192.36 USD
-1.43 (-0.74%)
192.36 USD
0 (0%)
Taking everything into account, ROST scores 7 out of 10 in our fundamental rating. ROST was compared to 122 industry peers in the Specialty Retail industry. Both the health and profitability get an excellent rating, making ROST a very profitable company, without any liquidiy or solvency issues. ROST has a correct valuation and a medium growth rate.
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.
- In the past 5 years ROST has always been profitable.
- Each year in the past 5 years ROST had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of ROST (13.53%) is better than 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.
- ROST's Return On Invested Capital of 19.14% is amongst the best of the industry. ROST outperforms 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 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
- With an excellent Profit Margin value of 9.47%, ROST belongs to the best of the industry, outperforming 87.70% of the companies in the same industry.
- ROST's Profit Margin has been stable in the last couple of years.
- Looking at the Operating Margin, with a value of 11.91%, ROST belongs to the top 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 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ROST is creating value.
- The number of shares outstanding for ROST has been reduced compared to 1 year ago.
- The number of shares outstanding for ROST has been reduced compared to 5 years ago.
- ROST has a better debt/assets ratio than last year.
2.2 Solvency
- ROST has an Altman-Z score of 6.57. This indicates that ROST is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of ROST (6.57) is better than 93.44% of its industry peers.
- 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.
- ROST has a Debt to Equity ratio of 0.17. This is in the better half of the industry: ROST outperforms 63.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.77 | ||
| Altman-Z | 6.57 |
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.
- With a decent Current ratio value of 1.52, ROST is doing good in the industry, outperforming 60.66% of the companies in the same industry.
- ROST has a Quick Ratio of 1.52. This is a bad value and indicates that ROST is not financially healthy enough and could expect problems in meeting its short term obligations.
- ROST has a better Quick ratio (0.90) than 68.85% of its industry peers.
- 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 | 1.52 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
- ROST shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.79%.
- The Earnings Per Share has been growing slightly by 6.56% on average over the past years.
- ROST shows a small growth in Revenue. In the last year, the Revenue has grown by 3.71%.
- 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 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 Year5.87%
Revenue Next 2Y5.6%
Revenue Next 3Y5.26%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- ROST is valuated quite expensively with a Price/Earnings ratio of 30.06.
- 63.93% of the companies in the same industry are more expensive than ROST, based on the Price/Earnings ratio.
- ROST is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.47, which is the current average of the S&P500 Index.
- ROST is valuated quite expensively with a Price/Forward Earnings ratio of 26.48.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ROST is on the same level as its industry peers.
- When comparing the Price/Forward Earnings ratio of ROST to the average of the S&P500 Index (24.26), we can say ROST is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.06 | ||
| Fwd PE | 26.48 |
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 61.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.86 | ||
| EV/EBITDA | 19.41 |
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.
- ROST has an outstanding profitability rating, which 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 0.86%, ROST is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 2.13, ROST pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.89, ROST's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
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 3Y7.36%
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 Target189.3 (-1.59%)
Short Float %2.21%
Short Ratio2.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
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)1.14%
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 | 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 | 19.41 |
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 | 6.57 |
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 Year5.87%
Revenue Next 2Y5.6%
Revenue Next 3Y5.26%
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%.