Ross Stores (ROST) AI Stock Analysis

• Market Cap: $45.65B
• Dividend Yield: 1.13%
• Average Volume (3M): 2.94M
• Price to Earnings (P/E): 22.1
• Beta (1Y): 0.73
• Revenue Growth: 2.49%
• EPS Growth: 6.60%
• Country: US
• Employees: 107,000
• Sector: Consumer Cyclical
• Sector Strength: 66
• Industry: Apparel - Retail
• EPS (TTM): 1.47
• Shares Outstanding: 327,070,530
• 10 Day Avg. Volume: 2,445,618
• 30 Day Avg. Volume: 2,942,147
• PEG Ratio: 136.01
• Price to Book (P/B): 7.63
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 27.95
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 0.97
• Enterprise Value/Gross Profit: 14.04
• Enterprise Value/Ebitda: 6.09
• 1Y Price Target: $154.85
• Price Target Upside: 13.41% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16

• Rating: 77 Outperform
• Price Target: $154.00 ▲(12.79%Upside)

Ross Stores demonstrates strong financial health and strategic growth initiatives, including store expansions and a new credit facility. Despite challenges like flat comparable sales and tariff impacts, the company's resilience and strategic positioning in the Apparel - Retail industry contribute to a solid overall score.

Positive Factors

Financial Performance

Management is confident in a low-double-digit multi-year bottom-line algorithm.

Market Positioning

Ross Stores remains favorably positioned in a growing off-price pie with market share opportunity from department store share loss and white space remaining for unit growth with the company’s 2,500-store saturation target.

Sales Growth

Strong merchandising and easy comparisons could lead to sales growth, particularly driven by key categories like cosmetics and ladies' apparel.

Negative Factors

Guidance Uncertainty

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

Pricing Strategy

Ross may struggle to sustain price increases without hurting sales volume in a low-income consumer environment.

Tariff Impact

Tariffs have negatively impacted Ross's margins and demand.

Ross Stores Business Overview & Revenue Model

Company Description

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 brand names. Its stores primarily offer apparel, accessories, footwear, and home fashions. The company's Ross Dress for Less stores sell its products at department and specialty stores primarily to middle income households; and dd's DISCOUNTS stores sell its products at department and discount stores for households with moderate income. As of July 5, 2022, it operated approximately 1,950 stores under the Ross Dress for Less and dd's DISCOUNTS name in 40 states, the District of Columbia, and Guam. Ross Stores, Inc. was incorporated in 1957 and is headquartered in Dublin, California.

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 exhibits strong financial health with consistent revenue growth and solid profitability margins. The company shows efficient cash flow management, though careful monitoring of debt levels is advised for long-term stability.

Income Statement

Ross Stores has shown strong financial performance with consistent revenue growth. The TTM (Trailing-Twelve-Months) data indicates a healthy gross profit margin of 27.8% and a solid net profit margin of 9.8%. The EBIT margin at 12.2% and EBITDA margin at 15.0% reflect efficient operational management. These metrics are indicative of robust profitability and operational efficiency.

Balance Sheet

The balance sheet reveals a stable financial position with a debt-to-equity ratio of 0.86, indicating moderate leverage. The return on equity (ROE) is impressive at 35.6%, highlighting effective use of shareholder investments. An equity ratio of 40.9% suggests a balanced capital structure, though the company should monitor its debt levels to maintain financial health.

Cash Flow

Ross Stores demonstrates strong cash flow management with a free cash flow to net income ratio of 0.77, indicating efficient cash generation relative to earnings. The operating cash flow to net income ratio is healthy at 1.15, showcasing effective cash conversion. However, a slight decrease in free cash flow growth rate from previous periods needs attention.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	21.13B	20.38B	18.70B	18.92B	12.53B
Gross Profit	5.87B	5.58B	4.75B	5.21B	2.69B
EBITDA	3.27B	2.97B	2.38B	2.69B	553.96M
Net Income	2.09B	1.87B	1.51B	1.72B	85.38M
Balance Sheet
Total Assets	14.91B	14.30B	13.42B	13.64B	12.72B
Cash, Cash Equivalents and Short-Term Investments	4.73B	4.87B	4.55B	4.92B	4.82B
Total Debt	5.68B	5.75B	5.71B	5.62B	5.73B
Total Liabilities	9.40B	9.43B	9.13B	9.58B	9.43B
Stockholders Equity	5.51B	4.87B	4.29B	4.06B	3.29B
Cash Flow
Free Cash Flow	1.64B	1.75B	1.04B	1.18B	1.84B
Operating Cash Flow	2.36B	2.51B	1.69B	1.74B	2.25B
Investing Cash Flow	-637.46M	-762.81M	-654.07M	-557.84M	-405.43M
Financing Cash Flow	-1.86B	-1.43B	-1.41B	-1.15B	1.70B

Ross Stores Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 136.54
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• 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 136.54 is above the 20-day moving average (MA) of 133.63, above the 50-day MA of 135.30, and below the 200-day MA of 140.30, indicating a neutral trend. The MACD of 1.46 indicates Negative momentum. The RSI at 54.90 is Neutral, neither overbought nor oversold. The STOCH value of 72.17 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
BURL	78 Outperform	$17.69B	34.47	44.13%	―	8.29%	38.09%
ROST	77 Outperform	$45.65B	22.07	39.57%	1.13%	2.49%	6.60%
TJX	76 Outperform	$138.93B	29.36	60.36%	1.24%	3.79%	5.23%
GAP	73 Outperform	$7.41B	8.65	29.16%	3.24%	1.07%	28.03%
ONON	70 Neutral	$16.76B	70.14	15.84%	―	34.75%	60.65%
AEO	68 Neutral	$2.00B	11.80	12.19%	4.63%	-0.95%	-10.51%
Sector *	64 Neutral	£1.73B	10.31	6.12%	3.19%	0.57%	-34.61%

Ross Stores Corporate Events

Ross Stores Establishes New $1.3 Billion Credit Facility

Ross Stores, Inc. announced on June 27, 2025, the establishment of a new senior unsecured revolving credit facility, the 2025 Credit Facility, which provides up to $1.3 billion in borrowing availability. This facility replaces the previous credit facility from February 2022, maintaining similar terms and borrowing capacity limits, and includes options for extension and increased size. The new facility is expected to enhance Ross Stores’ financial flexibility and support its operational needs, with no outstanding borrowings reported on the effective date.

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.

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.