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 121 industry peers in the Specialty Retail industry. ROST scores excellent points on both the profitability and health parts. This is a solid base for a good stock. ROST is not valued too expensively and it also shows a decent 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.
Each year in the past 5 years ROST has been profitable.
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 14.18%, ROST belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
With an excellent Return On Equity value of 40.16%, ROST belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 19.62%, ROST belongs to the top of the industry, outperforming 88.33% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ROST is above the industry average of 12.29%.
The last Return On Invested Capital (19.62%) for ROST is above the 3 year average (17.20%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.18% | ||
| ROE | 40.16% | ||
| ROIC | 19.62% |
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
ROST's Profit Margin of 9.95% is amongst the best of the industry. ROST outperforms 91.67% of its industry peers.
ROST's Profit Margin has declined in the last couple of years.
ROST's Operating Margin of 12.23% is amongst the best of the industry. ROST outperforms 88.33% of its industry peers.
In the last couple of years the Operating Margin of ROST has declined.
With a Gross Margin value of 28.00%, ROST is not doing good in the industry: 70.00% of the companies in the same industry are doing better.
ROST's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.23% | ||
| PM (TTM) | 9.95% | ||
| GM | 28% |
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.
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 5.65 indicates that ROST is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.65, ROST belongs to the top of the industry, outperforming 88.33% of the companies in the same industry.
The Debt to FCF ratio of ROST is 1.31, which is an excellent value as it means it would take ROST, only 1.31 years of fcf income to pay off all of its debts.
ROST has a better Debt to FCF ratio (1.31) than 80.83% of its industry peers.
ROST has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
ROST has a Debt to Equity ratio of 0.29. This is comparable to the rest of the industry: ROST outperforms 56.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.31 | ||
| Altman-Z | 5.65 |
ROIC/WACC1.97
WACC9.96%
2.3 Liquidity
A Current Ratio of 1.57 indicates that ROST should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.57, ROST is doing good in the industry, outperforming 66.67% of the companies in the same industry.
A Quick Ratio of 0.98 indicates that ROST may have some problems paying its short term obligations.
ROST's Quick ratio of 0.98 is fine compared to the rest of the industry. ROST outperforms 75.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 25.74% over the past year.
ROST shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.81% yearly.
The Revenue has grown by 8.54% in the past year. This is quite good.
The Revenue has been growing slightly by 6.34% on average over the past years.
EPS 1Y (TTM)25.74%
EPS 3Y84.87%
EPS 5Y6.81%
EPS Q2Q%11.28%
Revenue 1Y (TTM)8.54%
Revenue growth 3Y17.59%
Revenue growth 5Y6.34%
Sales Q2Q%2.97%
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 11.62% yearly.
Based on estimates for the next years, ROST will show a small growth in Revenue. The Revenue will grow by 6.08% on average per year.
EPS Next Y13.54%
EPS Next 2Y11.09%
EPS Next 3Y10.46%
EPS Next 5Y11.62%
Revenue Next Year5.05%
Revenue Next 2Y5.26%
Revenue Next 3Y5.27%
Revenue Next 5Y6.08%
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 23.49, the valuation of ROST can be described as rather expensive.
ROST's Price/Earnings ratio is a bit cheaper when compared to the industry. ROST is cheaper than 60.83% 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 27.20, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 21.74, ROST is valued on the expensive side.
ROST's Price/Forward Earnings is on the same level as the industry average.
ROST's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.49 | ||
| Fwd PE | 21.74 |
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.
64.17% of the companies in the same industry are more expensive than ROST, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.17 | ||
| EV/EBITDA | 15.45 |
4.3 Compensation for Growth
ROST's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ROST has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.73
PEG (5Y)3.45
EPS Next 2Y11.09%
EPS Next 3Y10.46%
5. Dividend
5.1 Amount
With a yearly dividend of 0.99%, ROST is not a good candidate for dividend investing.
ROST's Dividend Yield is a higher than the industry average which is at 3.46.
With a Dividend Yield of 0.99, ROST pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
5.2 History
On average, the dividend of ROST grows each year by 8.27%, 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)8.27%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
ROST pays out 22.72% of its income as dividend. This is a sustainable payout ratio.
The dividend of ROST is growing, but earnings are growing more, so the dividend growth is sustainable.
