192.36 USD
-1.43 (-0.74%)
192.36 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year ROST was profitable.
- ROST had a positive operating cash flow in the past year.
- In the past 5 years ROST has always been profitable.
- In the past 5 years ROST always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of ROST (13.53%) is better than 89.34% of its industry peers.
- ROST has a Return On Equity of 35.45%. This is amongst the best in the industry. ROST outperforms 87.70% of its industry peers.
- The Return On Invested Capital of ROST (19.14%) is better than 86.89% 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 12.24%.
- 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 better Profit Margin (9.47%) than 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 Gross Margin of 27.55%. This is in the lower half of the industry: ROST underperforms 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
- 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
- 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 6.54 indicates that ROST is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 6.54, ROST belongs to the top of the industry, outperforming 93.44% of the companies in the same industry.
- ROST has a debt to FCF ratio of 0.77. This is a very positive value and a sign of high solvency as it would only need 0.77 years to pay back of all of its debts.
- ROST's Debt to FCF ratio of 0.77 is amongst the best of the industry. ROST outperforms 80.33% of its industry peers.
- A Debt/Equity ratio of 0.17 indicates that ROST is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.17, ROST is in the better half of the industry, outperforming 63.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.77 | ||
| Altman-Z | 6.54 |
ROIC/WACC1.98
WACC9.68%
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.
- ROST has a better Current ratio (1.52) 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 has a better Quick ratio (0.90) than 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.
- ROST shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.56% yearly.
- ROST shows a small growth in Revenue. In the last year, the Revenue has grown by 3.71%.
- 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 9.11% yearly.
- Based on estimates for the next years, ROST will show a small growth in Revenue. The Revenue will grow by 4.98% on average per year.
EPS Next Y4.31%
EPS Next 2Y7.22%
EPS Next 3Y7.36%
EPS Next 5Y9.11%
Revenue Next Year6.98%
Revenue Next 2Y5.69%
Revenue Next 3Y5.4%
Revenue Next 5Y4.98%
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 30.06.
- 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 (27.47), we can say ROST is valued inline with the index average.
- Based on the Price/Forward Earnings ratio of 26.48, the valuation of ROST can be described as expensive.
- ROST's Price/Forward Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, ROST is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.06 | ||
| Fwd PE | 26.48 |
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 61.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.86 | ||
| EV/EBITDA | 19.26 |
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)6.98
PEG (5Y)4.58
EPS Next 2Y7.22%
EPS Next 3Y7.36%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.84%, ROST is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 2.10, ROST pays a bit more dividend than its industry peers.
- With a Dividend Yield of 0.84, ROST pays less dividend than the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
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
- 24.85% of the earnings are spent on dividend by ROST. This is a low number and 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.
DP24.85%
EPS Next 2Y7.22%
EPS Next 3Y7.36%
192.36
-1.43 (-0.74%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)11-20 2025-11-20/amc
Earnings (Next)05-20 2026-05-20
Inst Owners94%
Inst Owner Change0.21%
Ins Owners2.09%
Ins Owner Change-3.32%
Market Cap62.56B
Revenue(TTM)22.03B
Net Income(TTM)2.09B
Analysts81.67
Price Target193.9 (0.8%)
Short Float %2.21%
Short Ratio2.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
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)3.6%
PT rev (3m)18.85%
EPS NQ rev (1m)0.54%
EPS NQ rev (3m)4.11%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)4.09%
Revenue NQ rev (1m)0.22%
Revenue NQ rev (3m)2.68%
Revenue NY rev (1m)1.03%
Revenue NY rev (3m)2.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.06 | ||
| Fwd PE | 26.48 | ||
| P/S | 2.84 | ||
| P/FCF | 31.86 | ||
| P/OCF | 22.44 | ||
| P/B | 10.63 | ||
| P/tB | 10.63 | ||
| EV/EBITDA | 19.26 |
EPS(TTM)6.4
EY3.33%
EPS(NY)7.26
Fwd EY3.78%
FCF(TTM)6.04
FCFY3.14%
OCF(TTM)8.57
OCFY4.46%
SpS67.73
BVpS18.09
TBVpS18.09
PEG (NY)6.98
PEG (5Y)4.58
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 | 6.54 |
F-Score6
WACC9.68%
ROIC/WACC1.98
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 5Y9.11%
Revenue 1Y (TTM)3.71%
Revenue growth 3Y3.76%
Revenue growth 5Y5.67%
Sales Q2Q%10.44%
Revenue Next Year6.98%
Revenue Next 2Y5.69%
Revenue Next 3Y5.4%
Revenue Next 5Y4.98%
EBIT growth 1Y0.99%
EBIT growth 3Y3.49%
EBIT growth 5Y3.8%
EBIT Next Year24.34%
EBIT Next 3Y11.57%
EBIT Next 5Y11%
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 30.06 and the Price/Book (PB) ratio is 10.63.
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%.