What moat does Ross Stores have?

The advantage is the buyer who already knows where the leftover is and the plain store the customer comes back to. TJX does the same trade under other names. The brand is not obliged to sell the excess. The moat narrows if there is no liquidation, or if store visits fall.

How do you read the Ross Stores radar?

Health is debt against inventory and leases, not a factory's debt. Quality is the margin on what was bought cheap and sold before it goes out of fashion. Growth is more visits and more stores, not a licence. P/E is read against a liquidation year, not a dry year. Shareholder return is the dividend and the buyback, checked against the year's cash.

Which multiples matter for Ross Stores?

The P/E of a year when brands dump a lot of stock is not normal earnings. EV/EBITDA is read with the inventory inside. Do not use Inditex's multiple, which controls the product, or TJX's as if the store were the same. A dash if the ROST cache is cold.

What does this Ross Stores analysis leave out?

Not advice on ROST. Vaultflake does not count stores and does not treat the leftover buy as assured. This is not a double-digit return. Read the filings. A past dividend is not a right. The table is a snapshot, not a target price.

Ross Stores (ROST) analysis

Ross Stores, Inc.

Sector:Consumer Discretionary · Off-price Apparel

Country:United States

Profile and moat

Ross Stores sells branded apparel and home goods in the United States that another retailer did not clear, under the Dress for Less name. The trade is TJX's trade: buy the leftover and put it in a store people walk into. It does not design the collection or order the garment a year ahead. Inditex does that. Ross does not.

The margin depends on there being surplus to buy and on the customer coming through the door. A year in which brands liquidate a lot is not a normal year's profit. Rent, store labour and freight still count. This report does not count stores and does not state a return on capital.

The dividend and the buyback, when they happen, come from the cash the inventory leaves. They have to fit. They are not a toll.

Ross Stores (ROST) analysis

Ross Stores, Inc.

Sector:Consumer Discretionary · Off-price Apparel

Country:United States

Profile and moat

The dividend and the buyback, when they happen, come from the cash the inventory leaves. They have to fit. They are not a toll.

Ross Stores (ROST) analysis

Profile and moat

Ross Stores (ROST) analysis

Profile and moat

Radar axes

Limits of this report

Questions from this report

What moat does Ross Stores have?

How do you read the Ross Stores radar?

Which multiples matter for Ross Stores?

What does this Ross Stores analysis leave out?

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