Costco WholesaleCOST +0.67%97 FCF Margin % is 2.89% as of May. 2026, which is 8% above its 10-year median of 2.68. GuruFocus rates COST with a GF Score™ of 97/100 and a GF Value™ of $1,014.93 (Fairly Valued). The stock has 1 warning sign investors should review. Among 309 Retail - Defensive companies, Costco Wholesale ranks better than 63.43% on this metric.
The historical rank and industry rank for Costco Wholesale's FCF Margin % or its related term are showing as below:
COST'
s FCF Margin % Range Over the Past 10 Years
Min: 0.54 Med: 2.68 Max: 3.63
Current: 3
During the past 13 years, the highest FCF Margin % of Costco Wholesale was 3.63%. The lowest was 0.54%. And the median was 2.68%.
COST's FCF Margin % is ranked better than 63.43% of 309
companies
in the Retail - Defensive industry
Industry Median: 1.81
vs COST: 3.00
Costco Wholesale FCF Margin % Related Terms
Costco Wholesale FCF Margin % Historical Data
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The historical data trend for Costco Wholesale's FCF Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Discount Stores subindustry, Costco Wholesale's FCF Margin %, along with its competitors' market caps and FCF Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Costco Wholesale FCF Margin % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Costco Wholesale's FCF Margin % distribution charts can be found below:
* The bar in red indicates where Costco Wholesale's FCF Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Costco Wholesale (COST) has a FCF Margin % of 2.89% as of May. 2026. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on Costco Wholesale and its competitors. This is near median its historical median of 2.68. Over the past decade, Costco Wholesale's FCF Margin % has ranged from 0.54 to 3.63. According to the industry distribution chart, Costco Wholesale ranks #113 out of 309 companies in the Retail - Defensive industry, placing it in the top 36.6%.
Is Costco Wholesale's FCF Margin % too high?
Costco Wholesale's current FCF Margin % of 2.89% is near median its 10-year median of 2.68. Over the past 10 years, this metric has ranged from a low of 0.54 to a high of 3.63. The Retail - Defensive industry median FCF Margin % is 1.81. Costco Wholesale's value of 2.89% is 59.7% above this industry median. Based on the distribution chart, Costco Wholesale ranks #113 out of 309 companies in the Retail - Defensive industry, which is above the industry midpoint. Overall, Costco Wholesale has a GF Score™ of 97/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Costco Wholesale's FCF Margin % compare to TGT and DG?
According to the Retail - Defensive industry distribution chart, Costco Wholesale ranks #113 out of 309 companies for FCF Margin %. This puts Costco Wholesale in the upper half of its industry. The industry median FCF Margin % is 1.81. Costco Wholesale's value of 2.89% is 59.7% above this benchmark. Historically, Costco Wholesale's own FCF Margin % has ranged from 0.54 to 3.63 over the past decade. While the company's 10-year median is 2.68 vs. the industry median of 1.81, Costco Wholesale has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good FCF Margin % for a Retail - Defensive company?
The median FCF Margin % among Retail - Defensive companies is 1.81, based on 309 companies in the industry. Companies in the top quartile (top 25%) have a FCF Margin % significantly above this median, while those in the bottom quartile fall well below. However, FCF Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Costco Wholesale's current FCF Margin % of 2.89% is 59.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high FCF Margin % mean?
A high FCF Margin % can signal that a stock is expensive relative to its fundamentals. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on Costco Wholesale and its competitors. For the Retail - Defensive industry, the median FCF Margin % is 1.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Costco Wholesale's current FCF Margin % is 2.89%, which is near median its own 10-year median of 2.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Costco Wholesale stock overvalued right now?
Based on GuruFocus' analysis, Costco Wholesale (COST) is currently considered Fairly Valued. The stock's GF Value™ is $1,014.93, compared to a current price of $964.10 — trading 5% below its estimated fair value. The current FCF Margin % is 2.89%, which is near median its 10-year median of 2.68 and 59.7% above the Retail - Defensive industry median of 1.81. Costco Wholesale's overall GF Score™ is 97/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is FCF Margin % calculated?
FCF Margin % is calculated from a company's financial statements. For Costco Wholesale (COST), the current FCF Margin % is 2.89% as of May. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Costco Wholesale (COST) Overvalued in 2026?
Based on GuruFocus' analysis, Costco Wholesale stock appears to be undervalued.
The current stock price of $964.10 is trading 5% below its estimated GF Value™ of $1,014.93.
GuruFocus considers Costco Wholesale to be Fairly Valued.
Key valuation signals for COST:
FCF Margin %: 2.89% (near median its 10-year median of 2.68)
GF Value™: $1,014.93 vs. price of $964.10 (5% below fair value)
Industry Position: 59.7% above the Retail - Defensive median (#113 of 309)
No single metric tells the full story. See the COST stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Founded in 1983, Costco Wholesale now operates a global chain of membership-based warehouse clubs, delivering high-quality goods and services at consistently low prices. As of its most recent fiscal year, Costco operated approximately 910 warehouses, serving more than 80 million members across its three geographic segments: Costco US (approximately 73% of total revenue), Costco Canada (13%), and Costco International (14%).Costco's core value proposition—quality products at unbeatable prices—has yielded consistently strong member renewal rates (93% in the US and Canada and nearly 90% internationally). About 55% of Costco's fiscal 2025 revenue came from its grocery offerings, and another 25% from general merchandise.
97GF Score
Get the complete analysis for COST
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