ROSS STORES INC (ROST) Stock Fundamental Analysis
USA - NASDAQ:ROST - US7782961038 - Common Stock
160.455 USD
-1.37 (-0.85%)
Taking everything into account, ROST scores 7 out of 10 in our fundamental rating. ROST was compared to 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year ROST was profitable.
In the past year ROST had a positive cash flow from operations.
Each year in the past 5 years ROST has been profitable.
ROST had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ROST has a Return On Assets of 14.23%. This is amongst the best in the industry. ROST outperforms 88.52% of its industry peers.
ROST has a better Return On Equity (35.98%) than 88.52% of its industry peers.
With an excellent Return On Invested Capital value of 19.36%, ROST belongs to the best of the industry, outperforming 88.52% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ROST is significantly above the industry average of 11.80%.
The 3 year average ROIC (17.29%) for ROST is below the current ROIC(19.36%), indicating increased profibility in the last year.
| 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 88.52% of its industry peers.
In the last couple of years the Profit Margin of ROST has remained more or less at the same level.
The Operating Margin of ROST (12.00%) is better than 86.07% of its industry peers.
In the last couple of years the Operating Margin of ROST has declined.
ROST's Gross Margin of 27.61% is on the low side compared to the rest of the industry. ROST is outperformed by 69.67% 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.
The number of shares outstanding for ROST has been reduced compared to 1 year ago.
The number of shares outstanding for ROST has been reduced compared to 5 years ago.
ROST has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.30 indicates that ROST is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.30, ROST belongs to the top of the industry, outperforming 91.80% of the companies in the same industry.
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.
With an excellent Debt to FCF ratio value of 0.90, ROST belongs to the best of the industry, outperforming 81.15% of the companies in the same industry.
A Debt/Equity ratio of 0.18 indicates that ROST is not too dependend on debt financing.
The Debt to Equity ratio of ROST (0.18) is better than 64.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 0.9 | ||
| Altman-Z | 6.3 |
ROIC/WACC2.13
WACC9.11%
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.
ROST has a Current ratio of 1.58. This is in the better half of the industry: ROST outperforms 66.39% 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.
The Quick ratio of ROST (0.98) is better than 73.77% 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.
The Revenue has been growing slightly by 1.92% in the past year.
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
ROST is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.74% yearly.
ROST is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.57% yearly.
EPS Next Y0.51%
EPS Next 2Y5.17%
EPS Next 3Y6.44%
EPS Next 5Y8.74%
Revenue Next Year4.36%
Revenue Next 2Y4.53%
Revenue Next 3Y4.72%
Revenue Next 5Y4.57%
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
A Price/Earnings ratio of 25.47 indicates a quite expensive valuation of ROST.
65.57% of the companies in the same industry are more expensive than ROST, based on the Price/Earnings ratio.
ROST's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.91.
The Price/Forward Earnings ratio is 22.96, which indicates a rather expensive current valuation of ROST.
The rest of the industry has a similar Price/Forward Earnings ratio as ROST.
ROST's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 34.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.47 | ||
| Fwd PE | 22.96 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ROST.
Based on the Price/Free Cash Flow ratio, ROST is valued a bit cheaper than 60.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.09 | ||
| EV/EBITDA | 16.49 |
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)49.91
PEG (5Y)3.88
EPS Next 2Y5.17%
EPS Next 3Y6.44%
5. Dividend
5.1 Amount
ROST has a Yearly Dividend Yield of 1.01%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.62, ROST pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, ROST's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
5.2 History
The dividend of ROST is nicely growing with an annual growth rate of 7.61%!
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 2Y5.17%
EPS Next 3Y6.44%
NASDAQ:ROST (11/14/2025, 9:58:06 AM)
160.455
-1.37 (-0.85%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners94.42%
Inst Owner Change-2.16%
Ins Owners2.08%
Ins Owner Change-3.11%
Market Cap52.18B
Revenue(TTM)21.50B
Net Income(TTM)2.06B
Analysts81.54
Price Target167.74 (4.54%)
Short Float %2.16%
Short Ratio2.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
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)2.82%
PT rev (3m)8.56%
EPS NQ rev (1m)1.45%
EPS NQ rev (3m)-5.2%
EPS NY rev (1m)0.3%
EPS NY rev (3m)0.36%
Revenue NQ rev (1m)1.04%
Revenue NQ rev (3m)1.38%
Revenue NY rev (1m)0.47%
Revenue NY rev (3m)0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.47 | ||
| Fwd PE | 22.96 | ||
| P/S | 2.43 | ||
| P/FCF | 31.09 | ||
| P/OCF | 21.09 | ||
| P/B | 9.1 | ||
| P/tB | 9.1 | ||
| EV/EBITDA | 16.49 |
EPS(TTM)6.3
EY3.93%
EPS(NY)6.99
Fwd EY4.36%
FCF(TTM)5.16
FCFY3.22%
OCF(TTM)7.61
OCFY4.74%
SpS66.1
BVpS17.63
TBVpS17.63
PEG (NY)49.91
PEG (5Y)3.88
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 | 6.3 |
F-Score8
WACC9.11%
ROIC/WACC2.13
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 Y0.51%
EPS Next 2Y5.17%
EPS Next 3Y6.44%
EPS Next 5Y8.74%
Revenue 1Y (TTM)1.92%
Revenue growth 3Y3.76%
Revenue growth 5Y5.67%
Sales Q2Q%4.57%
Revenue Next Year4.36%
Revenue Next 2Y4.53%
Revenue Next 3Y4.72%
Revenue Next 5Y4.57%
EBIT growth 1Y1.39%
EBIT growth 3Y3.49%
EBIT growth 5Y3.8%
EBIT Next Year20.21%
EBIT Next 3Y10.17%
EBIT Next 5Y10.56%
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 0.51% in the next year.