Ross Stores Inc
Ross Stores Inc Fundamental Analysis
Ross Stores Inc (RSO.DE) shows moderate financial fundamentals with a PE ratio of 32.17, profit margin of 9.43%, and ROE of 36.70%. The company generates $23.0B in annual revenue with moderate year-over-year growth of 7.67%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 64.6/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze RSO.DE's fundamental strength across five key dimensions:
Efficiency Score
ExcellentRSO.DE demonstrates superior asset utilization.
Valuation Score
ModerateRSO.DE shows balanced valuation metrics.
Growth Score
ModerateRSO.DE shows steady but slowing expansion.
Financial Health Score
ExcellentRSO.DE maintains a strong and stable balance sheet.
Profitability Score
ModerateRSO.DE maintains healthy but balanced margins.
Key Financial Metrics
Is RSO.DE Expensive or Cheap?
P/E Ratio
RSO.DE trades at 32.17 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, RSO.DE's PEG of 0.64 indicates potential undervaluation.
Price to Book
The market values Ross Stores Inc at 11.15 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 20.07 times EBITDA. This signals the market has high growth expectations.
How Well Does RSO.DE Make Money?
Net Profit Margin
For every $100 in sales, Ross Stores Inc keeps $9.43 as profit after all expenses.
Operating Margin
Core operations generate 11.90 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $36.70 in profit for every $100 of shareholder equity.
ROA
Ross Stores Inc generates $13.79 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Ross Stores Inc produces operating cash flow of $3.06B, showing steady but balanced cash generation.
Free Cash Flow
Ross Stores Inc produces free cash flow of $2.23B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $6.91 in free cash annually.
FCF Yield
RSO.DE converts 3.15% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
32.17
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.64
vs 25 benchmark
P/B Ratio
Price to book value ratio
11.15
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.07
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.84
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.58
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.37
vs 25 benchmark
ROA
Return on assets percentage
0.14
vs 25 benchmark
ROCE
Return on capital employed
0.25
vs 25 benchmark
How RSO.DE Stacks Against Its Sector Peers
| Metric | RSO.DE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 32.17 | 22.46 | Worse (Expensive) |
| ROE | 36.70% | 1260.00% | Weak |
| Net Margin | 9.43% | -5313.00% (disorted) | Weak |
| Debt/Equity | 0.84 | 0.84 | Neutral |
| Current Ratio | 1.58 | 2.49 | Neutral |
| ROA | 13.79% | -193380.00% (disorted) | Strong |
RSO.DE outperforms its industry in 1 out of 6 key metrics, particularly excelling in ROA, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Ross Stores Inc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
98.55%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
2647.54%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
47.39%
Industry Style: Defensive, Dividend, Low Volatility
High Growth