ROSS STORES INC (ROST)
US7782961038 - Common Stock
Taking everything into account, ROST scores 6 out of 10 in our fundamental rating. ROST was compared to 123 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. This makes ROST very considerable for quality investing!
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.
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 14.12%, ROST belongs to the best of the industry, outperforming 90.08% of the companies in the same industry.
With an excellent Return On Equity value of 40.39%, ROST belongs to the best of the industry, outperforming 89.26% of the companies in the same industry.
ROST's Return On Invested Capital of 19.72% is amongst the best of the industry. ROST outperforms 88.43% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ROST is above the industry average of 12.28%.
The last Return On Invested Capital (19.72%) for ROST is above the 3 year average (17.20%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.12% | ||
| ROE | 40.39% | ||
| ROIC | 19.72% |
ROA(3y)12.34%
ROA(5y)11.09%
ROE(3y)38.72%
ROE(5y)33.64%
ROIC(3y)17.2%
ROIC(5y)15.97%
1.3 Margins
With an excellent Profit Margin value of 9.82%, ROST belongs to the best of the industry, outperforming 91.74% of the companies in the same industry.
ROST's Profit Margin has declined in the last couple of years.
The Operating Margin of ROST (12.06%) is better than 88.43% of its industry peers.
In the last couple of years the Operating Margin of ROST has declined.
ROST's Gross Margin of 27.83% is on the low side compared to the rest of the industry. ROST is outperformed by 69.42% of its industry peers.
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 | 12.06% | ||
| PM (TTM) | 9.82% | ||
| GM | 27.83% |
OM growth 3Y48.89%
OM growth 5Y-3.63%
PM growth 3Y138.48%
PM growth 5Y-2.78%
GM growth 3Y8.39%
GM growth 5Y-0.75%
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
Compared to 5 years ago, ROST has less shares outstanding
ROST has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.56 indicates that ROST is not in any danger for bankruptcy at the moment.
The Altman-Z score of ROST (5.56) is better than 88.43% of its industry peers.
The Debt to FCF ratio of ROST is 1.51, which is an excellent value as it means it would take ROST, only 1.51 years of fcf income to pay off all of its debts.
ROST has a Debt to FCF ratio of 1.51. This is in the better half of the industry: ROST outperforms 76.86% of its industry peers.
ROST has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
ROST has a Debt to Equity ratio (0.30) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 1.51 | ||
| Altman-Z | 5.56 |
ROIC/WACC2.13
WACC9.27%
2.3 Liquidity
A Current Ratio of 1.56 indicates that ROST should not have too much problems paying its short term obligations.
ROST has a better Current ratio (1.56) than 61.98% of its industry peers.
ROST has a Quick Ratio of 1.05. This is a normal value and indicates that ROST is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of ROST (1.05) is better than 76.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.56 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 31.36% over the past year.
The Earnings Per Share has been growing slightly by 6.81% on average over the past years.
Looking at the last year, ROST shows a quite strong growth in Revenue. The Revenue has grown by 9.81% in the last year.
The Revenue has been growing slightly by 6.34% on average over the past years.
EPS 1Y (TTM)31.36%
EPS 3Y84.87%
EPS 5Y6.81%
EPS Q2Q%20.45%
Revenue 1Y (TTM)9.81%
Revenue growth 3Y17.59%
Revenue growth 5Y6.34%
Sales Q2Q%7.15%
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 11.44% on average per year.
The Revenue is expected to grow by 6.02% on average over the next years.
EPS Next Y12.83%
EPS Next 2Y10.88%
EPS Next 3Y10.33%
EPS Next 5Y11.44%
Revenue Next Year5.79%
Revenue Next 2Y5.7%
Revenue Next 3Y5.57%
Revenue Next 5Y6.02%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 22.63, the valuation of ROST can be described as rather expensive.
Based on the Price/Earnings ratio, ROST is valued a bit cheaper than 63.64% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.12, ROST is valued a bit cheaper.
With a Price/Forward Earnings ratio of 20.53, ROST is valued on the expensive side.
ROST's Price/Forward Earnings ratio is in line with the industry average.
ROST's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.79.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.63 | ||
| Fwd PE | 20.53 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ROST is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, ROST is valued a bit cheaper than the industry average as 61.16% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.62 | ||
| EV/EBITDA | 15.09 |
4.3 Compensation for Growth
ROST's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of ROST may justify a higher PE ratio.
PEG (NY)1.76
PEG (5Y)3.32
EPS Next 2Y10.88%
EPS Next 3Y10.33%
5. Dividend
5.1 Amount
ROST has a Yearly Dividend Yield of 1.03%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.01, ROST pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.03, ROST pays less dividend than the S&P500 average, which is at 2.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.03% |
5.2 History
The dividend of ROST is nicely growing with an annual growth rate of 8.27%!
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)8.27%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
22.77% of the earnings are spent on dividend by ROST. This is a low number and sustainable payout ratio.
ROST's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP22.77%
EPS Next 2Y10.88%
EPS Next 3Y10.33%
ROSS STORES INC
NASDAQ:ROST (11/12/2024, 6:23:54 PM)
After market: 140.31 0 (0%)140.31
-2.05 (-1.44%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap46.55B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.03% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Min EPS beat(2)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.63 | ||
| Fwd PE | 20.53 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.76
PEG (5Y)3.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.12% | ||
| ROE | 40.39% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.06% | ||
| PM (TTM) | 9.82% | ||
| GM | 27.83% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.56 | ||
| Quick Ratio | 1.05 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)31.36%
EPS 3Y84.87%
EPS 5Y
EPS Q2Q%
EPS Next Y12.83%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)9.81%
Revenue growth 3Y17.59%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y