ROSS STORES INC (ROST) Stock Fundamental Analysis
USA - NASDAQ:ROST - US7782961038 - Common Stock
161.2 USD
+2.28 (+1.43%)
160.22 USD
-0.98 (-0.61%)
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 scores excellent points on both the profitability and health parts. This is a solid base for a good stock. ROST has a correct valuation and a medium 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.
In the past 5 years ROST always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of ROST (14.23%) is better than 88.43% of its industry peers.
ROST's Return On Equity of 35.98% is amongst the best of the industry. ROST outperforms 88.43% of its industry peers.
With an excellent Return On Invested Capital value of 19.36%, ROST belongs to the best of the industry, outperforming 88.43% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ROST is significantly above the industry average of 11.82%.
The last Return On Invested Capital (19.36%) for ROST is above the 3 year average (17.29%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.23% | ||
| ROE | 35.98% | ||
| ROIC | 19.36% |
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 (9.60%) than 88.43% of its industry peers.
ROST's Profit Margin has been stable in the last couple of years.
ROST has a better Operating Margin (12.00%) than 85.95% of its industry peers.
ROST's Operating Margin has declined in the last couple of years.
ROST's Gross Margin of 27.61% is on the low side compared to the rest of the industry. ROST is outperformed by 69.42% of its industry peers.
ROST's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12% | ||
| PM (TTM) | 9.6% | ||
| GM | 27.61% |
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 6.29 indicates that ROST is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 6.29, ROST belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
ROST has a debt to FCF ratio of 0.90. This is a very positive value and a sign of high solvency as it would only need 0.90 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.90, ROST belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
ROST has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
ROST's Debt to Equity ratio of 0.18 is fine compared to the rest of the industry. ROST outperforms 65.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 0.9 | ||
| Altman-Z | 6.29 |
ROIC/WACC2.12
WACC9.13%
2.3 Liquidity
A Current Ratio of 1.58 indicates that ROST should not have too much problems paying its short term obligations.
ROST has a Current ratio of 1.58. This is in the better half of the industry: ROST outperforms 67.77% of its industry peers.
ROST has a Quick Ratio of 1.58. This is a bad value and indicates that ROST is not financially healthy enough and could expect problems in meeting its short term obligations.
With a decent Quick ratio value of 0.98, ROST is doing good in the industry, outperforming 74.38% of the companies in the same industry.
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 | 1.58 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.61% over the past year.
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.
Looking at the last year, ROST shows a small growth in Revenue. The Revenue has grown by 1.92% in the last 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)1.61%
EPS 3Y9.15%
EPS 5Y6.56%
EPS Q2Q%-1.89%
Revenue 1Y (TTM)1.92%
Revenue growth 3Y3.76%
Revenue growth 5Y5.67%
Sales Q2Q%4.57%
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.
ROST is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.87% yearly.
EPS Next Y0.31%
EPS Next 2Y5.04%
EPS Next 3Y5.96%
EPS Next 5Y8.47%
Revenue Next Year4.26%
Revenue Next 2Y4.48%
Revenue Next 3Y4.57%
Revenue Next 5Y4.87%
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
A Price/Earnings ratio of 25.59 indicates a quite expensive valuation of ROST.
Compared to the rest of the industry, the Price/Earnings ratio of ROST indicates a somewhat cheap valuation: ROST is cheaper than 63.64% 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.
ROST is valuated rather expensively with a Price/Forward Earnings ratio of 23.12.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ROST is on the same level as its industry peers.
ROST's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.53.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.59 | ||
| Fwd PE | 23.12 |
4.2 Price Multiples
ROST's Enterprise Value to EBITDA is on the same level as the industry average.
ROST's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ROST is cheaper than 61.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.23 | ||
| EV/EBITDA | 16.42 |
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)82.91
PEG (5Y)3.9
EPS Next 2Y5.04%
EPS Next 3Y5.96%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.02%, ROST has a reasonable but not impressive dividend return.
ROST's Dividend Yield is a higher than the industry average which is at 5.50.
Compared to an average S&P500 Dividend Yield of 2.38, ROST's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
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 24.66% 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.
