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Ross Stores

Nasdaq:ROST
Snowflake Description

Outstanding track record with excellent balance sheet and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ROST
Nasdaq
$33B
Market Cap
  1. Home
  2. US
  3. Retail
Company description

Ross Stores, Inc., together with its subsidiaries, operates off-price retail apparel and home fashion stores under the Ross Dress for Less and dd’s DISCOUNTS brands in the United States. The last earnings update was 78 days ago. More info.


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ROST Share Price and Events
Price Volatility
ROST
Industry
5yr Volatility vs Market

Value

 Is Ross Stores undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Ross Stores to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Ross Stores.

NasdaqGS:ROST Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 24 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.6%
Perpetual Growth Rate 10-Year US Government Bond Rate 3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:ROST
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 3%
Equity Risk Premium S&P Global 7.1%
Specialty Retail Unlevered Beta Simply Wall St/ S&P Global 0.77
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.774 (1 + (1- 21%) (1.22%))
0.781
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.95% + (0.8 * 7.05%)
8.59%

Discounted Cash Flow Calculation for NasdaqGS:ROST using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Ross Stores is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:ROST DCF 1st Stage: Next 5 year cash flow forecast
2018 2019 2020 2021 2022
Levered FCF (USD, Millions) 1,278.27 1,545.44 1,653.93 1,886.80 1,952.00
Source Analyst x9 Analyst x7 Analyst x7 Analyst x4 Analyst x2
Present Value
Discounted (@ 8.59%)
1,177.15 1,310.61 1,291.66 1,356.96 1,292.80
Present value of next 5 years cash flows $6,429
NasdaqGS:ROST DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2022 × (1 + g) ÷ (Discount Rate – g)
= $1,952 × (1 + 2.95%) ÷ (8.59% – 2.95%)
$35,631
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= $35,631 ÷ (1 + 8.59%)5
$23,598
NasdaqGS:ROST Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= $6,429 + $23,598
$30,027
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $30,027 / 377
$79.75
NasdaqGS:ROST Discount to Share Price
Calculation Result
Value per share (USD) From above. $79.75
Current discount Discount to share price of $86.59
= -1 x ($86.59 - $79.75) / $79.75
-8.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Ross Stores is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Ross Stores's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Ross Stores's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:ROST PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings () in USD $3.86
NasdaqGS:ROST Share Price ** NasdaqGS (2018-07-20) in USD $86.59
United States of America Specialty Retail Industry PE Ratio Median Figure of 136 Publicly-Listed Specialty Retail Companies 19.9x
United States of America Market PE Ratio Median Figure of 7,819 Publicly-Listed Companies 18.37x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Ross Stores.

NasdaqGS:ROST PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:ROST Share Price ÷ EPS (both in USD)

= 86.59 ÷ 3.86

22.42x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ross Stores is overvalued based on earnings compared to the US Specialty Retail industry average.
  • Ross Stores is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Ross Stores's expected growth come at a high price?
Raw Data
NasdaqGS:ROST PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 22.42x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 24 Analysts
8.1%per year
United States of America Specialty Retail Industry PEG Ratio Median Figure of 124 Publicly-Listed Specialty Retail Companies 1.71x
United States of America Market PEG Ratio Median Figure of 5,913 Publicly-Listed Companies 1.6x

*Line of best fit is calculated by linear regression .

NasdaqGS:ROST PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 22.42x ÷ 8.1%

2.76x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ross Stores is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Ross Stores's assets?
Raw Data
NasdaqGS:ROST PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings () in USD $8.31
NasdaqGS:ROST Share Price * NasdaqGS (2018-07-20) in USD $86.59
United States of America Specialty Retail Industry PB Ratio Median Figure of 189 Publicly-Listed Specialty Retail Companies 1.84x
United States of America Market PB Ratio Median Figure of 13,249 Publicly-Listed Companies 1.73x
NasdaqGS:ROST PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:ROST Share Price ÷ Book Value per Share (both in USD)

