192.36 USD
-1.43 (-0.74%)
192.36 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to ROST. ROST was compared to 122 industry peers in the Specialty Retail industry. ROST scores excellent points on both the profitability and health parts. This is a solid base for a good stock. ROST is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- ROST had positive earnings in the past year.
- ROST had a positive operating cash flow in the past year.
- ROST had positive earnings in each of the past 5 years.
- In the past 5 years ROST always reported a positive cash flow from operatings.
1.2 Ratios
- ROST has a Return On Assets of 13.53%. This is amongst the best in the industry. ROST outperforms 89.34% of its industry peers.
- With an excellent Return On Equity value of 35.45%, ROST belongs to the best of the industry, outperforming 87.70% of the companies in the same industry.
- The Return On Invested Capital of ROST (19.14%) is better than 86.89% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for ROST is significantly above the industry average of 12.24%.
- 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
- The Profit Margin of ROST (9.47%) is better than 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.
- With an excellent Operating Margin value of 11.91%, ROST belongs to the best 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.
- Looking at the Gross Margin, with a value of 27.55%, ROST is doing worse than 72.95% 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
- 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
- The number of shares outstanding for ROST has been reduced compared to 5 years ago.
- Compared to 1 year ago, ROST has an improved debt to assets ratio.
2.2 Solvency
- ROST has an Altman-Z score of 6.57. This indicates that ROST is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 6.57, ROST belongs to the best of the industry, outperforming 93.44% of the companies in the same industry.
- 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.
- The Debt to FCF ratio of ROST (0.77) is better than 80.33% of its industry peers.
- ROST has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
- ROST has a Debt to Equity ratio of 0.17. This is in the better half 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 | 6.57 |
ROIC/WACC2
WACC9.59%
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 60.66% 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.
- ROST has a Quick ratio of 0.90. This is in the better half of the industry: ROST outperforms 68.85% of its industry peers.
- The current and quick ratio evaluation for ROST is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| 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%.
- ROST shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.56% yearly.
- ROST shows a small growth in Revenue. In the last year, the Revenue has grown by 3.71%.
- 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
- Based on estimates for the next years, ROST will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.11% on average per year.
- ROST is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.98% yearly.
EPS Next Y4.31%
EPS Next 2Y7.22%
EPS Next 3Y7.36%
EPS Next 5Y9.11%
Revenue Next Year5.87%
Revenue Next 2Y5.6%
Revenue Next 3Y5.26%
Revenue Next 5Y4.98%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 30.06, the valuation of ROST can be described as expensive.
- Based on the Price/Earnings ratio, ROST is valued a bit cheaper than 63.93% of the companies in the same industry.
- ROST is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.47, which is the current average of the S&P500 Index.
- ROST is valuated quite expensively with a Price/Forward Earnings ratio of 26.48.
- The rest of the industry has a similar Price/Forward Earnings ratio as ROST.
- ROST is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.06 | ||
| Fwd PE | 26.48 |
4.2 Price Multiples
- ROST's Enterprise Value to EBITDA ratio is in line with the industry average.
- Based on the Price/Free Cash Flow ratio, ROST is valued a bit cheaper than 61.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.86 | ||
| EV/EBITDA | 19.41 |
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)6.98
PEG (5Y)4.58
EPS Next 2Y7.22%
EPS Next 3Y7.36%
5. Dividend
5.1 Amount
- ROST has a yearly dividend return of 0.86%, which is pretty low.
- ROST's Dividend Yield is a higher than the industry average which is at 2.13.
- Compared to an average S&P500 Dividend Yield of 1.89, ROST's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
5.2 History
- On average, the dividend of ROST grows each year by 7.61%, which is quite nice.
- ROST has paid a dividend for at least 10 years, which is 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 3Y7.36%
192.36
-1.43 (-0.74%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)11-20 2025-11-20/amc
Earnings (Next)05-20 2026-05-20
Inst Owners94%
Inst Owner Change0.21%
Ins Owners2.09%
Ins Owner Change-3.32%
Market Cap62.56B
Revenue(TTM)22.03B
Net Income(TTM)2.09B
Analysts81.67
Price Target189.3 (-1.59%)
Short Float %2.21%
Short Ratio2.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
Yearly Dividend1.47
Dividend Growth(5Y)7.61%
DP24.85%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
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)1.14%
PT rev (3m)16.03%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)3.55%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)4.09%
Revenue NQ rev (1m)-0.37%
Revenue NQ rev (3m)2.51%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)1.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.06 | ||
| Fwd PE | 26.48 | ||
| P/S | 2.84 | ||
| P/FCF | 31.86 | ||
| P/OCF | 22.44 | ||
| P/B | 10.63 | ||
| P/tB | 10.63 | ||
| EV/EBITDA | 19.41 |
EPS(TTM)6.4
EY3.33%
EPS(NY)7.26
Fwd EY3.78%
FCF(TTM)6.04
FCFY3.14%
OCF(TTM)8.57
OCFY4.46%
SpS67.73
BVpS18.09
TBVpS18.09
PEG (NY)6.98
PEG (5Y)4.58
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 | 6.57 |
F-Score6
WACC9.59%
ROIC/WACC2
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 Y4.31%
EPS Next 2Y7.22%
EPS Next 3Y7.36%
EPS Next 5Y9.11%
Revenue 1Y (TTM)3.71%
Revenue growth 3Y3.76%
Revenue growth 5Y5.67%
Sales Q2Q%10.44%
Revenue Next Year5.87%
Revenue Next 2Y5.6%
Revenue Next 3Y5.26%
Revenue Next 5Y4.98%
EBIT growth 1Y0.99%
EBIT growth 3Y3.49%
EBIT growth 5Y3.8%
EBIT Next Year24.34%
EBIT Next 3Y11.57%
EBIT Next 5Y11%
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 7 / 10 to ROST.
What is the valuation status of ROSS STORES INC (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 valuation of ROSS STORES INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ROSS STORES INC (ROST) is 30.06 and the Price/Book (PB) ratio is 10.63.
Is the dividend of ROSS STORES INC sustainable?
The dividend rating of ROSS STORES INC (ROST) is 5 / 10 and the dividend payout ratio is 24.85%.