180.24 USD
-0.9 (-0.5%)
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 has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 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.
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
The Return On Assets of ROST (13.53%) is better than 89.43% of its industry peers.
ROST's Return On Equity of 35.45% is amongst the best of the industry. ROST outperforms 87.80% of its industry peers.
ROST has a Return On Invested Capital of 19.14%. This is amongst the best in the industry. ROST outperforms 86.99% 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
ROST has a Profit Margin of 9.47%. This is amongst the best in the industry. ROST outperforms 87.80% of its industry peers.
In the last couple of years the Profit Margin of ROST has remained more or less at the same level.
The Operating Margin of ROST (11.91%) is better 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.
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.
Compared to 1 year ago, ROST has less shares outstanding
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
An Altman-Z score of 6.31 indicates that ROST is not in any danger for bankruptcy at the moment.
ROST's Altman-Z score of 6.31 is amongst the best of the industry. ROST outperforms 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.
The Debt to FCF ratio of ROST (0.77) is better than 80.49% of its industry peers.
A Debt/Equity ratio of 0.17 indicates that ROST is not too dependend on debt financing.
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 | 6.31 |
ROIC/WACC2.02
WACC9.5%
2.3 Liquidity
A Current Ratio of 1.52 indicates that ROST should not have too much problems paying its short term obligations.
ROST has a Current ratio (1.52) which is comparable to the rest of the industry.
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 68.29% 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%.
The Earnings Per Share has been growing slightly by 6.56% on average over the past years.
Looking at the last year, ROST shows a small growth in Revenue. The Revenue has grown by 3.71% in the last year.
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
ROST is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.47% yearly.
The Revenue is expected to grow by 5.10% on average over the next years.
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.
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
ROST is valuated quite expensively with a Price/Earnings ratio of 28.16.
ROST's Price/Earnings ratio is a bit cheaper when compared to the industry. ROST is cheaper than 62.60% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.92, ROST is valued at the same level.
A Price/Forward Earnings ratio of 24.81 indicates a rather expensive valuation of ROST.
The rest of the industry has a similar Price/Forward Earnings ratio as ROST.
ROST's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.16 | ||
| Fwd PE | 24.81 |
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 61.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.86 | ||
| EV/EBITDA | 18.09 |
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)6.54
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.
Compared to an average S&P500 Dividend Yield of 2.00, ROST's dividend is way lower than the S&P500 average.
| 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 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
ROST pays out 24.85% of its income as dividend. This is a sustainable payout ratio.
The dividend of ROST is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP24.85%
EPS Next 2Y7.22%
EPS Next 3Y7.36%
NASDAQ:ROST (12/29/2025, 11:31:10 AM)
180.24
-0.9 (-0.5%)
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 Cap58.62B
Revenue(TTM)22.03B
Net Income(TTM)2.09B
Analysts80
Price Target189.3 (5.03%)
Short Float %2.23%
Short Ratio2.74
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-Date
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 | 28.16 | ||
| Fwd PE | 24.81 | ||
| P/S | 2.66 | ||
| P/FCF | 29.86 | ||
| P/OCF | 21.03 | ||
| P/B | 9.96 | ||
| P/tB | 9.96 | ||
| EV/EBITDA | 18.09 |
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)6.54
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 | 6.31 |
F-Score6
WACC9.5%
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 for 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 financial health of ROSS STORES INC (ROST) stock?
The financial health rating of ROSS STORES INC (ROST) is 9 / 10.
What is the earnings growth outlook for ROSS STORES INC?
The Earnings per Share (EPS) of ROSS STORES INC (ROST) is expected to grow by 4.31% in the next year.