NasdaqGS:ROST

Stock Analysis Report

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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


Snowflake Analysis

High growth potential with adequate 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.7%

ROST

-2.5%

US Specialty Retail

-1.1%

US Market


1 Year Return

-16.2%

ROST

19.0%

US Specialty Retail

15.6%

US Market

Return vs Industry: ROST underperformed the US Specialty Retail industry which returned 19% over the past year.

Return vs Market: ROST underperformed the US Market which returned 15.6% over the past year.


Shareholder returns

ROSTIndustryMarket
7 Day0.7%-2.5%-1.1%
30 Day4.2%4.8%4.2%
90 Day6.7%11.0%6.3%
1 Year-15.8%-16.2%20.2%19.0%18.2%15.6%
3 Year48.3%44.5%83.6%75.5%39.6%30.4%
5 Year89.2%80.9%61.9%49.4%79.5%59.2%

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?

59.69x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ROST ($91.64) is trading above our estimate of fair value ($77.27)

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 (59.7x) compared to the US Specialty Retail industry average (20.6x).

PE vs Market: ROST is poor value based on its PE Ratio (59.7x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: ROST is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: ROST is overvalued based on its PB Ratio (11.4x) compared to the US Specialty Retail industry average (1.9x).


Next Steps

Future Growth

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

36.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ROST's forecast earnings growth (36.2% per year) is above the savings rate (2.2%).

Earnings vs Market: ROST's earnings (36.2% per year) are forecast to grow faster than the US market (22.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ROST's revenue (13.1% per year) is forecast to grow faster than the US market (10% per year).

High Growth Revenue: ROST's revenue (13.1% 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 (51.9%).


Next Steps

Past Performance

How has Ross Stores performed over the past 5 years?

6.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ROST has high quality earnings.

Growing Profit Margin: ROST's current net profit margins (4.2%) are lower than last year (10.5%).


Past Earnings Growth Analysis

Earnings Trend: ROST's earnings have grown by 6% 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 (-66.3%) over the past year, making it difficult to compare to the Specialty Retail industry average (3%).


Return on Equity

High ROE: ROST's Return on Equity (18.9%) is considered low.


Next Steps

Financial Health

How is Ross Stores's financial position?


Financial Position Analysis

Short Term Liabilities: ROST's short term assets ($5.3B) exceed its short term liabilities ($3.2B).

Long Term Liabilities: ROST's short term assets ($5.3B) exceed its long term liabilities ($5.3B).


Debt to Equity History and Analysis

Debt Level: ROST's debt to equity ratio (107.7%) is considered high.

Reducing Debt: ROST's debt to equity ratio has increased from 16.6% to 107.7% over the past 5 years.

Debt Coverage: ROST's debt is well covered by operating cash flow (40.8%).

Interest Coverage: ROST's interest payments on its debt are well covered by EBIT (24.7x coverage).


Balance Sheet


Next Steps

Dividend

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

1.24%

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?

6.3yrs

Average management tenure


CEO

Barbara Rentler (63 yo)

6.33yrs

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 ($USD12.02M) is about average for companies of similar size in the US market ($USD11.18M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Michael Balmuth
Chairman of the Board & Senior Advisor6.33yrsUS$8.99m0.018%
$ 5.9m
Barbara Rentler
CEO & Director6.33yrsUS$12.02m0.11%
$ 37.0m
Michael Hartshorn
Group President & COO1.17yrsUS$7.07m0.036%
$ 11.6m
Travis Marquette
Group Senior VP & CFO1.17yrsUS$3.30m0.018%
$ 5.8m
Michael Kobayashi
President of Operations & Technology6.42yrsUS$5.70m0.028%
$ 9.1m
Brian Morrow
President & Chief Merchandising Officer of dd's DISCOUNTS4.83yrsUS$5.85m0.030%
$ 9.8m
Connie Kao
Vice President - Investor Relationsno datano datano data
Ken Jew
Group Senior VPno datano datano data
Ken Caruana
Executive VP of Strategyno datano datano data
James Fassio
Chief Development Officer29.58yrsUS$6.34m0.10%
$ 32.7m
Gary Cribb
Senior Group Executive Vice President of Stores & Loss Prevention18.17yrsno datano data
Carl Matteo
Senior VP & General Merchandise Manager17.17yrsno datano data

6.3yrs

Average Tenure

60yo

Average Age

Experienced Management: ROST's management team is seasoned and experienced (6.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Balmuth
Chairman of the Board & Senior Advisor6.33yrsUS$8.99m0.018%
$ 5.9m
Barbara Rentler
CEO & Director6.33yrsUS$12.02m0.11%
$ 37.0m
Michael Bush
Independent Director19.75yrsUS$248.53k0.0094%
$ 3.1m
Norman Ferber
Chairman Emeritus6.33yrsUS$2.69m0.0080%
$ 2.6m
Larree Renda
Independent Director0.58yrno data0.00077%
$ 251.2k
George Orban
Lead Independent Director1.42yrsUS$288.28k1.61%
$ 525.9m
Gregory Quesnel
Independent Director11.42yrsUS$298.78k0.0076%
$ 2.5m
Sharon Garrett
Independent Director20.75yrsUS$248.53k0.059%
$ 19.2m
K. Bjorklund
Independent Director17.75yrsUS$244.53k0.010%
$ 3.3m
Stephen Milligan
Independent Director5.75yrsUS$248.53k0.0042%
$ 1.4m
Patricia Mueller
Independent Director0.58yrno data0.00077%
$ 251.2k

6.3yrs

Average Tenure

63yo

Average Age

Experienced Board: ROST's board of directors are considered experienced (6.3 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.


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$32.624b
  • Shares outstanding: 356.01m
  • 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
0KXOLSE (London Stock Exchange)YesCommon StockGBUSDAug 1985
ROSTWBAG (Wiener Boerse AG)YesCommon StockATEURAug 1985
RSOETLX (Eurotlx)YesCommon StockITEURAug 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 Analysis2020/10/26 23:43
End of Day Share Price2020/10/26 00:00
Earnings2020/08/01
Annual Earnings2020/02/01


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.