Ross Stores Inc (ROST, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its solid financial standing and promising growth trajectory. With a current share price of $143.25, Ross Stores Inc has experienced a notable daily gain of 8.64%, despite a slight dip of -3.3% over the past three months. A detailed evaluation using the GF Score indicates that Ross Stores Inc is poised for significant future growth.
What Is the GF Score?
The GF Score is a proprietary stock performance ranking system developed by GuruFocus. It evaluates stocks based on five key aspects: financial strength, profitability, growth, GF Value, and momentum. These components are weighted differently to calculate a composite score that ranges from 0 to 100, with 100 indicating the highest potential for outperformance. Historically, stocks with higher GF Scores have tended to yield superior long-term returns.
- Financial strength rank: 7/10
- Profitability rank: 9/10
- Growth rank: 9/10
- GF Value rank: 6/10
- Momentum rank: 10/10
With a GF Score of 94 out of 100, Ross Stores Inc demonstrates a strong potential for market outperformance.
Understanding Ross Stores Inc's Business
Ross Stores operates as an off-price apparel and accessories retailer, primarily under the Ross Dress for Less banner. The company excels in procuring excess brand-name merchandise at 20%-60% discounts through manufacturing overruns and retail liquidation sales. This strategy results in a diverse and ever-changing product selection that provides a "treasure hunt" shopping experience. Ross Stores Inc, with a market cap of $48.03 billion and annual sales of $20.38 billion, operates over 1,750 Ross Dress for Less and nearly 350 DD's Discounts stores, catering to middle-income and lower-income consumers respectively.
Financial Strength Breakdown
Ross Stores Inc's financial resilience is evident through its impressive Interest Coverage ratio of 31.15, significantly surpassing the benchmark set by investing legend Benjamin Graham. Additionally, its Altman Z-Score of 5.44 indicates a strong buffer against financial distress, and a Debt-to-Revenue ratio of 0.28 showcases prudent debt management.
Profitability and Growth Metrics
Ross Stores Inc's Profitability Rank is impressive, supported by a solid Piotroski F-Score which indicates healthy corporate operations. The company's commitment to growth is reflected in its 19.6% 3-Year Revenue Growth Rate, outperforming 80.32% of its industry peers. Furthermore, its EBITDA has grown significantly, with a three-year growth rate of 77.4%.
Conclusion
Considering Ross Stores Inc's robust financial strength, high profitability, and compelling growth metrics, the GF Score underscores the company's exceptional position for potential market outperformance. Investors looking for similar opportunities can explore other high-scoring companies using the GF Score Screen.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
