180.14 USD
-1.31 (-0.72%)
180.14 USD
0 (0%)
Taking everything into account, ROST scores 7 out of 10 in our fundamental rating. ROST was compared to 123 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
ROST had positive earnings in the past year.
In the past year ROST had a positive cash flow from operations.
In the past 5 years ROST has always been profitable.
ROST had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of ROST (13.53%) is better than 89.43% of its industry peers.
The Return On Equity of ROST (35.45%) is better than 87.80% 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 86.99% 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 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
Looking at the Profit Margin, with a value of 9.47%, ROST belongs to the top of the industry, outperforming 87.80% of the companies in the same industry.
In the last couple of years the Profit Margin of ROST has remained more or less at the same level.
ROST has a better Operating Margin (11.91%) than 86.18% of its industry peers.
In the last couple of years the Operating Margin of ROST has declined.
ROST has a Gross Margin of 27.55%. This is in the lower half of the industry: ROST underperforms 73.17% 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.
ROST has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, ROST has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.29 indicates that ROST is not in any danger for bankruptcy at the moment.
The Altman-Z score of ROST (6.29) is better than 93.50% 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.
ROST has a better Debt to FCF ratio (0.77) than 80.49% 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.
The Debt to Equity ratio of ROST (0.17) is better than 63.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.77 | ||
| Altman-Z | 6.29 |
ROIC/WACC2.02
WACC9.48%
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 60.16% of its industry peers.
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 69.11% 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
The Earnings Per Share has been growing slightly by 0.79% over the past year.
The Earnings Per Share has been growing slightly by 6.56% on average over the past years.
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
The Earnings Per Share is expected to grow by 8.47% 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 5.10% on average per year.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 28.15, ROST can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of ROST indicates a somewhat cheap valuation: ROST is cheaper than 63.41% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.51, ROST is valued at the same level.
With a Price/Forward Earnings ratio of 24.80, ROST is valued on the expensive side.
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 23.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.15 | ||
| Fwd PE | 24.8 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ROST.
Based on the Price/Free Cash Flow ratio, ROST is valued a bit cheaper than 60.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.84 | ||
| EV/EBITDA | 17.99 |
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.
The excellent profitability rating of ROST may justify a higher PE ratio.
PEG (NY)6.53
PEG (5Y)4.29
EPS Next 2Y7.22%
EPS Next 3Y7.36%
5. Dividend
5.1 Amount
ROST has a yearly dividend return of 0.89%, which is pretty low.
Compared to an average industry Dividend Yield of 2.01, ROST pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.89, ROST pays less dividend than the S&P500 average, which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
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%
180.14
-1.31 (-0.72%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners93.53%
Inst Owner Change-1.15%
Ins Owners2.08%
Ins Owner Change-3.32%
Market Cap58.59B
Revenue(TTM)22.03B
Net Income(TTM)2.09B
Analysts80
Price Target189.3 (5.08%)
Short Float %2.21%
Short Ratio2.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
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)16.76%
EPS NQ rev (1m)0.87%
EPS NQ rev (3m)3.55%
EPS NY rev (1m)3.78%
EPS NY rev (3m)4.09%
Revenue NQ rev (1m)0.25%
Revenue NQ rev (3m)2.51%
Revenue NY rev (1m)1.45%
Revenue NY rev (3m)1.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.15 | ||
| Fwd PE | 24.8 | ||
| P/S | 2.66 | ||
| P/FCF | 29.84 | ||
| P/OCF | 21.02 | ||
| P/B | 9.96 | ||
| P/tB | 9.96 | ||
| EV/EBITDA | 17.99 |
EPS(TTM)6.4
EY3.55%
EPS(NY)7.26
Fwd EY4.03%
FCF(TTM)6.04
FCFY3.35%
OCF(TTM)8.57
OCFY4.76%
SpS67.73
BVpS18.09
TBVpS18.09
PEG (NY)6.53
PEG (5Y)4.29
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 | 6.29 |
F-Score6
WACC9.48%
ROIC/WACC2.02
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 28.15 and the Price/Book (PB) ratio is 9.96.
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%.