177.57 USD
+0.07 (+0.04%)
177.57 USD
0 (0%)
Overall ROST gets a fundamental rating of 6 out of 10. We evaluated ROST against 122 industry peers in the Specialty Retail industry. While ROST has a great profitability rating, 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
ROST had positive earnings in the past year.
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
ROST has a better Return On Assets (13.53%) than 89.34% of its industry peers.
The Return On Equity of ROST (35.45%) is better than 88.52% of its industry peers.
Looking at the Return On Invested Capital, with a value of 19.14%, ROST belongs to the top of the industry, outperforming 87.70% of the companies in the same industry.
ROST had an Average Return On Invested Capital over the past 3 years of 17.29%. This is significantly above the industry average of 11.71%.
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
ROST's Profit Margin of 9.47% is amongst the best of the industry. ROST outperforms 88.52% of its industry peers.
ROST's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 11.91%, ROST belongs to the best 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 70.49% 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.
Compared to 5 years ago, ROST has less shares outstanding
ROST has a better debt/assets ratio than last year.
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.
With an excellent Debt to FCF ratio value of 0.77, ROST belongs to the best of the industry, outperforming 81.97% of the companies in the same industry.
ROST has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
ROST has a better Debt to Equity ratio (0.17) than 64.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.77 | ||
| Altman-Z | N/A |
ROIC/WACC2.08
WACC9.22%
2.3 Liquidity
A Current Ratio of 1.52 indicates that ROST should not have too much problems paying its short term obligations.
ROST has a Current ratio of 1.52. This is in the better half of the industry: ROST outperforms 63.11% of its industry peers.
A Quick Ratio of 0.90 indicates that ROST may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.90, ROST is in the better half of the industry, outperforming 72.13% of the companies in the same industry.
| 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
The Earnings Per Share is expected to grow by 8.47% on average over the next years. This is quite good.
Based on estimates for the next years, ROST will show a small growth in Revenue. The Revenue will grow by 5.10% on average per year.
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
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
A Price/Earnings ratio of 27.75 indicates a quite expensive valuation of ROST.
Based on the Price/Earnings ratio, ROST is valued a bit cheaper than the industry average as 63.11% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.15. ROST is around the same levels.
The Price/Forward Earnings ratio is 25.40, which means the current valuation is very expensive for ROST.
ROST's Price/Forward Earnings is on the same level as the industry average.
ROST's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.22.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.75 | ||
| Fwd PE | 25.4 |
4.2 Price Multiples
ROST's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, ROST is valued a bit cheaper than the industry average as 64.75% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.41 | ||
| EV/EBITDA | 17.71 |
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)54.37
PEG (5Y)4.23
EPS Next 2Y5.17%
EPS Next 3Y7.33%
5. Dividend
5.1 Amount
ROST has a yearly dividend return of 0.91%, which is pretty low.
Compared to an average industry Dividend Yield of 5.64, ROST pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, ROST's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
5.2 History
On average, the dividend of ROST grows each year by 7.61%, 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)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.
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 2Y5.17%
EPS Next 3Y7.33%
177.57
+0.07 (+0.04%)
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-3.32%
Market Cap57.75B
Revenue(TTM)22.03B
Net Income(TTM)2.09B
Analysts81.54
Price Target170.74 (-3.85%)
Short Float %2.13%
Short Ratio2.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
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)2.21%
EPS NQ rev (3m)2.66%
EPS NY rev (1m)0.2%
EPS NY rev (3m)0.56%
Revenue NQ rev (1m)1.62%
Revenue NQ rev (3m)2.26%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.75 | ||
| Fwd PE | 25.4 | ||
| P/S | 2.62 | ||
| P/FCF | 29.41 | ||
| P/OCF | 20.72 | ||
| P/B | 9.81 | ||
| P/tB | 9.81 | ||
| EV/EBITDA | 17.71 |
EPS(TTM)6.4
EY3.6%
EPS(NY)6.99
Fwd EY3.94%
FCF(TTM)6.04
FCFY3.4%
OCF(TTM)8.57
OCFY4.83%
SpS67.73
BVpS18.09
TBVpS18.09
PEG (NY)54.37
PEG (5Y)4.23
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
WACC9.22%
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.