181.04 USD
-0.64 (-0.35%)
ROST gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 123 industry peers in the Specialty Retail industry. While ROST has a great profitability rating, there are some minor concerns on its financial health. 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.
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
Looking at the Return On Assets, with a value of 13.53%, ROST belongs to the top of the industry, outperforming 89.43% of the companies in the same industry.
The Return On Equity of ROST (35.45%) is better than 87.80% of its industry peers.
With an excellent Return On Invested Capital value of 19.14%, ROST belongs to the best of the industry, outperforming 86.99% 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 12.17%.
The last Return On Invested Capital (19.14%) for ROST is above the 3 year average (17.29%), which is a sign of increasing profitability.
| 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.
Looking at the Operating Margin, with a value of 11.91%, ROST belongs to the top of the industry, outperforming 86.18% of the companies in the same industry.
In the last couple of years the Operating Margin of ROST has declined.
Looking at the Gross Margin, with a value of 27.55%, ROST is doing worse than 73.17% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ROST is creating value.
The number of shares outstanding for ROST has been reduced compared to 1 year ago.
Compared to 5 years ago, ROST has less shares outstanding
The debt/assets ratio for ROST has been reduced compared to a year ago.
2.2 Solvency
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.
Looking at the Debt to FCF ratio, with a value of 0.77, ROST belongs to the top of the industry, outperforming 80.49% of the companies in the same industry.
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 better Debt to Equity ratio (0.17) than 63.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.77 | ||
| Altman-Z | N/A |
ROIC/WACC2.02
WACC9.46%
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 69.11% of its industry peers.
| 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.
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 3.71% 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)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.
ROST is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.10% yearly.
EPS Next Y4.32%
EPS Next 2Y7.22%
EPS Next 3Y7.21%
EPS Next 5Y8.47%
Revenue Next Year5.89%
Revenue Next 2Y5.61%
Revenue Next 3Y5.21%
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 28.29, ROST can be considered very expensive at the moment.
Based on the Price/Earnings ratio, ROST is valued a bit cheaper than 61.79% of the companies in the same industry.
ROST's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.59.
The Price/Forward Earnings ratio is 24.92, which indicates a rather expensive current 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 24.03, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.29 | ||
| Fwd PE | 24.92 |
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.
ROST's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ROST is cheaper than 61.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.99 | ||
| EV/EBITDA | 18.15 |
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)6.54
PEG (5Y)4.31
EPS Next 2Y7.22%
EPS Next 3Y7.21%
5. Dividend
5.1 Amount
ROST has a yearly dividend return of 0.89%, which is pretty low.
ROST's Dividend Yield is a higher than the industry average which is at 1.98.
Compared to an average S&P500 Dividend Yield of 1.88, ROST's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
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
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 3Y7.21%
NASDAQ:ROST (12/26/2025, 3:12:57 PM)
181.04
-0.64 (-0.35%)
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 Cap58.88B
Revenue(TTM)22.03B
Net Income(TTM)2.09B
Analysts80
Price Target187.17 (3.39%)
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)9.62%
PT rev (3m)15.44%
EPS NQ rev (1m)3.1%
EPS NQ rev (3m)3.55%
EPS NY rev (1m)3.79%
EPS NY rev (3m)4.37%
Revenue NQ rev (1m)2.13%
Revenue NQ rev (3m)2.88%
Revenue NY rev (1m)1.47%
Revenue NY rev (3m)1.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.29 | ||
| Fwd PE | 24.92 | ||
| P/S | 2.67 | ||
| P/FCF | 29.99 | ||
| P/OCF | 21.12 | ||
| P/B | 10.01 | ||
| P/tB | 10.01 | ||
| EV/EBITDA | 18.15 |
EPS(TTM)6.4
EY3.54%
EPS(NY)7.27
Fwd EY4.01%
FCF(TTM)6.04
FCFY3.33%
OCF(TTM)8.57
OCFY4.73%
SpS67.73
BVpS18.09
TBVpS18.09
PEG (NY)6.54
PEG (5Y)4.31
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 | N/A |
F-Score6
WACC9.46%
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 Y4.32%
EPS Next 2Y7.22%
EPS Next 3Y7.21%
EPS Next 5Y8.47%
Revenue 1Y (TTM)3.71%
Revenue growth 3Y3.76%
Revenue growth 5Y5.67%
Sales Q2Q%10.44%
Revenue Next Year5.89%
Revenue Next 2Y5.61%
Revenue Next 3Y5.21%
Revenue Next 5Y5.1%
EBIT growth 1Y0.99%
EBIT growth 3Y3.49%
EBIT growth 5Y3.8%
EBIT Next Year24.58%
EBIT Next 3Y11.45%
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 6 / 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 6 / 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 4.32% in the next year.