Ross Stores (ROST) AI Stock Analysis

• Market Cap: $46.07B
• Dividend Yield: 1.08%
• Average Volume (3M): 3.22M
• Price to Earnings (P/E): 22.1
• Beta (1Y): 0.74
• Revenue Growth: 2.49%
• EPS Growth: 6.60%
• Country: US
• Employees: 107,000
• Sector: Consumer Cyclical
• Sector Strength: 77
• Industry: Apparel - Retail
• EPS (TTM): 1.47
• Shares Outstanding: 328,834,200
• 10 Day Avg. Volume: 4,884,519
• 30 Day Avg. Volume: 3,224,398
• PEG Ratio: -41.59
• Price to Book (P/B): 7.08
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 24.53
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $154.56
• Price Target Upside: 8.52% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17

• Rating: 71 Outperform
• Price Target: $152.00 ▲(6.73%Upside)

Ross Stores' solid financial performance, characterized by strong revenue growth and profitability, is the most significant factor contributing to the stock score. Mixed technical signals and reasonable valuation offer a balanced outlook. The earnings call highlights both resilience in growth and challenges such as tariff impacts and guidance withdrawal, reflecting cautious sentiment moving forward.

Positive Factors

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 and Investor Confidence

The company decided to pull their full-year guidance due to macroeconomic uncertainty, affecting investor confidence.

Tariffs 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 showcases a solid financial standing with strong income statement metrics, a stable balance sheet, and healthy cash flow generation. The company demonstrates consistent revenue and profit growth, efficient equity utilization, and strong cash conversion, positioning it well for future expansion and resilience in the discretionary retail market.

Income Statement

Ross Stores has demonstrated robust financial performance with a consistent increase in revenue and profitability. The TTM shows a Gross Profit Margin of 28.0% and a Net Profit Margin of 9.9%, reflecting strong operational efficiency. Revenue growth from the previous year is impressive, and the EBIT and EBITDA margins are healthy at 12.2% and 14.5%, respectively. These metrics indicate a solid and improving income statement performance.

Balance Sheet

Ross Stores maintains a stable balance sheet with a Debt-to-Equity Ratio of 1.09, indicating moderate leverage which is manageable. The Return on Equity (ROE) stands at 40.2%, showcasing efficient use of equity to generate profits. The Equity Ratio of 35.3% reflects a healthy balance between debt and equity, though there is room for improvement in reducing liabilities.

Cash Flow

The company's cash flow position is strong, evidenced by a Free Cash Flow Growth Rate of -3.7%, which is slightly down but remains robust overall. The Operating Cash Flow to Net Income Ratio is 1.15, indicating good cash generation relative to net income. Additionally, the Free Cash Flow to Net Income Ratio is 0.80, showing effective conversion of earnings into free cash flow, supporting liquidity and potential for reinvestment.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
21.24B	20.38B	18.70B	18.92B	12.53B	16.04B
	Gross Profit
5.95B	5.58B	4.75B	5.21B	2.69B	4.50B
	EBIT
2.60B	2.31B	1.99B	2.33B	189.71M	2.15B
	EBITDA
3.09B	2.97B	2.38B	2.69B	553.96M	2.52B
	Net Income Common Stockholders
2.11B	1.87B	1.51B	1.72B	85.38M	1.66B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
734.60M	4.87B	4.55B	4.92B	4.82B	1.35B
	Total Assets
2.96B	14.30B	13.42B	13.64B	12.72B	9.35B
	Total Debt
150.00M	5.75B	5.71B	5.62B	5.73B	3.49B
	Net Debt
-582.80M	875.26M	1.15B	699.77M	913.51M	2.14B
	Total Liabilities
1.68B	9.43B	9.13B	9.58B	9.43B	5.99B
	Stockholders Equity
1.29B	4.87B	4.29B	4.06B	3.29B	3.36B
Cash Flow		Free Cash Flow
1.69B	1.75B	1.04B	1.18B	1.84B	1.62B
	Operating Cash Flow
2.42B	2.51B	1.69B	1.74B	2.25B	2.17B
	Investing Cash Flow
-736.48M	-762.81M	-654.07M	-557.84M	-405.43M	-554.97M
	Financing Cash Flow
-1.83B	-1.43B	-1.41B	-1.15B	1.70B	-1.68B

Ross Stores Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 142.42
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ROST, the sentiment is Neutral. The current price of 142.42 is below the 20-day moving average (MA) of 145.95, above the 50-day MA of 139.16, and below the 200-day MA of 143.81, indicating a neutral trend. The MACD of 0.33 indicates Positive momentum. The RSI at 48.40 is Neutral, neither overbought nor oversold. The STOCH value of 42.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$19.23B	82.19	15.84%	―	34.75%	60.65%
TJX	72 Outperform	$141.68B	29.92	60.36%	1.22%	3.79%	5.23%
GAP	72 Outperform	$8.37B	9.77	29.16%	2.76%	1.07%	28.03%
ROST	71 Outperform	$46.07B	22.14	39.57%	1.08%	2.49%	6.60%
BURL	65 Neutral	$14.38B	28.02	44.13%	―	8.29%	38.09%
AEO	64 Neutral	$1.81B	10.66	12.19%	4.56%	-0.95%	-10.51%
Sector *	62 Neutral	$6.90B	11.12	2.92%	3.89%	2.68%	-25.06%

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.