ROSS STORES INC (ROST) Fundamental Analysis & Valuation

NASDAQ:ROST • US7782961038

Current stock price

211.19 USD
+0.53 (+0.25%)
At close:
211.19 USD
0 (0%)
After Hours:

This ROST fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. ROST Profitability Analysis

1.1 Basic Checks

  • In the past year ROST was profitable.
  • In the past year ROST had a positive cash flow from operations.
  • ROST had positive earnings in 4 of the past 5 years.
  • Of the past 5 years ROST 4 years had a positive operating cash flow.
ROST Yearly Net Income VS EBIT VS OCF VS FCFROST Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B

1.2 Ratios

  • The Return On Assets of ROST (13.53%) is better than 90.32% of its industry peers.
  • With an excellent Return On Equity value of 35.45%, ROST belongs to the best of the industry, outperforming 87.90% of the companies in the same industry.
  • With an excellent Return On Invested Capital value of 19.14%, ROST belongs to the best of the industry, outperforming 87.90% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for ROST is above the industry average of 13.55%.
  • The 3 year average ROIC (17.29%) for ROST is below the current ROIC(19.14%), indicating increased profibility in the last year.
Industry RankSector 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%
ROST Yearly ROA, ROE, ROICROST Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

1.3 Margins

  • ROST has a Profit Margin of 9.47%. This is amongst the best in the industry. ROST outperforms 88.71% of its industry peers.
  • ROST's Profit Margin has been stable in the last couple of years.
  • ROST has a better Operating Margin (11.91%) than 86.29% of its industry peers.
  • In the last couple of years the Operating Margin of ROST has declined.
  • With a Gross Margin value of 27.55%, ROST is not doing good in the industry: 70.16% of the companies in the same industry are doing better.
  • ROST's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
ROST Yearly Profit, Operating, Gross MarginsROST Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20 25

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7

2. ROST Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ROST is creating value.
  • ROST has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
ROST Yearly Shares OutstandingROST Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M
ROST Yearly Total Debt VS Total AssetsROST Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B

2.2 Solvency

  • An Altman-Z score of 6.89 indicates that ROST is not in any danger for bankruptcy at the moment.
  • ROST's Altman-Z score of 6.89 is amongst the best of the industry. ROST outperforms 95.16% of its industry peers.
  • ROST has a debt to FCF ratio of 0.77. This is a very positive value and a sign of high solvency as it would only need 0.77 years to pay back of all of its debts.
  • The Debt to FCF ratio of ROST (0.77) is better than 82.26% 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.
  • ROST has a better Debt to Equity ratio (0.17) than 64.52% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.17
Debt/FCF 0.77
Altman-Z 6.89
ROIC/WACC1.97
WACC9.71%
ROST Yearly LT Debt VS Equity VS FCFROST Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B 5B

2.3 Liquidity

  • A Current Ratio of 1.52 indicates that ROST should not have too much problems paying its short term obligations.
  • With a decent Current ratio value of 1.52, ROST is doing good in the industry, outperforming 62.90% of the companies in the same industry.
  • A Quick Ratio of 0.90 indicates that ROST may have some problems paying its short term obligations.
  • ROST's Quick ratio of 0.90 is fine compared to the rest of the industry. ROST outperforms 70.16% of its industry peers.
Industry RankSector Rank
Current Ratio 1.52
Quick Ratio 0.9
ROST Yearly Current Assets VS Current LiabilitesROST Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. ROST Growth Analysis

3.1 Past

  • ROST shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.59%.
  • Measured over the past years, ROST shows a very strong growth in Earnings Per Share. The EPS has been growing by 49.67% on average per year.
EPS 1Y (TTM)4.59%
EPS 3Y15.14%
EPS 5Y49.67%
EPS Q2Q%11.73%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%12.23%

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 11.24% on average per year.
  • The Revenue is expected to grow by 6.28% on average over the next years.
EPS Next Y11.22%
EPS Next 2Y9.82%
EPS Next 3Y10.74%
EPS Next 5Y11.24%
Revenue Next Year5.61%
Revenue Next 2Y5.19%
Revenue Next 3Y6.54%
Revenue Next 5Y6.28%

3.3 Evolution

  • The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
ROST Yearly Revenue VS EstimatesROST Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 10B 20B 30B
ROST Yearly EPS VS EstimatesROST Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5 10 15

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2

4. ROST Valuation Analysis

4.1 Price/Earnings Ratio

  • ROST is valuated quite expensively with a Price/Earnings ratio of 31.95.
  • ROST's Price/Earnings is on the same level as the industry average.
  • Compared to an average S&P500 Price/Earnings ratio of 25.73, ROST is valued a bit more expensive.
  • The Price/Forward Earnings ratio is 28.73, which means the current valuation is very expensive for ROST.
  • ROST's Price/Forward Earnings ratio is in line with the industry average.
  • ROST's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 23.72.
Industry RankSector Rank
PE 31.95
Fwd PE 28.73
ROST Price Earnings VS Forward Price EarningsROST Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • ROST's Enterprise Value to EBITDA ratio is in line with the industry average.
  • ROST's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 34.79
EV/EBITDA 21.05
ROST Per share dataROST EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • ROST has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.85
PEG (5Y)0.64
EPS Next 2Y9.82%
EPS Next 3Y10.74%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. ROST Dividend Analysis