= 86.59 ÷ 8.31

10.42x

* Primary Listing of Ross Stores.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ross Stores is overvalued based on assets compared to the US Specialty Retail industry average.
X
Value checks
We assess Ross Stores's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Specialty Retail industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Specialty Retail industry average (and greater than 0)? (1 check)
  5. Ross Stores has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Ross Stores expected to perform in the next 1 to 3 years based on estimates from 24 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
8.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Ross Stores expected to grow at an attractive rate?
  • Ross Stores's earnings growth is expected to exceed the low risk savings rate of 3%.
Growth vs Market Checks
  • Ross Stores's earnings growth is positive but not above the United States of America market average.
  • Ross Stores's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:ROST Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:ROST Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 24 Analysts 8.1%
NasdaqGS:ROST Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 24 Analysts 6%
United States of America Specialty Retail Industry Earnings Growth Rate Market Cap Weighted Average 11.3%
United States of America Specialty Retail Industry Revenue Growth Rate Market Cap Weighted Average 6.2%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 12.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 6.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:ROST Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 24 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:ROST Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-01-31 18,924 2,757 2,137 2
2022-01-31 17,865 2,499 1,986 2
2021-01-31 16,835 2,386 1,776 9
2020-01-31 15,758 2,105 1,624 24
2019-01-31 14,855 1,994 1,511 23
NasdaqGS:ROST Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-05-05 14,417 1,632 1,460
2018-02-03 14,135 1,681 1,363
2017-10-28 13,577 1,695 1,213
2017-07-29 13,335 1,577 1,183
2017-04-29 13,084 1,611 1,148
2017-01-28 12,867 1,559 1,118
2016-10-29 12,607 1,593 1,081
2016-07-30 12,303 1,515 1,052
2016-04-30 12,091 1,381 1,029
2016-01-30 11,940 1,326 1,021
2015-10-31 11,722 1,153 1,005
2015-08-01 11,538 1,221 982

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Ross Stores's earnings are expected to grow by 8.1% yearly, however this is not considered high growth (20% yearly).
  • Ross Stores's revenue is expected to grow by 6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:ROST Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 24 Analyst Estimates (S&P Global) See Below

All data from Ross Stores Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:ROST Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-01-31 6.17 6.17 6.17 1.00
2022-01-31 5.56 5.56 5.56 1.00
2021-01-31 4.97 5.15 4.80 6.00
2020-01-31 4.47 4.62 4.25 17.00
2019-01-31 4.05 4.14 3.94 17.00
NasdaqGS:ROST Past Financials Data
Date (Data in USD Millions) EPS *
2018-05-05 3.86
2018-02-03 3.58
2017-10-28 3.16
2017-07-29 3.05
2017-04-29 2.95
2017-01-28 2.85
2016-10-29 2.74
2016-07-30 2.65
2016-04-30 2.57
2016-01-30 2.53
2015-10-31 2.48
2015-08-01 2.40

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Ross Stores is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
X
Future performance checks
We assess Ross Stores's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Ross Stores has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Ross Stores performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Ross Stores's growth in the last year to its industry (Specialty Retail).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Ross Stores's year on year earnings growth rate has been positive over the past 5 years.
  • Ross Stores's 1-year earnings growth exceeds its 5-year average (26.9% vs 10.7%)
  • Ross Stores's earnings growth has exceeded the US Specialty Retail industry average in the past year (26.9% vs 4.1%).
Earnings and Revenue History
Ross Stores's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Ross Stores Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:ROST Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-05-05 14,416.92 1,459.99 2,625.70
2018-02-03 14,134.73 1,362.75 2,576.10
2017-10-28 13,577.08 1,212.57 2,489.39
2017-07-29 13,334.88 1,182.67 2,462.27
2017-04-29 13,084.19 1,148.04 2,433.50
2017-01-28 12,866.76 1,117.65 2,395.61
2016-10-29 12,607.33 1,081.25 2,320.68
2016-07-30 12,303.49 1,052.36 2,273.87
2016-04-30 12,090.85 1,029.09 2,239.58
2016-01-30 11,940.00 1,020.66 2,211.96
2015-10-31 11,721.97 1,005.03 2,170.12
2015-08-01 11,537.94 982.09 2,136.77
2015-05-02 11,299.23 963.02 2,096.77
2015-01-31 11,041.68 924.72 2,067.27
2014-11-01 10,750.02 894.15 2,021.27
2014-08-02 10,549.32 873.05 1,993.13
2014-05-03 10,371.03 846.61 1,979.10
2014-02-01 10,230.35 837.30 1,958.17
2013-11-02 10,249.96 855.95 1,921.62
2013-08-03 10,114.56 843.86 1,897.75
2013-05-04 9,904.14 812.76 1,868.64
2013-02-02 9,721.07 786.76 1,844.49
2012-10-27 9,358.30 742.11 1,389.68
2012-07-28 9,142.00 726.56 1,363.92
2012-04-28 8,890.56 692.81 1,332.72
2012-01-28 8,608.29 657.17 1,684.07
2011-10-29 8,355.66 627.01 1,281.90
2011-07-30 8,183.55 604.42 1,261.95

