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 54 industry peers in the Specialty Retail industry. While 1ROST has a great profitability rating, 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.
Each year in the past 5 years 1ROST has been profitable.
1ROST had a positive operating cash flow in each of the past 5 years.
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.
Looking at the Return On Equity, with a value of 37.34%, 1ROST belongs to the top of the industry, outperforming 92.59% of the companies in the same industry.
The Return On Invested Capital of 1ROST (19.99%) is better than 90.74% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1ROST 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
1ROST has a better Profit Margin (9.79%) 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.
1ROST's Operating Margin of 12.24% is amongst the best of the industry. 1ROST outperforms 90.74% of its industry peers.
In the last couple of years the Operating Margin of 1ROST has declined.
The Gross Margin of 1ROST (27.78%) is worse than 64.81% of its industry peers.
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
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.
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 better Debt to FCF ratio (0.94) than 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/WACC2.07
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.
The Current ratio of 1ROST (1.55) is better than 72.22% of its industry peers.
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
The Earnings Per Share has been growing slightly by 6.75% over the past year.
Measured over the past 5 years, 1ROST shows a small growth in Earnings Per Share. The EPS has been growing by 6.56% on average per year.
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
Based on estimates for the next years, 1ROST will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.14% on average per year.
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.
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
1ROST is valuated rather expensively with a Price/Earnings ratio of 24.69.
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.
1ROST is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.35, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 22.06 indicates a rather expensive valuation of 1ROST.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1ROST is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of 1ROST to the average of the S&P500 Index (22.20), we can say 1ROST is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.69 | ||
| Fwd PE | 22.06 |
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.
The rest of the industry has a similar Price/Free Cash Flow ratio as 1ROST.
| 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 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)6.86
PEG (5Y)3.76
EPS Next 2Y5.85%
EPS Next 3Y6.63%
5. Dividend
5.1 Amount
1ROST has a Yearly Dividend Yield of 1.06%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.35, 1ROST pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.06, 1ROST pays less dividend than the S&P500 average, which is at 2.40.
| 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.
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
WACC9.67%
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%