189.69 USD
-2.67 (-1.39%)
189.69 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to ROST. ROST was compared to 121 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
- 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.
- ROST had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 13.53%, ROST belongs to the top of the industry, outperforming 89.26% of the companies in the same industry.
- The Return On Equity of ROST (35.45%) is better than 87.60% 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 86.78% of the companies in the same industry.
- ROST had an Average Return On Invested Capital over the past 3 years of 17.29%. This is above the industry average of 12.37%.
- 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
- ROST has a better Profit Margin (9.47%) than 87.60% of its industry peers.
- ROST's Profit Margin has been stable in the last couple of years.
- ROST's Operating Margin of 11.91% is amongst the best of the industry. ROST outperforms 85.95% of its industry peers.
- ROST's Operating Margin has declined in the last couple of years.
- ROST's Gross Margin of 27.55% is on the low side compared to the rest of the industry. ROST is outperformed by 72.73% 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ROST is creating value.
- ROST has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, ROST has less shares outstanding
- Compared to 1 year ago, ROST has an improved debt to assets ratio.
2.2 Solvency
- ROST has an Altman-Z score of 6.54. This indicates that ROST is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 6.54, ROST belongs to the best of the industry, outperforming 93.39% 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.
- ROST has a Debt to FCF ratio of 0.77. This is amongst the best in the industry. ROST outperforms 80.99% 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 64.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.77 | ||
| Altman-Z | 6.54 |
ROIC/WACC1.99
WACC9.64%
2.3 Liquidity
- A Current Ratio of 1.52 indicates that ROST should not have too much problems paying its short term obligations.
- The Current ratio of ROST (1.52) is better than 61.16% of its industry peers.
- A Quick Ratio of 0.90 indicates that ROST may have some problems paying its short term obligations.
- The Quick ratio of ROST (0.90) is better than 69.42% 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.
- 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
- ROST is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.11% yearly.
- The Revenue is expected to grow by 4.98% on average over the next years.
EPS Next Y4.31%
EPS Next 2Y7.22%
EPS Next 3Y7.36%
EPS Next 5Y9.11%
Revenue Next Year6.98%
Revenue Next 2Y5.69%
Revenue Next 3Y5.4%
Revenue Next 5Y4.98%
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
- ROST is valuated quite expensively with a Price/Earnings ratio of 29.64.
- ROST's Price/Earnings ratio is a bit cheaper when compared to the industry. ROST is cheaper than 64.46% 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 26.94, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 26.11 indicates a quite expensive valuation of ROST.
- ROST's Price/Forward Earnings ratio is in line with the industry average.
- ROST is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.64 | ||
| Fwd PE | 26.11 |
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 61.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.42 | ||
| EV/EBITDA | 19.26 |
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)6.88
PEG (5Y)4.52
EPS Next 2Y7.22%
EPS Next 3Y7.36%
5. Dividend
5.1 Amount
- ROST has a yearly dividend return of 0.84%, which is pretty low.
- Compared to an average industry Dividend Yield of 2.08, ROST pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.83, ROST's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
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.
- 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%
189.69
-2.67 (-1.39%)
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 Change0.23%
Ins Owners2.09%
Ins Owner Change-3.32%
Market Cap61.69B
Revenue(TTM)22.03B
Net Income(TTM)2.09B
Analysts81.67
Price Target193.9 (2.22%)
Short Float %2.43%
Short Ratio2.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
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)3.6%
PT rev (3m)18.85%
EPS NQ rev (1m)0.54%
EPS NQ rev (3m)4.11%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)4.09%
Revenue NQ rev (1m)0.22%
Revenue NQ rev (3m)2.68%
Revenue NY rev (1m)1.03%
Revenue NY rev (3m)2.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.64 | ||
| Fwd PE | 26.11 | ||
| P/S | 2.8 | ||
| P/FCF | 31.42 | ||
| P/OCF | 22.13 | ||
| P/B | 10.48 | ||
| P/tB | 10.48 | ||
| EV/EBITDA | 19.26 |
EPS(TTM)6.4
EY3.37%
EPS(NY)7.26
Fwd EY3.83%
FCF(TTM)6.04
FCFY3.18%
OCF(TTM)8.57
OCFY4.52%
SpS67.73
BVpS18.09
TBVpS18.09
PEG (NY)6.88
PEG (5Y)4.52
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 | 6.54 |
F-Score6
WACC9.64%
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 Year6.98%
Revenue Next 2Y5.69%
Revenue Next 3Y5.4%
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 29.64 and the Price/Book (PB) ratio is 10.48.
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%.