January 03, 2026 a 03:31 pm
ROST: Dividend Analysis - Ross Stores, Inc.
⚠️ Ross Stores, Inc. presents a compelling dividend profile characterized by moderate yield and impressive stability. With 32 years of dividend payments, the company has shown resilience in turbulent times. The episodic suspension in 2020 highlights caution but overall reflects a consistent growth trend in recent years.
📊 Overview
Ross Stores, Inc.’s sector-responsive dividend yield and reliable dividend history underscore its long-standing commitment to returning value to shareholders. The absence of recent cuts, except during extraordinary events, affords a layer of reliability.
| Metric | Value |
|---|---|
| Sector | Retail |
| Dividend yield | 0.92 % |
| Current dividend per share | 1.49 USD |
| Dividend history | 32 years |
| Last cut or suspension | 2020 |
🗣️ Dividend History
The extensive dividend history is a testament to the company's robustness and adaptability, with a consistent upward trajectory in payouts signaling confidence in sustained operational success.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | 1.620 |
| 2024 | 1.470 |
| 2023 | 1.340 |
| 2022 | 1.240 |
| 2021 | 1.140 |
📈 Dividend Growth
Assessing dividend growth provides insights into future income potential and the company's fiscal health. Sustainable growth rates are pivotal for drawing long-term investors.
| Time | Growth |
|---|---|
| 3 years | 9.32 % |
| 5 years | 41.56 % |
The average dividend growth is 41.56 % over 5 years. This shows moderate but steady dividend growth.
✅ Payout Ratio
Analyzing payout ratios is key to understanding the sustainability of dividend payments. Lower ratios typically suggest more room for growth or resilience during downturns.
| Key figure | Ratio |
|---|---|
| EPS-based | 23.03 % |
| Free cash flow-based | 24.64 % |
The low payout ratios of 23.03 % (EPS) and 24.64 % (FCF) indicate a conservative approach, offering a safe margin against earnings variability.
⚙️ Cashflow & Capital Efficiency
The examination of cash flow metrics and capital efficiency reveals insights into operational success and investment returns.
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Free Cash Flow Yield | 3.31% | 3.73% | 2.55% |
| Earnings Yield | 4.23% | 3.99% | 3.72% |
| CAPEX to Operating Cash Flow | 30.55% | 30.34% | 38.72% |
| Stock-based Compensation to Revenue | 0.74% | 0.71% | 0.65% |
| Free Cash Flow / Operating Cash Flow Ratio | 69.45% | 69.66% | 61.28% |
Steady cash flow figures paired with adept capital handling hint at a strong foundation for future profitability with considerable operational efficiency.
🏦 Balance Sheet & Leverage Analysis
Evaluating leverage and balance sheet strength supports insights into financial stability and debt management.
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Debt-to-Equity | 1.03 | 1.18 | 1.33 |
| Debt-to-Assets | 0.38 | 0.40 | 0.43 |
| Debt-to-Capital | 0.51 | 0.54 | 0.57 |
| Net Debt to EBITDA | 0.29 | 0.30 | 0.47 |
| Current Ratio | 1.52 | 1.77 | 1.90 |
| Quick Ratio | 1.09 | 1.24 | 1.34 |
| Financial Leverage | 2.71 | 2.94 | 3.13 |
Steady leverage metrics and solid liquidity position Ross Stores for robust debt management and financial durability.
🧱 Fundamental Strength & Profitability
The analysis of fundamental strength and profitability metrics presents the company’s efficiency in generating returns and managing costs.
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Return on Equity | 37.95% | 38.48% | 35.26% |
| Return on Assets | 14.03% | 13.11% | 11.27% |
| Gross Margin | 27.78% | 27.36% | 25.40% |
| EBIT Margin | 13.35% | 12.49% | 11.06% |
| EBITDA Margin | 15.46% | 14.55% | 13.17% |
| Net Margin | 9.89% | 9.20% | 8.09% |
| R&D to Revenue | 0% | 0% | 0% |
The profitability metrics underscore a robust operating model with consistent returns and effective cost management, lacking R&D investments yet still demonstrating efficiency.
💹 Price Development
🔍 Dividend Scoring System
| Criteria | Score | Score Bar |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 5 | |
| Dividend growth | 4 | |
| Payout ratio | 5 | |
| Financial stability | 4 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 5 |
Overall Score: 35 / 40
🌟 Rating
Ross Stores, Inc. exhibits a resilient and appealing dividend profile suitable for investors seeking stability with moderate growth potential. Its consistent performance and robust financials render it a solid investment option.