ROSS STORES INC (ROST) Stock Fundamental Analysis
USA - NASDAQ:ROST - US7782961038 - Common Stock
152.64 USD
-3.53 (-2.26%)
152.64 USD
0 (0%)
ROST gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 122 industry peers in the Specialty Retail industry. ROST has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 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.
Each year in the past 5 years ROST has been profitable.
In the past 5 years ROST always reported a positive cash flow from operatings.
1.2 Ratios
ROST's Return On Assets of 14.23% is amongst the best of the industry. ROST outperforms 89.34% of its industry peers.
ROST has a Return On Equity of 35.98%. This is amongst the best in the industry. ROST outperforms 89.34% of its industry peers.
ROST's Return On Invested Capital of 19.36% is amongst the best of the industry. ROST outperforms 89.34% 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 11.93%.
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
ROST has a Profit Margin of 9.60%. This is amongst the best in the industry. ROST outperforms 89.34% of its industry peers.
ROST's Profit Margin has been stable in the last couple of years.
ROST has a better Operating Margin (12.00%) than 87.70% of its industry peers.
In the last couple of years the Operating Margin of ROST has declined.
Looking at the Gross Margin, with a value of 27.61%, ROST is doing worse than 69.67% of the companies in the same industry.
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 | 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.
Compared to 1 year ago, ROST has less shares outstanding
Compared to 5 years ago, ROST has less shares outstanding
Compared to 1 year ago, ROST has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.10 indicates that ROST is not in any danger for bankruptcy at the moment.
ROST has a Altman-Z score of 6.10. This is amongst the best in the industry. ROST outperforms 90.98% of its industry peers.
ROST has a debt to FCF ratio of 0.90. This is a very positive value and a sign of high solvency as it would only need 0.90 years to pay back of all of its debts.
The Debt to FCF ratio of ROST (0.90) is better than 81.15% 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 64.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 0.9 | ||
| Altman-Z | 6.1 |
ROIC/WACC2.03
WACC9.55%
2.3 Liquidity
A Current Ratio of 1.58 indicates that ROST should not have too much problems paying its short term obligations.
ROST has a better Current ratio (1.58) than 69.67% of its industry peers.
ROST has a Quick Ratio of 1.58. This is a bad value and indicates that ROST is not financially healthy enough and could expect problems in meeting its short term obligations.
With a decent Quick ratio value of 0.98, ROST is doing good in the industry, outperforming 77.05% of the companies in the same industry.
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 | 1.58 | ||
| 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%.
ROST shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.56% yearly.
The Revenue has been growing slightly by 1.92% in the past year.
The Revenue has been growing slightly by 5.67% on average over the past years.
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
ROST is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.47% yearly.
ROST is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.87% yearly.
EPS Next Y0.21%
EPS Next 2Y4.98%
EPS Next 3Y7.41%
EPS Next 5Y8.47%
Revenue Next Year3.88%
Revenue Next 2Y4.43%
Revenue Next 3Y4.66%
Revenue Next 5Y4.87%
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
ROST is valuated rather expensively with a Price/Earnings ratio of 24.23.
68.03% of the companies in the same industry are more expensive than ROST, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of ROST to the average of the S&P500 Index (27.86), we can say ROST is valued inline with the index average.
The Price/Forward Earnings ratio is 21.92, which indicates a rather expensive current valuation of ROST.
The rest of the industry has a similar Price/Forward Earnings ratio as ROST.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.32, ROST is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.23 | ||
| Fwd PE | 21.92 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ROST.
63.93% 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 | 29.58 | ||
| EV/EBITDA | 15.51 |
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)113.89
PEG (5Y)3.69
EPS Next 2Y4.98%
EPS Next 3Y7.41%
5. Dividend
5.1 Amount
ROST has a Yearly Dividend Yield of 1.04%.
Compared to an average industry Dividend Yield of 5.68, ROST pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.04, ROST pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
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.
The dividend of ROST is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP24.66%
EPS Next 2Y4.98%
EPS Next 3Y7.41%
152.64
-3.53 (-2.26%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners94.42%
Inst Owner Change-1%
Ins Owners2.08%
Ins Owner Change-4.03%
Market Cap49.64B
Analysts82.4
Price Target163.15 (6.89%)
Short Float %1.78%
Short Ratio2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
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)4.58%
PT rev (3m)5.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.13%
EPS NY rev (1m)0.26%
EPS NY rev (3m)0.11%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.39%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.23 | ||
| Fwd PE | 21.92 | ||
| P/S | 2.31 | ||
| P/FCF | 29.58 | ||
| P/OCF | 20.07 | ||
| P/B | 8.66 | ||
| P/tB | 8.66 | ||
| EV/EBITDA | 15.51 |
EPS(TTM)6.3
EY4.13%
EPS(NY)6.96
Fwd EY4.56%
FCF(TTM)5.16
FCFY3.38%
OCF(TTM)7.61
OCFY4.98%
SpS66.1
BVpS17.63
TBVpS17.63
PEG (NY)113.89
PEG (5Y)3.69
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%
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-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 | 6.1 |
F-Score8
WACC9.55%
ROIC/WACC2.03
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 Y0.21%
EPS Next 2Y4.98%
EPS Next 3Y7.41%
EPS Next 5Y8.47%
Revenue 1Y (TTM)1.92%
Revenue growth 3Y3.76%
Revenue growth 5Y5.67%
Sales Q2Q%4.57%
Revenue Next Year3.88%
Revenue Next 2Y4.43%
Revenue Next 3Y4.66%
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%