DP24.66%
EPS Next 2Y5.04%
EPS Next 3Y5.96%
161.2
+2.28 (+1.43%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners94.42%
Inst Owner Change-0.98%
Ins Owners2.08%
Ins Owner Change-3.11%
Market Cap52.43B
Revenue(TTM)21.50B
Net Income(TTM)2.06B
Analysts82.4
Price Target167.74 (4.06%)
Short Float %2.16%
Short Ratio2.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
Yearly Dividend1.47
Dividend Growth(5Y)7.61%
DP24.66%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.19%
Min EPS beat(2)-0.39%
Max EPS beat(2)0%
EPS beat(4)3
Avg EPS beat(4)2.38%
Min EPS beat(4)-0.39%
Max EPS beat(4)5.99%
EPS beat(8)7
Avg EPS beat(8)4.34%
EPS beat(12)11
Avg EPS beat(12)5.96%
EPS beat(16)14
Avg EPS beat(16)6.99%
Revenue beat(2)0
Avg Revenue beat(2)-2.22%
Min Revenue beat(2)-2.76%
Max Revenue beat(2)-1.68%
Revenue beat(4)0
Avg Revenue beat(4)-2.62%
Min Revenue beat(4)-3.38%
Max Revenue beat(4)-1.68%
Revenue beat(8)1
Avg Revenue beat(8)-1.51%
Revenue beat(12)3
Avg Revenue beat(12)-0.91%
Revenue beat(16)4
Avg Revenue beat(16)-1.07%
PT rev (1m)3.46%
PT rev (3m)8.4%
EPS NQ rev (1m)0.83%
EPS NQ rev (3m)-5.78%
EPS NY rev (1m)0.1%
EPS NY rev (3m)0.16%
Revenue NQ rev (1m)0.79%
Revenue NQ rev (3m)1.12%
Revenue NY rev (1m)0.37%
Revenue NY rev (3m)0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.59 | ||
| Fwd PE | 23.12 | ||
| P/S | 2.44 | ||
| P/FCF | 31.23 | ||
| P/OCF | 21.19 | ||
| P/B | 9.15 | ||
| P/tB | 9.15 | ||
| EV/EBITDA | 16.42 |
EPS(TTM)6.3
EY3.91%
EPS(NY)6.97
Fwd EY4.33%
FCF(TTM)5.16
FCFY3.2%
OCF(TTM)7.61
OCFY4.72%
SpS66.1
BVpS17.63
TBVpS17.63
PEG (NY)82.91
PEG (5Y)3.9
Graham Number49.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.23% | ||
| ROE | 35.98% | ||
| ROCE | 25.54% | ||
| ROIC | 19.36% | ||
| ROICexc | 31.27% | ||
| ROICexgc | 31.27% | ||
| OM | 12% | ||
| PM (TTM) | 9.6% | ||
| GM | 27.61% | ||
| FCFM | 7.81% |
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-Score8
Asset Turnover1.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 0.9 | ||
| Debt/EBITDA | 0.33 | ||
| Cap/Depr | 168.77% | ||
| Cap/Sales | 3.7% | ||
| Interest Coverage | 33.9 | ||
| Cash Conversion | 81.08% | ||
| Profit Quality | 81.37% | ||
| Current Ratio | 1.58 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z | 6.29 |
F-Score8
WACC9.13%
ROIC/WACC2.12
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)1.61%
EPS 3Y9.15%
EPS 5Y6.56%
EPS Q2Q%-1.89%
EPS Next Y0.31%
EPS Next 2Y5.04%
EPS Next 3Y5.96%
EPS Next 5Y8.47%
Revenue 1Y (TTM)1.92%
Revenue growth 3Y3.76%
Revenue growth 5Y5.67%
Sales Q2Q%4.57%
Revenue Next Year4.26%
Revenue Next 2Y4.48%
Revenue Next 3Y4.57%
Revenue Next 5Y4.87%
EBIT growth 1Y1.39%
EBIT growth 3Y3.49%
EBIT growth 5Y3.8%
EBIT Next Year20.21%
EBIT Next 3Y9.8%
EBIT Next 5Y10.01%
FCF growth 1Y-19.6%
FCF growth 3Y11.5%
FCF growth 5Y0.26%
OCF growth 1Y-13.56%
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 0.31% in the next year.