing volume enables supplier negotiations that smaller competitors cannot match, while the limited SKU model (4,000 vs 40,000+ items at traditional retailers) creates operational efficiencies in inventory management, store layout, and supply chain logistics. The treasure hunt shopping experience, where product selection varies seasonally, encourages frequent visits and impulse purchases. However, Costco's moat faces several vulnerabilities. E-commerce disruption poses the most significant threat, as online retailers like Amazon can offer bulk purchasing and competitive pricing without requiring physical membership or warehouse visits. Amazon's Prime membership directly competes with Costco's value proposition, offering convenience benefits that warehouse shopping cannot match. Traditional retail competition has intensified as competitors like Walmart and Target have adopted some warehouse club strategies, offering bulk purchasing options and private label products. Regional warehouse clubs like BJ's and Sam's Club directly compete in overlapping markets. The company's geographic concentration in developed markets limits growth potential, while international expansion faces local competition and regulatory challenges. Additionally, the membership fee model creates a barrier to attracting price-sensitive consumers who may prefer paying higher per-unit prices rather than upfront membership costs. Overall, Costco maintains a solid but not dominant competitive position, with its moat being more about operational excellence and member loyalty than truly insurmountable barriers to entry.
Risks & safety
Costco demonstrates a strong margin of safety with robust financial fundamentals and conservative capital structure, though current valuation metrics suggest limited downside protection at prevailing prices. **Financial Strength:** - Cash position of $12.4 billion provides substantial liquidity buffer - Current ratio near 1.0 indicates adequate short-term liquidity management - Debt-to-equity ratio of 0.31 represents conservative leverage - Free cash flow generation of $1.6-2.0 billion quarterly demonstrates consistent cash generation - No meaningful solvency risk given strong cash flows and manageable debt load **Valuation Concerns:** - Price-to-earnings ratio of 66.5x represents significant premium to historical norms - EV/EBITDA of 65.4x indicates expensive valuation relative to cash flow generation - Price-to-book ratio of 18.6x suggests limited asset-based downside protection - Graham number analysis indicates potential overvaluation relative to conservative metrics **Other Considerations:** - Membership renewal rates above 90% provide revenue stability - Predictable cash flows from membership fees offer some valuation support - Strong competitive position and market share provide operational stability - High valuation multiples leave little room for execution missteps or economic downturn
Recent development
Over the past several years, Costco has pursued strategic initiatives focused on digital transformation, international expansion, and membership value enhancement. The company has significantly invested in e-commerce capabilities, with online sales growing 13-21% annually and representing an increasing portion of total revenue. The development of the Costco app, which saw downloads increase 32% and improved ratings from 2.3 to 4.7 stars, demonstrates the company's commitment to digital member experience. Warehouse expansion remains a core growth driver, with the company opening 26-29 net new locations annually, including significant international growth in markets like Japan, Mexico, and Australia. The company has also expanded ancillary services, including extending gas station hours and growing pharmacy prescription volumes by over 19%. Technology and personalization initiatives represent newer strategic focus areas. Management has discussed exploring retail media opportunities and personalized digital marketing, while implementing membership card scanners across U.S. warehouses to improve the shopping experience. The launch of Costco Next marketplace with 86 vendors represents an attempt to expand product selection without compromising the core warehouse model. Employee investment has been a consistent theme, with the company implementing new wage agreements that raised minimum wages to $20/hour and top-scale wages for service clerks to $31.90/hour. This strategy aims to maintain employee retention and service quality while managing labor cost inflation. The company has also focused on supply chain resilience, developing contingency plans for potential disruptions including alternative sourcing strategies and pre-shipping arrangements to mitigate risks from events like port strikes or trade tensions.
COST company profile · for informational purposes only — not investment advice.
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