DP22.72%
EPS Next 2Y11.09%
EPS Next 3Y10.46%
ROSS STORES INC
NASDAQ:ROST (12/20/2024, 8:00:01 PM)
After market: 149.15 0 (0%)149.15
+1.36 (+0.92%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners91.82%
Inst Owner Change0.88%
Ins Owners2.07%
Ins Owner Change3.81%
Market Cap49.21B
Analysts81.38
Price Target173.46 (16.3%)
Short Float %1.3%
Short Ratio1.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
Dividend Growth(5Y)8.27%
DP22.72%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.03%
Min EPS beat(2)3.93%
Max EPS beat(2)4.13%
EPS beat(4)4
Avg EPS beat(4)5.59%
Min EPS beat(4)3.93%
Max EPS beat(4)7.9%
EPS beat(8)8
Avg EPS beat(8)5.64%
EPS beat(12)11
Avg EPS beat(12)5.82%
EPS beat(16)14
Avg EPS beat(16)9.99%
Revenue beat(2)0
Avg Revenue beat(2)-2.3%
Min Revenue beat(2)-3.38%
Max Revenue beat(2)-1.22%
Revenue beat(4)1
Avg Revenue beat(4)-1.13%
Min Revenue beat(4)-3.38%
Max Revenue beat(4)1.54%
Revenue beat(8)2
Avg Revenue beat(8)-0.78%
Revenue beat(12)3
Avg Revenue beat(12)-1.12%
Revenue beat(16)6
Avg Revenue beat(16)0.42%
PT rev (1m)0.38%
PT rev (3m)-2.89%
EPS NQ rev (1m)-0.35%
EPS NQ rev (3m)-3.4%
EPS NY rev (1m)0.63%
EPS NY rev (3m)0.6%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)-0.67%
Revenue NY rev (1m)-0.7%
Revenue NY rev (3m)-0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.49 | ||
| Fwd PE | 21.74 | ||
| P/S | 2.32 | ||
| P/FCF | 29.17 | ||
| P/OCF | 20.31 | ||
| P/B | 9.35 | ||
| P/tB | 9.35 | ||
| EV/EBITDA | 15.45 |
EPS(TTM)6.35
EY4.26%
EPS(NY)6.86
Fwd EY4.6%
FCF(TTM)5.11
FCFY3.43%
OCF(TTM)7.34
OCFY4.92%
SpS64.38
BVpS15.95
TBVpS15.95
PEG (NY)1.73
PEG (5Y)3.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.18% | ||
| ROE | 40.16% | ||
| ROCE | 25.83% | ||
| ROIC | 19.62% | ||
| ROICexc | 34.56% | ||
| ROICexgc | 34.56% | ||
| OM | 12.23% | ||
| PM (TTM) | 9.95% | ||
| GM | 28% | ||
| FCFM | 7.94% |
ROA(3y)12.34%
ROA(5y)11.09%
ROE(3y)38.72%
ROE(5y)33.64%
ROIC(3y)17.2%
ROIC(5y)15.97%
ROICexc(3y)33.91%
ROICexc(5y)28.16%
ROICexgc(3y)33.91%
ROICexgc(5y)28.16%
ROCE(3y)22.64%
ROCE(5y)21.02%
ROICexcg growth 3Y59.08%
ROICexcg growth 5Y-10.57%
ROICexc growth 3Y59.08%
ROICexc growth 5Y-10.57%
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%
F-Score8
Asset Turnover1.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.31 | ||
| Debt/EBITDA | 0.5 | ||
| Cap/Depr | 164.15% | ||
| Cap/Sales | 3.47% | ||
| Interest Coverage | 32.35 | ||
| Cash Conversion | 79.52% | ||
| Profit Quality | 79.8% | ||
| Current Ratio | 1.57 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z | 5.65 |
F-Score8
WACC9.96%
ROIC/WACC1.97
Cap/Depr(3y)167.41%
Cap/Depr(5y)154.37%
Cap/Sales(3y)3.4%
Cap/Sales(5y)3.38%
Profit Quality(3y)76.82%
Profit Quality(5y)498.61%
High Growth Momentum
Growth
EPS 1Y (TTM)25.74%
EPS 3Y84.87%
EPS 5Y6.81%
EPS Q2Q%11.28%
EPS Next Y13.54%
EPS Next 2Y11.09%
EPS Next 3Y10.46%
EPS Next 5Y11.62%
Revenue 1Y (TTM)8.54%
Revenue growth 3Y17.59%
Revenue growth 5Y6.34%
Sales Q2Q%2.97%
Revenue Next Year5.05%
Revenue Next 2Y5.26%
Revenue Next 3Y5.27%
Revenue Next 5Y6.08%
EBIT growth 1Y22.44%
EBIT growth 3Y75.08%
EBIT growth 5Y2.49%
EBIT Next Year32.91%
EBIT Next 3Y16.3%
EBIT Next 5Y13.63%
FCF growth 1Y1433.37%
FCF growth 3Y-1.64%
FCF growth 5Y1.17%
OCF growth 1Y242.36%
OCF growth 3Y3.84%
OCF growth 5Y4%