ROSS STORES INC (1ROST.MI) Stock Fundamental Analysis
BIT:1ROST - Euronext Milan - US7782961038 - Common Stock - Currency: EUR
Taking everything into account, 1ROST scores 6 out of 10 in our fundamental rating. 1ROST was compared to 54 industry peers in the Specialty Retail industry. 1ROST has an excellent profitability rating, but there are some minor concerns on its financial health. 1ROST is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
1ROST had positive earnings in the past year.
1ROST had a positive operating cash flow in the past year.
In the past 5 years 1ROST has always been profitable.
Each year in the past 5 years 1ROST had a positive operating cash flow.
1.2 Ratios
1ROST has a Return On Assets of 14.55%. This is amongst the best in the industry. 1ROST outperforms 90.74% of its industry peers.
1ROST has a Return On Equity of 37.34%. This is amongst the best in the industry. 1ROST outperforms 92.59% of its industry peers.
1ROST has a better Return On Invested Capital (19.99%) than 90.74% of its industry peers.
1ROST had an Average Return On Invested Capital over the past 3 years of 17.29%. This is significantly above the industry average of 10.64%.
The 3 year average ROIC (17.29%) for 1ROST is below the current ROIC(19.99%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.55% | ||
| ROE | 37.34% | ||
| ROIC | 19.99% |
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 1ROST (9.79%) is better than 92.59% of its industry peers.
1ROST's Profit Margin has been stable in the last couple of years.
The Operating Margin of 1ROST (12.24%) is better than 90.74% of its industry peers.
In the last couple of years the Operating Margin of 1ROST has declined.
Looking at the Gross Margin, with a value of 27.78%, 1ROST is doing worse than 64.81% of the companies in the same industry.
In the last couple of years the Gross Margin of 1ROST has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.24% | ||
| PM (TTM) | 9.79% | ||
| GM | 27.78% |
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
1ROST has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
1ROST has less shares outstanding than it did 1 year ago.
The number of shares outstanding for 1ROST has been reduced compared to 5 years ago.
1ROST has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of 1ROST is 0.94, which is an excellent value as it means it would take 1ROST, only 0.94 years of fcf income to pay off all of its debts.
1ROST's Debt to FCF ratio of 0.94 is amongst the best of the industry. 1ROST outperforms 87.04% of its industry peers.
1ROST has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.18, 1ROST belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 0.94 | ||
| Altman-Z | N/A |
ROIC/WACC2.08
WACC9.63%
2.3 Liquidity
1ROST has a Current Ratio of 1.55. This is a normal value and indicates that 1ROST is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.55, 1ROST is in the better half of the industry, outperforming 72.22% of the companies in the same industry.
A Quick Ratio of 0.95 indicates that 1ROST may have some problems paying its short term obligations.
With a decent Quick ratio value of 0.95, 1ROST is doing good in the industry, outperforming 79.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.55 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
1ROST shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.75%.
The Earnings Per Share has been growing slightly by 6.56% on average over the past years.
Looking at the last year, 1ROST shows a small growth in Revenue. The Revenue has grown by 2.49% in the last year.
The Revenue has been growing slightly by 5.67% on average over the past years.
EPS 1Y (TTM)6.75%
EPS 3Y9.15%
EPS 5Y6.56%
EPS Q2Q%0.68%
Revenue 1Y (TTM)2.49%
Revenue growth 3Y3.76%
Revenue growth 5Y5.67%
Sales Q2Q%2.61%
3.2 Future
The Earnings Per Share is expected to grow by 9.14% on average over the next years. This is quite good.
1ROST is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.53% yearly.
EPS Next Y3.6%
EPS Next 2Y5.85%
EPS Next 3Y6.63%
EPS Next 5Y9.14%
Revenue Next Year3.67%
Revenue Next 2Y4.22%
Revenue Next 3Y4.6%
Revenue Next 5Y5.53%
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 24.69, the valuation of 1ROST can be described as rather expensive.
Based on the Price/Earnings ratio, 1ROST is valued a bit cheaper than 68.52% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.17. 1ROST is around the same levels.
Based on the Price/Forward Earnings ratio of 22.06, the valuation of 1ROST can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as 1ROST.
The average S&P500 Price/Forward Earnings ratio is at 22.10. 1ROST is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.69 | ||
| Fwd PE | 22.06 |
4.2 Price Multiples
1ROST's Enterprise Value to EBITDA ratio is in line with the industry average.
