Ross Stores Inc.
Find Ratings ReportsROSS STORES INC's gross profit margin for the fourth quarter of its fiscal year 2023 has increased when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its subsector this quarter as compared to the same quarter a year ago. ROSS STORES INC has average liquidity. Currently, the Quick Ratio is 1.20 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has increased by 13.58% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.
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Income Statement | Q4 FY23 | Q4 FY22 |
---|---|---|
Net Sales ($mil) | 6022.5 | 5214.23 |
EBITDA ($mil) | 863.12 | 662.78 |
EBIT ($mil) | 744.05 | 558.69 |
Net Income ($mil) | 609.68 | 447.04 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 4872.45 | 4564.55 |
Total Assets ($mil) | 14300.11 | 13416.46 |
Total Debt ($mil) | 5747.7 | 5706.45 |
Equity ($mil) | 4871.33 | 4288.58 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 29.33 | 26.7 |
EBITDA Margin | 14.33 | 12.71 |
Operating Margin | 12.35 | 10.71 |
Sales Turnover | 1.42 | 1.39 |
Return on Assets | 13.1 | 11.27 |
Return on Equity | 38.48 | 35.26 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 1.77 | 1.9 |
Debt/Capital | 0.54 | 0.57 |
Interest Expense | 0.0 | 21.56 |
Interest Coverage | 0.0 | 25.92 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 336.95 | 342.75 |
Div / share | 0.34 | 0.31 |
EPS | 1.82 | 1.31 |
Book value / share | 14.46 | 12.51 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 1943307.0 | 2305148.0 |
BUY. The current P/E ratio indicates a premium compared to an average of 23.55 for the Clothing, Clothing Accessories, Shoe, Jewelry Reta subsector and a value on par with the S&P 500 average of 27.95. For additional comparison, its price-to-book ratio of 10.10 indicates a significant premium versus the S&P 500 average of 4.68 and a discount versus the subsector average of 11.33. The price-to-sales ratio is below the S&P 500 average, but well above the subsector average. The valuation analysis reveals that, ROSS STORES INC seems to be trading at a premium to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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ROST 26.26 | Peers 23.55 | ROST 19.57 | Peers 16.96 | |||||||||||||||||||||
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations. ROST is trading at a premium to its peers. |
Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. ROST is trading at a premium to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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ROST 22.46 | Peers 19.84 | ROST 4.30 | Peers 1.61 | |||||||||||||||||||||
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. ROST is trading at a premium to its peers. |
Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. ROST trades at a significant premium to its peers. |
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Price/Book |
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Earnings Growth |
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ROST 10.10 | Peers 11.33 | ROST 26.65 | Peers 329.94 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. ROST is trading at a discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, ROST is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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ROST 2.41 | Peers 1.84 | ROST 8.99 | Peers 6.34 | |||||||||||||||||||||
Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. ROST is trading at a significant premium to its subsector. |
Higher. A sales growth rate that exceeds the subsector implies that a company is gaining market share. ROST has a sales growth rate that significantly exceeds its peers. |
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