Ross Stores
Market Cap
US$43.6b
Last Updated
2021/08/03 23:28 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. More Details
Rewards
Risk Analysis
Snowflake Analysis
Adequate balance sheet second-rate 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
Stable Share Price: ROST is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: ROST's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
0.3%
ROST
0.5%
US Specialty Retail
0.9%
US Market
1 Year Return
38.0%
ROST
63.1%
US Specialty Retail
34.7%
US Market
Return vs Industry: ROST underperformed the US Specialty Retail industry which returned 64% over the past year.
Return vs Market: ROST exceeded the US Market which returned 34.4% over the past year.
Shareholder returns
| ROST | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.3% | 0.5% | 0.9% |
| 30 Day | -3.4% | -1.2% | 0.2% |
| 90 Day | -5.2% | 0.7% | 4.7% |
| 1 Year | 38.7%38.0% | 64.3%63.1% | 36.8%34.7% |
| 3 Year | 37.5%34.4% | 90.4%83.7% | 62.5%52.4% |
| 5 Year | 109.3%100.7% | 112.3%98.3% | 123.1%98.4% |
Long-Term 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
1 day ago | Simply Wall St
Is Ross Stores, Inc. (NASDAQ:ROST) Popular Amongst Institutions?1 week ago | Simply Wall St
Ross Stores (NASDAQ:ROST) Is Reinvesting At Lower Rates Of Return3 weeks ago | Simply Wall St
What Is Ross Stores, Inc.'s (NASDAQ:ROST) Share Price Doing?Valuation
Is Ross Stores undervalued compared to its fair value and its price relative to the market?
49.57x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: ROST ($122) is trading above our estimate of fair value ($110.42)
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 (49.6x) compared to the US Specialty Retail industry average (13.6x).
PE vs Market: ROST is poor value based on its PE Ratio (49.6x) compared to the US market (17.9x).
Price to Earnings Growth Ratio
PEG Ratio: ROST is poor value based on its PEG Ratio (3.7x)
Price to Book Ratio
PB vs Industry: ROST is overvalued based on its PB Ratio (11.9x) compared to the US Specialty Retail industry average (3.3x).
Future Growth
How is Ross Stores forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?
13.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ROST's forecast earnings growth (13.4% per year) is above the savings rate (2%).
Earnings vs Market: ROST's earnings (13.4% per year) are forecast to grow slower than the US market (15% per year).
High Growth Earnings: ROST's earnings are forecast to grow, but not significantly.
Revenue vs Market: ROST's revenue (7.2% per year) is forecast to grow slower than the US market (9.2% per year).
High Growth Revenue: ROST's revenue (7.2% 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 (50.2%).
Past Performance
How has Ross Stores performed over the past 5 years?
-7.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ROST has high quality earnings.
Growing Profit Margin: ROST's current net profit margins (5.7%) are lower than last year (6.7%).
Past Earnings Growth Analysis
Earnings Trend: ROST's earnings have declined by 7.3% 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 (-7.9%) over the past year, making it difficult to compare to the Specialty Retail industry average (156.7%).
Return on Equity
High ROE: ROST's Return on Equity (23.8%) is considered high.
Financial Health
How is Ross Stores's financial position?
Financial Position Analysis
Short Term Liabilities: ROST's short term assets ($7.4B) exceed its short term liabilities ($4.3B).
Long Term Liabilities: ROST's short term assets ($7.4B) exceed its long term liabilities ($5.4B).
Debt to Equity History and Analysis
Debt Level: ROST's debt to equity ratio (68.8%) is considered high.
Reducing Debt: ROST's debt to equity ratio has increased from 15.6% to 68.8% over the past 5 years.
Debt Coverage: ROST's debt is well covered by operating cash flow (161.4%).
Interest Coverage: ROST's interest payments on its debt are well covered by EBIT (16x coverage).
Balance Sheet
Dividend
What is Ross Stores's current dividend yield, its reliability and sustainability?
0.93%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: ROST's dividend (0.93%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.32%).
High Dividend: ROST's dividend (0.93%) is low compared to the top 25% of dividend payers in the US market (3.57%).
Stability and Growth of Payments
Stable Dividend: ROST's dividend payments have been volatile in the past 10 years.
Growing Dividend: ROST's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (23.2%), ROST's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: ROST's dividends in 3 years are forecast to be well covered by earnings (32.2% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
7.2yrs
Average management tenure
CEO
Barbara Rentler (64 yo)
7.17yrs
Tenure
US$17,518,158
Compensation
Ms. Barbara Rentler has been the Chief Executive Officer of Ross Stores Inc since June 2014 and has been its Vice Chairman since May 19, 2021. Ms. Rentler served as the President and Chief Merchandising Of...
CEO Compensation Analysis
Compensation vs Market: Barbara's total compensation ($USD17.52M) is above average for companies of similar size in the US market ($USD11.16M).
Compensation vs Earnings: Barbara's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
Experienced Management: ROST's management team is seasoned and experienced (7.2 years average tenure).
Board Members
Experienced Board: ROST's board of directors are not considered experienced ( 1.4 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: ROST insiders have only sold shares 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: 1957
- Industry: Apparel Retail
- Sector: Retail
- Market Cap: US$43.569b
- Shares outstanding: 357.12m
- Website: https://www.rossstores.com
Number of Employees
Location
- Ross Stores, Inc.
- 5130 Hacienda Drive
- Dublin
- California
- 94568-7579
- United States
Listings
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 offer apparel, acc...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/08/03 23:28 |
| End of Day Share Price | 2021/08/03 00:00 |
| Earnings | 2021/05/01 |
| Annual Earnings | 2021/01/30 |
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.