181.68 USD
+1.07 (+0.59%)
181.68 USD
0 (0%)
ROST gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 123 industry peers in the Specialty Retail industry. ROST scores excellent on profitability, but there are some minor concerns on its financial health. ROST has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year ROST was profitable.
In the past year ROST had a positive cash flow from operations.
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
With an excellent Return On Assets value of 13.53%, ROST belongs to the best of the industry, outperforming 89.43% of the companies in the same industry.
ROST has a better Return On Equity (35.45%) than 87.80% of its industry peers.
ROST has a Return On Invested Capital of 19.14%. This is amongst the best in the industry. ROST outperforms 86.99% of its industry peers.
ROST had an Average Return On Invested Capital over the past 3 years of 17.29%. This is significantly above the industry average of 12.17%.
The 3 year average ROIC (17.29%) for ROST is below the current ROIC(19.14%), indicating increased profibility in the last year.
| 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
With an excellent Profit Margin value of 9.47%, ROST belongs to the best of the industry, outperforming 87.80% of the companies in the same industry.
ROST's Profit Margin has been stable in the last couple of years.
The Operating Margin of ROST (11.91%) is better than 86.18% of its industry peers.
In the last couple of years the Operating Margin of ROST has declined.
Looking at the Gross Margin, with a value of 27.55%, ROST is doing worse than 73.17% of the companies in the same industry.
ROST's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ROST is creating value.
ROST has less shares outstanding than it did 1 year ago.
The number of shares outstanding for ROST has been reduced compared to 5 years ago.
ROST has a better debt/assets ratio than last year.
2.2 Solvency
ROST has a debt to FCF ratio of 0.77. This is a very positive value and a sign of high solvency as it would only need 0.77 years to pay back of 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 80.49% of the companies in the same industry.
ROST has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.17, ROST is in the better half of the industry, outperforming 63.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.77 | ||
| Altman-Z | N/A |
ROIC/WACC2.02
WACC9.49%
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.
With a Current ratio value of 1.52, ROST perfoms like the industry average, outperforming 59.35% of the companies in the same industry.
A Quick Ratio of 0.90 indicates that ROST may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.90, ROST is in the better half of the industry, outperforming 69.11% of the companies in the same industry.
| 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%.
Measured over the past 5 years, ROST shows a small growth in Earnings Per Share. The EPS has been growing by 6.56% on average per year.
The Revenue has been growing slightly by 3.71% in the past year.
ROST shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.67% yearly.
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
The Earnings Per Share is expected to grow by 8.47% on average over the next years. This is quite good.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 28.39, ROST can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of ROST indicates a somewhat cheap valuation: ROST is cheaper than 61.79% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.59, ROST is valued at the same level.
With a Price/Forward Earnings ratio of 25.01, ROST can be considered very expensive at the moment.
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 24.03, ROST is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.39 | ||
| Fwd PE | 25.01 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ROST.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ROST indicates a somewhat cheap valuation: ROST is cheaper than 61.79% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.1 | ||
| EV/EBITDA | 18.03 |
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.
The excellent profitability rating of ROST may justify a higher PE ratio.
PEG (NY)6.57
PEG (5Y)4.33
EPS Next 2Y7.22%
EPS Next 3Y7.21%
5. Dividend
5.1 Amount
ROST has a yearly dividend return of 0.89%, which is pretty low.
ROST's Dividend Yield is a higher than the industry average which is at 1.98.
Compared to an average S&P500 Dividend Yield of 1.87, ROST's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
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.
The dividend of ROST is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP24.85%
EPS Next 2Y7.22%
EPS Next 3Y7.21%
181.68
+1.07 (+0.59%)
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 Cap59.09B
Revenue(TTM)22.03B
Net Income(TTM)2.09B
Analysts80
Price Target187.17 (3.02%)
Short Float %2.23%
Short Ratio2.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
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)9.62%
PT rev (3m)15.44%
EPS NQ rev (1m)3.1%
EPS NQ rev (3m)3.55%
EPS NY rev (1m)3.79%
EPS NY rev (3m)4.37%
Revenue NQ rev (1m)2.13%
Revenue NQ rev (3m)2.88%
Revenue NY rev (1m)1.47%
Revenue NY rev (3m)1.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.39 | ||
| Fwd PE | 25.01 | ||
| P/S | 2.68 | ||
| P/FCF | 30.1 | ||
| P/OCF | 21.2 | ||
| P/B | 10.04 | ||
| P/tB | 10.04 | ||
| EV/EBITDA | 18.03 |
EPS(TTM)6.4
EY3.52%
EPS(NY)7.27
Fwd EY4%
FCF(TTM)6.04
FCFY3.32%
OCF(TTM)8.57
OCFY4.72%
SpS67.73
BVpS18.09
TBVpS18.09
PEG (NY)6.57
PEG (5Y)4.33
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
WACC9.49%
ROIC/WACC2.02
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.