5.1 Amount

  • ROST has a yearly dividend return of 0.85%, which is pretty low.
  • ROST's Dividend Yield is a higher than the industry average which is at 2.41.
  • Compared to an average S&P500 Dividend Yield of 1.91, ROST's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.85%

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
ROST Yearly Dividends per shareROST Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5

5.3 Sustainability

  • 24.85% of the earnings are spent on dividend by ROST. This is a low number and sustainable payout ratio.
  • The dividend of ROST is growing, but earnings are growing more, so the dividend growth is sustainable.
DP24.85%
EPS Next 2Y9.82%
EPS Next 3Y10.74%
ROST Yearly Income VS Free CF VS DividendROST Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B
ROST Dividend Payout.ROST Dividend Payout, showing the Payout Ratio.ROST Dividend Payout.PayoutRetained Earnings

More info and screens

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ROST Fundamentals: All Metrics, Ratios and Statistics

ROSS STORES INC

NASDAQ:ROST (3/20/2026, 4:10:50 PM)

After market: 211.19 0 (0%)

211.19

+0.53 (+0.25%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)03-03
Earnings (Next)05-20
Inst Owners93.39%
Inst Owner Change-0.3%
Ins Owners2.09%
Ins Owner Change0.31%
Market Cap68.31B
Revenue(TTM)N/A
Net Income(TTM)2.09B
Analysts81.6
Price Target202.67 (-4.03%)
Short Float %2.24%
Short Ratio2.72
Dividend
Industry RankSector Rank
Dividend Yield 0.85%
Yearly Dividend1.47
Dividend Growth(5Y)7.61%
DP24.85%
Div Incr Years4
Div Non Decr Years4
Ex-Date03-13
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)4.12%
PT rev (3m)8.28%
EPS NQ rev (1m)1.89%
EPS NQ rev (3m)2.86%
EPS NY rev (1m)0.58%
EPS NY rev (3m)0.72%
Revenue NQ rev (1m)0.72%
Revenue NQ rev (3m)0.92%
Revenue NY rev (1m)-0.81%
Revenue NY rev (3m)0.27%
Valuation
Industry RankSector Rank
PE 31.95
Fwd PE 28.73
P/S 3.1
P/FCF 34.79
P/OCF 24.5
P/B 11.61
P/tB 11.61
EV/EBITDA 21.05
EPS(TTM)6.61
EY3.13%
EPS(NY)7.35
Fwd EY3.48%
FCF(TTM)6.07
FCFY2.87%
OCF(TTM)8.62
OCFY4.08%
SpS68.1
BVpS18.19
TBVpS18.19
PEG (NY)2.85
PEG (5Y)0.64
Graham Number52.02
Profitability
Industry RankSector 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 RankSector 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 6.89
F-Score6
WACC9.71%
ROIC/WACC1.97
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)4.59%
EPS 3Y15.14%
EPS 5Y49.67%
EPS Q2Q%11.73%
EPS Next Y11.22%
EPS Next 2Y9.82%
EPS Next 3Y10.74%
EPS Next 5Y11.24%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%12.23%
Revenue Next Year5.61%
Revenue Next 2Y5.19%
Revenue Next 3Y6.54%
Revenue Next 5Y6.28%
EBIT growth 1Y0.99%
EBIT growth 3Y3.49%
EBIT growth 5Y3.8%
EBIT Next Year25.12%
EBIT Next 3Y12.47%
EBIT Next 5Y11.43%
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 Fundamental Analysis FAQ

What is the ChartMill fundamental rating of ROSS STORES INC (ROST) stock?

ChartMill assigns a fundamental rating of 5 / 10 to ROST.


What is the valuation status of ROSS STORES INC (ROST) stock?

ChartMill assigns a valuation rating of 2 / 10 to ROSS STORES INC (ROST). This can be considered as Overvalued.


How profitable is ROSS STORES INC (ROST) stock?

ROSS STORES INC (ROST) has a profitability rating of 7 / 10.


What is the valuation of ROSS STORES INC based on its PE and PB ratios?

The Price/Earnings (PE) ratio for ROSS STORES INC (ROST) is 31.95 and the Price/Book (PB) ratio is 11.61.


Is the dividend of ROSS STORES INC sustainable?

The dividend rating of ROSS STORES INC (ROST) is 5 / 10 and the dividend payout ratio is 24.85%.