COST — —
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ESEN VERDICT
Analyzing…
Horizon6–12M
Confidence—
Data coverage—
ESEN Ranks Forecast News Intelligence Fundamentals ESEN Deep Analysis Screener
ESEN Output Unavailable — COST

Generated: 2026-09-29T23:00:42Z

> build_news_intel failed: BadRequestError

> Error code: 400 - {'type': 'error', 'error': {'type': 'invalid_request_error', 'message': 'Your credit balance is too low to access the Anthropic API. Please go to Plans & Billing to upgrade or purchase credits.'}, 'request_id': 'req_011CfYZYzDE6QAN4cALZMomb'}

ESEN Output Unavailable — COST

Generated: 2026-09-29T23:00:24Z

> build_fundamental_earnings failed: BadRequestError

> Error code: 400 - {'type': 'error', 'error': {'type': 'invalid_request_error', 'message': 'Your credit balance is too low to access the Anthropic API. Please go to Plans & Billing to upgrade or purchase credits.'}, 'request_id': 'req_011CfYZXfquRTMbFDqBbBUJ1'}

COST Stock AI Analysis

ESEN AI analysis of COST stock updated every 12 hours.

ESEN Institutional Analysis

COST Systematic Research

Systematic screening highlights Costco Wholesale Corp (COST) as a premium-valuation retail operator commanding a P/E (TTM) of 47.42 and P/S (TTM) of 1.43, ratios substantially elevated above traditional retail sector benchmarks. Trading at $951.89 within a 52-week range of $844.06 to $1,096.50, the membership warehouse model generates distinctive profitability metrics including a ROE of 28.27% and ROA of 10.71%, figures reflecting superior asset efficiency relative to conventional mass merchants.

Core Strengths:

  • Exceptional Capital Efficiency: The P/B ratio of 14.34 paired with ROE of 28.27% demonstrates the company's ability to generate outsized returns on a relatively modest equity base, a hallmark of the membership-fee business structure.
  • Consistent Growth Trajectory: Revenue YoY expansion of 9.23% and EPS YoY growth of 12.79% indicate sustained momentum in both top-line performance and earnings leverage, with EPS reaching $19.88 per share.
  • Conservative Balance Sheet: A D/E ratio of 0.25 reflects minimal financial leverage, providing operational flexibility across economic cycles.

Risk Factors:

  • The current ratio of 1.03 signals limited liquidity cushion for short-term operational demands.
  • Margin compression remains visible with gross margin at 12.88%, operating margin at 3.82%, and net margin at 3.01%, reflecting the low-price positioning inherent to the warehouse format.

Relative to peers WMT, TGT, and DG, the research perspective indicates Costco operates at a significant valuation premium justified by superior profitability metrics and membership revenue diversification. The beta of 0.87 suggests below-market volatility characteristics within the $422.1B market capitalization structure.

Analysis updated monthly based on systematic screening of fundamentals, profitability, growth, and peer positioning.

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