189.27 USD
+2.28 (+1.22%)
189.27 USD
0 (0%)
Overall ROST gets a fundamental rating of 7 out of 10. We evaluated ROST against 122 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.
In the past year ROST had a positive cash flow from operations.
ROST had positive earnings in each of the past 5 years.
Each year in the past 5 years ROST had a positive operating cash flow.
1.2 Ratios
ROST's Return On Assets of 13.53% is amongst the best of the industry. ROST outperforms 89.34% of its industry peers.
Looking at the Return On Equity, with a value of 35.45%, ROST belongs to the top of the industry, outperforming 87.70% of the companies in the same industry.
The Return On Invested Capital of ROST (19.14%) is better than 86.89% 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 87.70% of its industry peers.
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 86.07% of its industry peers.
ROST's Operating Margin has declined in the last couple of years.
ROST has a worse Gross Margin (27.55%) than 72.95% 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
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.
ROST has less shares outstanding than it did 5 years ago.
The debt/assets ratio for ROST has been reduced compared to a year ago.
2.2 Solvency
ROST has an Altman-Z score of 6.47. This indicates that ROST is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of ROST (6.47) is better than 93.44% 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 80.33% 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 63.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.77 | ||
| Altman-Z | 6.47 |
ROIC/WACC1.99
WACC9.62%
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.
The Current ratio of ROST (1.52) is better than 60.66% of its industry peers.
A Quick Ratio of 0.90 indicates that ROST may have some problems paying its short term obligations.
ROST's Quick ratio of 0.90 is fine compared to the rest of the industry. ROST outperforms 68.85% 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
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.
The Revenue has been growing slightly by 3.71% in the past year.
Measured over the past years, ROST shows a small growth in Revenue. The Revenue has been growing by 5.67% on average per year.
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.
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
ROST is valuated quite expensively with a Price/Earnings ratio of 29.57.
ROST's Price/Earnings ratio is a bit cheaper when compared to the industry. ROST is cheaper than 63.93% of the companies in the same industry.
When comparing the Price/Earnings ratio of ROST to the average of the S&P500 Index (27.00), we can say ROST is valued inline with the index average.
ROST is valuated quite expensively with a Price/Forward Earnings ratio of 26.05.
ROST's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of ROST to the average of the S&P500 Index (23.70), we can say ROST is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.57 | ||
| Fwd PE | 26.05 |
4.2 Price Multiples
ROST's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ROST indicates a somewhat cheap valuation: ROST is cheaper than 62.30% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.35 | ||
| EV/EBITDA | 18.94 |
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)6.86
PEG (5Y)4.51
EPS Next 2Y7.22%
EPS Next 3Y7.36%
5. Dividend
5.1 Amount
ROST has a yearly dividend return of 0.90%, which is pretty low.
Compared to an average industry Dividend Yield of 2.20, ROST pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.94, ROST's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
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.
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%
189.27
+2.28 (+1.22%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners94%
Inst Owner Change0%
Ins Owners2.09%
Ins Owner Change-3.32%
Market Cap61.56B
Revenue(TTM)22.03B
Net Income(TTM)2.09B
Analysts80
Price Target189.3 (0.02%)
Short Float %2.21%
Short Ratio2.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
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)16.03%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)3.55%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)4.09%
Revenue NQ rev (1m)-0.37%
Revenue NQ rev (3m)2.51%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)1.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.57 | ||
| Fwd PE | 26.05 | ||
| P/S | 2.79 | ||
| P/FCF | 31.35 | ||
| P/OCF | 22.08 | ||
| P/B | 10.46 | ||
| P/tB | 10.46 | ||
| EV/EBITDA | 18.94 |
EPS(TTM)6.4
EY3.38%
EPS(NY)7.26
Fwd EY3.84%
FCF(TTM)6.04
FCFY3.19%
OCF(TTM)8.57
OCFY4.53%
SpS67.73
BVpS18.09
TBVpS18.09
PEG (NY)6.86
PEG (5Y)4.51
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 | 6.47 |
F-Score6
WACC9.62%
ROIC/WACC1.99
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 29.57 and the Price/Book (PB) ratio is 10.46.
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%.