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Ross Stores made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%).
  • Ross Stores used its assets more efficiently than the US Specialty Retail industry average last year based on Return on Assets.
  • Ross Stores has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Ross Stores's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Specialty Retail industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Ross Stores has a total score of 6/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Ross Stores's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Ross Stores's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Ross Stores is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Ross Stores's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Ross Stores's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 8.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Ross Stores Company Filings, last reported 2 months ago.

NasdaqGS:ROST Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-05-05 3,130.29 397.09 1,302.84
2018-02-03 3,049.31 396.97 1,290.81
2017-10-28 2,858.52 396.85 1,144.69
2017-07-29 2,839.88 396.73 1,150.93
2017-04-29 2,777.75 396.61 1,244.22
2017-01-28 2,748.02 396.49 1,111.60
2016-10-29 2,649.52 396.38 879.61
2016-07-30 2,614.33 396.26 928.93
2016-04-30 2,539.44 396.14 911.75
2016-01-30 2,471.99 396.03 763.34
2015-10-31 2,394.08 395.91 487.12
2015-08-01 2,386.51 395.79 631.29
2015-05-02 2,333.50 395.68 761.86
2015-01-31 2,279.21 395.56 697.11
2014-11-01 2,187.30 398.34 571.58
2014-08-02 2,149.33 150.00 549.78
2014-05-03 2,075.28 150.00 595.95
2014-02-01 2,007.30 150.00 435.17
2013-11-02 1,941.13 150.00 384.29
2013-08-03 1,930.97 150.00 550.58
2013-05-04 1,875.26 150.00 715.21
2013-02-02 1,766.86 150.00 647.85
2012-10-27 1,697.74 150.00 625.36
2012-07-28 1,664.15 150.00 722.50
2012-04-28 1,610.64 150.00 741.58
2012-01-28 1,493.01 150.00 650.49
2011-10-29 1,447.25 150.00 553.22
2011-07-30 1,425.93 150.00 513.68
  • Ross Stores's level of debt (12.7%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (8% vs 12.7% today).
  • Debt is well covered by operating cash flow (411.1%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 521.7x coverage).
X
Financial health checks
We assess Ross Stores's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Ross Stores has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Ross Stores's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.04%
Current annual income from Ross Stores dividends. Estimated to be 1.21% next year.
If you bought $2,000 of Ross Stores shares you are expected to receive $21 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Ross Stores's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.47%).
  • Ross Stores's dividend is below the markets top 25% of dividend payers in United States of America (3.97%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:ROST Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 24 Analyst Estimates (S&P Global) See Below
United States of America Specialty Retail Industry Average Dividend Yield Market Cap Weighted Average of 101 Stocks 2.6%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 5868 Stocks 3%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:ROST Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-01-31 1.64 2.00
2022-01-31 1.41 2.00
2021-01-31 1.16 7.00
2020-01-31 1.00 12.00
2019-01-31 0.87 12.00
NasdaqGS:ROST Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2018-05-23 0.900 1.067
2018-03-06 0.900 1.143
2017-11-15 0.640 0.817
2017-08-16 0.640 1.032
2017-05-17 0.640 1.110
2017-03-28 0.640 0.996
2017-02-28 0.640 0.958
2016-11-16 0.540 0.804
2016-08-17 0.540 0.855
2016-05-18 0.540 0.949
2016-03-29 0.540 0.948
2016-03-01 0.540 0.934
2015-11-18 0.470 0.875
2015-09-09 0.470 0.955
2015-05-20 0.470 0.928
2015-03-31 0.470 0.918
2015-02-26 0.470 0.892
2014-11-19 0.400 0.860
2014-08-20 0.400 1.035
2014-05-21 0.400 1.207
2014-02-27 0.400 1.135
2013-11-19 0.340 0.947
2013-08-21 0.340 0.929
2013-05-22 0.340 1.033
2013-02-07 0.340 1.117
2012-11-14 0.280 0.992
2012-08-15 0.280 0.874
2012-05-16 0.280 0.857
2012-02-02 0.280 0.984
2011-11-17 0.220 0.919
2011-08-17 0.220 1.090
2011-05-18 0.220 1.139
2011-02-03 0.220 1.218
2010-11-17 0.160 0.994
2010-08-18 0.160 1.149
2010-05-19 0.160 1.194
2010-02-04 0.160 1.224
2009-11-18 0.110 0.990
2009-08-19 0.110 0.949
2009-05-20 0.110 1.073
2009-02-05 0.110 1.279
2008-12-10 0.095 1.280
2008-11-19 0.095 1.470
2008-09-10 0.095 1.212
2008-08-21 0.095 0.953
2008-07-23 0.095 0.990

