ROSS STORES INC (ROST) Stock Fundamental Analysis
USA - NASDAQ:ROST - US7782961038 - Common Stock
162.73 USD
+0.81 (+0.5%)
162.73 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to ROST. ROST was compared to 122 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 decent growth rate and is not valued too expensively.
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
ROST has a better Return On Assets (14.23%) than 88.52% of its industry peers.
ROST has a better Return On Equity (35.98%) than 88.52% of its industry peers.
ROST has a Return On Invested Capital of 19.36%. This is amongst the best in the industry. ROST outperforms 88.52% of its industry peers.
ROST had an Average Return On Invested Capital over the past 3 years of 17.29%. This is significantly above the industry average of 11.80%.
The 3 year average ROIC (17.29%) for ROST is below the current ROIC(19.36%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 9.60%, ROST belongs to the top of the industry, outperforming 88.52% of the companies in the same industry.
ROST's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 12.00%, ROST belongs to the best of the industry, outperforming 86.07% of the companies in the same industry.
In the last couple of years the Operating Margin of ROST has declined.
ROST has a Gross Margin of 27.61%. This is in the lower half of the industry: ROST underperforms 69.67% 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.
Compared to 1 year ago, ROST has less shares outstanding
Compared to 5 years ago, ROST has less shares outstanding
ROST has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.31 indicates that ROST is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 6.31, ROST belongs to the best of the industry, outperforming 90.98% 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.
ROST has a better Debt to FCF ratio (0.90) than 81.15% of its industry peers.
A Debt/Equity ratio of 0.18 indicates that ROST is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.18, ROST is in the better half of the industry, outperforming 64.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 0.9 | ||
| Altman-Z | 6.31 |
ROIC/WACC2.11
WACC9.16%
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 66.39% 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.
Looking at the Quick ratio, with a value of 0.98, ROST is in the better half of the industry, outperforming 73.77% 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.
The Revenue has been growing slightly by 1.92% in the past 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
Based on estimates for the next years, ROST will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.74% on average per year.
ROST is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.57% yearly.
EPS Next Y0.51%
EPS Next 2Y5.17%
EPS Next 3Y6.44%
EPS Next 5Y8.74%
Revenue Next Year4.36%
Revenue Next 2Y4.53%
Revenue Next 3Y4.72%
Revenue Next 5Y4.57%
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
The Price/Earnings ratio is 25.83, which means the current valuation is very expensive for ROST.
Compared to the rest of the industry, the Price/Earnings ratio of ROST indicates a somewhat cheap valuation: ROST is cheaper than 64.75% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.28. ROST is around the same levels.
ROST is valuated rather expensively with a Price/Forward Earnings ratio of 23.28.
The rest of the industry has a similar Price/Forward Earnings ratio as ROST.
ROST is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 33.61, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.83 | ||
| Fwd PE | 23.28 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ROST indicates a somewhat cheap valuation: ROST is cheaper than 60.66% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.53 | ||
| EV/EBITDA | 16.49 |
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)50.61
PEG (5Y)3.94
EPS Next 2Y5.17%
EPS Next 3Y6.44%
5. Dividend
5.1 Amount
ROST has a Yearly Dividend Yield of 1.01%. Purely for dividend investing, there may be better candidates out there.
ROST's Dividend Yield is a higher than the industry average which is at 5.36.
With a Dividend Yield of 1.01, ROST pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
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.
The dividend of ROST is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP24.66%
EPS Next 2Y5.17%
EPS Next 3Y6.44%
162.73
+0.81 (+0.5%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners94.42%
Inst Owner Change-2.16%
Ins Owners2.08%
Ins Owner Change-3.11%
Market Cap52.92B
Revenue(TTM)21.50B
Net Income(TTM)2.06B
Analysts81.54
Price Target167.74 (3.08%)
Short Float %2.16%
Short Ratio2.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
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)2.82%
PT rev (3m)8.56%
EPS NQ rev (1m)1.45%
EPS NQ rev (3m)-5.2%
EPS NY rev (1m)0.3%
EPS NY rev (3m)0.36%
Revenue NQ rev (1m)1.04%
Revenue NQ rev (3m)1.38%
Revenue NY rev (1m)0.47%
Revenue NY rev (3m)0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.83 | ||
| Fwd PE | 23.28 | ||
| P/S | 2.46 | ||
| P/FCF | 31.53 | ||
| P/OCF | 21.39 | ||
| P/B | 9.23 | ||
| P/tB | 9.23 | ||
| EV/EBITDA | 16.49 |
EPS(TTM)6.3
EY3.87%
EPS(NY)6.99
Fwd EY4.3%
FCF(TTM)5.16
FCFY3.17%
OCF(TTM)7.61
OCFY4.67%
SpS66.1
BVpS17.63
TBVpS17.63
PEG (NY)50.61
PEG (5Y)3.94
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 | 6.31 |
F-Score8
WACC9.16%
ROIC/WACC2.11
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 Y0.51%
EPS Next 2Y5.17%
EPS Next 3Y6.44%
EPS Next 5Y8.74%
Revenue 1Y (TTM)1.92%
Revenue growth 3Y3.76%
Revenue growth 5Y5.67%
Sales Q2Q%4.57%
Revenue Next Year4.36%
Revenue Next 2Y4.53%
Revenue Next 3Y4.72%
Revenue Next 5Y4.57%
EBIT growth 1Y1.39%
EBIT growth 3Y3.49%
EBIT growth 5Y3.8%
EBIT Next Year20.21%
EBIT Next 3Y10.17%
EBIT Next 5Y10.56%
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 0.51% in the next year.