ROSS STORES INC (ROST) Stock Fundamental Analysis
USA - NASDAQ:ROST - US7782961038 - Common Stock
160.7 USD
-0.03 (-0.02%)
160.03 USD
-0.67 (-0.42%)
We assign a fundamental rating of 7 out of 10 to ROST. ROST was compared to 121 industry peers in the Specialty Retail industry. ROST scores excellent points on both the profitability and health parts. This is a solid base for a good stock. ROST has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
ROST had positive earnings in the past year.
ROST had a positive operating cash flow in the past year.
ROST had positive earnings in each of the past 5 years.
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.
ROST's Return On Equity of 35.98% is amongst the best of the industry. ROST outperforms 88.43% of its industry peers.
ROST has a better Return On Invested Capital (19.36%) than 88.43% 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 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
ROST has a better Profit Margin (9.60%) 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.
Looking at the Operating Margin, with a value of 12.00%, ROST belongs to the top 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.
ROST has a worse Gross Margin (27.61%) than 69.42% of its industry peers.
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
ROST has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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 6.28. This indicates that ROST is financially healthy and has little risk of bankruptcy at the moment.
ROST has a better Altman-Z score (6.28) than 90.08% of its industry peers.
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.
A Debt/Equity ratio of 0.18 indicates that ROST is not too dependend on debt financing.
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
ROST has a Current Ratio of 1.58. This is a normal value and indicates that ROST is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of ROST (1.58) is better than 68.59% 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.
ROST has a better Quick ratio (0.98) than 75.21% 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 | 1.58 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.61% over the past year.
The Earnings Per Share has been growing slightly by 6.56% on average over the past years.
ROST shows a small growth in Revenue. In the last year, the Revenue has grown by 1.92%.
Measured over the past years, ROST shows a small growth in Revenue. The Revenue has been growing by 5.67% on average per year.
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
The Earnings Per Share is expected to grow by 8.47% on average over the next years. This is quite good.
Based on estimates for the next years, ROST will show a small growth in Revenue. The Revenue will grow by 4.87% on average per year.
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 25.51, the valuation of ROST can be described as expensive.
ROST's Price/Earnings ratio is a bit cheaper when compared to the industry. ROST is cheaper than 67.77% of the companies in the same industry.
ROST's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.83.
With a Price/Forward Earnings ratio of 23.05, ROST is valued on the expensive side.
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 (22.88), we can say ROST is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.51 | ||
| Fwd PE | 23.05 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ROST indicates a somewhat cheap valuation: ROST is cheaper than 61.98% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.14 | ||
| EV/EBITDA | 16.37 |
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.
ROST has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)82.65
PEG (5Y)3.89
EPS Next 2Y5.04%
EPS Next 3Y5.96%
5. Dividend
5.1 Amount
ROST has a Yearly Dividend Yield of 1.03%.
Compared to an average industry Dividend Yield of 5.23, ROST pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.03, ROST pays less dividend than the S&P500 average, which is at 2.30.
| 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.
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 2Y5.04%
EPS Next 3Y5.96%
160.7
-0.03 (-0.02%)
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 Cap52.26B
Revenue(TTM)21.50B
Net Income(TTM)2.06B
Analysts82.4
Price Target163.15 (1.52%)
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 | 25.51 | ||
| Fwd PE | 23.05 | ||
| P/S | 2.43 | ||
| P/FCF | 31.14 | ||
| P/OCF | 21.13 | ||
| P/B | 9.12 | ||
| P/tB | 9.12 | ||
| EV/EBITDA | 16.37 |
EPS(TTM)6.3
EY3.92%
EPS(NY)6.97
Fwd EY4.34%
FCF(TTM)5.16
FCFY3.21%
OCF(TTM)7.61
OCFY4.73%
SpS66.1
BVpS17.63
TBVpS17.63
PEG (NY)82.65
PEG (5Y)3.89
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.