ROSS STORES INC (1ROST.MI) Stock Fundamental Analysis
BIT:1ROST - Euronext Milan - US7782961038 - Common Stock - Currency: EUR
Overall 1ROST gets a fundamental rating of 6 out of 10. We evaluated 1ROST against 54 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. While showing a medium growth rate, 1ROST is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year 1ROST was profitable.
1ROST had a positive operating cash flow in the past year.
1ROST had positive earnings in each of the past 5 years.
Each year in the past 5 years 1ROST had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 14.55%, 1ROST belongs to the best of the industry, outperforming 90.74% of the companies in the same industry.
1ROST has a better Return On Equity (37.34%) than 92.59% of its industry peers.
Looking at the Return On Invested Capital, with a value of 19.99%, 1ROST belongs to the top of the industry, outperforming 90.74% of the companies in the same industry.
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.
In the last couple of years the Profit Margin of 1ROST has remained more or less at the same level.
With an excellent Operating Margin value of 12.24%, 1ROST belongs to the best of the industry, outperforming 90.74% of the companies in the same industry.
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: 64.81% 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.
The number of shares outstanding for 1ROST has been reduced compared to 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
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.
The Debt to FCF ratio of 1ROST (0.94) is better than 87.04% of its industry peers.
A Debt/Equity ratio of 0.18 indicates that 1ROST is not too dependend on debt financing.
The Debt to Equity ratio of 1ROST (0.18) is better than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 0.94 | ||
| Altman-Z | N/A |
ROIC/WACC2.07
WACC9.67%
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.
1ROST has a Current ratio of 1.55. This is in the better half of the industry: 1ROST outperforms 72.22% of its industry peers.
A Quick Ratio of 0.95 indicates that 1ROST may have some problems paying its short term obligations.
1ROST has a better Quick ratio (0.95) 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%.
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
1ROST is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.14% yearly.
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
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
1ROST is valuated rather expensively with a Price/Earnings ratio of 24.52.
Compared to the rest of the industry, the Price/Earnings ratio of 1ROST indicates a somewhat cheap valuation: 1ROST is cheaper than 68.52% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.19. 1ROST is around the same levels.
1ROST is valuated rather expensively with a Price/Forward Earnings ratio of 21.91.
1ROST's Price/Forward Earnings is on the same level as the industry average.
1ROST's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.52 | ||
| Fwd PE | 21.91 |
4.2 Price Multiples
1ROST's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1ROST is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.76 | ||
| EV/EBITDA | 15.96 |
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)6.81
PEG (5Y)3.74
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
The dividend of 1ROST is nicely growing with an annual growth rate of 7.61%!
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.
1ROST's earnings are growing more than its dividend. This makes the dividend growth 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 | 24.52 | ||
| Fwd PE | 21.91 | ||
| P/S | 2.4 | ||
| P/FCF | 31.76 | ||
| P/OCF | 21.28 | ||
| P/B | 9.15 | ||
| P/tB | 9.15 | ||
| EV/EBITDA | 15.96 |
EPS(TTM)5.61
EY4.08%
EPS(NY)6.28
Fwd EY4.56%
FCF(TTM)4.33
FCFY3.15%
OCF(TTM)6.46
OCFY4.7%
SpS57.3
BVpS15.03
TBVpS15.03
PEG (NY)6.81
PEG (5Y)3.74
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
WACC9.67%
ROIC/WACC2.07
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%