191.44 USD
+2.17 (+1.15%)
191.4 USD
-0.04 (-0.02%)
ROST gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 122 industry peers in the Specialty Retail industry. Both the health and profitability get an excellent rating, making ROST a very profitable company, without any liquidiy or solvency issues. ROST has a correct valuation and a medium growth rate.
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.
ROST had positive earnings in each of the past 5 years.
Each year in the past 5 years ROST had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ROST (13.53%) is better than 89.34% of its industry peers.
ROST's Return On Equity of 35.45% is amongst the best of the industry. ROST outperforms 87.70% of its industry peers.
Looking at the Return On Invested Capital, with a value of 19.14%, ROST belongs to the top of the industry, outperforming 86.89% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital 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.
ROST's Profit Margin has been stable in the last couple of years.
ROST has a Operating Margin of 11.91%. This is amongst the best in the industry. ROST outperforms 86.07% of its industry peers.
ROST's Operating Margin has declined in the last couple of years.
ROST has a worse Gross Margin (27.55%) than 72.95% of its industry peers.
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
ROST has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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.
The debt/assets ratio for ROST has been reduced compared to a year ago.
2.2 Solvency
ROST has an Altman-Z score of 6.52. This indicates that ROST is financially healthy and has little risk of bankruptcy at the moment.
ROST's Altman-Z score of 6.52 is amongst the best of the industry. ROST outperforms 92.62% of its industry peers.
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 80.33% 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.
ROST has a better Debt to Equity ratio (0.17) than 63.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.77 | ||
| Altman-Z | 6.52 |
ROIC/WACC1.99
WACC9.63%
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.
ROST has a Current ratio of 1.52. This is in the better half of the industry: ROST outperforms 60.66% of its industry peers.
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.
ROST does not score too well on the current and quick ratio evaluation. However, as it has 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.
The Revenue has been growing slightly by 3.71% in the past year.
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
The Earnings Per Share is expected to grow by 9.11% 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 4.98% on average per year.
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.
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 29.91, ROST can be considered very expensive at the moment.
63.93% of the companies in the same industry are more expensive than ROST, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of ROST to the average of the S&P500 Index (27.19), we can say ROST is valued inline with the index average.
With a Price/Forward Earnings ratio of 26.35, ROST can be considered very expensive at the moment.
ROST's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of ROST to the average of the S&P500 Index (23.92), we can say ROST is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.91 | ||
| Fwd PE | 26.35 |
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 | 31.71 | ||
| EV/EBITDA | 19.16 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of ROST may justify a higher PE ratio.
PEG (NY)6.94
PEG (5Y)4.56
EPS Next 2Y7.22%
EPS Next 3Y7.36%
5. Dividend
5.1 Amount
With a yearly dividend of 0.86%, ROST is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.13, ROST pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.86, ROST pays less dividend than the S&P500 average, which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
5.2 History
The dividend of ROST is nicely growing with an annual growth rate of 7.61%!
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
ROST pays out 24.85% of its income as dividend. This is a 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 3Y7.36%
191.44
+2.17 (+1.15%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners94%
Inst Owner Change0.21%
Ins Owners2.09%
Ins Owner Change-3.32%
Market Cap62.26B
Revenue(TTM)22.03B
Net Income(TTM)2.09B
Analysts81.67
Price Target189.3 (-1.12%)
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 | 29.91 | ||
| Fwd PE | 26.35 | ||
| P/S | 2.83 | ||
| P/FCF | 31.71 | ||
| P/OCF | 22.33 | ||
| P/B | 10.58 | ||
| P/tB | 10.58 | ||
| EV/EBITDA | 19.16 |
EPS(TTM)6.4
EY3.34%
EPS(NY)7.26
Fwd EY3.79%
FCF(TTM)6.04
FCFY3.15%
OCF(TTM)8.57
OCFY4.48%
SpS67.73
BVpS18.09
TBVpS18.09
PEG (NY)6.94
PEG (5Y)4.56
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 | 6.52 |
F-Score6
WACC9.63%
ROIC/WACC1.99
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 29.91 and the Price/Book (PB) ratio is 10.58.
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%.