ROSS STORES INC (ROST)
US7782961038 - Common Stock
Overall ROST gets a fundamental rating of 6 out of 10. We evaluated ROST against 123 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 correct valuation and a medium growth rate. These ratings would make ROST suitable for quality investing!
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.
Each year in the past 5 years ROST has 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 (14.12%) is better than 90.08% of its industry peers.
ROST's Return On Equity of 40.39% is amongst the best of the industry. ROST outperforms 89.26% of its industry peers.
Looking at the Return On Invested Capital, with a value of 19.72%, ROST belongs to the top of the industry, outperforming 88.43% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ROST is above the industry average of 12.26%.
The 3 year average ROIC (17.20%) for ROST is below the current ROIC(19.72%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.12% | ||
| ROE | 40.39% | ||
| ROIC | 19.72% |
ROA(3y)12.34%
ROA(5y)11.09%
ROE(3y)38.72%
ROE(5y)33.64%
ROIC(3y)17.2%
ROIC(5y)15.97%
1.3 Margins
ROST has a Profit Margin of 9.82%. This is amongst the best in the industry. ROST outperforms 91.74% of its industry peers.
ROST's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 12.06%, ROST belongs to the top of the industry, outperforming 88.43% of the companies in the same industry.
ROST's Operating Margin has declined in the last couple of years.
ROST has a Gross Margin of 27.83%. This is in the lower half of the industry: ROST underperforms 68.59% of its industry peers.
In the last couple of years the Gross Margin of ROST has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.06% | ||
| PM (TTM) | 9.82% | ||
| GM | 27.83% |
OM growth 3Y48.89%
OM growth 5Y-3.63%
PM growth 3Y138.48%
PM growth 5Y-2.78%
GM growth 3Y8.39%
GM growth 5Y-0.75%
2. Health
2.1 Basic Checks
ROST has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
ROST has less shares outstanding than it did 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 5.50. This indicates that ROST is financially healthy and has little risk of bankruptcy at the moment.
ROST has a Altman-Z score of 5.50. This is amongst the best in the industry. ROST outperforms 89.26% of its industry peers.
The Debt to FCF ratio of ROST is 1.51, which is an excellent value as it means it would take ROST, only 1.51 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ROST (1.51) is better than 77.69% of its industry peers.
ROST has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.30, ROST is in line with its industry, outperforming 55.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 1.51 | ||
| Altman-Z | 5.5 |
ROIC/WACC2.11
WACC9.36%
2.3 Liquidity
ROST has a Current Ratio of 1.56. This is a normal value and indicates that ROST is financially healthy and should not expect problems in meeting its short term obligations.
ROST's Current ratio of 1.56 is fine compared to the rest of the industry. ROST outperforms 61.16% of its industry peers.
ROST has a Quick Ratio of 1.05. 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 Quick ratio of 1.05. This is in the better half of the industry: ROST outperforms 76.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.56 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 31.36% 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 6.81% on average per year.
Looking at the last year, ROST shows a quite strong growth in Revenue. The Revenue has grown by 9.81% in the last year.
Measured over the past years, ROST shows a small growth in Revenue. The Revenue has been growing by 6.34% on average per year.
EPS 1Y (TTM)31.36%
EPS 3Y84.87%
EPS 5Y6.81%
EPS Q2Q%20.45%
Revenue 1Y (TTM)9.81%
Revenue growth 3Y17.59%
Revenue growth 5Y6.34%
Sales Q2Q%7.15%
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 11.44% on average per year.
ROST is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.02% yearly.
EPS Next Y12.83%
EPS Next 2Y10.88%
EPS Next 3Y10.33%
EPS Next 5Y11.44%
Revenue Next Year5.79%
Revenue Next 2Y5.7%
Revenue Next 3Y5.57%
Revenue Next 5Y6.02%
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 22.47, which indicates a rather expensive current valuation of ROST.
ROST's Price/Earnings ratio is a bit cheaper when compared to the industry. ROST is cheaper than 63.64% of the companies in the same industry.
ROST's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.65.
A Price/Forward Earnings ratio of 20.38 indicates a rather expensive valuation of ROST.
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 (23.56), we can say ROST is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.47 | ||
| Fwd PE | 20.38 |
4.2 Price Multiples
ROST's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ROST indicates a somewhat cheap valuation: ROST is cheaper than 61.98% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.42 | ||
| EV/EBITDA | 14.75 |
4.3 Compensation for Growth
ROST's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ROST has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.75
PEG (5Y)3.3
EPS Next 2Y10.88%
EPS Next 3Y10.33%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.06%, ROST has a reasonable but not impressive dividend return.
ROST's Dividend Yield is a higher than the industry average which is at 3.09.
With a Dividend Yield of 1.06, ROST pays less dividend than the S&P500 average, which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.06% |
5.2 History
On average, the dividend of ROST grows each year by 8.27%, which is quite nice.
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)8.27%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
ROST pays out 22.77% of its income as dividend. This is a sustainable payout ratio.
The dividend of ROST is growing, but earnings are growing more, so the dividend growth is sustainable.
DP22.77%
EPS Next 2Y10.88%
EPS Next 3Y10.33%
ROSS STORES INC
NASDAQ:ROST (11/20/2024, 8:00:02 PM)
Premarket: 140.89 +1.57 (+1.13%)139.32
+0.06 (+0.04%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap46.22B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.06% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.47 | ||
| Fwd PE | 20.38 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.75
PEG (5Y)3.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.12% | ||
| ROE | 40.39% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.06% | ||
| PM (TTM) | 9.82% | ||
| GM | 27.83% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.56 | ||
| Quick Ratio | 1.05 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)31.36%
EPS 3Y84.87%
EPS 5Y
EPS Q2Q%
EPS Next Y12.83%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)9.81%
Revenue growth 3Y17.59%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y