ROSS STORES INC (ROST)
US7782961038 - Common Stock
Taking everything into account, ROST scores 6 out of 10 in our fundamental rating. ROST was compared to 126 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. While showing a medium growth rate, ROST is valued expensive at the moment. With these ratings, ROST could be worth investigating further for quality investing!.
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.
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 has a better Return On Assets (13.11%) than 90.48% of its industry peers.
ROST's Return On Equity of 38.48% is amongst the best of the industry. ROST outperforms 88.10% of its industry peers.
Looking at the Return On Invested Capital, with a value of 17.33%, ROST belongs to the top of the industry, outperforming 86.51% 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 13.99%.
The 3 year average ROIC (17.20%) for ROST is below the current ROIC(17.33%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.11% | ||
| ROE | 38.48% | ||
| ROIC | 17.33% |
ROA(3y)12.34%
ROA(5y)11.09%
ROE(3y)38.72%
ROE(5y)33.64%
ROIC(3y)17.2%
ROIC(5y)15.97%
1.3 Margins
With an excellent Profit Margin value of 9.20%, ROST belongs to the best of the industry, outperforming 89.68% of the companies in the same industry.
ROST's Profit Margin has declined in the last couple of years.
ROST has a better Operating Margin (11.32%) than 86.51% of its industry peers.
In the last couple of years the Operating Margin of ROST has declined.
With a Gross Margin value of 27.36%, ROST is not doing good in the industry: 70.63% of the companies in the same industry are doing better.
ROST's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.32% | ||
| PM (TTM) | 9.2% | ||
| GM | 27.36% |
OM growth 3Y48.89%
OM growth 5Y-3.63%
PM growth 3Y138.48%
PM growth 5Y-2.78%
GM growth 3Y8.39%
GM growth 5Y-0.75%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ROST is creating value.
ROST has less shares outstanding than it did 1 year ago.
ROST has less shares outstanding than it did 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 5.34. This indicates that ROST is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 5.34, ROST belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
ROST has a debt to FCF ratio of 1.40. This is a very positive value and a sign of high solvency as it would only need 1.40 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 1.40, ROST is doing good in the industry, outperforming 76.19% of the companies in the same industry.
ROST has a Debt/Equity ratio of 0.45. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.45, ROST perfoms like the industry average, outperforming 51.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 1.4 | ||
| Altman-Z | 5.34 |
ROIC/WACC1.95
WACC8.91%
2.3 Liquidity
ROST has a Current Ratio of 1.77. This is a normal value and indicates that ROST is financially healthy and should not expect problems in meeting its short term obligations.
ROST's Current ratio of 1.77 is fine compared to the rest of the industry. ROST outperforms 68.25% of its industry peers.
A Quick Ratio of 1.24 indicates that ROST should not have too much problems paying its short term obligations.
ROST has a Quick ratio of 1.24. This is in the better half of the industry: ROST outperforms 76.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 28.41% over the past year.
The Earnings Per Share has been growing slightly by 6.81% on average over the past years.
Looking at the last year, ROST shows a quite strong growth in Revenue. The Revenue has grown by 8.99% in the last year.
Measured over the past years, ROST shows a small growth in Revenue. The Revenue has been growing by 6.34% on average per year.
EPS 1Y (TTM)28.41%
EPS 3Y84.87%
EPS 5Y6.81%
EPS growth Q2Q38.93%
Revenue 1Y (TTM)8.99%
Revenue growth 3Y17.59%
Revenue growth 5Y6.34%
Revenue growth Q2Q15.5%
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 10.89% yearly.
The Revenue is expected to grow by 5.46% on average over the next years.
EPS Next Y8.99%
EPS Next 2Y9.68%
EPS Next 3Y9.72%
EPS Next 5Y10.89%
Revenue Next Year5.16%
Revenue Next 2Y5.52%
Revenue Next 3Y5.83%
Revenue Next 5Y5.46%
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
Based on the Price/Earnings ratio of 23.29, the valuation of ROST can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as ROST.
When comparing the Price/Earnings ratio of ROST to the average of the S&P500 Index (24.67), we can say ROST is valued inline with the index average.
A Price/Forward Earnings ratio of 21.37 indicates a rather expensive 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 21.02, ROST is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.29 | ||
| Fwd PE | 21.37 |
4.2 Price Multiples
ROST's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as ROST.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.79 | ||
| EV/EBITDA | 15.04 |
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 decent profitability rating of ROST may justify a higher PE ratio.
PEG (NY)2.59
PEG (5Y)3.42
EPS Next 2Y9.68%
EPS Next 3Y9.72%
5. Dividend
5.1 Amount
ROST has a Yearly Dividend Yield of 1.11%. Purely for dividend investing, there may be better candidates out there.
ROST's Dividend Yield is a higher than the industry average which is at 3.49.
With a Dividend Yield of 1.11, ROST pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
5.2 History
The dividend of ROST is nicely growing with an annual growth rate of 8.27%!
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)8.27%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
ROST pays out 24.26% of its income as dividend. This is a sustainable payout ratio.
The dividend of ROST is growing, but earnings are growing more, so the dividend growth is sustainable.
DP24.26%
EPS Next 2Y9.68%
EPS Next 3Y9.72%
ROSS STORES INC
NASDAQ:ROST (5/1/2024, 8:33:06 AM)
129.49
-0.06 (-0.05%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap43.42B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.29 | ||
| Fwd PE | 21.37 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.59
PEG (5Y)3.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.11% | ||
| ROE | 38.48% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 11.32% | ||
| PM (TTM) | 9.2% | ||
| GM | 27.36% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.24 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)28.41%
EPS 3Y84.87%
EPS 5Y
EPS growth Q2Q
EPS Next Y8.99%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.99%
Revenue growth 3Y17.59%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y