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. 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
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.
In the past 5 years 1ROST always reported a positive cash flow from operatings.
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.
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 last Return On Invested Capital (19.99%) for 1ROST is above the 3 year average (17.29%), which is a sign of increasing profitability.
| 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 Profit Margin of 9.79%. This is amongst the best in the industry. 1ROST outperforms 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.
1ROST's Operating Margin has declined in the last couple of years.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1ROST is creating value.
Compared to 1 year ago, 1ROST has less shares outstanding
The number of shares outstanding for 1ROST has been reduced compared to 5 years ago.
The debt/assets ratio for 1ROST has been reduced compared to a year ago.
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.
Looking at the Debt to FCF ratio, with a value of 0.94, 1ROST belongs to the top of the industry, outperforming 87.04% of the companies in the same industry.
1ROST has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
1ROST has a Debt to Equity ratio of 0.18. This is amongst the best in the industry. 1ROST outperforms 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's Current ratio of 1.55 is fine compared to the rest of the industry. 1ROST outperforms 72.22% 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.
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.
Looking at the last year, 1ROST shows a small growth in Revenue. The Revenue has grown by 2.49% in the last year.
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
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
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
Based on the Price/Earnings ratio of 24.74, the valuation of 1ROST can be described as rather expensive.
Based on the Price/Earnings ratio, 1ROST is valued a bit cheaper than the industry average as 64.81% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.35, 1ROST is valued at the same level.
With a Price/Forward Earnings ratio of 22.11, 1ROST is valued on the expensive side.
1ROST's Price/Forward Earnings ratio is in line with the industry average.
1ROST's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.20.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.74 | ||
| Fwd PE | 22.11 |
4.2 Price Multiples
1ROST's Enterprise Value to EBITDA ratio is in line with the industry average.
1ROST's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.04 | ||
| EV/EBITDA | 16.11 |
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)6.87
PEG (5Y)3.77
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.
1ROST's Dividend Yield is a higher than the industry average which is at 4.35.
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.
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 | 24.74 | ||
| Fwd PE | 22.11 | ||
| P/S | 2.42 | ||
| P/FCF | 32.04 | ||
| P/OCF | 21.47 | ||
| P/B | 9.23 | ||
| P/tB | 9.23 | ||
| EV/EBITDA | 16.11 |
EPS(TTM)5.56
EY4.04%
EPS(NY)6.22
Fwd EY4.52%
FCF(TTM)4.29
FCFY3.12%
OCF(TTM)6.41
OCFY4.66%
SpS56.8
BVpS14.9
TBVpS14.9
PEG (NY)6.87
PEG (5Y)3.77
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%