Ross Stores Inc (ROST, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial performance. With a current share price of $154.19 and a daily gain of 4.39%, coupled with a three-month change of 16.62%, the company shows promising growth potential. A detailed analysis based on 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 of valuation, which have shown a strong correlation with long-term stock performance from 2006 to 2021. Stocks with higher GF Scores typically yield higher 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, signaling strong future performance prospects.
- Financial strength rank: 7/10
- Profitability rank: 9/10
- Growth rank: 9/10
- GF Value rank: 5/10
- Momentum rank: 8/10
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 dynamic inventory that enhances the shopping experience. Ross Stores Inc, with a market cap of $51.43 billion and annual sales of $20.74 billion, operates over 1,750 Ross Dress for Less stores and nearly 350 DD's Discounts stores, targeting middle to lower-income consumers.
Financial Strength Breakdown
Ross Stores Inc's financial resilience is evident in its robust balance sheet and strategic capital management. The company's Interest Coverage ratio stands at an impressive 33.96, significantly above the benchmark set by investment guru Benjamin Graham. Additionally, with an Altman Z-Score of 5.71, Ross Stores Inc demonstrates strong protection against financial distress. The company's prudent debt management is further highlighted by a Debt-to-Revenue ratio of 0.28.
Profitability and Growth Metrics
Ross Stores Inc's Profitability Rank is outstanding, reflecting its efficiency in generating profits relative to its peers. The company's operational efficiency is also supported by a solid Piotroski F-Score, and its consistent performance is evidenced by a Predictability Rank of 3.0 stars. In terms of growth, Ross Stores Inc has demonstrated a strong commitment to expansion, with a notable 3-Year Revenue Growth Rate of 19.6%, outperforming 79.18% of its industry peers.
Conclusion
Considering Ross Stores Inc's robust financial strength, impressive profitability, and consistent growth metrics, the GF Score highlights the company's strong 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.
