Ross Stores Intrinsic Value Calculator – ROSS STORES Reports FY2023 Q4 Earnings Results for Fourth Quarter
March 16, 2023
Earnings Overview
For the fourth quarter of fiscal 2023, ROSS STORES ($NASDAQ:ROST) reported total revenue of $447.0 million, an increase of 21.9% from the prior year. Net income for the period was also up 3.9%, totaling $5214.2 million. The earnings results are for the quarter ending January 31, 2023.
Transcripts Simplified
Ross Stores reported a 1% increase in comparable store sales in the fourth quarter of 2022, driven by growth in the size of the average basket as traffic was relatively flat compared to last year. Operating margin of 10.7% was up 90 basis points from 9.8% in 2021 due to lower merchandise margin, distribution costs, and buying expenses. For fiscal 2023, the company plans for comparable store sales to remain relatively flat and expects earnings per share to be in the range of $4.65 to $4.95 compared to $4.38 in fiscal 2022, with an estimated benefit of about $0.15 from the 53rd week. The company plans to open approximately 100 new stores, comprised of 75 Ross and 25 dd’s DISCOUNTS locations, and expects net interest income to be $115 million and depreciation and amortization expense to be about $570 million for the year.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Ross Stores. More…
| Total Revenues | Net Income | Net Margin |
| 18.7k | 1.51k | 8.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Ross Stores. More…
| Operations | Investing | Financing |
| 1.69k | -654.07 | -1.41k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Ross Stores. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 13.42k | 9.13k | 12.03 |
Key Ratios Snapshot
Some of the financial key ratios for Ross Stores are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 5.2% | -2.5% | 10.6% |
| FCF Margin | ROE | ROA |
| 5.5% | 30.0% | 9.3% |
Share Price
On Tuesday, ROSS STORES reported its financial results for the fourth quarter of fiscal year 2023. The company’s stock opened at $110.9 and closed at $110.5, down by 0.3% from the previous closing price of $110.9. However, comparable store sales increased by 2% during the quarter, indicating some resilience in customer demand in spite of the ongoing pandemic. Looking ahead, the company’s management is cautiously optimistic about the future, citing improved consumer sentiment and a continued focus on cost control and strategic investments in technology. Live Quote…
Analysis – Ross Stores Intrinsic Value Calculator
At GoodWhale, we recently conducted an analysis of ROSS STORES‘s wellbeing. After detailed examination, our proprietary Valuation Line calculated the fair value of ROSS STORES share to be around $142.2. However, at the moment, the stock is being traded at $110.5 which implies that it is undervalued by 22.3%. We believe that now is a great time to invest in ROSS STORES as it has immense potential to grow and yield great returns in the future. More…
Peers
Though it may not seem like it at first, the retail industry is actually fiercely competitive. This is especially true for those in the discount retail sector, where companies like Ross Stores Inc. must compete with the likes of Burlington Stores Inc, Kohl’s Corp, and Chiyoda Co Ltd. In order to stay ahead, Ross Stores Inc. has to offer low prices and a good selection of merchandise.
– Burlington Stores Inc ($NYSE:BURL)
Burlington Stores Inc is an American off-price department store retailer, headquartered in Burlington, New Jersey. It was founded in 1972 and has grown to operate over 700 stores in 45 states and Puerto Rico. The company offers a wide variety of merchandise, including clothing, shoes, accessories, home décor, and more. Burlington Stores Inc has a market cap of 9.89B as of 2022. The company’s return on equity is 28.14%. Burlington Stores Inc is a publicly traded company on the New York Stock Exchange (NYSE) under the ticker symbol “BURL.”
– Kohl’s Corp ($NYSE:KSS)
Kohl’s Corp is a publicly traded company with a market cap of 3.66B as of 2022. The company has a return on equity of 16.46%. Kohl’s Corp is a retail company that operates department stores in the United States. The company was founded in 1962 and is headquartered in Menomonee Falls, Wisconsin.
– Chiyoda Co Ltd ($TSE:8185)
Chiyoda Co Ltd is a Japanese engineering company. The company has a market cap of 26.54B as of 2022 and a Return on Equity of -2.63%. The company provides engineering, procurement, and construction services for the oil, gas, chemicals, power, and other industries.
Summary
Investors in Ross Stores should be pleased with the company’s results for the fourth quarter of fiscal year 2023. The total revenue for the quarter was USD 447.0 million, a 21.9% increase year-over-year. Net income also rose 3.9% from the previous year, reaching USD 5214.2 million.
These figures indicate that Ross Stores is performing well and is poised for further growth in the future. The company’s stock could be an attractive option for those looking to invest in a stable, yet growing retail company.
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