Ross Stores, Inc.ROST
NasdaqGS•Consumer Cyclical•Apparel Retail
Ross Stores, Inc., together with its subsidiaries, operates off-price retail apparel and home fashion stores under the Ross Dress for Less and dd's DISCOUNTS brands in the United States. The company offers designer apparel, accessories, footwear, and home-fashioned products for the entire family. It sells its products to middle income households and households with lower to more moderate incomes. Ross Stores, Inc. was incorporated in 1957 and is headquartered in Dublin, California.
as of May 2026
Are revenues and earnings expanding?
$23.78B in TTM revenue grew 11.9% YoY, reaching $6.01B last quarter. TTM EBITDA of $3.43B on operating income of $804.03M shows growth is flowing through. Net income of $2.32B TTM confirms the company is converting revenue into profit. Revenue is growing at a healthy pace — a signal to hold.
Is revenue turning into profit effectively?
Op. margin of 13.4% is up 1.2% YoY — cost efficiency is improving. Net margin at 10.8% and gross margin of 29.6%. ROE of 36.7% shows the company generates solid returns on shareholder equity.
Is the stock cheap or expensive?
At 32.1x P/E, the stock trades at a premium — the market expects above-average growth. P/S of 3.1x and P/B of 11.8x provide additional context. Assess whether the current multiple is justified by the company's growth and profitability trajectory.
Is the company financially stable?
With $15.55B in assets and $776.84M in long-term debt, the D/E of 0.1 shows a conservative capital structure — the company has a strong financial cushion to weather downturns.
Is the business self-funding?
FCF of $627.05M on $836.01M in operating cash flow. The FCF / Net Income ratio of 0.3x indicates partial cash conversion — earnings quality needs attention. Cash reserves of $4.13B provide financial flexibility.
Competitive analysis based on 65 quarters of fundamental data
Operating margins are stable at ~12.1%, suggesting durable pricing power and cost discipline.
Consistently high ROE averaging 37.3% suggests a durable competitive advantage and efficient capital allocation.
Free cash flow is consistently positive and growing — a hallmark of a capital-light business that can self-fund growth.
TTM revenue has grown consistently (6 of 7 quarters up), with ~12.7% growth over the period. Strong demand durability.
Data-driven red flags and warnings across 65 quarters
Margins are stable or improving at ~12.2% — no sign of cost or pricing stress.
FCF covers net income by 0.9x on average — earnings are well-supported by cash generation.
D/E ratio is 0.1 — conservative capital structure with low financial risk.
Revenue is stable or growing over recent quarters — demand appears durable.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Shares decreased 3.2% — net buybacks are reducing shares outstanding and boosting per-share value.