176.5 USD
+2.37 (+1.36%)
176.75 USD
+0.25 (+0.14%)
We assign a fundamental rating of 6 out of 10 to ROST. ROST was compared to 122 industry peers in the Specialty Retail industry. ROST has an excellent profitability rating, but there are some minor concerns on its financial health. ROST is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
ROST had positive earnings in the past year.
In the past year ROST had a positive cash flow from operations.
ROST had positive earnings in each of the past 5 years.
ROST had a positive operating cash flow in each of the past 5 years.
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.
The Return On Equity of ROST (35.45%) is better than 88.52% of its industry peers.
ROST's Return On Invested Capital of 19.14% is amongst the best of 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(19.14%), 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 88.52% of the companies in the same industry.
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.
With a Gross Margin value of 27.55%, ROST is not doing good in the industry: 70.49% of the companies in the same industry are doing better.
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.
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.
Compared to 1 year ago, ROST has an improved debt to assets ratio.
2.2 Solvency
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 82.79% 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.
With a decent Debt to Equity ratio value of 0.17, ROST is doing good in the industry, outperforming 64.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.77 | ||
| Altman-Z | N/A |
ROIC/WACC2.08
WACC9.2%
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.
Looking at the Current ratio, with a value of 1.52, ROST is in the better half of the industry, outperforming 63.11% of the companies in the same industry.
A Quick Ratio of 0.90 indicates that ROST may have some problems paying its short term obligations.
ROST has a Quick ratio of 0.90. This is in the better half of the industry: ROST outperforms 72.13% of its industry peers.
| 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%.
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%.
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.
The Revenue is expected to grow by 5.10% on average over the next years.
EPS Next Y0.51%
EPS Next 2Y5.17%
EPS Next 3Y7.33%
EPS Next 5Y8.47%
Revenue Next Year4.36%
Revenue Next 2Y4.53%
Revenue Next 3Y5.22%
Revenue Next 5Y5.1%
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.
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
A Price/Earnings ratio of 27.58 indicates a quite expensive valuation of ROST.
62.30% of the companies in the same industry are more expensive than ROST, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 25.98, ROST is valued at the same level.
With a Price/Forward Earnings ratio of 25.25, ROST can be considered very expensive at the moment.
ROST's Price/Forward Earnings ratio is in line with the industry average.
ROST is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 35.79, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.58 | ||
| Fwd PE | 25.25 |
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 63.93% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.24 | ||
| EV/EBITDA | 17.36 |
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)54.04
PEG (5Y)4.2
EPS Next 2Y5.17%
EPS Next 3Y7.33%
5. Dividend
5.1 Amount
ROST has a yearly dividend return of 0.93%, which is pretty low.
Compared to an average industry Dividend Yield of 6.07, ROST pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.93, ROST pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
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.
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 2Y5.17%
EPS Next 3Y7.33%
176.5
+2.37 (+1.36%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners94.42%
Inst Owner Change-1.16%
Ins Owners2.08%
Ins Owner Change-3.42%
Market Cap57.40B
Revenue(TTM)22.03B
Net Income(TTM)2.09B
Analysts81.54
Price Target170.74 (-3.26%)
Short Float %2.06%
Short Ratio2.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
Yearly Dividend1.47
Dividend Growth(5Y)7.61%
DP24.85%
Div Incr Years4
Div Non Decr Years4
Ex-Date
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)4.65%
PT rev (3m)9.44%
EPS NQ rev (1m)1.91%
EPS NQ rev (3m)-4.34%
EPS NY rev (1m)0.2%
EPS NY rev (3m)0.56%
Revenue NQ rev (1m)0.67%
Revenue NQ rev (3m)1.58%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.58 | ||
| Fwd PE | 25.25 | ||
| P/S | 2.61 | ||
| P/FCF | 29.24 | ||
| P/OCF | 20.59 | ||
| P/B | 9.76 | ||
| P/tB | 9.76 | ||
| EV/EBITDA | 17.36 |
EPS(TTM)6.4
EY3.63%
EPS(NY)6.99
Fwd EY3.96%
FCF(TTM)6.04
FCFY3.42%
OCF(TTM)8.57
OCFY4.86%
SpS67.73
BVpS18.09
TBVpS18.09
PEG (NY)54.04
PEG (5Y)4.2
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 | N/A |
F-Score6
WACC9.2%
ROIC/WACC2.08
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 Y0.51%
EPS Next 2Y5.17%
EPS Next 3Y7.33%
EPS Next 5Y8.47%
Revenue 1Y (TTM)3.71%
Revenue growth 3Y3.76%
Revenue growth 5Y5.67%
Sales Q2Q%10.44%
Revenue Next Year4.36%
Revenue Next 2Y4.53%
Revenue Next 3Y5.22%
Revenue Next 5Y5.1%
EBIT growth 1Y0.99%
EBIT growth 3Y3.49%
EBIT growth 5Y3.8%
EBIT Next Year20.21%
EBIT Next 3Y10.96%
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 6 / 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 6 / 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.