Message Font: Serif | Sans-Serif
No. of Recommendations: 0
I've been looking at this stock for a few weeks now. It seems pretty attractive, so just for kicks I ran it through some of the Rule Maker criteria using their most recent 10Q. I also ran some of the numbers on TJ Maxx, which seems like their most similar competitor.

Ross TJMaxx
Sales Growth 13% 11%
Gross Margins 30% 25%
Net Margins 6.2% 6.0%
Cash-to-Debt 1.63 0.72
Flow Ratio 1.26 1.11
Cash King Margin 2.6% -0%
Return on Equity 35.9% 45.8%

For discount retailers, these numbers seem pretty good. For instance, their gross and net margins are higher than Wal-Mart's. The Cash King Margins increase to 4.4% and 3.9% if you use their annual reports instead of the most recent quarter. Ross seems to have a better handle on its debt and Cash King Margins than TJ Maxx, though the latter has a better Flowie and higher return on equity.

Retail seems to be coming back into fashion (sorry) if you look at Abercrombie and Fitch, Chico's, or Braun's. Those are all full-price retailers, but it seems plausible that there may be a trickle-down effect for discount retailers.

Any thoughts?

BTW, I pulled the trigger today hoping that the market overreacted to June's same-store sales.
Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.