ROSS STORES INC (RSO.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:RSO - US7782961038 - Common Stock
151.4 EUR
+12.26 (+8.81%)
Overall RSO gets a fundamental rating of 6 out of 10. We evaluated RSO against 57 industry peers in the Specialty Retail industry. RSO has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. RSO is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year RSO was profitable.
RSO had a positive operating cash flow in the past year.
Each year in the past 5 years RSO has been profitable.
RSO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RSO has a Return On Assets of 14.23%. This is amongst the best in the industry. RSO outperforms 90.57% of its industry peers.
RSO has a better Return On Equity (35.98%) than 92.45% of its industry peers.
RSO's Return On Invested Capital of 19.36% is amongst the best of the industry. RSO outperforms 88.68% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RSO is significantly above the industry average of 11.11%.
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
With an excellent Profit Margin value of 9.60%, RSO belongs to the best of the industry, outperforming 94.34% of the companies in the same industry.
In the last couple of years the Profit Margin of RSO has remained more or less at the same level.
Looking at the Operating Margin, with a value of 12.00%, RSO belongs to the top of the industry, outperforming 88.68% of the companies in the same industry.
RSO's Operating Margin has declined in the last couple of years.
RSO has a worse Gross Margin (27.61%) than 64.15% 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.
The number of shares outstanding for RSO has been reduced compared to 1 year ago.
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
RSO has an Altman-Z score of 6.28. This indicates that RSO is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 6.28, RSO belongs to the best of the industry, outperforming 98.11% of the companies in the same industry.
The Debt to FCF ratio of RSO is 0.90, which is an excellent value as it means it would take RSO, only 0.90 years of fcf income to pay off all of its debts.
RSO has a better Debt to FCF ratio (0.90) than 94.34% 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 90.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 0.9 | ||
| Altman-Z | 6.28 |
ROIC/WACC2.15
WACC9.02%
2.3 Liquidity
A Current Ratio of 1.58 indicates that RSO should not have too much problems paying its short term obligations.
RSO has a better Current ratio (1.58) than 75.47% 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.
Looking at the Quick ratio, with a value of 0.98, RSO belongs to the top of the industry, outperforming 83.02% of the companies in the same industry.
| 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.
RSO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.67% yearly.
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
RSO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.74% yearly.
The Revenue is expected to grow by 4.57% on average over the next years.
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
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
The Price/Earnings ratio is 27.68, which means the current valuation is very expensive for RSO.
Based on the Price/Earnings ratio, RSO is valued a bit cheaper than the industry average as 60.38% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 25.98, RSO is valued at the same level.
RSO is valuated rather expensively with a Price/Forward Earnings ratio of 24.95.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RSO is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of RSO to the average of the S&P500 Index (35.79), we can say RSO is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.68 | ||
| Fwd PE | 24.95 |
4.2 Price Multiples
RSO's Enterprise Value to EBITDA ratio is in line with the industry average.
RSO's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.79 | ||
| EV/EBITDA | 16.35 |
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.
RSO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)54.23
PEG (5Y)4.22
EPS Next 2Y5.17%
EPS Next 3Y6.44%
5. Dividend
5.1 Amount
RSO has a Yearly Dividend Yield of 1.01%.
Compared to an average industry Dividend Yield of 3.43, RSO pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.01, RSO pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
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.
RSO's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP24.66%
EPS Next 2Y5.17%
EPS Next 3Y6.44%
FRA:RSO (11/24/2025, 7:00:00 PM)
151.4
+12.26 (+8.81%)
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 Cap49.24B
Revenue(TTM)21.50B
Net Income(TTM)2.06B
Analysts81.54
Price Target148.2 (-2.11%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
Yearly Dividend1.28
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)7.04%
PT rev (3m)N/A
EPS NQ rev (1m)2%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.3%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)0.73%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.47%
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.68 | ||
| Fwd PE | 24.95 | ||
| P/S | 2.64 | ||
| P/FCF | 33.79 | ||
| P/OCF | 22.93 | ||
| P/B | 9.9 | ||
| P/tB | 9.9 | ||
| EV/EBITDA | 16.35 |
EPS(TTM)5.47
EY3.61%
EPS(NY)6.07
Fwd EY4.01%
FCF(TTM)4.48
FCFY2.96%
OCF(TTM)6.6
OCFY4.36%
SpS57.38
BVpS15.3
TBVpS15.3
PEG (NY)54.23
PEG (5Y)4.22
Graham Number43.39
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 | 6.28 |
F-Score8
WACC9.02%
ROIC/WACC2.15
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 / 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 of ROSS STORES INC (RSO.DE) stock?
ChartMill assigns a valuation rating of 3 / 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.
Can you provide the PE and PB ratios for RSO stock?
The Price/Earnings (PE) ratio for ROSS STORES INC (RSO.DE) is 27.68 and the Price/Book (PB) ratio is 9.9.
How sustainable is the dividend of ROSS STORES INC (RSO.DE) stock?
The dividend rating of ROSS STORES INC (RSO.DE) is 5 / 10 and the dividend payout ratio is 24.66%.