ROSS STORES INC (RSO.DE) Stock Fundamental Analysis
Europe • Frankfurt Stock Exchange • FRA:RSO • US7782961038
157.36 EUR
+1.38 (+0.88%)
Last: Jan 30, 2026, 07:00 PM
Taking everything into account, RSO scores 6 out of 10 in our fundamental rating. RSO was compared to 57 industry peers in the Specialty Retail industry. RSO gets an excellent profitability rating and is at the same time showing great financial health properties. While showing a medium growth rate, RSO is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- In the past year RSO was profitable.
- RSO had a positive operating cash flow in the past year.
- In the past 5 years RSO has always been profitable.
- Each year in the past 5 years RSO had a positive operating cash flow.
1.2 Ratios
- RSO has a Return On Assets of 13.53%. This is amongst the best in the industry. RSO outperforms 89.47% of its industry peers.
- RSO has a Return On Equity of 35.45%. This is amongst the best in the industry. RSO outperforms 89.47% of its industry peers.
- RSO has a better Return On Invested Capital (19.14%) than 89.47% of its industry peers.
- RSO had an Average Return On Invested Capital over the past 3 years of 17.29%. This is significantly above the industry average of 10.25%.
- The last Return On Invested Capital (19.14%) for RSO is above the 3 year average (17.29%), which is a sign of increasing profitability.
| Industry Rank | Sector 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%
1.3 Margins
- RSO has a Profit Margin of 9.47%. This is amongst the best in the industry. RSO outperforms 92.98% of its industry peers.
- In the last couple of years the Profit Margin of RSO has remained more or less at the same level.
- The Operating Margin of RSO (11.91%) is better than 87.72% of its industry peers.
- RSO's Operating Margin has declined in the last couple of years.
- RSO has a Gross Margin of 27.55%. This is in the lower half of the industry: RSO underperforms 66.67% of its industry peers.
- In the last couple of years the Gross Margin of RSO has remained more or less at the same level.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
- RSO has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- Compared to 1 year ago, RSO has less shares outstanding
- RSO has less shares outstanding than it did 5 years ago.
- RSO has a better debt/assets ratio than last year.
2.2 Solvency
- RSO has an Altman-Z score of 6.44. This indicates that RSO is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 6.44, RSO belongs to the top of the industry, outperforming 98.25% of the companies in the same industry.
- RSO 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.
- With an excellent Debt to FCF ratio value of 0.77, RSO belongs to the best of the industry, outperforming 96.49% of the companies in the same industry.
- A Debt/Equity ratio of 0.17 indicates that RSO is not too dependend on debt financing.
- RSO has a Debt to Equity ratio of 0.17. This is amongst the best in the industry. RSO outperforms 91.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.77 | ||
| Altman-Z | 6.44 |
ROIC/WACC2
WACC9.57%
2.3 Liquidity
- A Current Ratio of 1.52 indicates that RSO should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.52, RSO is in the better half of the industry, outperforming 71.93% of the companies in the same industry.
- A Quick Ratio of 0.90 indicates that RSO may have some problems paying its short term obligations.
- With an excellent Quick ratio value of 0.90, RSO belongs to the best of the industry, outperforming 82.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
- RSO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.79%.
- Measured over the past 5 years, RSO 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, RSO shows a small growth in Revenue. The Revenue has grown by 3.71% in the last year.
- The Revenue has been growing slightly by 5.67% on average over the past years.
EPS 1Y (TTM)0.79%
EPS 3Y9.15%
EPS 5Y6.56%
EPS Q2Q%6.76%
Revenue 1Y (TTM)3.71%
Revenue growth 3Y3.76%
Revenue growth 5Y5.67%
Sales Q2Q%10.44%
3.2 Future
- RSO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.11% yearly.
- Based on estimates for the next years, RSO will show a small growth in Revenue. The Revenue will grow by 4.98% on average per year.
EPS Next Y4.44%
EPS Next 2Y7.4%
EPS Next 3Y7.62%
EPS Next 5Y9.11%
Revenue Next Year6.98%
Revenue Next 2Y5.69%
Revenue Next 3Y5.4%
Revenue Next 5Y4.98%
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
- The Price/Earnings ratio is 29.30, which means the current valuation is very expensive for RSO.
- The rest of the industry has a similar Price/Earnings ratio as RSO.
- The average S&P500 Price/Earnings ratio is at 28.32. RSO is around the same levels.
- Based on the Price/Forward Earnings ratio of 25.73, the valuation of RSO can be described as expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of RSO is on the same level as its industry peers.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. RSO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.3 | ||
| Fwd PE | 25.73 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, RSO is valued a bit more expensive than 63.16% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, RSO is valued a bit more expensive than the industry average as 61.40% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.07 | ||
| EV/EBITDA | 18.76 |
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 excellent profitability rating of RSO may justify a higher PE ratio.
PEG (NY)6.6
PEG (5Y)4.47
EPS Next 2Y7.4%
EPS Next 3Y7.62%
5. Dividend
5.1 Amount
- RSO has a yearly dividend return of 0.87%, which is pretty low.
- RSO's Dividend Yield is comparable with the industry average which is at 1.45.
- With a Dividend Yield of 0.87, RSO pays less dividend than the S&P500 average, which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
5.2 History
- The dividend of RSO is nicely growing with an annual growth rate of 7.61%!
Dividend Growth(5Y)7.61%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
- 24.85% of the earnings are spent on dividend by RSO. This is a low number and sustainable payout ratio.
- The dividend of RSO is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP24.85%
EPS Next 2Y7.4%
EPS Next 3Y7.62%
ROSS STORES INC / RSO.DE FAQ
What is the fundamental rating for RSO stock?
ChartMill assigns a fundamental rating of 6 / 10 to RSO.DE.
What is the valuation status for RSO stock?
ChartMill assigns a valuation rating of 2 / 10 to ROSS STORES INC (RSO.DE). This can be considered as Overvalued.
What is the profitability of RSO stock?
ROSS STORES INC (RSO.DE) has a profitability rating of 8 / 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 (RSO.DE) is 29.3 and the Price/Book (PB) ratio is 10.37.
Is the dividend of ROSS STORES INC sustainable?
The dividend rating of ROSS STORES INC (RSO.DE) is 4 / 10 and the dividend payout ratio is 24.85%.