Ross Stores
Market Cap
US$36.4b
Last Updated
2020/06/06 02:32 UTC
Data Sources
Company Financials +
Executive Summary
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.
Rewards
Risk Analysis
Snowflake Analysis
High growth potential with imperfect balance sheet.
Similar Companies
Share Price & News
How has Ross Stores's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: ROST's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
5.7%
ROST
5.7%
US Specialty Retail
3.8%
US Market
1 Year Return
3.3%
ROST
3.5%
US Specialty Retail
9.7%
US Market
Return vs Industry: ROST matched the US Specialty Retail industry which returned 3.6% over the past year.
Return vs Market: ROST underperformed the US Market which returned 8.9% over the past year.
Shareholder returns
| ROST | Industry | Market | |
|---|---|---|---|
| 7 Day | 5.7% | 5.7% | 3.8% |
| 30 Day | 14.1% | 18.8% | 11.4% |
| 90 Day | -0.03% | 2.3% | 6.8% |
| 1 Year | 4.4%3.3% | 4.9%3.5% | 12.1%9.7% |
| 3 Year | 70.2%65.4% | 29.4%23.2% | 36.2%27.2% |
| 5 Year | 121.4%111.2% | 23.5%13.0% | 63.7%45.4% |
Price Volatility Vs. Market
How volatile is Ross Stores's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 months ago | Simply Wall St
What Is Ross Stores's (NASDAQ:ROST) P/E Ratio After Its Share Price Tanked?2 months ago | Simply Wall St
Ross Stores, Inc. (NASDAQ:ROST) Looks Like A Good Stock, And It's Going Ex-Dividend Soon3 months ago | Simply Wall St
Here's What Analysts Are Forecasting For Ross Stores, Inc. After Its Annual ResultsValuation
Is Ross Stores undervalued compared to its fair value and its price relative to the market?
39.03x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: ROST ($102.48) is trading above our estimate of fair value ($87.79)
Significantly Below Fair Value: ROST is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: ROST is poor value based on its PE Ratio (39x) compared to the Specialty Retail industry average (14.8x).
PE vs Market: ROST is poor value based on its PE Ratio (39x) compared to the US market (16.4x).
Price to Earnings Growth Ratio
PEG Ratio: ROST is poor value based on its PEG Ratio (1.2x)
Price to Book Ratio
PB vs Industry: ROST is overvalued based on its PB Ratio (12.8x) compared to the US Specialty Retail industry average (1.2x).
Next Steps
Future Growth
How is Ross Stores forecast to perform in the next 1 to 3 years based on estimates from 26 analysts?
32.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ROST's forecast earnings growth (32.8% per year) is above the savings rate (2.2%).
Earnings vs Market: ROST's earnings (32.8% per year) are forecast to grow faster than the US market (22.3% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: ROST's revenue (12.4% per year) is forecast to grow faster than the US market (8.8% per year).
High Growth Revenue: ROST's revenue (12.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: ROST's Return on Equity is forecast to be very high in 3 years time (47.9%).
Next Steps
Past Performance
How has Ross Stores performed over the past 5 years?
10.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ROST has a high level of non-cash earnings.
Growing Profit Margin: ROST's current net profit margins (6.6%) are lower than last year (10.5%).
Past Earnings Growth Analysis
Earnings Trend: ROST's earnings have grown by 10.3% per year over the past 5 years.
Accelerating Growth: ROST's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: ROST had negative earnings growth (-41.3%) over the past year, making it difficult to compare to the Specialty Retail industry average (-5.6%).
Return on Equity
High ROE: Whilst ROST's Return on Equity (33.15%) is high, this metric is skewed due to their high level of debt.
Next Steps
Financial Health
How is Ross Stores's financial position?
Financial Position Analysis
Short Term Liabilities: ROST's short term assets ($4.6B) exceed its short term liabilities ($2.6B).
Long Term Liabilities: ROST's short term assets ($4.6B) do not cover its long term liabilities ($5.3B).
Debt to Equity History and Analysis
Debt Level: ROST's debt to equity ratio (109.7%) is considered high.
Reducing Debt: ROST's debt to equity ratio has increased from 16.9% to 109.7% over the past 5 years.
Debt Coverage: ROST's debt is not well covered by operating cash flow (19.5%).