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Ross Stores's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by net profit (5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by net profit (4.2x coverage).
X
Income/ dividend checks
We assess Ross Stores's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Ross Stores afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Ross Stores has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Ross Stores's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Barbara Rentler, image provided by Google.
Barbara Rentler
COMPENSATION $12,400,570
AGE 61
TENURE AS CEO 4.1 years
CEO Bio

Ms. Barbara Rentler has been the Chief Executive Officer of Ross Stores Inc since June 2014. Ms. Rentler served as the President and Chief Merchandising Officer of Ross Dress for Less at Ross Stores Inc since December 2009 until June 2014. She served as Executive Vice President of Merchandising at Ross Stores Inc. from December 11, 2006 to December 2009. Ms. Rentler served as Senior Vice President and General Merchandising Manager of Ross Stores Inc. from March 2001 to February 08, 2005. She served as Chief Merchandising Officer and Executive Vice President of dd's DISCOUNTS(SM) at Ross Stores Inc. from February 08, 2005 to December 11, 2006. She joined Ross in February 1986 and served as Vice President and Group Divisional Merchandise Manager from March 1999 to February 2001. She served as Vice President and Divisional Merchandise Manager of Ross Stores from March 1996 to February 1999. She served as Counselor at Ross Stores Inc. from December 1993 to February 1996. She has been Director of Ross Stores Inc. since June 2014.

CEO Compensation
  • Barbara's compensation has been consistent with company performance over the past year.
  • Barbara's compensation appears reasonable for a company of this size and profit level.
Management Team Tenure

Average tenure and age of the Ross Stores management team in years:

4.3
Average Tenure
56.5
Average Age
  • The tenure for the Ross Stores management team is about average.
Management Team

Michael Balmuth

TITLE
Executive Chairman
COMPENSATION
$8M
AGE
67

Barbara Rentler

TITLE
CEO & Director
COMPENSATION
$12M
AGE
61
TENURE
4.1 yrs

Michael O'Sullivan

TITLE
President
COMPENSATION
$10M
AGE
54
TENURE
8.6 yrs

Michael Hartshorn

TITLE
Executive VP
COMPENSATION
$3M
AGE
50
TENURE
4.4 yrs

Bernie Brautigan

TITLE
President of Merchandising- Ross Dress for Less
COMPENSATION
$5M
AGE
53
TENURE
2.3 yrs

Jim Fassio

TITLE
President & Chief Development Officer
COMPENSATION
$6M
AGE
63
TENURE
8.6 yrs

Michael Kobayashi

TITLE
Group Executive Vice President of Supply Chain
COMPENSATION
$2M
AGE
54
TENURE
4.2 yrs

Connie Kao

TITLE
Vice President - Investor Relations

John Call

TITLE
Executive VP of Finance & Legal and Corporate Secretary
COMPENSATION
$3M
AGE
59
TENURE
4.3 yrs

Ken Caruana

TITLE
Executive VP of Strategy
Board of Directors Tenure

Average tenure and age of the Ross Stores board of directors in years:

4.8
Average Tenure
65
Average Age
  • The tenure for the Ross Stores board of directors is about average.
Board of Directors

