Costco Wholesale Overview
Valuation check: COST's ROE is 26.38%, above the Consumer Discretionary sector average of 23.04%.
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Return on Equity measures how efficiently a company uses shareholders' equity to generate profits. A higher ROE indicates better profitability relative to equity.
Costco Wholesale posts a ROE of 26.38%. That is above the Consumer Discretionary sector average of 23.04%. Comparing that reading with peers and prior periods is usually more useful than looking at the number in isolation.
For Consumer Discretionary stocks, a ROE near 23.04% is typical. Costco Wholesale's 26.38% is higher that level. That is roughly 14.5% above the sector mean. Whether that is a warning or an opportunity depends on growth outlook and other fundamentals shown elsewhere on Stockcircle.
Costco Wholesale's ROE moves when the underlying profit, equity, or asset base changes. Cost cuts, pricing power, buybacks, write-downs, and cyclical swings can all shift the percentage. The latest reading is 26.38%; use YoY and peer views to separate noise from signal.
Context for COST's ROE usually means three checks: (1) trend versus prior periods, (2) level versus peers (average 23.04%), and (3) consistency with growth and profitability. This page covers the first two; Costco Wholesale's other metric pages and overview cover the third.
Judging Costco Wholesale against Consumer Discretionary peers is usually better than using a market-wide rule of thumb. Business models inside Consumer Discretionary are more comparable, which makes gaps in ROE easier to interpret. Start with 26.38% here, then scan peer and history charts to see if the gap is persistent.
