Ross Stores Inc (ROST, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial performance and promising growth trajectory. With a current share price of $142.13 and a notable daily gain of 7.79%, despite a slight dip of -3.75% over the past three months, Ross Stores Inc stands out in the retail sector. 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 ranking system developed by GuruFocus, assessing stocks based on five key valuation aspects from 2006 to 2021. Stocks with higher GF Scores typically yield better long-term returns. The GF Score ranges from 0 to 100, with 100 indicating the highest potential for outperformance. Ross Stores Inc boasts a GF Score of 92, reflecting its strong potential for market outperformance based on its financial strength, profitability, growth, GF Value, and momentum.
- Financial strength rank: 7/10
- Profitability rank: 9/10
- Growth rank: 9/10
- GF Value rank: 5/10
- Momentum rank: 10/10
Understanding Ross Stores Inc's Business
Ross Stores Inc operates as a leading 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 liquidations. With over 1,750 Ross Dress for Less and nearly 350 DD's Discounts stores, Ross caters to middle-income and lower-income shoppers across densely populated suburban areas. The company's market cap stands at $47.66 billion, with annual sales reaching approximately $20.74 billion and an operating margin of 11.78%.
Financial Strength and Profitability
Ross Stores Inc's financial resilience is evident through its impressive Interest Coverage ratio of 44.69 and an Altman Z-Score of 5.25, indicating a strong shield against financial distress. The company's strategic debt management is reflected in its favorable Debt-to-Revenue ratio of 0.28. Furthermore, Ross Stores Inc's profitability is underscored by its high Profitability Rank and a solid Piotroski F-Score.
Growth Trajectory
Ross Stores Inc has demonstrated a robust commitment to growth, with a 3-Year Revenue Growth Rate of 19.6%, outperforming 80.06% of its industry peers. The company's EBITDA has also seen significant increases, further highlighting its growth potential.
Conclusion
Considering Ross Stores Inc's robust financial strength, impressive profitability, and sustained growth metrics, the GF Score distinctly highlights the company's superior position for potential market outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores through 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.
