ROSS STORES INC (ROST) Stock Fundamental Analysis
USA - NASDAQ:ROST - US7782961038 - Common Stock
146.57 USD
-0.48 (-0.33%)
We assign a fundamental rating of 6 out of 10 to ROST. ROST was compared to 121 industry peers in the Specialty Retail industry. ROST has an excellent profitability rating, but there are some minor concerns on its financial health. ROST has a correct valuation and a medium 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.
Each year in the past 5 years ROST has been profitable.
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 14.23%, ROST belongs to the top of the industry, outperforming 88.43% of the companies in the same industry.
ROST's Return On Equity of 35.98% is amongst the best of the industry. ROST outperforms 89.26% of its industry peers.
ROST has a Return On Invested Capital of 19.36%. This is amongst the best in the industry. ROST outperforms 88.43% 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 12.11%.
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
The Profit Margin of ROST (9.60%) is better than 88.43% of its industry peers.
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 87.60% of the companies in the same industry.
ROST's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 27.61%, ROST is doing worse than 69.42% of the companies in the same industry.
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
The number of shares outstanding for ROST has been reduced compared to 5 years ago.
Compared to 1 year ago, ROST has an improved debt to assets ratio.
2.2 Solvency
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.
With an excellent Debt to FCF ratio value of 0.90, ROST belongs to the best of the industry, outperforming 80.99% of the companies in the same industry.
A Debt/Equity ratio of 0.18 indicates that ROST is not too dependend on debt financing.
ROST has a better Debt to Equity ratio (0.18) than 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 0.9 | ||
| Altman-Z | N/A |
ROIC/WACC2.04
WACC9.49%
2.3 Liquidity
A Current Ratio of 1.58 indicates that ROST should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.58, ROST is in the better half of the industry, outperforming 69.42% of the companies in the same industry.
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 77.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.58 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
ROST shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.61%.
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 1.92%.
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 8.47% on average per year.
Based on estimates for the next years, ROST will show a small growth in Revenue. The Revenue will grow by 4.87% on average per year.
EPS Next Y-0.05%
EPS Next 2Y4.79%
EPS Next 3Y6.16%
EPS Next 5Y8.47%
Revenue Next Year3.88%
Revenue Next 2Y4.44%
Revenue Next 3Y4.57%
Revenue Next 5Y4.87%
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
Based on the Price/Earnings ratio of 23.27, the valuation of ROST can be described as rather expensive.
ROST's Price/Earnings ratio is a bit cheaper when compared to the industry. ROST is cheaper than 67.77% of the companies in the same industry.
ROST's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.27.
Based on the Price/Forward Earnings ratio of 21.12, the valuation of ROST can be described as rather expensive.
ROST's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.77. ROST is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.27 | ||
| Fwd PE | 21.12 |
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.
65.29% of the companies in the same industry are more expensive than ROST, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.4 | ||
| EV/EBITDA | 14.91 |
4.3 Compensation for Growth
ROST has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.55
EPS Next 2Y4.79%
EPS Next 3Y6.16%
5. Dividend
5.1 Amount
ROST has a Yearly Dividend Yield of 1.07%.
ROST's Dividend Yield is a higher than the industry average which is at 5.21.
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 | 1.07% |
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 2Y4.79%
EPS Next 3Y6.16%
NASDAQ:ROST (9/16/2025, 10:06:38 AM)
146.57
-0.48 (-0.33%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners95.81%
Inst Owner Change-1%
Ins Owners2.09%
Ins Owner Change0.84%
Market Cap47.67B
Analysts82.4
Price Target162.13 (10.62%)
Short Float %1.56%
Short Ratio1.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.07% |
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)4.93%
PT rev (3m)4.3%
EPS NQ rev (1m)-6.38%
EPS NQ rev (3m)-6.12%
EPS NY rev (1m)-0.2%
EPS NY rev (3m)-3.52%
Revenue NQ rev (1m)0.33%
Revenue NQ rev (3m)0.31%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.27 | ||
| Fwd PE | 21.12 | ||
| P/S | 2.22 | ||
| P/FCF | 28.4 | ||
| P/OCF | 19.27 | ||
| P/B | 8.32 | ||
| P/tB | 8.32 | ||
| EV/EBITDA | 14.91 |
EPS(TTM)6.3
EY4.3%
EPS(NY)6.94
Fwd EY4.73%
FCF(TTM)5.16
FCFY3.52%
OCF(TTM)7.61
OCFY5.19%
SpS66.1
BVpS17.63
TBVpS17.63
PEG (NY)N/A
PEG (5Y)3.55
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%
ROICexcg growth 3Y-3.26%
ROICexcg 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 | N/A |
F-Score8
WACC9.49%
ROIC/WACC2.04
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 Y-0.05%
EPS Next 2Y4.79%
EPS Next 3Y6.16%
EPS Next 5Y8.47%
Revenue 1Y (TTM)1.92%
Revenue growth 3Y3.76%
Revenue growth 5Y5.67%
Sales Q2Q%4.57%
Revenue Next Year3.88%
Revenue Next 2Y4.44%
Revenue Next 3Y4.57%
Revenue Next 5Y4.87%
EBIT growth 1Y1.39%
EBIT growth 3Y3.49%
EBIT growth 5Y3.8%
EBIT Next Year19.78%
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%