Ross Stores, Inc. (ROST)
Fair ValueFundamental
75
Price
$233.40
Market Cap
$75.20B
Part 1 · What the company is worth
Overview
Ross Stores runs two off-price retail chains, Ross Dress for Less and dd's DISCOUNTS, selling brand-name and designer clothing, accessories and home goods at 20% to 70% below department-store prices. It buys opportunistically — closeout merchandise, canceled orders, overproduction — rather than commissioning goods to order, and keeps stores simple and low-cost to run. With nearly 2,300 stores across the U.S. and almost no online sales, its business is built entirely around the physical, discount treasure-hunt shopping trip.
How it makes money
Ross earns its margin from buying inventory well below wholesale — often from manufacturers with excess stock who need to sell it fast and quietly — and passing part of that discount to shoppers while keeping the rest. Because it commits to almost no advertising and runs no-frills stores, its cost structure sits well below a full-price retailer's, letting relatively thin markups still produce solid profit. The trade-off is that it depends on a constant supply of discounted, in-season, name-brand goods being available to buy.
Competitive moat
Cost advantage · NarrowRoss runs lean stores with little advertising and a fast, flexible buying model that lets it turn excess inventory from many manufacturers into cheap merchandise quickly. That keeps its costs — and prices — below a typical retailer's. But the model is not unique: TJX and Burlington run close variations of it, all competing for the same pool of discounted goods.
What drives demand
Moderately cyclicalOff-price retail tends to hold up better than full-price stores in a downturn, as value-conscious shoppers trade down rather than stop buying — but it is not immune: a severe pullback in discretionary spending or a shrinking supply of quality closeout inventory both hurt sales, and elevated tariffs can squeeze the sourcing economics the whole model depends on.
Key risks
- Import tariffs and global sourcing — A large share of merchandise originates outside the U.S., so new or higher tariffs raise Ross's cost of goods and can also dampen consumer demand broadly, a double hit to the business.
- Dependence on a supply of discounted goods — The off-price model needs a steady flow of quality, name-brand closeout inventory. As more retailers compete for the same pool, and as brands sell directly to consumers instead of liquidating excess stock, that supply can tighten.
- Intensifying competition — Ross competes with other off-price chains, department stores, online retailers and brands' own direct-to-consumer channels, all chasing the same value-seeking shopper.
- Sensitivity to consumer spending — Inflation, weaker employment or declining consumer confidence can reduce discretionary purchases of clothing and home goods even at a discount, directly hitting sales and margins.
The case for
Buyers argue that Ross's low-cost, no-frills model and flexible buying let it keep growing profitably through both good times and bad, that its off-price format benefits when shoppers trade down, and that record fiscal 2025 sales and margins above plan show the model still has room to run.
The case against
Sellers worry that tariffs on imported goods raise costs precisely when value-focused shoppers can least absorb higher prices, that competition for discounted inventory is intensifying as brands sell more directly to consumers, and that a chain built for physical treasure-hunt shopping has limited room to defend itself if that habit fades.
Written by the editors, published on August 18, 2026
Direct competitors
Who this company fights with for the same customers
No editorial profile for this company yet
No competitor list for this company yet.
Balance Sheet & Liquidity
Revenue
$24.51B
Trailing 12 months (through 8/1/2026)
Net Income
$2.66B
Trailing 12 months (through 8/1/2026)
Free Cash Flow
$2.21B
Total Equity
$6.19B
Total Liabilities
$9.36B
Current Ratio
1.61
Interest Coverage
25.41
Debt/EBITDA
1.47
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$277.02
Current Price
$233.40
Margin of Safety
+15.7%
Fair Value Range
$192.61 - $361.42
Spread across the valuation methods used, not a statistically calibrated confidence interval.
Estimation Methods
Valuation Metrics
P/E Ratio
28.26
ROE
34.7%
P/B Ratio
11.06
P/FCF
26.72
Gross Margin
29.7%
ROIC
24.0%
Profitability Radar
Value Creation (Economic Moat)
ROIC
24.0%
WACC
8.8%
ROIC − WACC
+15.2 pp
ROIC exceeds the cost of capital — the company is creating value for shareholders.
Fundamental Analysis Criteria
Passed (22)
- EPS shows upward trend
- EPS CAGR 6.33%
- Price CAGR 13.56%
- ROIC 24.0%
- P/FCF 26.72
- Debt/Equity ratio
- Operating Margin 13.7%
- Positive Free Cash Flow
- Current Ratio
- Interest Coverage
- Debt/EBITDA
- Return on Tangible Assets
- Low reliance on intangibles
- ROE 42.3%
- Revenue Growth 5Y 12.7%
- Analyst Consensus 70% Buy
- Earnings Surprise avg 7.9%
- PEG Ratio 0.30
- Earnings Quality (OCF/NI) 1.38
- Share Dilution -1.9%
- Net Margin Trend 10.8% vs 9.6%
- Piotroski F-Score 6/9
Failed (5)
- Gross Margin 29.7%
- P/B Ratio 11.06
- CapEx intensity
- Price below Graham Number
- DCF valuation (Overvalued)
Unavailable (1)
- Dividend Payout NaN%
Piotroski F-Score
Mixed signals: some areas need attention
Earnings Quality
High quality: earnings backed by cash
Share Dilution
Buying back shares. Shareholder friendly
Institutional Holdings
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. James G. Conroy | CEO & Director | 55 |
| Mr. Michael J. Hartshorn | Group President, COO & Director | 57 |
| Mr. William W. Sheehan II | Executive VP & CFO | 56 |
| Ms. Karen Fleming | President & Chief Merchandising Officer - Ross Dress for Less | 58 |
| Mr. Jeffrey P. Burrill | Group Senior VP, Corporate Controller & Chief Accounting Officer | 55 |
| Mr. Ken Jew | Group Senior VP, General Counsel & Corporate Secretary | - |
| Mr. Gary L. Cribb | Senior Group Executive Vice President of Stores & Loss Prevention | 60 |
| Mr. Stephen Brinkley | President of Operations | 51 |
| Ms. Karen Sykes | President & Chief Merchandising Officer of dd's DISCOUNTS | 64 |
Audit Risk
9
Board Risk
2
Compensation Risk
6
Shareholder Rights Risk
4
Part 2 · The price and when to enter
This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Documents
- View document
Annual Report (10-K)
A yearly overview of the business, its financial results, and the risks it faces.
