Ross Stores (ROST)
Consumer Discretionary · $75.5B market cap · SEC CIK 0000745732
ahead of 95% of the S&P 500 · #5 of 48 in Consumer Discretionary
Next reports on Nov 18, 2026, with analysts expecting $1.88 in earnings per share.
52-week range $157.73 to $257.00. 7% below its 52-week high and 51% above its low.
The case for ROST
- Earns 42% back on shareholder equity.
- Holds more cash ($4.6B) than long-term debt ($1.0B).
- Revenue growing 14.0% year over year.
- Earnings per share up 31.4%.
- Reasonably priced for its growth: 28.4× earnings, where 22% a year of growth plus a 1.0% dividend would justify about 43×.
- Has compounded revenue at 12.7% a year over five years.
The case against
- Weakest against its peers: free-cash-flow yield of 2.9% is lower than 69% of Consumer Discretionary companies.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Consumer Discretionary companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings and cash, against the growth you get | 69 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 78 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 66 |
| Momentumhow the price has behaved lately | 67 |
| Stabilityhow violently it moves, what it owes and what it pays you | 77 |
- Each factor except momentum is half fixed thresholds, half rank among the 48 Consumer Discretionary companies.
The financials
Revenue growth
Is the business growing? Yes
| Last 12 months | +14.0% |
|---|---|
| Over 5 years | +12.7% a year |
| FY2025 revenue | $22.8B (+8%) |
Free cash flow
Is it generating real cash? Yes
| FY2025 free cash flow | $2.2B |
|---|---|
| Of revenue | 10% |
| Of profit | 103% |
Profit margins
Is profitability improving? Holding steady
| Gross margin | 29% |
|---|---|
| Operating margin | 14% |
| Net margin, FY24 → FY25 → now | 9.9% → 9.4% → 10.8% |
Debt vs. cash
Is the balance sheet healthy? Yes, more cash than debt
| Cash | $4.6B |
|---|---|
| Long-term debt | $1.0B |
| Net cash | $3.6B |
| Years to repay | 0.3 yrs |
Valuation
Is the stock price reasonable? Yes, it looks cheap
| P/E | 28.4× |
|---|---|
| Fair P/E for its growth | 43× |
| P/FCF | 34.2× |
| Forward P/E | 25.8× |
| EV / EBITDA | 18.5× |
At 28.4× earnings it trades below the 43× that 22% a year of growth plus a 1.0% dividend would justify. At 34.2× free cash flow it trades below that same mark.
The financials, five years deep
Pulled from Ross Stores's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue growth | |||||
| Revenue | $22.8B | $21.1B | $20.4B | $18.7B | $18.9B |
| Change on the year | +8% | +4% | +9% | −1% | — |
| Free cash flow | |||||
| Free cash flow | $2.2B | $1.6B | $1.8B | $1.0B | $1.2B |
| Of revenue | 10% | 8% | 9% | 6% | 6% |
| Profit margins | |||||
| Operating margin | 11.9% | 12.2% | 11.3% | 10.6% | — |
| Net margin | 9.4% | 9.9% | 9.2% | 8.1% | 9.1% |
| Debt vs. cash | |||||
| Cash | $4.6B | $4.7B | $4.9B | $4.6B | $4.9B |
| Long-term debt | $1.0B | $1.5B | $2.2B | $2.5B | $2.5B |
| Net cash (debt) | $3.6B | $3.2B | $2.7B | $2.1B | $2.5B |
What Ross Stores says it does
Ross Stores, Inc. and its subsidiaries (“we”, “our”, or the “Company”) operate two brands of off-price retail apparel and home fashion stores—Ross Dress for Less ® (“Ross”) and dd’s DISCOUNTS ® . Ross is the largest off-price apparel and home fashion chain in the United States, with 1,904 locations in 44 states, the District of Columbia, Guam, and Puerto Rico as of January 31, 2026. Ross offers first-quality, in-season, brand name and designer apparel, accessories, footwear, and home fashions for the entire family at savings of 20% to 60% off department and specialty store regular prices every day. Ross’ target customers are primarily from middle income households. We also operate 363 dd’s DISCOUNTS stores in 22 states as of January 31, 2026. dd’s DISCOUNTS features more moderately-priced first-quality, in-season apparel, accessories, footwear, and home fashions for the entire family at savings of 20% to 70% off moderate department and…
Risk factors ROST lists in its 10-K
- Changes and uncertainty in U.S. trade or tax policy regarding apparel, home-related merchandise, shoes, and other goods we sell produced in other countries could adversely affect our business
- Competitive pressures and the pace of change in the retailing industry are high
- Unexpected changes in the level of consumer spending or preferences could adversely affect us
- Adverse or unseasonable weather may affect shopping patterns and consumer demand for seasonal apparel and other merchandise, and may result in temporary store closures and disruptions in deliveries of merchandise to our stores
- We may experience volatility in sales and earnings
- To achieve growth, we need to expand in existing markets and enter new geographic markets
- We need to obtain acceptable new store sites with favorable consumer demographics to achieve our planned growth
- Our ability to effectively advertise and market our business could impact customer traffic and demand for our merchandise
- In order to achieve our planned gross margins, we must effectively manage our inventories, markdowns, and inventory shortage
- Disruptions in our supply chain or in our information systems could impact our ability to process sales and to deliver product to our stores in a timely and cost-effective manner
- We are subject to risks associated with importing and selling merchandise produced in other countries
- Damage to our corporate reputation or brands could adversely affect our sales and operating results
- A natural or man-made disaster in a region where we have a concentration of stores, offices, or a distribution center could harm our business
- Consumer problems or legal issues involving the quality, safety, or authenticity of products we sell could harm our reputation, result in lost sales, and/or increase our costs
- An adverse outcome in various legal, regulatory, or tax matters could damage our reputation or brand and increase our costs