181.14 USD
-0.54 (-0.3%)
181.14 USD
0 (0%)
ROST gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 123 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
ROST had positive earnings in the past year.
In the past year ROST had a positive cash flow from operations.
ROST had positive earnings in each of the past 5 years.
Each year in the past 5 years ROST had a positive operating cash flow.
1.2 Ratios
ROST has a better Return On Assets (13.53%) than 89.43% of its industry peers.
With an excellent Return On Equity value of 35.45%, ROST belongs to the best of the industry, outperforming 87.80% of the companies in the same industry.
ROST's Return On Invested Capital of 19.14% is amongst the best of the industry. ROST outperforms 86.99% of its industry peers.
ROST had an Average Return On Invested Capital over the past 3 years of 17.29%. This is significantly above the industry average of 12.14%.
The last Return On Invested Capital (19.14%) for ROST is above the 3 year average (17.29%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.53% | ||
| ROE | 35.45% | ||
| ROIC | 19.14% |
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 9.47%, ROST belongs to the top of the industry, outperforming 87.80% of the companies in the same industry.
ROST's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 11.91%, ROST belongs to the best of the industry, outperforming 86.18% of the companies in the same industry.
ROST's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 27.55%, ROST is not doing good in the industry: 73.17% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of ROST has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.91% | ||
| PM (TTM) | 9.47% | ||
| GM | 27.55% |
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.
Compared to 1 year ago, ROST has an improved debt to assets ratio.
2.2 Solvency
ROST has an Altman-Z score of 6.31. This indicates that ROST is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.31, ROST belongs to the top of the industry, outperforming 93.50% of the companies in the same industry.
The Debt to FCF ratio of ROST is 0.77, which is an excellent value as it means it would take ROST, only 0.77 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ROST (0.77) is better than 80.49% of its industry peers.
ROST has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.17, ROST is doing good in the industry, outperforming 63.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.77 | ||
| Altman-Z | 6.31 |
ROIC/WACC2.02
WACC9.5%
2.3 Liquidity
A Current Ratio of 1.52 indicates that ROST should not have too much problems paying its short term obligations.
ROST has a Current ratio of 1.52. This is comparable to the rest of the industry: ROST outperforms 59.35% of its industry peers.
ROST has a Quick Ratio of 1.52. This is a bad value and indicates that ROST is not financially healthy enough and could expect problems in meeting its short term obligations.
ROST has a Quick ratio of 0.90. This is in the better half of the industry: ROST outperforms 68.29% of its industry peers.
ROST does not score too well on the current and quick ratio evaluation. However, as it has 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 | 1.52 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
ROST shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.79%.
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 3.71% in the last year.
The Revenue has been growing slightly by 5.67% on average over the past years.
EPS 1Y (TTM)0.79%
EPS 3Y9.15%
EPS 5Y6.56%
EPS Q2Q%6.76%
Revenue 1Y (TTM)3.71%
Revenue growth 3Y3.76%
Revenue growth 5Y5.67%
Sales Q2Q%10.44%
3.2 Future
The Earnings Per Share is expected to grow by 8.47% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.10% on average over the next years.
EPS Next Y4.31%
EPS Next 2Y7.22%
EPS Next 3Y7.36%
EPS Next 5Y8.47%
Revenue Next Year5.87%
Revenue Next 2Y5.6%
Revenue Next 3Y5.26%
Revenue Next 5Y5.1%
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
The Price/Earnings ratio is 28.30, which means the current valuation is very expensive for ROST.
Based on the Price/Earnings ratio, ROST is valued a bit cheaper than the industry average as 62.60% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of ROST to the average of the S&P500 Index (26.92), we can say ROST is valued inline with the index average.
A Price/Forward Earnings ratio of 24.93 indicates a rather expensive valuation of ROST.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ROST is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of ROST to the average of the S&P500 Index (23.46), we can say ROST is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.3 | ||
| Fwd PE | 24.93 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ROST.
61.79% of the companies in the same industry are more expensive than ROST, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.01 | ||
| EV/EBITDA | 18.09 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ROST does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of ROST may justify a higher PE ratio.
PEG (NY)6.57
PEG (5Y)4.31
EPS Next 2Y7.22%
EPS Next 3Y7.36%
5. Dividend
5.1 Amount
With a yearly dividend of 0.89%, ROST is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.01, ROST pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.00, ROST's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
5.2 History
The dividend of ROST is nicely growing with an annual growth rate of 7.61%!
