NasdaqGS:ROST

Stock Analysis Report

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.

Snowflake

Fundamentals

Excellent balance sheet average dividend payer.


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


Market Performance


7 Day Return

5.9%

NasdaqGS:ROST

5.5%

US Specialty Retail

2.9%

US Market


1 Year Return

13.0%

NasdaqGS:ROST

-5.6%

US Specialty Retail

0.2%

US Market

ROST outperformed the Specialty Retail industry which returned -5.6% over the past year.

ROST outperformed the Market in United States of America which returned 0.2% over the past year.


Share holder returns

ROSTIndustryMarket
7 Day5.9%5.5%2.9%
30 Day1.2%-1.3%-2.3%
90 Day15.8%3.4%3.1%
1 Year14.2%13.0%-4.0%-5.6%2.4%0.2%
3 Year74.5%69.4%24.3%18.0%41.7%32.4%
5 Year199.9%185.5%47.0%33.8%55.1%37.9%

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

Valuation

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

5%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Ross Stores's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Ross Stores's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

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

Ross Stores is poor value based on expected growth next year.


Price Based on Value of Assets

Ross Stores is overvalued based on assets compared to the US Specialty Retail industry average.


Next Steps

Future Growth

How is Ross Stores expected to perform in the next 1 to 3 years based on estimates from 23 analysts?

9.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Ross Stores's revenue is expected to grow by 6.7% yearly, however this is not considered high growth (20% yearly).

Ross Stores's earnings are expected to grow by 9.3% yearly, however this is not considered high growth (20% yearly).

Ross Stores's revenue growth is positive but not above the United States of America market average.

Ross Stores's earnings growth is positive but not above the United States of America market average.

Ross Stores's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Ross Stores is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).


Next Steps

Past Performance

How has Ross Stores performed over the past 5 years?

13.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Ross Stores's year on year earnings growth rate has been positive over the past 5 years.

Ross Stores's 1-year earnings growth is less than its 5-year average (9% vs 13.5%)

Ross Stores's earnings growth has not exceeded the US Specialty Retail industry average in the past year (9% vs 10.5%).


Return on Equity

Ross Stores made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%).


Return on Assets

Ross Stores used its assets more efficiently than the US Specialty Retail industry average last year based on Return on Assets.


Return on Capital Employed

Ross Stores's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Ross Stores's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Ross Stores's level of debt (9.6%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (7.2% vs 9.6% today).

Debt is well covered by operating cash flow (673%, greater than 20% of total debt).

Ross Stores earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 11.1x debt.


Next Steps

Dividend

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

1.13%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Ross Stores's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Ross Stores's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).

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

Dividends paid are well covered by earnings (4.5x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (4.3x coverage).


Next Steps

Management

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

5.3yrs

Average management tenure


CEO

Barbara Rentler (62yo)

5.2yrs

Tenure

US$12,248,994

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

Barbara's remuneration is about average for companies of similar size in United States of America.

Barbara's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

5.3yrs

Average Tenure

54.5yo

Average Age

The average tenure for the Ross Stores management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

5.2yrs

Average Tenure

68yo

Average Age

The tenure for the Ross Stores board of directors is about average.


Insider Trading

Ross Stores individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$8,937,20315 Jul 19
James Fassio
EntityIndividual
Role
Head of Corporate Development
Chief Development Officer
Shares85,238
Max PriceUS$105.13
SellUS$3,070,76915 Jul 19
George Orban
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares29,000
Max PriceUS$106.07
SellUS$102,50012 Jul 19
George Orban
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares1,000
Max PriceUS$102.50
SellUS$1,005,10018 Jun 19
Barbara Rentler
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares10,000
Max PriceUS$100.51
SellUS$3,966,53713 Jun 19
Barbara Rentler
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares40,000
Max PriceUS$99.50
SellUS$4,346,58304 Jun 19
Michael Balmuth
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares46,799
Max PriceUS$92.88
SellUS$1,813,56703 Apr 19
Bernard Brautigan
EntityIndividual
Role
Unit President
President of Merchandising- Ross Dress for Less
Shares19,384
Max PriceUS$93.56
SellUS$907,85222 Mar 19
Michael Hartshorn
EntityIndividual
Role
President
Group President & COO
Shares9,924
Max PriceUS$91.48
SellUS$784,66921 Mar 19
Bernard Brautigan
EntityIndividual
Role
Unit President
President of Merchandising- Ross Dress for Less
Shares8,612
Max PriceUS$91.11
SellUS$920,00021 Mar 19
Brian Morrow
EntityIndividual
Shares10,000
Max PriceUS$92.00
SellUS$1,781,38719 Mar 19
Michael Balmuth
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares20,057
Max PriceUS$88.82
SellUS$1,094,14919 Mar 19
Bernard Brautigan
EntityIndividual
Role
Unit President
President of Merchandising- Ross Dress for Less
Shares12,000
Max PriceUS$91.18
SellUS$1,902,99816 Oct 18
Barbara Rentler
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares20,000
Max PriceUS$95.15
SellUS$962,68229 Aug 18
Norman Ferber
EntityIndividual
Role
Chairman Emeritus
Chairman Emeritus
Shares10,144
Max PriceUS$94.90

