ROSS STORES INC (1ROST.MI) Stock Fundamental Analysis
BIT:1ROST - Euronext Milan - US7782961038 - Common Stock - Currency: EUR
We assign a fundamental rating of 6 out of 10 to 1ROST. 1ROST was compared to 53 industry peers in the Specialty Retail industry. While 1ROST belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. 1ROST is quite expensive at the moment. 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 92.59% of its industry peers.
With an excellent Return On Equity value of 37.34%, 1ROST belongs to the best of the industry, outperforming 96.30% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 19.99%, 1ROST belongs to the top of the industry, outperforming 92.59% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for 1ROST is significantly above the industry average of 9.00%.
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
Looking at the Profit Margin, with a value of 9.79%, 1ROST belongs to the top of the industry, outperforming 92.59% of the companies in the same industry.
1ROST's Profit Margin has been stable in the last couple of years.
1ROST has a better Operating Margin (12.24%) than 90.74% of its industry peers.
In the last couple of years the Operating Margin of 1ROST has declined.
With a Gross Margin value of 27.78%, 1ROST is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
1ROST's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1ROST is creating value.
1ROST has less shares outstanding than it did 1 year ago.
1ROST has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, 1ROST has an improved debt to assets ratio.
2.2 Solvency
1ROST has a debt to FCF ratio of 0.94. This is a very positive value and a sign of high solvency as it would only need 0.94 years to pay back of all of its debts.
1ROST has a Debt to FCF ratio of 0.94. This is amongst the best in the industry. 1ROST outperforms 90.74% of its industry peers.
A Debt/Equity ratio of 0.18 indicates that 1ROST is not too dependend on debt financing.
1ROST has a better Debt to Equity ratio (0.18) than 85.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 0.94 | ||
| Altman-Z | N/A |
ROIC/WACC2.08
WACC9.6%
2.3 Liquidity
A Current Ratio of 1.55 indicates that 1ROST should not have too much problems paying its short term obligations.
1ROST has a Current ratio of 1.55. This is in the better half of the industry: 1ROST outperforms 70.37% of its industry peers.
1ROST has a Quick Ratio of 1.55. This is a bad value and indicates that 1ROST is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of 1ROST (0.95) is better than 79.63% of its industry peers.
| 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.
1ROST shows a small growth in Revenue. In the last year, the Revenue has grown by 2.49%.
1ROST shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.67% yearly.
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.
Based on estimates for the next years, 1ROST will show a small growth in Revenue. The Revenue will grow by 5.53% on average per year.
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.
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 24.65 indicates a rather expensive valuation of 1ROST.
Based on the Price/Earnings ratio, 1ROST is valued a bit cheaper than 68.52% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.46, 1ROST is valued at the same level.
A Price/Forward Earnings ratio of 22.02 indicates a rather expensive valuation of 1ROST.
1ROST's Price/Forward Earnings ratio is in line with the industry average.
1ROST is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.30, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.65 | ||
| Fwd PE | 22.02 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1ROST is on the same level as its industry peers.
1ROST's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.92 | ||
| EV/EBITDA | 16.05 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1ROST does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of 1ROST may justify a higher PE ratio.
PEG (NY)6.85
PEG (5Y)3.76
EPS Next 2Y5.85%
EPS Next 3Y6.63%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.17%, 1ROST has a reasonable but not impressive dividend return.
1ROST's Dividend Yield is a higher than the industry average which is at 4.67.
With a Dividend Yield of 1.17, 1ROST pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
5.2 History
The dividend of 1ROST is nicely growing with an annual growth rate of 7.61%!
Dividend Growth(5Y)7.61%
Div Incr Years0
Div Non Decr Years0
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 | 1.17% |
Yearly Dividend1.3
Dividend Growth(5Y)7.61%
DP23.95%
Div Incr Years0
Div Non Decr Years0
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 | 24.65 | ||
| Fwd PE | 22.02 | ||
| P/S | 2.41 | ||
| P/FCF | 31.92 | ||
| P/OCF | 21.39 | ||
| P/B | 9.2 | ||
| P/tB | 9.2 | ||
| EV/EBITDA | 16.05 |
EPS(TTM)5.58
EY4.06%
EPS(NY)6.25
Fwd EY4.54%
FCF(TTM)4.31
FCFY3.13%
OCF(TTM)6.43
OCFY4.68%
SpS57.01
BVpS14.95
TBVpS14.95
PEG (NY)6.85
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
WACC9.6%
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%