Costco WholesaleCOST +0.67%97 ROA % is 10.31% as of May. 2026, which is 20% above its 10-year median of 8.61. 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 312 Retail - Defensive companies, Costco Wholesale ranks better than 89.74% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Costco Wholesale's annualizedNet Income for the quarter that ended in May. 2026 was $8,768 Mil.
Costco Wholesale's average Total Assets over the quarter that ended in May. 2026 was $85,035 Mil. Therefore, Costco Wholesale's annualized ROA % for the quarter that ended in May. 2026 was 10.31%.
The historical rank and industry rank for Costco Wholesale's ROA % or its related term are showing as below:
COST'
s ROA % Range Over the Past 10 Years
Min: 7.1 Med: 8.61 Max: 11.02
Current: 10.9
During the past 13 years, Costco Wholesale's highest ROA % was 11.02%. The lowest was 7.10%. And the median was 8.61%.
COST's ROA % is ranked better than 89.74% of 312
companies
in the Retail - Defensive industry
Industry Median: 3.545
vs COST: 10.90
Costco Wholesale (NAS:COST) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (May. 2026) net income data. The Revenue data used here is four times the quarterly (May. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Costco Wholesale ROA % Related Terms
Costco Wholesale ROA % Historical Data
* Premium members only.
The historical data trend for Costco Wholesale's ROA % 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 ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Costco Wholesale's ROA % distribution charts can be found below:
* The bar in red indicates where Costco Wholesale's ROA % 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.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (May. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Costco Wholesale (COST) has a ROA % of 10.31% as of May. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Costco Wholesale and its competitors. This is 20% above median its historical median of 8.61. Over the past decade, Costco Wholesale's ROA % has ranged from 7.10 to 11.02. According to the industry distribution chart, Costco Wholesale ranks #32 out of 312 companies in the Retail - Defensive industry, placing it in the top 10.3%.
Is Costco Wholesale's ROA % too high?
Costco Wholesale's current ROA % of 10.31% is 20% above median its 10-year median of 8.61. Over the past 10 years, this metric has ranged from a low of 7.10 to a high of 11.02. The Retail - Defensive industry median ROA % is 3.55. Costco Wholesale's value of 10.31% is 190.8% above this industry median. Based on the distribution chart, Costco Wholesale ranks #32 out of 312 companies in the Retail - Defensive industry, which is in the top quartile — a strong position relative to peers. 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 ROA % compare to TGT and DG?
According to the Retail - Defensive industry distribution chart, Costco Wholesale ranks #32 out of 312 companies for ROA %. This places Costco Wholesale in the top 10% of its industry — outperforming the majority of peers. The industry median ROA % is 3.55. Costco Wholesale's value of 10.31% is 190.8% above this benchmark. Historically, Costco Wholesale's own ROA % has ranged from 7.10 to 11.02 over the past decade. While the company's 10-year median is 8.61 vs. the industry median of 3.55, 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 ROA % for a Retail - Defensive company?
The median ROA % among Retail - Defensive companies is 3.55, based on 312 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Costco Wholesale's current ROA % of 10.31% is 190.8% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Costco Wholesale and its competitors. For the Retail - Defensive industry, the median ROA % is 3.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Costco Wholesale's current ROA % is 10.31%, which is 20% above median its own 10-year median of 8.61. 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 ROA % is 10.31%, which is 20% above median its 10-year median of 8.61 and 190.8% above the Retail - Defensive industry median of 3.55. 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For Costco Wholesale (COST), the current ROA % is 10.31% 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:
ROA %: 10.31% (20% above median its 10-year median of 8.61)
GF Value™: $1,014.93 vs. price of $964.10 (5% below fair value)
Industry Position: 190.8% above the Retail - Defensive median (#32 of 312)
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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