Filed on 2026-03-31
- View document
Quarterly Report (10-Q)
A snapshot of financial performance for the most recent three-month period.
Filed on 2026-09-01
- View document
Current Report (8-K)
An announcement of a major event, such as a leadership change or big news.
Filed on 2026-09-17
via SEC EDGAR
Income History
via SEC EDGAR
Latest News
Recent headlines for ROST, sourced from Markets Gazette.
- 8/24/2026POSITIVEFriday’s Activity, 3 New Options Plays
Ross Stores Inc. (ROST) was highlighted as a significant gainer on Friday, with trading activity presenting substantial opportunities for multibagger returns. The article suggests that the stock's performance exceeded expectations, with potential for considerable upside. While specific financial figures are not detailed, the mention of 'huge multibag gains' implies a strong positive movement in the stock price, likely driven by favorable market conditions or company-specific news not elaborated upon in this excerpt. Investors tracking retail stocks may find this a noteworthy development.
- 8/21/2026POSITIVEBroadcom Chip Financing; Ross Earnings Forecast | Stock Movers
Ross Stores Inc. (ROST) saw its shares rise following an upward revision of its full-year earnings per share forecast. The off-price retailer reported robust performance throughout the second quarter, attributing comparable store sales growth to both an influx of new customers and increased loyalty from its existing customer base. This positive outlook suggests strong consumer demand for Ross's value-oriented offerings, potentially signaling continued market share gains and operational efficiency. Investors will be watching for sustained customer acquisition and spending trends in the upcoming quarters.
- 8/20/2026POSITIVERoss Stores Raises Annual Profit Outlook on Robust Momentum
Ross Stores Inc. has announced a second upward revision to its annual profit outlook, underscoring the sustained strong performance of the discount retailer. This positive development suggests that the company's strategic positioning and operational efficiency are effectively translating into financial gains. Investors will be watching closely to see if this momentum continues, potentially leading to further stock appreciation and reinforcing Ross Stores' market standing amidst a competitive retail landscape.
- 6/15/2026POSITIVE$100 Invested In Ross Stores 20 Years Ago Would Be Worth This Much Today
An investment of $100 in Ross Stores (ROST) made 20 years ago would have grown to a substantial amount today, demonstrating significant long-term capital appreciation. While the exact figure is not provided, the implication is a strong positive return, outperforming many market benchmarks. This performance highlights the company's consistent growth, effective management, and ability to navigate economic cycles. For investors, this historical data suggests Ross Stores as a potentially robust long-term holding, underscoring its resilience and value creation capabilities over two decades.
- 5/29/2026POSITIVEIf You Invested $100 In Ross Stores Stock 10 Years Ago, You Would Have This Much Today
An investment of $100 in Ross Stores (ROST) stock a decade ago would have yielded a substantial return, illustrating the company's robust long-term performance. While specific figures are not provided in the title, the implication of significant growth suggests that Ross Stores has consistently outperformed the broader market. This historical performance indicates strong operational execution, effective inventory management, and a resilient business model capable of navigating various economic cycles. Investors considering ROST should note this track record as a testament to its potential for sustained value creation.
- 5/22/2026POSITIVERoss Stores Stock Hits 52-Week High - Here's Why
Ross Stores Inc. (ROST) has reached a new 52-week high, fueled by positive analyst sentiment and upward revisions to earnings per share (EPS) estimates following a strong first quarter performance. While specific Q1 figures are not detailed, the consensus among analysts from firms like Barclays, Morgan Stanley, and Deutsche Bank, who maintain 'Overweight' or 'Buy' ratings, indicates robust company performance. This sustained bullish outlook suggests that Ross Stores is outperforming market expectations, potentially due to strong consumer spending in its segment or effective inventory management. Investors are likely to see this as a signal of continued growth and profitability.
- 5/21/2026POSITIVERoss Raises Forecasts Amid Sales Surge, Record Same-Store Growth
Ross Stores Inc. has significantly boosted its financial outlook following a stellar first quarter. The off-price retailer's results exceeded analyst expectations, driven by robust customer traffic, particularly among younger demographics, and unprecedented same-store sales growth, marking a historic achievement for the company. This strong performance indicates effective inventory management and a compelling value proposition resonating with consumers. Investors can anticipate potential upward revisions in earnings forecasts and a positive sentiment towards the stock, reflecting the company's operational strength and market positioning.
- 5/21/2026NEUTRALTranscript: Ross Stores Q1 2026 Earnings Conference Call
Ross Stores Inc. held its Q1 2026 Earnings Conference Call on May 21, 2026. The transcript indicates a discussion of the company's financial performance and outlook. While specific financial figures and forward-looking statements are detailed within the call, the transcript itself is a record of the proceedings rather than a direct announcement of new material information. Investors reviewing the transcript can gain insights into management's perspectives on sales, margins, and strategic initiatives, but the call's content is inherently backward-looking and informational.
via Markets Gazette