Ross Stores (ROST) AI Stock Analysis

• Market Cap: $44.85B
• Dividend Yield: 1.19%
• Average Volume (3M): 3.22M
• Price to Earnings (P/E): 21.6
• Beta (1Y): 0.75
• Revenue Growth: 2.49%
• EPS Growth: 6.60%
• Country: US
• Employees: 107,000
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Apparel - Retail
• EPS (TTM): 1.47
• Shares Outstanding: 328,834,200
• 10 Day Avg. Volume: 2,933,961
• 30 Day Avg. Volume: 3,215,300
• PEG Ratio: -2.66
• Price to Book (P/B): 9.57
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 39.64
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 0.50
• Enterprise Value/Gross Profit: 9.41
• Enterprise Value/Ebitda: 3.46
• 1Y Price Target: $153.80
• Price Target Upside: 15.23% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16

• Rating: 69 Neutral
• Price Target: $153.00 ▲(14.63%Upside)

Ross Stores has a solid financial foundation and strategic growth initiatives, but faces challenges like flat comparable sales and tariff impacts. Technical indicators are mixed, and valuation is moderate, contributing to a balanced overall score.

Positive Factors

Market Opportunity

Ross Stores remains favorably positioned in a growing off-price market with market share opportunity from department store share loss.

Market Positioning

Ross is gaining market share as a trade-down destination due to its strong value positioning.

Sales Performance

Sales improved sequentially through the quarter, with cosmetics being the best performing category and broad-based strength across income demographics.

Negative Factors

Guidance Uncertainty

Management pulled full-year guidance due to macroeconomic and tariff-related uncertainty, which was unexpected given the company's nimble model.

Margin Pressure

Management guided to 90-120 basis points of margin pressure in the second quarter from tariffs, reflecting goods in transit and increased distribution center labor costs.

Tariff Impact

Tariffs have negatively impacted Ross's margins and demand.

Ross Stores Business Overview & Revenue Model

Company Description

Ross Stores, Inc. (ROST) is a leading American off-price retail company, operating under the brand names Ross Dress for Less and dd's DISCOUNTS. The company offers a wide range of name-brand apparel, accessories, footwear, and home decor at significantly discounted prices compared to traditional department stores. Established in 1982, Ross Stores has grown to become one of the largest off-price retailers in the United States, with a focus on providing exceptional value to cost-conscious customers.

How the Company Makes Money

Ross Stores makes money primarily through the sale of discounted apparel, footwear, accessories, and home goods. The company's revenue model is based on purchasing excess inventory from manufacturers and department stores at reduced prices and passing these savings onto customers. This off-price retail strategy allows Ross Stores to offer competitive pricing, attracting a wide customer base looking for brand-name products at lower costs. The company operates a vast network of retail locations across the United States, generating revenue from in-store sales. Additionally, Ross Stores benefits from economies of scale and efficient inventory management, which help maintain profitability. Key factors contributing to its earnings include strategic store locations, effective marketing, and a strong supply chain network that enables the company to continuously source and replenish its product offerings.

Ross Stores Financial Statement Overview

Summary

Ross Stores displays strong revenue growth, robust profitability, and stable financial management. The company shows resilience in the apparel retail sector, supported by effective operational strategies and sound financial practices.

Income Statement

Ross Stores has demonstrated strong and consistent revenue growth over the years, with a significant increase in total revenue from 2021 to 2025. The company maintains healthy profit margins, with a notable gross profit margin and net profit margin. EBIT and EBITDA margins are solid, indicating efficient operational management. The trajectory indicates robust financial health and profitability in the competitive apparel retail industry.

Balance Sheet

The balance sheet of Ross Stores reflects a stable financial position. The debt-to-equity ratio is reasonable, indicating balanced leverage. The company has maintained a solid return on equity, showcasing effective use of equity to generate profits. The equity ratio suggests a healthy proportion of equity financing relative to total assets, contributing to financial stability.

Cash Flow

Ross Stores exhibits strong cash flow management, with consistent operating cash flow and positive free cash flow. The growth rate in free cash flow highlights the company's capacity to generate cash, supporting its operations and growth strategies. The operating cash flow to net income ratio indicates efficient conversion of profits into cash, enhancing liquidity.

Breakdown
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
21.26B	21.13B	20.38B	18.70B	18.92B	12.53B
	Gross Profit
4.50B	5.87B	5.58B	4.75B	5.21B	2.69B
	EBIT
2.60B	2.59B	2.31B	1.99B	2.33B	189.71M
	EBITDA
3.03B	3.27B	2.97B	2.38B	2.69B	553.96M
	Net Income Common Stockholders
2.08B	2.09B	1.87B	1.51B	1.72B	85.38M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.78B	4.73B	4.87B	4.55B	4.92B	4.82B
	Total Assets
14.30B	14.91B	14.30B	13.42B	13.64B	12.72B
	Total Debt
5.02B	5.68B	5.75B	5.71B	5.62B	5.73B
	Net Debt
1.23B	951.68M	875.26M	1.15B	699.77M	913.51M
	Total Liabilities
8.46B	9.40B	9.43B	9.13B	9.58B	9.43B
	Stockholders Equity
5.84B	5.51B	4.87B	4.29B	4.06B	3.29B
Cash Flow		Free Cash Flow
1.61B	1.64B	1.75B	1.04B	1.18B	1.84B
	Operating Cash Flow
2.40B	2.36B	2.51B	1.69B	1.74B	2.25B
	Investing Cash Flow
-708.59M	-637.46M	-762.81M	-654.07M	-557.84M	-405.43M
	Financing Cash Flow
-2.56B	-1.86B	-1.43B	-1.41B	-1.15B	1.70B

Ross Stores Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 133.47
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ROST, the sentiment is Negative. The current price of 133.47 is below the 20-day moving average (MA) of 143.78, below the 50-day MA of 140.87, and below the 200-day MA of 143.11, indicating a bearish trend. The MACD of -1.29 indicates Positive momentum. The RSI at 35.36 is Neutral, neither overbought nor oversold. The STOCH value of 15.89 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ROST.

Ross Stores Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ONON	77 Outperform	$18.39B	77.12	15.84%	―	34.75%	60.65%
GAP	72 Outperform	$8.29B	9.68	29.16%	2.95%	1.07%	28.03%
TJX	71 Outperform	$140.61B	29.72	60.36%	1.36%	3.79%	5.23%
ROST	69 Neutral	$44.85B	21.57	39.57%	1.19%	2.49%	6.60%
BURL	69 Neutral	$15.06B	29.10	44.13%	―	8.29%	38.09%
AEO	64 Neutral	$1.80B	10.63	12.19%	4.95%	-0.95%	-10.51%
Sector *	63 Neutral	$6.94B	11.34	2.80%	4.26%	2.68%	-24.70%

Ross Stores Corporate Events

Ross Stores Concludes Annual Stockholders Meeting

Ross Stores held its Annual Meeting of Stockholders on May 21, 2025, where stockholders voted on three key matters. The election of 11 directors for a one-year term was approved, executive compensation received advisory approval, and Deloitte & Touche LLP was ratified as the independent public accounting firm for the fiscal year ending January 31, 2026.

The most recent analyst rating on (ROST) stock is a Buy with a $175.00 price target. To see the full list of analyst forecasts on Ross Stores stock, see the ROST Stock Forecast page.