ROSS STORES INC (ROST) Stock Fundamental Analysis
USA - NASDAQ:ROST - US7782961038 - Common Stock
158.34 USD
-2.36 (-1.47%)
158.34 USD
0 (0%)
Overall ROST gets a fundamental rating of 7 out of 10. We evaluated ROST against 121 industry peers in the Specialty Retail industry. Both the health and profitability get an excellent rating, making ROST a very profitable company, without any liquidiy or solvency issues. ROST has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year ROST was profitable.
In the past year ROST had a positive cash flow from operations.
In the past 5 years ROST has always been profitable.
ROST had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 14.23%, ROST belongs to the top of the industry, outperforming 88.43% of the companies in the same industry.
The Return On Equity of ROST (35.98%) is better than 88.43% of its industry peers.
ROST's Return On Invested Capital of 19.36% is amongst the best of the industry. ROST outperforms 88.43% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ROST is significantly above the industry average of 11.81%.
The last Return On Invested Capital (19.36%) for ROST is above the 3 year average (17.29%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.23% | ||
| ROE | 35.98% | ||
| ROIC | 19.36% |
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 ROST (9.60%) is better than 88.43% of its industry peers.
In the last couple of years the Profit Margin of ROST has remained more or less at the same level.
With an excellent Operating Margin value of 12.00%, ROST belongs to the best of the industry, outperforming 85.95% of the companies in the same industry.
ROST's Operating Margin has declined in the last couple of years.
The Gross Margin of ROST (27.61%) is worse than 69.42% of its industry peers.
ROST's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12% | ||
| PM (TTM) | 9.6% | ||
| GM | 27.61% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ROST is creating value.
ROST has less shares outstanding than it did 1 year ago.
The number of shares outstanding for ROST has been reduced compared to 5 years ago.
The debt/assets ratio for ROST has been reduced compared to a year ago.
2.2 Solvency
ROST has an Altman-Z score of 6.28. This indicates that ROST is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 6.28, ROST belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
The Debt to FCF ratio of ROST is 0.90, which is an excellent value as it means it would take ROST, only 0.90 years of fcf income to pay off all of its debts.
ROST's Debt to FCF ratio of 0.90 is amongst the best of the industry. ROST outperforms 81.82% of its industry peers.
ROST has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
ROST has a Debt to Equity ratio of 0.18. This is in the better half of the industry: ROST outperforms 65.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 0.9 | ||
| Altman-Z | 6.28 |
ROIC/WACC2.11
WACC9.18%
2.3 Liquidity
A Current Ratio of 1.58 indicates that ROST should not have too much problems paying its short term obligations.
ROST's Current ratio of 1.58 is fine compared to the rest of the industry. ROST outperforms 68.59% of its industry peers.
A Quick Ratio of 0.98 indicates that ROST may have some problems paying its short term obligations.
ROST has a better Quick ratio (0.98) than 75.21% of its industry peers.
The current and quick ratio evaluation for ROST is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.58 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
ROST shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.61%.
Measured over the past 5 years, ROST 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, ROST shows a small growth in Revenue. The Revenue has grown by 1.92% in the last year.
ROST shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.67% yearly.
EPS 1Y (TTM)1.61%
EPS 3Y9.15%
EPS 5Y6.56%
EPS Q2Q%-1.89%
Revenue 1Y (TTM)1.92%
Revenue growth 3Y3.76%
Revenue growth 5Y5.67%
Sales Q2Q%4.57%
3.2 Future
Based on estimates for the next years, ROST will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.47% on average per year.
The Revenue is expected to grow by 4.87% on average over the next years.
EPS Next Y0.31%
EPS Next 2Y5.04%
EPS Next 3Y5.96%
EPS Next 5Y8.47%
Revenue Next Year4.26%
Revenue Next 2Y4.48%
Revenue Next 3Y4.57%
Revenue Next 5Y4.87%
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 25.13, the valuation of ROST can be described as expensive.
67.77% of the companies in the same industry are more expensive than ROST, based on the Price/Earnings ratio.
ROST is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.00, which is the current average of the S&P500 Index.
ROST is valuated rather expensively with a Price/Forward Earnings ratio of 22.71.
ROST's Price/Forward Earnings is on the same level as the industry average.
ROST is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.87, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.13 | ||
| Fwd PE | 22.71 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ROST is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, ROST is valued a bit cheaper than 61.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.68 | ||
| EV/EBITDA | 16.36 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of ROST may justify a higher PE ratio.
PEG (NY)81.44
PEG (5Y)3.83
EPS Next 2Y5.04%
EPS Next 3Y5.96%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.03%, ROST has a reasonable but not impressive dividend return.
ROST's Dividend Yield is a higher than the industry average which is at 5.22.
With a Dividend Yield of 1.03, ROST pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.03% |
5.2 History
On average, the dividend of ROST grows each year by 7.61%, which is quite nice.
ROST has paid a dividend for at least 10 years, which is a reliable track record.
ROST has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)7.61%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
24.66% of the earnings are spent on dividend by ROST. This is a low number and sustainable payout ratio.
