Costco WholesaleCOST +0.34%97 Net Margin % is 3.11% as of May. 2026, which is 25% above its 10-year median of 2.48. 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 310 Retail - Defensive companies, Costco Wholesale ranks better than 61.61% on this metric.
The historical rank and industry rank for Costco Wholesale's Net Margin % or its related term are showing as below:
COST'
s Net Margin % Range Over the Past 10 Years
Min: 1.98 Med: 2.48 Max: 3.01
Current: 3.01
COST's Net Margin % is ranked better than 61.61% of 310
companies
in the Retail - Defensive industry
Industry Median: 2.155
vs COST: 3.01
Costco Wholesale (NAS:COST) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Costco Wholesale Net Margin % Related Terms
Costco Wholesale Net Margin % Historical Data
* Premium members only.
The historical data trend for Costco Wholesale's Net 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 Net Margin %, along with its competitors' market caps and Net 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 Net Margin % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Costco Wholesale's Net Margin % distribution charts can be found below:
* The bar in red indicates where Costco Wholesale's Net 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 Net Margin % of 3.11% as of May. 2026. Net margin is the ratio of total net income to net sales. View historical data on Costco Wholesale and its competitors. This is 25% above median its historical median of 2.48. Over the past decade, Costco Wholesale's Net Margin % has ranged from 1.98 to 3.01. According to the industry distribution chart, Costco Wholesale ranks #119 out of 310 companies in the Retail - Defensive industry, placing it in the top 38.4%.
Is Costco Wholesale's Net Margin % too high?
Costco Wholesale's current Net Margin % of 3.11% is 25% above median its 10-year median of 2.48. Over the past 10 years, this metric has ranged from a low of 1.98 to a high of 3.01. The Retail - Defensive industry median Net Margin % is 2.16. Costco Wholesale's value of 3.11% is 44.3% above this industry median. Based on the distribution chart, Costco Wholesale ranks #119 out of 310 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 Net Margin % compare to TGT and DG?
According to the Retail - Defensive industry distribution chart, Costco Wholesale ranks #119 out of 310 companies for Net Margin %. This puts Costco Wholesale in the upper half of its industry. The industry median Net Margin % is 2.16. Costco Wholesale's value of 3.11% is 44.3% above this benchmark. Historically, Costco Wholesale's own Net Margin % has ranged from 1.98 to 3.01 over the past decade. While the company's 10-year median is 2.48 vs. the industry median of 2.16, 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 Net Margin % for a Retail - Defensive company?
The median Net Margin % among Retail - Defensive companies is 2.16, based on 310 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Costco Wholesale's current Net Margin % of 3.11% is 44.3% 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Costco Wholesale and its competitors. For the Retail - Defensive industry, the median Net Margin % is 2.16 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Costco Wholesale's current Net Margin % is 3.11%, which is 25% above median its own 10-year median of 2.48. 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 $960.97 — trading 5.3% below its estimated fair value. The current Net Margin % is 3.11%, which is 25% above median its 10-year median of 2.48 and 44.3% above the Retail - Defensive industry median of 2.16. 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 Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Costco Wholesale (COST), the current Net Margin % is 3.11% 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 $960.97 is trading 5.3% below its estimated GF Value™ of $1,014.93.
GuruFocus considers Costco Wholesale to be Fairly Valued.
Key valuation signals for COST:
Net Margin %: 3.11% (25% above median its 10-year median of 2.48)
GF Value™: $1,014.93 vs. price of $960.97 (5.3% below fair value)
Industry Position: 44.3% above the Retail - Defensive median (#119 of 310)
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
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