187.53 USD
+0.85 (+0.46%)
186.62 USD
-0.91 (-0.49%)
Taking everything into account, ROST scores 7 out of 10 in our fundamental rating. ROST was compared to 122 industry peers in the Specialty Retail industry. ROST gets an excellent profitability rating and is at the same time showing great financial health properties. 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.
Each year in the past 5 years ROST has been profitable.
Each year in the past 5 years ROST had a positive operating cash flow.
1.2 Ratios
ROST has a better Return On Assets (13.53%) than 89.34% of its industry peers.
The Return On Equity of ROST (35.45%) is better than 87.70% of its industry peers.
ROST's Return On Invested Capital of 19.14% is amongst the best of 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 12.14%.
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 87.70% 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 86.07% of its industry peers.
ROST's Operating Margin has declined in the last couple of years.
ROST has a Gross Margin of 27.55%. This is in the lower half of the industry: ROST underperforms 72.95% 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 | 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.
The debt/assets ratio for ROST has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.42 indicates that ROST is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 6.42, 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.
With an excellent Debt to FCF ratio value of 0.77, ROST belongs to the best of the industry, outperforming 80.33% 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 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 | 6.42 |
ROIC/WACC2
WACC9.56%
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.
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.
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%.
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.
ROST shows a small growth in Revenue. In the last year, the Revenue has grown by 3.71%.
The Revenue has been growing slightly by 5.67% on average over the past years.
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 8.47% on average per year.
ROST is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.10% yearly.
EPS Next Y4.31%
EPS Next 2Y7.22%
EPS Next 3Y7.36%
EPS Next 5Y8.47%
Revenue Next Year5.87%
Revenue Next 2Y5.6%
Revenue Next 3Y5.26%
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.
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
ROST is valuated quite expensively with a Price/Earnings ratio of 29.30.
Based on the Price/Earnings ratio, ROST is valued a bit cheaper than 62.30% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.17. ROST is around the same levels.
ROST is valuated quite expensively with a Price/Forward Earnings ratio of 25.81.
ROST's Price/Forward Earnings is on the same level as the industry average.
ROST is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.79, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.3 | ||
| Fwd PE | 25.81 |
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 | 31.06 | ||
| EV/EBITDA | 18.67 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ROST has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)6.8
PEG (5Y)4.47
EPS Next 2Y7.22%
EPS Next 3Y7.36%
5. Dividend
5.1 Amount
ROST has a yearly dividend return of 0.90%, which is pretty low.
ROST's Dividend Yield is a higher than the industry average which is at 2.20.
With a Dividend Yield of 0.90, ROST pays less dividend than the S&P500 average, which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
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.
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%
187.53
+0.85 (+0.46%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners94%
Inst Owner Change0%
Ins Owners2.09%
Ins Owner Change-3.32%
Market Cap60.99B
Revenue(TTM)22.03B
Net Income(TTM)2.09B
Analysts80
Price Target189.3 (0.94%)
Short Float %2.21%
Short Ratio2.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
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)10.87%
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 | 29.3 | ||
| Fwd PE | 25.81 | ||
| P/S | 2.77 | ||
| P/FCF | 31.06 | ||
| P/OCF | 21.88 | ||
| P/B | 10.37 | ||
| P/tB | 10.37 | ||
| EV/EBITDA | 18.67 |
EPS(TTM)6.4
EY3.41%
EPS(NY)7.26
Fwd EY3.87%
FCF(TTM)6.04
FCFY3.22%
OCF(TTM)8.57
OCFY4.57%
SpS67.73
BVpS18.09
TBVpS18.09
PEG (NY)6.8
PEG (5Y)4.47
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 | 6.42 |
F-Score6
WACC9.56%
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 5Y8.47%
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 5Y5.1%
EBIT growth 1Y0.99%
EBIT growth 3Y3.49%
EBIT growth 5Y3.8%
EBIT Next Year24.34%
EBIT Next 3Y11.57%
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 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 29.3 and the Price/Book (PB) ratio is 10.37.
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%.