(ROST) Ross Stores - NASDAQ
Sector: Consumer Cyclical | Industry: Apparel Retail | Exchange: NASDAQ (USA) | Market Cap: 74.678m USD | Total Return: 83.7% in 12m
Avg Turnover: 751M
EPS Trend: 88.6%
Qual. Beats: 3
Rev. Trend: 95.3%
Qual. Beats: 3
Warnings
No concerns identified
Tailwinds
Idiosyncratic Leader, Pead, Confidence, Tailwind
Ross Stores (NASDAQ: ROST) is a U.S. off-price retailer that operates two chains, Ross Dress for Less and dds DISCOUNTS, selling apparel, accessories, footwear, and home goods to middle-income and lower-to-moderate-income households. The company was incorporated in 1957, is headquartered in Dublin, California, and trades as a large-cap stock in the Consumer Discretionary sector under the Apparel Retail sub-industry.
The off-price retail model works by purchasing excess merchandise and closeouts from brand-name manufacturers and suppliers at discounted prices and reselling them to consumers at prices typically below traditional department stores. Off-price competitors in the U.S. market include TJX Companies, which operates TJ Maxx, Marshalls, and HomeGoods.
- Tariff exposure pressures gross margins on imported apparel
- Comparable store sales track middle-income consumer spending
- Off-price competition intensifies from TJX and Burlington expansion
| Net Income: 2.32b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.17 > 0.02 and ΔFCF/TA 5.69 > 1.0 |
| NWC/Revenue: 11.18% < 20% (prev 11.48%; Δ -0.29% < -1%) |
| CFO/TA 0.22 > 3% & CFO 3.45b > Net Income 2.32b |
| Net Debt (4.30b) to EBITDA (3.83b): 1.12 < 3 |
| Current Ratio: 1.54 > 1.5 & < 3 |
| Outstanding Shares: last quarter (321.2m) vs 12m ago -1.77% < -2% |
| Gross Margin: 28.33% > 18% (prev 27.78%; Δ 0.55% > 0.5%) |
| Asset Turnover: 159.3% > 50% (prev 148.6%; Δ 10.66% > 0%) |
| Interest Coverage Ratio: 80.20 > 6 (EBIT TTM 2.93b / Interest Expense TTM 36.6m) |
| A: 0.17 (Total Current Assets 7.57b - Total Current Liabilities 4.91b) / Total Assets 15.6b |
| B: 0.32 (Retained Earnings 4.92b / Total Assets 15.6b) |
| C: 0.20 (EBIT TTM 2.93b / Avg Total Assets 14.9b) |
| D: 0.68 (Book Value of Equity 6.30b / Total Liabilities 9.25b) |
| Altman-Z'' = 4.19 = AA |
| DSRI: 1.05 (Receivables 212.5m/181.0m, Revenue 23.8b/21.3b) |
| GMI: 0.98 (GM 27.78% / 28.33%) |
| AQI: 1.00 (AQ_t 0.02 / AQ_t-1 0.02) |
| SGI: 1.12 (Revenue 23.8b / 21.3b) |
| TATA: -0.07 (NI 2.32b - CFO 3.45b) / TA 15.6b) |
| Beneish M = -2.92 (Cap -4..+1) = A |
As of June 23, 2026, the stock is trading at USD 232.80 with a total of 4,161,600 shares traded. Over the past week, the price has changed by -2.64%, over one month by +7.40%, over three months by +9.46% and over the past year by +83.71%.
Current recommended Stop Loss: 220.00 (which is 5.5% or 2.2 ATR below the current price).
Ross Stores has received a consensus analysts rating of 4.42. Therefore, it is recommended to buy ROST.
