ROSS STORES INC (RSO.DE) Stock Fundamental Analysis
Europe - FRA:RSO - US7782961038 - Common Stock
127.78 EUR
-2.22 (-1.71%)
We assign a fundamental rating of 7 out of 10 to RSO. RSO was compared to 53 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.
In the past year RSO had a positive cash flow from operations.
Each year in the past 5 years RSO has been profitable.
In the past 5 years RSO always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 14.23%, RSO belongs to the best of the industry, outperforming 92.73% of the companies in the same industry.
Looking at the Return On Equity, with a value of 35.98%, RSO belongs to the top of the industry, outperforming 94.55% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 19.36%, RSO belongs to the top of the industry, outperforming 92.73% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for RSO is significantly above the industry average of 10.25%.
The 3 year average ROIC (17.29%) for RSO 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
The Profit Margin of RSO (9.60%) is better than 96.36% of its industry peers.
RSO's Profit Margin has been stable in the last couple of years.
RSO's Operating Margin of 12.00% is amongst the best of the industry. RSO outperforms 90.91% of its industry peers.
In the last couple of years the Operating Margin of RSO has declined.
The Gross Margin of RSO (27.61%) is worse than 63.64% 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 | 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), RSO is creating value.
Compared to 1 year ago, RSO has less shares outstanding
The number of shares outstanding for RSO has been reduced compared to 5 years ago.
RSO has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.02 indicates that RSO is not in any danger for bankruptcy at the moment.
RSO has a Altman-Z score of 6.02. This is amongst the best in the industry. RSO outperforms 94.55% of its industry peers.
RSO 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.
The Debt to FCF ratio of RSO (0.90) is better than 96.36% of its industry peers.
RSO has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
RSO has a Debt to Equity ratio of 0.18. This is amongst the best in the industry. RSO outperforms 92.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 0.9 | ||
| Altman-Z | 6.02 |
ROIC/WACC2.09
WACC9.26%
2.3 Liquidity
RSO has a Current Ratio of 1.58. This is a normal value and indicates that RSO is financially healthy and should not expect problems in meeting its short term obligations.
RSO has a Current ratio of 1.58. This is in the better half of the industry: RSO outperforms 72.73% of its industry peers.
RSO has a Quick Ratio of 1.58. This is a bad value and indicates that RSO is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of RSO (0.98) is better than 78.18% of its industry peers.
RSO 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
RSO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.61%.
RSO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.56% yearly.
The Revenue has been growing slightly by 1.92% in the past 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
Based on estimates for the next years, RSO will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.47% on average per year.
Based on estimates for the next years, RSO will show a small growth in Revenue. The Revenue will grow by 4.87% on average per year.
EPS Next Y0.21%
EPS Next 2Y4.98%
EPS Next 3Y7.41%
EPS Next 5Y8.47%
Revenue Next Year3.88%
Revenue Next 2Y4.43%
Revenue Next 3Y4.66%
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
A Price/Earnings ratio of 23.71 indicates a rather expensive valuation of RSO.
Compared to the rest of the industry, the Price/Earnings ratio of RSO indicates a somewhat cheap valuation: RSO is cheaper than 72.73% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.77, RSO is valued at the same level.
A Price/Forward Earnings ratio of 21.43 indicates a rather expensive valuation of RSO.
The rest of the industry has a similar Price/Forward Earnings ratio as RSO.
When comparing the Price/Forward Earnings ratio of RSO to the average of the S&P500 Index (23.23), we can say RSO is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.71 | ||
| Fwd PE | 21.43 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as RSO.
The rest of the industry has a similar Price/Free Cash Flow ratio as RSO.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.92 | ||
| EV/EBITDA | 15.15 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates RSO does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of RSO may justify a higher PE ratio.
PEG (NY)111.44
PEG (5Y)3.61
EPS Next 2Y4.98%
EPS Next 3Y7.41%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.04%, RSO has a reasonable but not impressive dividend return.
RSO's Dividend Yield is a higher than the industry average which is at 3.56.
Compared to an average S&P500 Dividend Yield of 2.36, RSO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
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
RSO pays out 24.66% of its income as dividend. This is a 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.
DP24.66%
EPS Next 2Y4.98%
EPS Next 3Y7.41%
FRA:RSO (10/10/2025, 7:00:00 PM)
127.78
-2.22 (-1.71%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners94.42%
Inst Owner ChangeN/A
Ins Owners2.08%
Ins Owner ChangeN/A
Market Cap41.56B
Analysts82.4
Price Target138.45 (8.35%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
Yearly Dividend1.26
Dividend Growth(5Y)7.61%
DP24.66%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
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)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.71 | ||
| Fwd PE | 21.43 | ||
| P/S | 2.26 | ||
| P/FCF | 28.92 | ||
| P/OCF | 19.62 | ||
| P/B | 8.47 | ||
| P/tB | 8.47 | ||
| EV/EBITDA | 15.15 |
EPS(TTM)5.39
EY4.22%
EPS(NY)5.96
Fwd EY4.67%
FCF(TTM)4.42
FCFY3.46%
OCF(TTM)6.51
OCFY5.1%
SpS56.59
BVpS15.09
TBVpS15.09
PEG (NY)111.44
PEG (5Y)3.61
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 | 6.02 |
F-Score8
WACC9.26%
ROIC/WACC2.09
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 Y0.21%
EPS Next 2Y4.98%
EPS Next 3Y7.41%
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 2Y4.43%
Revenue Next 3Y4.66%
Revenue Next 5Y4.87%
EBIT growth 1Y1.39%
EBIT growth 3Y3.49%
EBIT growth 5Y3.8%
EBIT Next Year20.21%
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%