Debt is smaller than equity and it can meet short-term obligations.
Metrics · D/E ~25% · Current Ratio 1.07
💲Is the price expensive now?
On the expensive side
Even accounting for growth expectations, the price is set high.
Metrics · P/E 47.9 · P/B 14.5
💡Warehouse-retail leader with a 93% renewal rate, compounding at a 9-yr revenue CAGR of +9.8% and EPS +14.6%. Debt is low (0.25x equity); the 48x P/E is rich.
Compiled from public financial data. Not a recommendation to buy or sell any security. · Source: TradingView (margins, debt, liquidity, P/B are TTM), as of 2026-06-26
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. FY2025 revenue was $275B, with TTM revenue of $293.6B.
Current Price
$952.54
+1.09%+$10.30· Close 2026-06-26
Analyst Consensus Target (external reference)
$1094.53
Avg. of 39 external analysts · TradingView (39-analyst consensus, Buy)
P/E (TTM)
47.9x
TTM · rich valuation
ROE
29.2%
TTM
Operating Margin
3.8%
TTM · deliberately thin margin
Net Margin
3.0%
TTM
Revenue Growth
+9.2%
TTM YoY
Market Cap
$422.4B
As of 2026-06-26
Economic Moat · Key Business Segments
Costco combines strong lock-in from an ~93% membership renewal rate with buying power built on $293.6B (TTM) 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
~93% 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 CAGR of +9.8%, with operating income +12.2%, net income +14.5%, and diluted EPS +14.6% — earnings outpaced sales (operating leverage). FY2025 set records: revenue $275.2B, operating income $10.4B, and EPS $18.21. Operating margin is deliberately held at a thin 3-4% (source: SEC EDGAR 10-K · company IR).
9-Year CAGR: Revenue +9.8% · Operating Income +12.2% · Net Income +14.5% · EPS +14.6%
Sources: SEC EDGAR 10-K · stockanalysis · company IR. Fiscal-year (late-Aug/early-Sep) GAAP basis; EPS is diluted. P/E and ROE cover the last 5 years (stockanalysis) due to data limits, while revenue, operating income, EPS, and operating margin cover 10 years.
Mega-Cap Value Metric Comparison
The 3.8% operating margin is a deliberate choice, but Costco's membership model and revenue growth (+9.2% TTM) outpace Walmart and Target. Its 93% membership renewal rate is the key differentiator. That said, at a 47.9x P/E it carries a very high valuation premium (source: TradingView · company filings).
Metric
★ COST
WMT
TGT
Operating Margin
3.8%
~4.5%
~5%
P/E (TTM)
47.9
~35
~15
Revenue YoY Growth
+9.2%
~5%
flat
P/E and operating margin = TTM, revenue growth = TTM YoY · sources: TradingView · company filings, 2026-06-26.
Key Risk Factors (from 10-K)
●
Stretched valuation— At a 47.9x 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.Source: Company 10-K
✦ ValueCrab Dashboard PreviewCOST $952.54 +1.09% · as of 2026-06-26
Q. What are Costco's (COST) key value-investing metrics?P/E (TTM) 47.9, ROE 29.2%, operating margin 3.8% (deliberately thin), net margin 3.0%, 9-year revenue CAGR +9.8%, and EPS CAGR +14.6% (sources: TradingView · company IR, as of 2026-06-26).
Q. Why is the operating margin so low at 3.8%?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 93%.
Q. Is the stock expensive right now?At a 47.9x P/E and a 4.7 PEG, 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.