Morningstar Rating
Stock XNAS Rating as of
$153.95 +6.25(4.23%)
View Full ChartAs of Delayed Price Closed
Company Report
Company Report
Purchasing Strategy and Scale Should Prove Tough to Replicate, Cementing Ross' Competitive Standing
Noah Rohr
As the second-largest off-price retailer in the US with about 30% market share, we believe Ross Stores’ unique inventory procurement method and scale positions the firm to comfortably expand its top line at a mid-single-digit pace while fending off competition from online channels in future. We suggest that Ross’ standing as a reliable sales outlet for product manufacturers and traditional (or full-price) retailers looking to discreetly liquidate excess inventory should provide the firm with an abundant assortment of buying opportunities. Ross consistently stocks its more than 2,100 stores with a wide assortment of branded merchandise at bargain prices due to its plentiful vendor relationships and meticulous inventory management.
Price vs Fair Value
Price vs Fair Value
ROST is trading at a 628% premium.
Price
$147.70
Fair Value
$927.00
Uncertainty
Medium
- 1-Star Price
- $479.61
- 5-Star Price
- $28.90
- Economic Moat
- Mvkgc
- Capital Allocation
- Rrvjwzbzh
Bulls Say, Bears Say
Bulls Say, Bears Say
Bulls
Ross is a reliable store to find bargain merchandise and will therefore benefit if consumers grow increasingly value-conscious due to economic uncertainty.
Bears
Product availability will be limited in future years if merchandisers reduce their off-price retail exposure, weighing on the attractiveness of Ross’ product assortment.
News
News
- Ross Stores Announces Quarterly Dividend
- Palo Alto Networks earnings could hold early clues about the CrowdStrike fallout
- Ross Stores, Inc. Announces Second Quarter 2024 Earnings Release and Conference Call
- ROSS STORES OPENS 24 NEW LOCATIONS
- Ross Stores raises profit forecast, even as higher prices hit lower-income shoppers
- Ross Stores Reports First Quarter Earnings
- Costco, Lowe's, Five Below, Dollar Tree downgraded due to 'extreme' valuations
- Ross Stores says that housing and food costs continue to pressure its customers
Trading Information
Trading Information
- Previous Close Price
- $147.70
- Day Range
$152.10–157.85
- 52-Week Range
$108.35–157.85
- Bid/Ask
- $154.00/$154.70
- Market Cap
- $51.35 Bil
- Volume/Avg
- 3.2 Mil/2.4 Mil
Key Statistics
Key Statistics
- Price/Earnings (Normalized)
- 25.96
- Price/Sales
- 2.49
- Dividend Yield (Trailing)
- 0.91%
- Dividend Yield (Forward)
- 0.95%
- Total Yield
- 2.98%
Company Profile
Company Profile
Ross Stores operates as an off-price apparel and accessories retailer with the majority of its sales derived from its Ross Dress for Less banner. The firm opportunistically procures excess brand-name merchandise made available via manufacturing overruns and retail liquidation sales at a 20%-60% discount to full prices. As such, its stores are often filled with a vast array of stock-keeping units, each with minimal product depth that creates a treasure hunt shopping experience. The firm’s more than 1,750 Ross Dress for Less stores are primarily located in densely populated suburban communities and typically serve middle-income consumers. Ross also operates nearly 350 DD's Discounts chains targeting lower-income shoppers.
- Sector
- Consumer Cyclical
- Industry
- Apparel Retail
- Stock Style Box
- Mid Core
- Total Number of Employees
- 101,000
- Website
- https://www.rossstores.com
Competitors
Competitors
- TJX Companies Inc TJX
- Nordstrom Inc JWN
- Macy's Inc M
Valuation
Valuation
| Metric | ROST | TJX | JWN |
|---|---|---|---|
Price/Earnings (Normalized) | 25.96 | 29.83 | 15.54 |
Price/Book Value | 10.43 | 17.46 | 4.18 |
Price/Sales | 2.49 | 2.49 | 0.24 |
Price/Cash Flow | 20.26 | 23.36 | 3.34 |
Price/Earnings
ROST
TJX
JWN
Financial Strength
Financial Strength
| Metric | ROST | TJX | JWN |
|---|---|---|---|
Quick Ratio | 0.99 | 0.56 | 0.25 |
Current Ratio | 1.54 | 1.23 | 1.03 |
Interest Coverage | 33.96 | 78.50 | 3.60 |
Quick Ratio
ROST
TJX
JWN
Profitability
Profitability
| Metric | ROST | TJX | JWN |
|---|---|---|---|
Return on Assets (Normalized) | 14.91% | 16.36% | 3.71% |
Return on Equity (Normalized) | 45.48% | 69.55% | 44.39% |
Return on Invested Capital (Normalized) | 18.94% | 23.95% | 7.80% |
Return on Assets
ROST
TJX
JWN
Apparel Retail Industry Comparables
Apparel Retail Industry Comparables
| 1-Day Chart | Name | Price | Morningstar Rating for Stocks | Capital Allocation | Economic Moat | Market Cap |
|---|---|---|---|---|---|---|
| Industria De Diseno Textil SA ADR IDEXY | — | Skm | $168.0 Bil | |||
| Industria De Diseno Textil SA Share From Split IDEXF | — | Gwvkh | $168.0 Bil | |||
| TJX Companies Inc TJX | Dglrvrqnr | Pybmt | $135.9 Bil | |||
| Fast Retailing Co Ltd ADR FRCOY | — | Wls | $92.7 Bil | |||
| Fast Retailing Co Ltd FRCOF | Pvfxhpd | Zwmbd | $92.7 Bil | |||
| Lululemon Athletica Inc LULU | Pkcmkzcj | Hckxgm | $33.2 Bil | |||
| Burlington Stores Inc BURL | Bwpnwds | Tbyp | $17.3 Bil | |||
| Gap Inc GPS | Xqxggbtx | Crzy | $9.2 Bil | |||
| Urban Outfitters Inc URBN | Pzrjrdv | Tyzk | $3.9 Bil |
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