ROST's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP24.66%
EPS Next 2Y5.04%
EPS Next 3Y5.96%
158.34
-2.36 (-1.47%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners94.42%
Inst Owner Change-0.1%
Ins Owners2.08%
Ins Owner Change-3.11%
Market Cap51.50B
Revenue(TTM)21.50B
Net Income(TTM)2.06B
Analysts82.4
Price Target163.15 (3.04%)
Short Float %2.16%
Short Ratio2.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.03% |
Yearly Dividend1.47
Dividend Growth(5Y)7.61%
DP24.66%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.19%
Min EPS beat(2)-0.39%
Max EPS beat(2)0%
EPS beat(4)3
Avg EPS beat(4)2.38%
Min EPS beat(4)-0.39%
Max EPS beat(4)5.99%
EPS beat(8)7
Avg EPS beat(8)4.34%
EPS beat(12)11
Avg EPS beat(12)5.96%
EPS beat(16)14
Avg EPS beat(16)6.99%
Revenue beat(2)0
Avg Revenue beat(2)-2.22%
Min Revenue beat(2)-2.76%
Max Revenue beat(2)-1.68%
Revenue beat(4)0
Avg Revenue beat(4)-2.62%
Min Revenue beat(4)-3.38%
Max Revenue beat(4)-1.68%
Revenue beat(8)1
Avg Revenue beat(8)-1.51%
Revenue beat(12)3
Avg Revenue beat(12)-0.91%
Revenue beat(16)4
Avg Revenue beat(16)-1.07%
PT rev (1m)0.63%
PT rev (3m)5.44%
EPS NQ rev (1m)0.09%
EPS NQ rev (3m)-6.44%
EPS NY rev (1m)0.1%
EPS NY rev (3m)0.16%
Revenue NQ rev (1m)0.53%
Revenue NQ rev (3m)0.81%
Revenue NY rev (1m)0.37%
Revenue NY rev (3m)0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.13 | ||
| Fwd PE | 22.71 | ||
| P/S | 2.4 | ||
| P/FCF | 30.68 | ||
| P/OCF | 20.82 | ||
| P/B | 8.98 | ||
| P/tB | 8.98 | ||
| EV/EBITDA | 16.36 |
EPS(TTM)6.3
EY3.98%
EPS(NY)6.97
Fwd EY4.4%
FCF(TTM)5.16
FCFY3.26%
OCF(TTM)7.61
OCFY4.8%
SpS66.1
BVpS17.63
TBVpS17.63
PEG (NY)81.44
PEG (5Y)3.83
Graham Number49.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.23% | ||
| ROE | 35.98% | ||
| ROCE | 25.54% | ||
| ROIC | 19.36% | ||
| ROICexc | 31.27% | ||
| ROICexgc | 31.27% | ||
| OM | 12% | ||
| PM (TTM) | 9.6% | ||
| GM | 27.61% | ||
| FCFM | 7.81% |
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%
ROICexgc growth 3Y-3.26%
ROICexgc 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-Score8
Asset Turnover1.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 0.9 | ||
| Debt/EBITDA | 0.33 | ||
| Cap/Depr | 168.77% | ||
| Cap/Sales | 3.7% | ||
| Interest Coverage | 33.9 | ||
| Cash Conversion | 81.08% | ||
| Profit Quality | 81.37% | ||
| Current Ratio | 1.58 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z | 6.28 |
F-Score8
WACC9.18%
ROIC/WACC2.11
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)1.61%
EPS 3Y9.15%
EPS 5Y6.56%
EPS Q2Q%-1.89%
EPS Next Y0.31%
EPS Next 2Y5.04%
EPS Next 3Y5.96%
EPS Next 5Y8.47%
Revenue 1Y (TTM)1.92%
Revenue growth 3Y3.76%
Revenue growth 5Y5.67%
Sales Q2Q%4.57%
Revenue Next Year4.26%
Revenue Next 2Y4.48%
Revenue Next 3Y4.57%
Revenue Next 5Y4.87%
EBIT growth 1Y1.39%
EBIT growth 3Y3.49%
EBIT growth 5Y3.8%
EBIT Next Year20.21%
EBIT Next 3Y9.8%
EBIT Next 5Y10.01%
FCF growth 1Y-19.6%
FCF growth 3Y11.5%
FCF growth 5Y0.26%
OCF growth 1Y-13.56%
OCF growth 3Y10.67%
OCF growth 5Y1.65%
ROSS STORES INC / ROST FAQ
What is the ChartMill fundamental rating of ROSS STORES INC (ROST) stock?
ChartMill assigns a fundamental rating of 7 / 10 to ROST.
What is the valuation status for ROST stock?
ChartMill assigns a valuation rating of 4 / 10 to ROSS STORES INC (ROST). This can be considered as Fairly Valued.
How profitable is ROSS STORES INC (ROST) stock?
ROSS STORES INC (ROST) has a profitability rating of 8 / 10.
What is the financial health of ROSS STORES INC (ROST) stock?
The financial health rating of ROSS STORES INC (ROST) is 9 / 10.
What is the earnings growth outlook for ROSS STORES INC?
The Earnings per Share (EPS) of ROSS STORES INC (ROST) is expected to grow by 0.31% in the next year.