1ROST's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.97 | ||
| EV/EBITDA | 16.07 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
1ROST has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)6.86
PEG (5Y)3.76
EPS Next 2Y5.85%
EPS Next 3Y6.63%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.06%, 1ROST has a reasonable but not impressive dividend return.
1ROST's Dividend Yield is a higher than the industry average which is at 4.35.
Compared to an average S&P500 Dividend Yield of 2.40, 1ROST's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.06% |
5.2 History
On average, the dividend of 1ROST grows each year by 7.61%, which is quite nice.
Dividend Growth(5Y)7.61%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
1ROST pays out 23.95% of its income as dividend. This is a sustainable payout ratio.
The dividend of 1ROST is growing, but earnings are growing more, so the dividend growth is sustainable.
DP23.95%
EPS Next 2Y5.85%
EPS Next 3Y6.63%
BIT:1ROST (5/20/2025, 7:00:00 PM)
137.54
+137.54 (+Infinity%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners94.25%
Inst Owner ChangeN/A
Ins Owners2.06%
Ins Owner ChangeN/A
Market Cap45.23B
Analysts80.71
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.06% |
Yearly Dividend1.3
Dividend Growth(5Y)7.61%
DP23.95%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3%
Min EPS beat(2)0%
Max EPS beat(2)5.99%
EPS beat(4)4
Avg EPS beat(4)3.51%
Min EPS beat(4)0%
Max EPS beat(4)5.99%
EPS beat(8)8
Avg EPS beat(8)5.81%
EPS beat(12)12
Avg EPS beat(12)6.78%
EPS beat(16)15
Avg EPS beat(16)9.48%
Revenue beat(2)0
Avg Revenue beat(2)-2.18%
Min Revenue beat(2)-2.68%
Max Revenue beat(2)-1.68%
Revenue beat(4)0
Avg Revenue beat(4)-2.24%
Min Revenue beat(4)-3.38%
Max Revenue beat(4)-1.22%
Revenue beat(8)2
Avg Revenue beat(8)-0.93%
Revenue beat(12)3
Avg Revenue beat(12)-0.89%
Revenue beat(16)5
Avg Revenue beat(16)-0.6%
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.69 | ||
| Fwd PE | 22.06 | ||
| P/S | 2.42 | ||
| P/FCF | 31.97 | ||
| P/OCF | 21.42 | ||
| P/B | 9.21 | ||
| P/tB | 9.21 | ||
| EV/EBITDA | 16.07 |
EPS(TTM)5.57
EY4.05%
EPS(NY)6.24
Fwd EY4.53%
FCF(TTM)4.3
FCFY3.13%
OCF(TTM)6.42
OCFY4.67%
SpS56.92
BVpS14.93
TBVpS14.93
PEG (NY)6.86
PEG (5Y)3.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.55% | ||
| ROE | 37.34% | ||
| ROCE | 26.36% | ||
| ROIC | 19.99% | ||
| ROICexc | 32.41% | ||
| ROICexgc | 32.41% | ||
| OM | 12.24% | ||
| PM (TTM) | 9.79% | ||
| GM | 27.78% | ||
| FCFM | 7.56% |
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-Score9
Asset Turnover1.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 0.94 | ||
| Debt/EBITDA | 0.33 | ||
| Cap/Depr | 174.46% | ||
| Cap/Sales | 3.72% | ||
| Interest Coverage | 34.18 | ||
| Cash Conversion | 78.5% | ||
| Profit Quality | 77.16% | ||
| Current Ratio | 1.55 | ||
| Quick Ratio | 0.95 | ||
| Altman-Z | N/A |
F-Score9
WACC9.63%
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)6.75%
EPS 3Y9.15%
EPS 5Y6.56%
EPS Q2Q%0.68%
EPS Next Y3.6%
EPS Next 2Y5.85%
EPS Next 3Y6.63%
EPS Next 5Y9.14%
Revenue 1Y (TTM)2.49%
Revenue growth 3Y3.76%
Revenue growth 5Y5.67%
Sales Q2Q%2.61%
Revenue Next Year3.67%
Revenue Next 2Y4.22%
Revenue Next 3Y4.6%
Revenue Next 5Y5.53%
EBIT growth 1Y6.47%
EBIT growth 3Y3.49%
EBIT growth 5Y3.8%
EBIT Next Year22.1%
EBIT Next 3Y10.73%
EBIT Next 5Y11.01%
FCF growth 1Y-11.11%
FCF growth 3Y11.5%
FCF growth 5Y0.26%
OCF growth 1Y-4.81%
OCF growth 3Y10.67%
OCF growth 5Y1.65%