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

-0.4%

ROST

1.8%

US Specialty Retail

1.0%

US Market


1 Year Return

14.8%

ROST

6.7%

US Specialty Retail

8.0%

US Market

Return vs Industry: ROST exceeded the US Specialty Retail industry which returned 6.7% over the past year.

Return vs Market: ROST exceeded the US Market which returned 8% over the past year.


Shareholder returns

ROSTIndustryMarket
7 Day-0.4%1.8%1.0%
30 Day5.9%4.7%-0.07%
90 Day4.6%3.7%-1.0%
1 Year16.0%14.8%8.6%6.7%10.4%8.0%
3 Year80.4%75.1%42.0%34.7%46.2%36.7%
5 Year189.1%175.3%56.4%43.0%64.3%46.2%

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 compared to its fair value and its price relative to the market?

9.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ROST ($110.98) is trading below our estimate of fair value ($123)

Significantly Below Fair Value: ROST is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ROST is poor value based on its PE Ratio (25x) compared to the Specialty Retail industry average (15.4x).

PE vs Market: ROST is poor value based on its PE Ratio (25x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: ROST is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: ROST is overvalued based on its PB Ratio (12.2x) compared to the US Specialty Retail industry average (1.5x).


Next Steps

Future Growth

How is Ross Stores forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

9.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ROST's forecast earnings growth (9.4% per year) is above the savings rate (2.7%).

Earnings vs Market: ROST's earnings (9.4% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: ROST's earnings are forecast to grow, but not significantly.

Revenue vs Market: ROST's revenue (6.8% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: ROST's revenue (6.8% 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 (59.4%).


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

Earnings Trend: ROST's earnings have grown by 13.5% per year over the past 5 years.

Accelerating Growth: ROST's earnings growth over the past year (5.3%) is below its 5-year average (13.5% per year).

Earnings vs Industry: ROST earnings growth over the past year (5.3%) underperformed the Specialty Retail industry 8.3%.


Return on Equity

High ROE: ROST's Return on Equity (49%) is considered outstanding.


Return on Assets

ROA vs Industry: ROST has a higher Return on Assets than the Specialty Retail industry average last year.


Return on Capital Employed

ROCE Improving: ROST's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Ross Stores's financial position?


Financial Position Analysis

Short Term Liabilities: ROST's short term assets ($3.5B) exceeds its short term liabilities ($2.7B)

Long Term Liabilities: ROST's short term assets (3.5B) exceeds its long term liabilities (3.2B)


Debt to Equity History and Analysis

Debt Level: ROST's debt to equity ratio (9.5%) is considered satisfactory

Reducing Debt: ROST's debt to equity ratio has increased from 7.2% to 9.5% over the past 5 years.

Debt Coverage: ROST's debt is well covered by operating cash flow (683.1%).

Interest Coverage: ROST earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: ROST has a high level of physical assets or inventory.

Debt Coverage by Assets: ROST's debt is covered by short term assets (assets are 11.245000x debt).


Next Steps

Dividend

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

0.92%

Current Dividend Yield


Dividend Yield vs Market

company0.9%marketbottom25%1.4%markettop25%3.7%industryaverage2.0%forecastin3Years1.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: ROST's dividend (0.92%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: ROST's dividend (0.92%) is low compared to the top 25% of dividend payers in the US market (3.68%).

Stable Dividend: ROST's dividends per share have been stable 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 (22.3%), 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 (21.8% payout ratio).


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)

5.3yrs

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

Compensation vs. Market: Barbara's total compensation ($USD12.25M) is about average for companies of similar size in the US market ($USD11.18M).

Compensation vs Earnings: Barbara's compensation has been consistent with company performance over the past year.


Management Age and Tenure

5.3yrs

Average Tenure

54.5yo

Average Age

Experienced Management: ROST's management team is seasoned and experienced (5.3 years average tenure).


Board Age and Tenure

5.3yrs

Average Tenure

68yo

Average Age

Experienced Board: ROST's board of directors are considered experienced (5.3 years average tenure).


Insider Trading

Insider Buying: ROST insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$2,750,36302 Oct 19
Barbara Rentler
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares25,000
Max PriceUS$110.01
SellUS$2,676,52006 Sep 19
Barbara Rentler
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares25,000
Max PriceUS$107.06
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

Ownership Breakdown


Management Team

  • Michael Balmuth (68yo)

    Executive Chairman

    • Tenure: 5.3yrs
    • Compensation: US$9.39m
  • Jim Fassio (64yo)

    Chief Development Officer

    • Tenure: 9.8yrs
    • Compensation: US$6.34m
  • Barbara Rentler (62yo)

    CEO & Director

    • Tenure: 5.3yrs
    • Compensation: US$12.25m
  • Gary Cribb (54yo)

    Senior Group Executive Vice President of Stores & Loss Prevention

    • Tenure: 17.2yrs
  • Michael Kobayashi (55yo)

    President of Operations & Technology

    • Tenure: 5.4yrs
    • Compensation: US$2.26m
  • Ken Caruana

    Executive VP of Strategy

    • Tenure: 0yrs
  • Bernie Brautigan (54yo)

    President of Merchandising- Ross Dress for Less

    • Tenure: 3.6yrs
    • Compensation: US$4.84m
  • Michael Hartshorn (51yo)

    Group President & COO

    • Tenure: 0.2yrs
    • Compensation: US$3.31m
  • Connie Kao

    Vice President - Investor Relations

    • Tenure: 0yrs
  • Travis Marquette (48yo)

    Group Senior VP & CFO

    • Tenure: 0.2yrs

Board Members

  • Michael Bush (58yo)

    Independent Director

    • Tenure: 18.8yrs
    • Compensation: US$241.02k
  • Norman Ferber (70yo)

    Chairman Emeritus

    • Tenure: 5.3yrs
    • Compensation: US$2.44m
  • Michael Balmuth (68yo)

    Executive Chairman

    • Tenure: 5.3yrs
    • Compensation: US$9.39m
  • George Orban (73yo)

    Lead Independent Director

    • Tenure: 0.8yrs
    • Compensation: US$262.02k
  • Greg Quesnel (70yo)

    Independent Director

    • Tenure: 10.4yrs
    • Compensation: US$303.77k
  • Sharon Garrett (70yo)

    Independent Director

    • Tenure: 19.8yrs
    • Compensation: US$241.02k
  • Barbara Rentler (62yo)

    CEO & Director

    • Tenure: 5.3yrs
    • Compensation: US$12.25m
  • K. Bjorklund (60yo)

    Independent Director

    • Tenure: 16.8yrs
    • Compensation: US$243.27k
  • Steve Milligan (56yo)

    Independent Director

    • Tenure: 4.8yrs
    • 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$40.145b
  • Shares outstanding: 361.73m
  • 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 Analysis2019/10/21 23:42
End of Day Share Price2019/10/21 00:00
Earnings2019/08/03
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.