Michael Balmuth

TITLE
Executive Chairman
COMPENSATION
$8M
AGE
67
TENURE
4.1 yrs

Barbara Rentler

TITLE
CEO & Director
COMPENSATION
$12M
AGE
61
TENURE
4.1 yrs

Michael O'Sullivan

TITLE
President
COMPENSATION
$10M
AGE
54
TENURE
4.1 yrs

Norman Ferber

TITLE
Chairman Emeritus
COMPENSATION
$2M
AGE
69
TENURE
4.1 yrs

George Orban

TITLE
Independent Director
COMPENSATION
$257K
AGE
72
TENURE
36.5 yrs

K. Bjorklund

TITLE
Lead Independent Director
COMPENSATION
$251K
AGE
59
TENURE
1.2 yrs

Gregory Quesnel

TITLE
Independent Director
COMPENSATION
$280K
AGE
69
TENURE
9.2 yrs

Sharon Garrett

TITLE
Independent Director
COMPENSATION
$236K
AGE
69
TENURE
18.5 yrs

Michael Bush

TITLE
Independent Director
COMPENSATION
$242K
AGE
57
TENURE
17.5 yrs

Larry Peiros

TITLE
Independent Director
COMPENSATION
$232K
AGE
63
TENURE
5.5 yrs
Recent Insider Trading
  • Ross Stores insiders have only sold shares in the past 3 months.
Who owns this company?
X
Management checks
We assess Ross Stores's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap and profit (greater than 0.5% of the company's profit + 0.03% of market cap)? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Ross Stores has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

External News
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Simply Wall St News

Should You Be Tempted To Sell Ross Stores Inc (NASDAQ:ROST) At Its Current PE Ratio?

This article is intended for those of you who are at the beginning of your investing journey. … and want to better understand how you can grow your money by investing in Ross Stores Inc (NASDAQ:ROST). … Ross Stores Inc (NASDAQ:ROST) trades with a trailing P/E of 22x, which is higher than the industry average of 19.8x.

Simply Wall St -

What does Ross Stores Inc's (NASDAQ:ROST) Balance Sheet Tell Us About Its Future?

The size of Ross Stores Inc (NASDAQ:ROST), a US$32.37b large-cap, often attracts investors seeking a reliable investment in the stock market. … I will provide an overview of Ross Stores’s financial liquidity and leverage to give you an idea of Ross Stores’s position to take advantage of potential acquisitions or comfortably endure future downturns … Note that this commentary is very high-level and solely focused on financial health, so I suggest you dig deeper yourself

Simply Wall St -

Should Ross Stores Inc (NASDAQ:ROST) Be Your Next Stock Pick?

I've been keeping an eye on Ross Stores Inc (NASDAQ:ROST) because I'm attracted to its fundamentals. … Looking at the company as a whole, as a potential stock investment, I believe ROST has a lot to offer. … , dividend-paying company with a

Simply Wall St -

Is Ross Stores Inc's (NASDAQ:ROST) 46.64% ROE Strong Compared To Its Industry?

and want to better understand how you can grow your money by investing in Ross Stores Inc (NASDAQ:ROST). … Ross Stores Inc (NASDAQ:ROST) delivered an ROE of 46.64% over the past 12 months, which is an impressive feat relative to its industry average of 13.11% during the same period. … View out our latest analysis for Ross Stores

Simply Wall St -

What Should We Expect From Ross Stores Inc's (NASDAQ:ROST) Earnings In The Next Couple Of Years?

Below, I've laid out key numbers on how market analysts view Ross Stores's earnings growth outlook over the next few years and whether the future looks even brighter than the past. … View our latest analysis for Ross Stores Market analysts' consensus outlook for the coming year seems optimistic, with earnings rising by a robust 11.10%. … This means, we can expect Ross Stores will grow its earnings by 8.54% every year for the next few years.

Simply Wall St -

Does Ross Stores Inc's (NASDAQ:ROST) Past Performance Indicate A Stronger Future?

For Ross Stores, its latest earnings (trailing twelve month) is US$1.36B, which compared to the prior year's level, has moved up by 21.71%. … Since these figures may be relatively myopic, I’ve created an annualized five-year value for ROST's net income, which stands at US$909.57M This shows that, on average, Ross Stores has been able to increasingly grow its earnings over the past few years as well. … Over the past few years, Ross Stores grew its bottom line faster than revenue by successfully controlling its costs.