ROST has been paying a dividend for at least 10 years, so it has 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
24.85% 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.
DP24.85%
EPS Next 2Y7.22%
EPS Next 3Y7.36%
181.14
-0.54 (-0.3%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners93.53%
Inst Owner Change-1.15%
Ins Owners2.08%
Ins Owner Change-3.32%
Market Cap58.91B
Revenue(TTM)22.03B
Net Income(TTM)2.09B
Analysts80
Price Target189.3 (4.5%)
Short Float %2.23%
Short Ratio2.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
Yearly Dividend1.47
Dividend Growth(5Y)7.61%
DP24.85%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.84%
Min EPS beat(2)-0.39%
Max EPS beat(2)10.06%
EPS beat(4)3
Avg EPS beat(4)3.92%
Min EPS beat(4)-0.39%
Max EPS beat(4)10.06%
EPS beat(8)7
Avg EPS beat(8)4.75%
EPS beat(12)11
Avg EPS beat(12)5.07%
EPS beat(16)14
Avg EPS beat(16)5.35%
Revenue beat(2)1
Avg Revenue beat(2)-0.7%
Min Revenue beat(2)-2.76%
Max Revenue beat(2)1.36%
Revenue beat(4)1
Avg Revenue beat(4)-1.44%
Min Revenue beat(4)-2.76%
Max Revenue beat(4)1.36%
Revenue beat(8)2
Avg Revenue beat(8)-1.29%
Revenue beat(12)3
Avg Revenue beat(12)-1%
Revenue beat(16)4
Avg Revenue beat(16)-1.2%
PT rev (1m)10.87%
PT rev (3m)16.76%
EPS NQ rev (1m)0.87%
EPS NQ rev (3m)3.55%
EPS NY rev (1m)3.78%
EPS NY rev (3m)4.09%
Revenue NQ rev (1m)0.25%
Revenue NQ rev (3m)2.51%
Revenue NY rev (1m)1.45%
Revenue NY rev (3m)1.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.3 | ||
| Fwd PE | 24.93 | ||
| P/S | 2.67 | ||
| P/FCF | 30.01 | ||
| P/OCF | 21.13 | ||
| P/B | 10.01 | ||
| P/tB | 10.01 | ||
| EV/EBITDA | 18.09 |
EPS(TTM)6.4
EY3.53%
EPS(NY)7.26
Fwd EY4.01%
FCF(TTM)6.04
FCFY3.33%
OCF(TTM)8.57
OCFY4.73%
SpS67.73
BVpS18.09
TBVpS18.09
PEG (NY)6.57
PEG (5Y)4.31
Graham Number51.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.53% | ||
| ROE | 35.45% | ||
| ROCE | 25.25% | ||
| ROIC | 19.14% | ||
| ROICexc | 31.42% | ||
| ROICexgc | 31.42% | ||
| OM | 11.91% | ||
| PM (TTM) | 9.47% | ||
| GM | 27.55% | ||
| FCFM | 8.91% |
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-Score6
Asset Turnover1.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.77 | ||
| Debt/EBITDA | 0.33 | ||
| Cap/Depr | 167.64% | ||
| Cap/Sales | 3.74% | ||
| Interest Coverage | 47.05 | ||
| Cash Conversion | 89.46% | ||
| Profit Quality | 94.12% | ||
| Current Ratio | 1.52 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z | 6.31 |
F-Score6
WACC9.5%
ROIC/WACC2.02
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)0.79%
EPS 3Y9.15%
EPS 5Y6.56%
EPS Q2Q%6.76%
EPS Next Y4.31%
EPS Next 2Y7.22%
EPS Next 3Y7.36%
EPS Next 5Y8.47%
Revenue 1Y (TTM)3.71%
Revenue growth 3Y3.76%
Revenue growth 5Y5.67%
Sales Q2Q%10.44%
Revenue Next Year5.87%
Revenue Next 2Y5.6%
Revenue Next 3Y5.26%
Revenue Next 5Y5.1%
EBIT growth 1Y0.99%
EBIT growth 3Y3.49%
EBIT growth 5Y3.8%
EBIT Next Year24.34%
EBIT Next 3Y11.57%
EBIT Next 5Y10.22%
FCF growth 1Y-2.11%
FCF growth 3Y11.5%
FCF growth 5Y0.26%
OCF growth 1Y0.19%
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 4.31% in the next year.