- StrongBuy: 13
- Buy: 2
- Hold: 3
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 256.2 | 10% |
P/E Trailing = 32.5594
P/E Forward = 30.303
P/S = 3.1409
P/B = 11.8442
P/EG = 2.7539
Revenue TTM = 23.8b USD
EBIT TTM = 2.93b USD
EBITDA TTM = 3.83b USD
Long Term Debt = 776.8m USD (from longTermDebt, last quarter)
Short Term Debt = 976.9m USD (from shortTermDebt, last quarter)
Debt = 8.43b USD (from shortLongTermDebtTotal, last quarter) + Leases 3.70b
Net Debt = 4.30b USD (calculated: Debt 8.43b - CCE 4.13b)
Enterprise Value = 79.0b USD (74.7b + Debt 8.43b - CCE 4.13b)
Interest Coverage Ratio = 80.20 (Ebit TTM 2.93b / Interest Expense TTM 36.6m)
EV/FCF = 30.00x (Enterprise Value 79.0b / FCF TTM 2.63b)
FCF Yield = 3.33% (FCF TTM 2.63b / Enterprise Value 79.0b)
FCF Margin = 11.07% (FCF TTM 2.63b / Revenue TTM 23.8b)
Net Margin = 9.74% (Net Income TTM 2.32b / Revenue TTM 23.8b)
Gross Margin = 28.33% ((Revenue TTM 23.8b - Cost of Revenue TTM 17.0b) / Revenue TTM)
Gross Margin QoQ = 29.61% (prev 28.02%)
Tobins Q-Ratio = 5.08 (Enterprise Value 79.0b / Total Assets 15.6b)
Interest Expense / Debt = 0.43% (Interest Expense 36.6m / Debt 8.43b)
Taxrate = 23.79% (723.0m / 3.04b)
NOPAT = 2.24b (EBIT 2.93b * (1 - 23.79%))
Current Ratio = 1.54 (Total Current Assets 7.57b / Total Current Liabilities 4.91b)
Debt / Equity = 1.34 (Debt 8.43b / totalStockholderEquity, last quarter 6.30b)
Debt / EBITDA = 1.12 (Net Debt 4.30b / EBITDA 3.83b)
Debt / FCF = 1.63 (Net Debt 4.30b / FCF TTM 2.63b)
Total Stockholder Equity = 6.03b (last 4 quarters mean from totalStockholderEquity)
RoA = 15.51% (Net Income 2.32b / Total Assets 15.6b)
RoE = 38.42% (Net Income TTM 2.32b / Total Stockholder Equity 6.03b)
RoCE = 43.11% (EBIT 2.93b / Capital Employed (Equity 6.03b + L.T.Debt 776.8m))
RoIC = 21.44% (NOPAT 2.24b / Invested Capital 10.4b)
WACC = 7.17% (E(74.7b)/V(83.1b) * Re(7.94%) + D(8.43b)/V(83.1b) * Rd(0.43%) * (1-Tc(0.24)))
Discount Rate = 7.94% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -100.00 | Cagr: -1.85%
[DCF] Terminal Value 77.97% ; FCFF base≈2.22b ; Y1≈2.55b ; Y5≈3.75b
[DCF] Fair Price = 162.5 (EV 56.4b - Net Debt 4.30b = Equity 52.1b / Shares 320.8m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 88.56 | EPS CAGR: 11.83% | SUE: 4.0 | # QB: 3
Revenue Correlation: 95.30 | Revenue CAGR: 6.41% | SUE: 3.61 | # QB: 3
EPS current Quarter (2026-07-31): EPS=1.93 | Chg30d=+8.07% | Revisions=+76% | Analysts=15
EPS next Quarter (2026-10-31): EPS=1.73 | Chg30d=-1.62% | Revisions=-38% | Analysts=15
EPS current Year (2027-01-31): EPS=7.80 | Chg30d=+5.75% | Revisions=+80% | GrowthEPS=+17.9% | GrowthRev=+10.5%
EPS next Year (2028-01-31): EPS=8.58 | Chg30d=+5.29% | Revisions=+80% | GrowthEPS=+10.0% | GrowthRev=+6.4%
[Analyst] Revisions Ratio: +80%