Costco Wholesale Corporation 🇺🇸
COST • Technology • USA
⚡ 82.5/100
Wide Moat Score™
$945.47
+0.0% (24H)
Fundamental Snapshot • Market Cap: $419.3B
PEG Ratio
2.13x
EXPANDED
Forward P/E
45.9x
GROWTH FAIR
Revenue Growth YoY
+21.5%
ROBUST EXPANSION
Gross Margin
12.9%
MODERATE
Free Cash Flow
$7.0B
CASH FORTRESS
Debt / EBITDA
0.8x
SOLVENT BALANCE
📊 Proprietary 12-Point Fundamental Audit
| Audit Dimension | Benchmark Criterion | COST Actual | Evaluation |
|---|---|---|---|
| 1. Economic Moat Strength | Software lock-in / high switching barrier / patent moat | Moat Score 82.5/100 | ✅ WIDE MOAT |
| 2. Pricing Power & Margins | Gross Margin > 40% sustainable | 12.9% Gross Margin | ⚠️ MODERATE |
| 3. Revenue Acceleration | YoY Top-Line Growth > 15% | +21.5% YoY | ✅ PASSED |
| 4. Peter Lynch PEG Ratio | PEG < 1.2x (Growth at a Reasonable Price) | 2.13x PEG Ratio | ⚠️ ELEVATED |
| 5. Fortress Balance Sheet | Debt / EBITDA < 2.5x | 0.8x Net Leverage | ✅ PASSED |
| 6. Free Cash Flow Generation | Positive and compounding FCF | $7.0B Free Cash Flow | ✅ PASSED |
| 7. Multiple vs Sector Median | Forward P/E reasonable vs earnings growth | Forward P/E: 45.9x | ✅ ATTRACTIVE MULTIPLE |
| 8. Management & Insider Ownership | Insider Ownership > 3% | 8.5% Insider Equity | ✅ ALIGNED |
| 9. Superinvestor Whale Backing | Held by Top 25 13F Wall St Whales | Ray Dalio | ✅ 13F WHALE BACKED |
| 10. Secular Industry Tailwinds | Exposure to multi-year compound themes | Technology sector expansion | ✅ PASSED |
| 11. Trailing P/E Multiple | Historical earnings multiple sanity | Trailing P/E: 47.5x | ✅ PASSED |
| 12. Overall Moat Conviction | Composite algorithmic evaluation | Overall Score: 82.5/100 | ✅ HIGH CONVICTION |
📝 MoatPicks Investment Thesis
Competitive Moat Breakdown: Inflation-resistant consumer membership fortress with 92%+ renewal rates.
Valuation Verdict: Trading at a Forward P/E of 45.9x and PEG ratio of 2.13x, Costco Wholesale Corporation satisfies core fundamental screens for quality and durability.
🐋 Tracked Superinvestor Backing
🎯 Ray Dalio