Ownership Breakdown


Management Team

  • Michael Balmuth (68yo)

    Executive Chairman

    • Tenure: 5.2yrs
    • Compensation: US$9.39m
  • Jim Fassio (64yo)

    Chief Development Officer

    • Tenure: 9.7yrs
    • Compensation: US$6.34m
  • Barbara Rentler (62yo)

    CEO & Director

    • Tenure: 5.2yrs
    • Compensation: US$12.25m
  • Gary Cribb (54yo)

    Senior Group Executive Vice President of Stores & Loss Prevention

    • Tenure: 17.0yrs
  • Michael Kobayashi (55yo)

    President of Operations & Technology

    • Tenure: 5.3yrs
    • Compensation: US$2.26m
  • Ken Caruana

    Executive VP of Strategy

    • Tenure: 0.0yrs
  • Bernie Brautigan (54yo)

    President of Merchandising- Ross Dress for Less

    • Tenure: 3.4yrs
    • Compensation: US$4.84m
  • Michael Hartshorn (51yo)

    Group President & COO

    • Tenure: 0.0yrs
    • Compensation: US$3.31m
  • Connie Kao

    Vice President - Investor Relations

    • Tenure: 0.0yrs
  • Travis Marquette (48yo)

    Group Senior VP & CFO

    • Tenure: 0.0yrs

Board Members

  • Michael Bush (58yo)

    Independent Director

    • Tenure: 18.6yrs
    • Compensation: US$241.02k
  • Norman Ferber (70yo)

    Chairman Emeritus

    • Tenure: 5.2yrs
    • Compensation: US$2.44m
  • Michael Balmuth (68yo)

    Executive Chairman

    • Tenure: 5.2yrs
    • Compensation: US$9.39m
  • George Orban (73yo)

    Lead Independent Director

    • Tenure: 0.6yrs
    • Compensation: US$262.02k
  • Greg Quesnel (70yo)

    Independent Director

    • Tenure: 10.3yrs
    • Compensation: US$303.77k
  • Sharon Garrett (70yo)

    Independent Director

    • Tenure: 19.6yrs
    • Compensation: US$241.02k
  • Barbara Rentler (62yo)

    CEO & Director

    • Tenure: 5.2yrs
    • Compensation: US$12.25m
  • K. Bjorklund (60yo)

    Independent Director

    • Tenure: 16.6yrs
    • Compensation: US$243.27k
  • Steve Milligan (56yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: US$241.02k

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$39.168b
  • Shares outstanding: 364.70m
  • Website: https:// www.rossstores.com

Number of Employees


Location

  • Ross Stores, Inc.
  • 5130 Hacienda Drive
  • Dublin
  • California
  • 94568
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ROSTNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDAug 1985
RSODB (Deutsche Boerse AG)YesCommon StockDEEURAug 1985
ROST *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNAug 1985
ROSTWBAG (Wiener Boerse AG)YesCommon StockATEURAug 1985
ROST34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1/2 COM USD0.01BRBRLApr 2016
ROSTBASE (Buenos Aires Stock Exchange)CEDEAR EACH 4 REP 1 COM USD0.01ARARSApr 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, ac ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/22 23:43
End of Day Share Price2019/08/22 00:00
Earnings2019/05/04
Annual Earnings2019/02/02


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.