Risk factor
Very poor trading liquidity
Profitability factor
Very strong margins and returns
In Guru Portfolios
About
Headquartered in Dublin, California, Ross Stores, Inc. is a prominent off-price retailer focusing on apparel and home accessories. The company employs 88,100 full-time staff and operates as the leading off-price clothing and home fashion chain throughout the United States. As of January 28, 2017, its extensive network comprised 1,340 Ross stores distributed across 36 states, the District of Columbia, and Guam. These locations offer in-season, name-brand, and designer attire, footwear, accessories, and home goods for the entire family, consistently priced 20% to 60% below standard department and specialty store rates. On the same date, the firm also managed 193 dd's DISCOUNTS stores in 15 states, bringing its combined store portfolio to 1,533. Supporting these retail operations were six distribution and processing facilities: three in California, one in Pennsylvania, and two in South Carolina, also as of January 28, 2017.
Company Valuation
Based on key historical and expected multiples, the stock is greatly overvalued relative to its peers. Specifically, the stock is 'expensive' on P/E, overvalued on EV/EBI