182.4 USD
-1.88 (-1.02%)
182.4 USD
0 (0%)
Taking everything into account, ROST scores 6 out of 10 in our fundamental rating. ROST was compared to 122 industry peers in the Specialty Retail industry. While ROST belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. ROST is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ROST was profitable.
ROST had a positive operating cash flow in the past year.
In the past 5 years ROST has always been profitable.
In the past 5 years ROST always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of ROST (13.53%) is better than 89.34% of its industry peers.
ROST has a better Return On Equity (35.45%) than 87.70% of its industry peers.
ROST has a Return On Invested Capital of 19.14%. This is amongst the best in the industry. ROST outperforms 86.89% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ROST is significantly above the industry average of 12.16%.
The last Return On Invested Capital (19.14%) for ROST is above the 3 year average (17.29%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.53% | ||
| ROE | 35.45% | ||
| ROIC | 19.14% |
ROA(3y)12.8%
ROA(5y)10.34%
ROE(3y)37.23%
ROE(5y)31.34%
ROIC(3y)17.29%
ROIC(5y)14.87%
1.3 Margins
ROST's Profit Margin of 9.47% is amongst the best of the industry. ROST outperforms 87.70% of its industry peers.
In the last couple of years the Profit Margin of ROST has remained more or less at the same level.
Looking at the Operating Margin, with a value of 11.91%, ROST belongs to the top of the industry, outperforming 86.07% of the companies in the same industry.
In the last couple of years the Operating Margin of ROST has declined.
With a Gross Margin value of 27.55%, ROST is not doing good in the industry: 72.13% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of ROST has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.91% | ||
| PM (TTM) | 9.47% | ||
| GM | 27.55% |
OM growth 3Y-0.26%
OM growth 5Y-1.77%
PM growth 3Y2.8%
PM growth 5Y-0.91%
GM growth 3Y0.3%
GM growth 5Y-0.21%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ROST is creating value.
Compared to 1 year ago, ROST has less shares outstanding
ROST has less shares outstanding than it did 5 years ago.
The debt/assets ratio for ROST has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of ROST is 0.77, which is an excellent value as it means it would take ROST, only 0.77 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.77, ROST belongs to the top of the industry, outperforming 81.15% of the companies in the same industry.
A Debt/Equity ratio of 0.17 indicates that ROST is not too dependend on debt financing.
ROST's Debt to Equity ratio of 0.17 is fine compared to the rest of the industry. ROST outperforms 63.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.77 | ||
| Altman-Z | N/A |
ROIC/WACC2.01
WACC9.53%
2.3 Liquidity
ROST has a Current Ratio of 1.52. This is a normal value and indicates that ROST is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.52, ROST is in the better half of the industry, outperforming 61.48% of the companies in the same industry.
ROST has a Quick Ratio of 1.52. This is a bad value and indicates that ROST is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of ROST (0.90) is better than 70.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
ROST shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.79%.
The Earnings Per Share has been growing slightly by 6.56% on average over the past years.
ROST shows a small growth in Revenue. In the last year, the Revenue has grown by 3.71%.
Measured over the past years, ROST shows a small growth in Revenue. The Revenue has been growing by 5.67% on average per year.
EPS 1Y (TTM)0.79%
EPS 3Y9.15%
EPS 5Y6.56%
EPS Q2Q%6.76%
Revenue 1Y (TTM)3.71%
Revenue growth 3Y3.76%
Revenue growth 5Y5.67%
Sales Q2Q%10.44%
3.2 Future
ROST is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.47% yearly.
Based on estimates for the next years, ROST will show a small growth in Revenue. The Revenue will grow by 5.10% on average per year.
EPS Next Y4.32%
EPS Next 2Y7.22%
EPS Next 3Y7.21%
EPS Next 5Y8.47%
Revenue Next Year5.89%
Revenue Next 2Y5.61%
Revenue Next 3Y5.21%
Revenue Next 5Y5.1%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 28.50, which means the current valuation is very expensive for ROST.
Based on the Price/Earnings ratio, ROST is valued a bit cheaper than 61.48% of the companies in the same industry.
When comparing the Price/Earnings ratio of ROST to the average of the S&P500 Index (26.43), we can say ROST is valued inline with the index average.
ROST is valuated quite expensively with a Price/Forward Earnings ratio of 25.11.
The rest of the industry has a similar Price/Forward Earnings ratio as ROST.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.66, ROST is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.5 | ||
| Fwd PE | 25.11 |
4.2 Price Multiples
ROST's Enterprise Value to EBITDA ratio is in line with the industry average.
ROST's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ROST is cheaper than 60.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.21 | ||
| EV/EBITDA | 18.42 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ROST does not grow enough to justify the current Price/Earnings ratio.
ROST has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)6.59
PEG (5Y)4.34
EPS Next 2Y7.22%
EPS Next 3Y7.21%
5. Dividend
5.1 Amount
ROST has a yearly dividend return of 0.88%, which is pretty low.
Compared to an average industry Dividend Yield of 1.84, ROST pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.88, ROST pays less dividend than the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
5.2 History
On average, the dividend of ROST grows each year by 7.61%, which is quite nice.
ROST has been paying a dividend for at least 10 years, so it has a reliable track record.
ROST has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)7.61%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
24.85% of the earnings are spent on dividend by ROST. This is a low number and sustainable payout ratio.
