# Costco CDR (CAD Hedged) (COST.TO) fundamentals

Data as of 2026-11-04. TSX, Canada. Sector: Consumer Defensive / Grocery & Drug Retail. Price C$45.22, market value C$591.1 billion.

## Valuation
- **P/E (trailing): 49.7×** (5-yr avg 62.5×, 3-yr avg 73.0×). Costco CDR (CAD Hedged) trades at 49.7× trailing earnings, well below its own five-year average of 62.5×: cheap by its own standards. The Consumer Defensive median in the September 2026 study was 20.1×.
- **Price / sales: 1.9×**. Each dollar of revenue is priced at 1.9×.
- **Price / book: 15.9×**. The shares trade at 15.9× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 38.4×**. Enterprise value is 38.4× operating earnings before depreciation, the multiple that ignores how the company is financed; above 20× is demanding.
- **Free-cash-flow yield: 1.6%** (5-yr avg 1.6%). Free cash flow equals 1.6% of the market value, in line with its five-year average of 1.6%.
- **Earnings yield: 2.0%**. The inverse of the P/E: 2.0% of the price is earned each year.

## Profitability
- **Gross margin: 12.8%**. Costco CDR (CAD Hedged) keeps 12.8% of revenue after the direct cost of what it sells, a thin margin typical of retail, distribution and commodity businesses.
- **Operating margin: 3.9%**. 3.9% of revenue is left after running the business, which leaves little cushion in a downturn.
- **Net margin: 3.0%**. 3.0% of each dollar of sales reaches the bottom line.
- **Return on equity: 25.8%**. 25.8% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on invested capital: 38.1%**. Return on all capital, debt included, is 38.1%: comfortably above what that capital costs.
- **Return on assets: 10.4%**. Each dollar of assets produces 10.4% of profit.

## Growth
- **Revenue growth (1 yr): 10.1%** (3-yr 7.8%/yr). Revenue grew 10.1% over the last year.
- **Free-cash-flow growth (3 yr): 11.6%/yr**. Free cash flow has compounded at 11.6% a year over three years.

## Financial health
- **Debt to equity: 0.24**. Debt is 0.24 times equity: a conservative balance sheet.
- **Net debt / EBITDA: net cash**. Costco CDR (CAD Hedged) holds more cash than debt.
- **Interest coverage: 80.6×**. Operating profit covers interest 80.6× over, a safe margin.
- **Current ratio: 1.06** (quick 0.62). Current assets cover the next year's liabilities 1.06 times.
- **Altman Z-score: 11.04**. A Z-score of 11.04 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 5/9**. 5 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 0.57%** (C$0.26 per share, trailing). Costco CDR (CAD Hedged) yields 0.57%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 27%**. 27% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 1**. 1 straight year of increases.
- **Shareholder yield: 0.7%**. Dividends plus net buybacks return 0.7% of the market value a year.

## Price and momentum
- **Total return (1 yr): 8.1%** (YTD 15.8%, 3-mo 5.8%). The shares are up 8.1% over twelve months including dividends.
- **From 52-week high: -7.7%** (18.4% above the low). Trading 8% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 66**. An RSI of 66 is neutral.
- **Beta (1 yr): -0.06** (volatility 20%). Beta of -0.06 against the S&P/TSX Composite: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=COST.TO · Page: https://foliofundamentals.com/stocks/cost.to

Not investment advice.