ROSS STORES INC (ROST) Stock Fundamental Analysis
USA - NASDAQ:ROST - US7782961038 - Common Stock
147.9 USD
-3.2 (-2.12%)
147.52 USD
-0.38 (-0.26%)
ROST gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 123 industry peers in the Specialty Retail industry. ROST has an excellent profitability rating, but there are some minor concerns on its financial health. 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.
ROST had positive earnings in each of the past 5 years.
Each year in the past 5 years ROST had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 14.23%, ROST belongs to the top of the industry, outperforming 88.62% of the companies in the same industry.
ROST has a better Return On Equity (35.98%) than 89.43% of its industry peers.
ROST's Return On Invested Capital of 19.36% is amongst the best of the industry. ROST outperforms 88.62% 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 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
With an excellent Profit Margin value of 9.60%, ROST belongs to the best of the industry, outperforming 88.62% of the companies in the same industry.
In the last couple of years the Profit Margin of ROST has remained more or less at the same level.
ROST's Operating Margin of 12.00% is amongst the best of the industry. ROST outperforms 87.80% of its industry peers.
In the last couple of years the Operating Margin of ROST has declined.
The Gross Margin of ROST (27.61%) is worse than 69.92% of its industry peers.
ROST's Gross Margin has been stable in the last couple of years.
| 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.
The debt/assets ratio for ROST has been reduced compared to a year ago.
2.2 Solvency
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.
ROST has a Debt to FCF ratio of 0.90. This is amongst the best in the industry. ROST outperforms 80.49% of its industry peers.
A Debt/Equity ratio of 0.18 indicates that ROST is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.18, ROST is doing good in the industry, outperforming 62.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 0.9 | ||
| Altman-Z | N/A |
ROIC/WACC2.07
WACC9.37%
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 68.29% 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 77.24% of its industry peers.
| 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.
Measured over the past 5 years, ROST shows a small growth in Earnings Per Share. The EPS has been growing by 6.56% on average per year.
Looking at the last year, ROST shows a small growth in Revenue. The Revenue has grown by 1.92% in the last 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.
The Revenue is expected to grow by 4.87% on average over the next years.
EPS Next Y-0.05%
EPS Next 2Y4.79%
EPS Next 3Y6.16%
EPS Next 5Y8.47%
Revenue Next Year3.88%
Revenue Next 2Y4.44%
Revenue Next 3Y4.57%
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.
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
With a Price/Earnings ratio of 23.48, ROST is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of ROST indicates a somewhat cheap valuation: ROST is cheaper than 67.48% of the companies listed in the same industry.
ROST is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 21.31, the valuation of ROST can be described as rather expensive.
ROST's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.73, ROST is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.48 | ||
| Fwd PE | 21.31 |
4.2 Price Multiples
ROST's Enterprise Value to EBITDA is on the same level as the industry average.
ROST's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ROST is cheaper than 65.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.66 | ||
| EV/EBITDA | 15 |
4.3 Compensation for Growth
The excellent profitability rating of ROST may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.58
EPS Next 2Y4.79%
EPS Next 3Y6.16%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.07%, ROST has a reasonable but not impressive dividend return.
ROST's Dividend Yield is a higher than the industry average which is at 5.26.
With a Dividend Yield of 1.07, ROST pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.07% |
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 2Y4.79%
EPS Next 3Y6.16%
147.9
-3.2 (-2.12%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners95.81%
Inst Owner Change-1%
Ins Owners2.09%
Ins Owner Change4.69%
Market Cap48.10B
Analysts82.4
Price Target162.13 (9.62%)
Short Float %1.68%
Short Ratio1.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.07% |
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)4.93%
PT rev (3m)4.3%
EPS NQ rev (1m)-6.38%
EPS NQ rev (3m)-6.12%
EPS NY rev (1m)-0.2%
EPS NY rev (3m)-3.52%
Revenue NQ rev (1m)0.33%
Revenue NQ rev (3m)0.31%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.48 | ||
| Fwd PE | 21.31 | ||
| P/S | 2.24 | ||
| P/FCF | 28.66 | ||
| P/OCF | 19.44 | ||
| P/B | 8.39 | ||
| P/tB | 8.39 | ||
| EV/EBITDA | 15 |
EPS(TTM)6.3
EY4.26%
EPS(NY)6.94
Fwd EY4.69%
FCF(TTM)5.16
FCFY3.49%
OCF(TTM)7.61
OCFY5.14%
SpS66.1
BVpS17.63
TBVpS17.63
PEG (NY)N/A
PEG (5Y)3.58
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 | N/A |
F-Score8
WACC9.37%
ROIC/WACC2.07
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 Y-0.05%
EPS Next 2Y4.79%
EPS Next 3Y6.16%
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 2Y4.44%
Revenue Next 3Y4.57%
Revenue Next 5Y4.87%
EBIT growth 1Y1.39%
EBIT growth 3Y3.49%
EBIT growth 5Y3.8%
EBIT Next Year19.78%
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%