ROST's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP24.85%
EPS Next 2Y7.22%
EPS Next 3Y7.21%
182.4
-1.88 (-1.02%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners93.53%
Inst Owner Change-1.15%
Ins Owners2.08%
Ins Owner Change-3.32%
Market Cap59.32B
Revenue(TTM)22.03B
Net Income(TTM)2.09B
Analysts80
Price Target187.17 (2.62%)
Short Float %2.23%
Short Ratio2.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
Yearly Dividend1.47
Dividend Growth(5Y)7.61%
DP24.85%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.84%
Min EPS beat(2)-0.39%
Max EPS beat(2)10.06%
EPS beat(4)3
Avg EPS beat(4)3.92%
Min EPS beat(4)-0.39%
Max EPS beat(4)10.06%
EPS beat(8)7
Avg EPS beat(8)4.75%
EPS beat(12)11
Avg EPS beat(12)5.07%
EPS beat(16)14
Avg EPS beat(16)5.35%
Revenue beat(2)1
Avg Revenue beat(2)-0.7%
Min Revenue beat(2)-2.76%
Max Revenue beat(2)1.36%
Revenue beat(4)1
Avg Revenue beat(4)-1.44%
Min Revenue beat(4)-2.76%
Max Revenue beat(4)1.36%
Revenue beat(8)2
Avg Revenue beat(8)-1.29%
Revenue beat(12)3
Avg Revenue beat(12)-1%
Revenue beat(16)4
Avg Revenue beat(16)-1.2%
PT rev (1m)11.58%
PT rev (3m)15.44%
EPS NQ rev (1m)2.92%
EPS NQ rev (3m)3.48%
EPS NY rev (1m)3.79%
EPS NY rev (3m)4.37%
Revenue NQ rev (1m)2.15%
Revenue NQ rev (3m)2.89%
Revenue NY rev (1m)1.47%
Revenue NY rev (3m)1.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.5 | ||
| Fwd PE | 25.11 | ||
| P/S | 2.69 | ||
| P/FCF | 30.21 | ||
| P/OCF | 21.28 | ||
| P/B | 10.08 | ||
| P/tB | 10.08 | ||
| EV/EBITDA | 18.42 |
EPS(TTM)6.4
EY3.51%
EPS(NY)7.27
Fwd EY3.98%
FCF(TTM)6.04
FCFY3.31%
OCF(TTM)8.57
OCFY4.7%
SpS67.73
BVpS18.09
TBVpS18.09
PEG (NY)6.59
PEG (5Y)4.34
Graham Number51.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.53% | ||
| ROE | 35.45% | ||
| ROCE | 25.25% | ||
| ROIC | 19.14% | ||
| ROICexc | 31.42% | ||
| ROICexgc | 31.42% | ||
| OM | 11.91% | ||
| PM (TTM) | 9.47% | ||
| GM | 27.55% | ||
| FCFM | 8.91% |
ROA(3y)12.8%
ROA(5y)10.34%
ROE(3y)37.23%
ROE(5y)31.34%
ROIC(3y)17.29%
ROIC(5y)14.87%
ROICexc(3y)32.61%
ROICexc(5y)29.08%
ROICexgc(3y)32.61%
ROICexgc(5y)29.08%
ROCE(3y)22.8%
ROCE(5y)19.61%
ROICexgc growth 3Y-3.26%
ROICexgc growth 5Y2.96%
ROICexc growth 3Y-3.26%
ROICexc growth 5Y2.96%
OM growth 3Y-0.26%
OM growth 5Y-1.77%
PM growth 3Y2.8%
PM growth 5Y-0.91%
GM growth 3Y0.3%
GM growth 5Y-0.21%
F-Score6
Asset Turnover1.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.77 | ||
| Debt/EBITDA | 0.33 | ||
| Cap/Depr | 167.64% | ||
| Cap/Sales | 3.74% | ||
| Interest Coverage | 47.05 | ||
| Cash Conversion | 89.46% | ||
| Profit Quality | 94.12% | ||
| Current Ratio | 1.52 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z | N/A |
F-Score6
WACC9.53%
ROIC/WACC2.01
Cap/Depr(3y)169.59%
Cap/Depr(5y)154.94%
Cap/Sales(3y)3.55%
Cap/Sales(5y)3.37%
Profit Quality(3y)80.07%
Profit Quality(5y)494.81%
High Growth Momentum
Growth
EPS 1Y (TTM)0.79%
EPS 3Y9.15%
EPS 5Y6.56%
EPS Q2Q%6.76%
EPS Next Y4.32%
EPS Next 2Y7.22%
EPS Next 3Y7.21%
EPS Next 5Y8.47%
Revenue 1Y (TTM)3.71%
Revenue growth 3Y3.76%
Revenue growth 5Y5.67%
Sales Q2Q%10.44%
Revenue Next Year5.89%
Revenue Next 2Y5.61%
Revenue Next 3Y5.21%
Revenue Next 5Y5.1%
EBIT growth 1Y0.99%
EBIT growth 3Y3.49%
EBIT growth 5Y3.8%
EBIT Next Year24.58%
EBIT Next 3Y11.45%
EBIT Next 5Y10.22%
FCF growth 1Y-2.11%
FCF growth 3Y11.5%
FCF growth 5Y0.26%
OCF growth 1Y0.19%
OCF growth 3Y10.67%
OCF growth 5Y1.65%
ROSS STORES INC / ROST FAQ
What is the ChartMill fundamental rating of ROSS STORES INC (ROST) stock?
ChartMill assigns a fundamental rating of 6 / 10 to ROST.
What is the valuation status for ROST stock?
ChartMill assigns a valuation rating of 4 / 10 to ROSS STORES INC (ROST). This can be considered as Fairly Valued.
How profitable is ROSS STORES INC (ROST) stock?
ROSS STORES INC (ROST) has a profitability rating of 8 / 10.
What is the financial health of ROSS STORES INC (ROST) stock?
The financial health rating of ROSS STORES INC (ROST) is 6 / 10.
What is the earnings growth outlook for ROSS STORES INC?
The Earnings per Share (EPS) of ROSS STORES INC (ROST) is expected to grow by 4.32% in the next year.