Interest Coverage: ROST earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Next Steps
Dividend
What is Ross Stores's current dividend yield, its reliability and sustainability?
0.98%
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate ROST's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate ROST's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if ROST's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if ROST's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: ROST is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of ROST's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
6.0yrs
Average management tenure
CEO
Barbara Rentler (62yo)
6yrs
Tenure
US$12,024,336
Compensation
Ms. Barbara Rentler has been the Chief Executive Officer of Ross Stores Inc since June 2014. Ms. Rentler served as the President and Chief Merchandising Officer of Ross Dress for Less at Ross Stores Inc si ...
CEO Compensation Analysis
Compensation vs Market: Barbara's total compensation ($USD12.02M) is about average for companies of similar size in the US market ($USD11.52M).
Compensation vs Earnings: Barbara's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 6yrs | US$12.02m | 0.099% $36.2m | |
| Group President & COO | 0.83yr | US$7.07m | 0.034% $12.2m | |
| Group Senior VP & CFO | 0.83yr | US$3.30m | 0.017% $6.2m | |
| President of Operations & Technology | 6.08yrs | US$5.70m | 0.026% $9.4m | |
| President & Chief Merchandising Officer of dd's DISCOUNTS | 4.5yrs | US$5.85m | 0.029% $10.5m | |
| Vice President - Investor Relations | no data | no data | no data | |
| Group Senior VP | no data | no data | no data | |
| Executive VP of Strategy | no data | no data | no data | |
| Chief Development Officer | 29.25yrs | US$6.34m | 0.10% $36.5m | |
| Senior Group Executive Vice President of Stores & Loss Prevention | 17.83yrs | no data | no data |
6.0yrs
Average Tenure
55yo
Average Age
Experienced Management: ROST's management team is seasoned and experienced (6 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 6yrs | US$12.02m | 0.099% $36.2m | |
| Independent Director | 19.42yrs | US$248.53k | 0.0094% $3.4m | |
| Chairman Emeritus | 6yrs | US$2.69m | 0.0080% $2.9m | |
| Chairman of the Board & Senior Advisor | 6yrs | US$8.99m | 0.016% $5.7m | |
| Lead Independent Director | 1.08yrs | US$288.28k | 1.61% $588.2m | |
| Independent Director | 11.08yrs | US$298.78k | 0.0076% $2.8m | |
| Independent Director | 20.42yrs | US$248.53k | 0.059% $21.4m | |
| Independent Director | 17.42yrs | US$244.53k | 0.010% $3.7m | |
| Independent Director | 5.42yrs | US$248.53k | 0.0042% $1.5m | |
| Independent Director | 0.25yr | no data | 0.00077% $280.4k |
6.0yrs
Average Tenure
65yo
Average Age
Experienced Board: ROST's board of directors are considered experienced (6 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Ross Stores, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Ross Stores, Inc.
- Ticker: ROST
- Exchange: NasdaqGS
- Founded: 1982
- Industry: Apparel Retail
- Sector: Retail
- Market Cap: US$36.420b
- Shares outstanding: 355.39m
- Website: https://www.rossstores.com
Number of Employees
Location
- Ross Stores, Inc.
- 5130 Hacienda Drive
- Dublin
- California
- 94568
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| ROST | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Aug 1985 |
| RSO | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Aug 1985 |
| ROST * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Aug 1985 |
| 0KXO | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Aug 1985 |
| ROST | WBAG (Wiener Boerse AG) | Yes | Common Stock | AT | EUR | Aug 1985 |
| RSO | ETLX (Eurotlx) | Yes | Common Stock | IT | EUR | Aug 1985 |
| ROST34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH REPR 1/2 COM USD0.01 | BR | BRL | Apr 2016 | |
| ROST | BASE (Buenos Aires Stock Exchange) | CEDEAR EACH 4 REP 1 COM USD0.01 | AR | ARS | Apr 2019 |
Biography
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. Its stores 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 March 9, 2020, it operated approximately 1,831 off-price apparel and home fashion stores under the Ross Dress for Less and dd's DISCOUNTS names in 39 states, the District of Columbia, and Guam. The company was founded in 1982 and is headquartered in Dublin, California.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/06/06 02:32 |
| End of Day Share Price | 2020/06/05 00:00 |
| Earnings | 2020/05/02 |
| Annual Earnings | 2020/02/01 |
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.