Debt is smaller than equity and it can meet short-term obligations.
Metrics · D/E ~24% · Current Ratio 1.06
💲Is the price expensive now?
On the expensive side
Even accounting for growth expectations, the price is set high.
Metrics · P/E 45.6 · P/B 11.7
💡Warehouse-retail leader with a 92% renewal rate; FY2026 set records at $303.2B revenue (+10.1%) and $20.76 EPS. Debt is low (0.24x equity); the 46x P/E is rich.
Compiled from public financial data. Not a recommendation to buy or sell any security. · Source: Company IR (FY2026 results 8-K) · TradingView (price). TTM = FY2026, quarter ended 2026-08-30. Debt-to-equity = total debt + operating lease liabilities ÷ equity, as of 2026-10-09
Business Summary · Key Value Metrics
Membership warehouse-club retailer that keeps merchandise margins razor-thin and earns the bulk of its profit from membership fees. Its Kirkland private label accounts for roughly 30% of sales. FY2026 (ended August 2026) revenue was $303.2B (+10.1%), with net income of $9.2B.
Costco combines strong lock-in from an ~92% membership renewal rate (U.S./Canada 92.3%, worldwide 89.8% · Q4 FY2026 earnings call) with buying power built on $303.2B (FY2026) in revenue. It sells merchandise at essentially cost and earns its profit from membership fees (about half of operating income), a model rivals find extremely hard to copy. Its Kirkland private label makes up roughly 30% of sales (source: company IR · TradingView).
Membership lock-in
~92% renewal rate. Members rarely leave even after fee hikes. Membership fees are the core of profit.
Selling near cost has cemented the belief that Costco is the cheapest.
Kirkland private label
The in-house brand is ~30% of sales, defending margins and differentiating.
10-Year Financial Trends
Revenue grew at a 9-year (2017→2026) CAGR of +10.0%, with operating income +12.3%, net income +14.7%, and diluted EPS +14.6% — earnings outpaced sales (operating leverage). FY2026 (ended August 30) set records: revenue $303.2B (+10.1%), operating income $11.7B, and EPS $20.76. Q4 (16-week) EPS of $6.75 includes a one-time $0.15 per share benefit from IEEPA tariff refunds. Operating margin is deliberately held at a thin 3-4% (source: SEC EDGAR 10-K · FY2026 results 8-K · company IR).
10-Year Growth
Revenue$303B · CAGR +10.0%
Operating Income$11.7B · CAGR +12.4%
EPS$20.76 · CAGR +14.6%
10-Year Valuation
P/E (year-end)45.5x · avg 45.0x
ROE28.4% · avg 29.2%
Operating Margin3.9% · avg 3.4%
📊 Annual Data Table (COST) — expand/collapse
Year
Revenue (B$)
Op. Income (B$)
EPS ($)
P/E (x)
ROE (%)
Op. Margin (%)
2017
129
4.1
6.08
—
—
3.2
2018
141.6
4.5
7.09
—
—
3.2
2019
152.7
4.7
8.26
—
—
3.1
2020
166.8
5.4
9.02
—
—
3.2
2021
195.9
6.7
11.27
40
27.6
3.4
2022
227
7.8
13.14
40.5
30.6
3.4
2023
242.3
8.1
14.16
38.4
27.5
3.3
2024
254.5
9.3
16.56
53.9
30.3
3.7
2025
275.2
10.4
18.21
51.8
30.7
3.8
2026
303.2
11.7
20.76
45.5
28.4
3.9
— = no data for that year/metric (P/E omitted before EPS turned positive)
9-Year CAGR: Revenue +10.0% · Operating Income +12.3% · Net Income +14.7% · EPS +14.6%
Sources: SEC EDGAR 10-K · FY2026 results 8-K · stockanalysis · company IR. Fiscal-year (late-Aug/early-Sep) GAAP basis; EPS is diluted. P/E and ROE cover the last 5 years (2022-2025 stockanalysis; 2026 computed from the Aug 28 close ÷ EPS and average equity), while revenue, operating income, EPS, and operating margin cover 10 years.
Mega-Cap Value Metric Comparison
The 3.9% operating margin is a deliberate choice, but Costco's membership model and revenue growth (+10.1%, FY2026) outpace Walmart and Target. Its 92% membership renewal rate is the key differentiator. That said, at a 45.6x P/E it carries a very high valuation premium (source: company IR · TradingView · company filings).
Metric
★ COST
WMT
TGT
Operating Margin
3.9%
~4.5%
~5%
P/E (TTM)
45.6
~35
~15
Revenue YoY Growth
+10.1%
~5%
flat
COST P/E, operating margin and revenue growth = FY2026 (TTM); peers approximate · sources: company IR · TradingView · company filings, 2026-10-09.
Key Risk Factors (from 10-K)
●
Stretched valuation— At a 45.6x P/E, an earnings miss could trigger a sharp drop. Much of the expected ~10% compound growth is already priced in.Source: TradingView
●
Slowing growth and saturation— North American warehouse count is nearing saturation, and profit growth could slow from the past ~14% pace. The pace of international expansion is the key.Source: Company IR
●
Tariffs and weaker spending— A high share of imported goods exposes it to tariffs, and a downturn could prompt membership cancellations. Q4 FY2026 included a one-time benefit of $0.15 per diluted share from IEEPA tariff refunds (non-recurring).Source: Company 10-K · FY2026 results 8-K
✦ ValueCrab Dashboard PreviewCOST $946.92 -0.11% · as of 2026-10-09
My Portfolio example
Growth
Earnings
Dividend
Cash
Revenue 10Y trend$303B · CAGR +10.0%
$303B$0.0B
20172026
P/E (TTM)45.6x
ROE28.4%
Operating Margin3.9%
Net Margin3.0%
Revenue Growth+10.1%
Market Cap$419.6B
Revenue CAGR 9Y+10.0%
EPS CAGR 9Y+14.6%
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Value Investing FAQ (COST)
Q. What are Costco's (COST) key value-investing metrics?P/E (TTM) 45.6, ROE 28.4%, operating margin 3.9% (deliberately thin), net margin 3.0%, 9-year revenue CAGR +10.0%, and EPS CAGR +14.6% (sources: company IR · TradingView, as of 2026-10-09).
Q. Why is the operating margin so low at 3.9%?Costco sells merchandise at essentially cost and earns its profit from membership fees. The low margin is a strategic choice rather than a weakness, which is why the renewal rate is a high 92%.
Q. Is the stock expensive right now?At a 45.6x P/E (41.6x forward), it sits very high versus its history and its peers. Business quality is top-tier, but the valuation burden is heavy. We do not offer a valuation call.