Simply Wall St -

Will Ross Stores Inc's (NASDAQ:ROST) Earnings Grow In The Next 12 Months?

Based on Ross Stores Inc's (NASDAQ:ROST) earnings update in February 2018, analyst forecasts seem in-line with its track record, as upcoming earnings growth is expected to be 11.11% next year, similar to the range of average earnings growth for the past five years of 10.43% per year. … Below is a brief commentary around Ross Stores's earnings outlook going forward, which may give you a sense of market sentiment for the company. … To reduce the year-on-year volatility of analyst earnings forecast, I've inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line.

Simply Wall St -

How Did Ross Stores Inc's (NASDAQ:ROST) 44.69% ROE Fare Against The Industry?

Check out our latest analysis for Ross Stores What you must know about ROE Return on Equity (ROE) weighs Ross Stores’s profit against the level of its shareholders’ equity. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity NasdaqGS:ROST Last Perf Mar 12th 18 Basically, profit margin measures how much of revenue trickles down into earnings which illustrates how efficient the business is with its cost management. … Ross Stores’s above-industry ROE is encouraging, and is also in excess of its cost of equity.

Simply Wall St -

Is Ross Stores Inc's (NASDAQ:ROST) Stock Available For A Good Price After Accounting For Growth?

Ross Stores Inc (NASDAQ:ROST) is a stock well-positioned for future growth, but many investors are wondering whether its last closing price of $77.98 is based on unrealistic expectations. … ROST is trading at price-to-earnings (PE) ratio of 24.71x, which suggests that Ross Stores is overvalued based on current earnings compared to the specialty retail industry average of 18.75x , and overvalued compared to the US market average ratio of 18.6x. … But, seeing as Ross Stores is perceived as a high-growth stock, we must also account for its earnings growth, which is captured in the PEG ratio.

Simply Wall St -

Should You Sell Ross Stores Inc (NASDAQ:ROST) At This PE Ratio?

Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for ROST Price per share = $78.42 Earnings per share = $3.155 ∴ Price-Earnings Ratio = $78.42 ÷ $3.155 = 24.9x The P/E ratio itself doesn’t tell you a lot; however, it becomes very insightful when you compare it with other similar companies. … ROST’s P/E of 24.9x is higher than its industry peers (18.2x), which implies that each dollar of ROST’s earnings is being overvalued by investors. … For example, if you are inadvertently comparing riskier firms with ROST, then ROST’s P/E would naturally be higher than its peers since investors would reward its lower risk with a higher price.

Simply Wall St -

Company Info

Map
Description

Ross Stores, Inc., together with its subsidiaries, operates off-price retail apparel and home fashion stores under the Ross Dress for Less and dd’s DISCOUNTS brands in the United States. It primarily offers apparel, accessories, footwear, and home fashions. The company’s Ross Dress for Less stores sell its products at department and specialty stores primarily to middle income households; and dd’s DISCOUNTS stores sell its products at department and discount stores regular prices to customers from households with moderate income. As of June 29, 2018, it operated 1,650 off-price apparel and home fashion stores in 38 states, the District of Columbia, and Guam. The company was founded in 1982 and is headquartered in Dublin, California.

Details
Name: Ross Stores, Inc.
ROST
Exchange: NasdaqGS
Founded: 1982
$32,604,648,389
376,540,575
Website: http://www.rossstores.com
Address: Ross Stores, Inc.
5130 Hacienda Drive,
Dublin,
California, 94568,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS ROST Common Stock Nasdaq Global Select US USD 08. Aug 1985
DB RSO Common Stock Deutsche Boerse AG DE EUR 08. Aug 1985
WBAG ROST Common Stock Wiener Boerse AG AT EUR 08. Aug 1985
BMV ROST * Common Stock Bolsa Mexicana de Valores MX MXN 08. Aug 1985
BOVESPA ROST34 BDR EACH REPR 1/2 COM USD0.01 Bolsa de Valores de Sao Paulo BR BRL 25. Apr 2016
Number of employees
Current staff
Staff numbers
82,700
Ross Stores employees.
Industry
Apparel Retail
Retail
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2018/07/22 21:15
End of day share price update: 2018/07/20 00:00
Last estimates confirmation: 2018/07/19
Last earnings update: 2018/05/05
Last annual earnings update: 2018/02/03


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.