ROSS STORES INC (ROST) Stock Fundamental Analysis

NASDAQ:ROST • US7782961038

205.64 USD
+2.14 (+1.05%)
At close: Feb 27, 2026
205.64 USD
0 (0%)
After Hours: 2/27/2026, 8:00:02 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

7

Taking everything into account, ROST scores 7 out of 10 in our fundamental rating. ROST was compared to 123 industry peers in the Specialty Retail industry. ROST gets an excellent profitability rating and is at the same time showing great financial health properties. While showing a medium growth rate, ROST is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

  • In the past year ROST was profitable.
  • ROST had a positive operating cash flow in the past year.
  • In the past 5 years ROST has always been profitable.
  • Each year in the past 5 years ROST had a positive operating cash flow.
ROST Yearly Net Income VS EBIT VS OCF VS FCFROST Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B

1.2 Ratios

  • With an excellent Return On Assets value of 13.53%, ROST belongs to the best of the industry, outperforming 89.43% of the companies in the same industry.
  • ROST has a Return On Equity of 35.45%. This is amongst the best in the industry. ROST outperforms 87.80% of its industry peers.
  • ROST has a better Return On Invested Capital (19.14%) than 86.99% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for ROST is significantly above the industry average of 11.89%.
  • The 3 year average ROIC (17.29%) for ROST is below the current ROIC(19.14%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 13.53%
ROE 35.45%
ROIC 19.14%
ROA(3y)12.8%
ROA(5y)10.34%
ROE(3y)37.23%
ROE(5y)31.34%
ROIC(3y)17.29%
ROIC(5y)14.87%
ROST Yearly ROA, ROE, ROICROST Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

1.3 Margins

  • ROST has a better Profit Margin (9.47%) than 88.62% of its industry peers.
  • ROST's Profit Margin has been stable in the last couple of years.
  • ROST has a better Operating Margin (11.91%) than 86.18% of its industry peers.
  • In the last couple of years the Operating Margin of ROST has declined.
  • ROST's Gross Margin of 27.55% is on the low side compared to the rest of the industry. ROST is outperformed by 70.73% of its industry peers.
  • ROST's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 11.91%
PM (TTM) 9.47%
GM 27.55%
OM growth 3Y-0.26%
OM growth 5Y-1.77%
PM growth 3Y2.8%
PM growth 5Y-0.91%
GM growth 3Y0.3%
GM growth 5Y-0.21%
ROST Yearly Profit, Operating, Gross MarginsROST Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20 25

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ROAROEROICOperating and Profit MarginShow most profitable peers

9

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ROST is creating value.
  • The number of shares outstanding for ROST has been reduced compared to 1 year ago.
  • The number of shares outstanding for ROST has been reduced compared to 5 years ago.
  • Compared to 1 year ago, ROST has an improved debt to assets ratio.
ROST Yearly Shares OutstandingROST Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M
ROST Yearly Total Debt VS Total AssetsROST Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B

2.2 Solvency

  • An Altman-Z score of 6.74 indicates that ROST is not in any danger for bankruptcy at the moment.
  • The Altman-Z score of ROST (6.74) is better than 91.87% of its industry peers.
  • ROST has a debt to FCF ratio of 0.77. This is a very positive value and a sign of high solvency as it would only need 0.77 years to pay back of all of its debts.
  • With an excellent Debt to FCF ratio value of 0.77, ROST belongs to the best of the industry, outperforming 80.49% of the companies in the same industry.
  • A Debt/Equity ratio of 0.17 indicates that ROST is not too dependend on debt financing.
  • ROST has a Debt to Equity ratio of 0.17. This is in the better half of the industry: ROST outperforms 64.23% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.17
Debt/FCF 0.77
Altman-Z 6.74
ROIC/WACC2.05
WACC9.32%
ROST Yearly LT Debt VS Equity VS FCFROST Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B 5B

2.3 Liquidity

  • A Current Ratio of 1.52 indicates that ROST should not have too much problems paying its short term obligations.
  • ROST has a better Current ratio (1.52) than 62.60% of its industry peers.
  • A Quick Ratio of 0.90 indicates that ROST may have some problems paying its short term obligations.
  • ROST has a better Quick ratio (0.90) than 69.92% of its industry peers.
  • ROST does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
Industry RankSector Rank
Current Ratio 1.52
Quick Ratio 0.9
ROST Yearly Current Assets VS Current LiabilitesROST Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. Growth

3.1 Past

  • The Earnings Per Share has been growing slightly by 0.79% over the past year.
  • The Earnings Per Share has been growing slightly by 6.56% on average over the past years.
  • ROST shows a small growth in Revenue. In the last year, the Revenue has grown by 3.71%.
  • Measured over the past years, ROST shows a small growth in Revenue. The Revenue has been growing by 5.67% on average per year.
EPS 1Y (TTM)0.79%
EPS 3Y9.15%
EPS 5Y6.56%
EPS Q2Q%6.76%
Revenue 1Y (TTM)3.71%
Revenue growth 3Y3.76%
Revenue growth 5Y5.67%
Sales Q2Q%10.44%

3.2 Future

  • Based on estimates for the next years, ROST will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.96% on average per year.
  • Based on estimates for the next years, ROST will show a small growth in Revenue. The Revenue will grow by 6.35% on average per year.
EPS Next Y4.47%
EPS Next 2Y7.44%
EPS Next 3Y7.64%
EPS Next 5Y9.96%
Revenue Next Year7.1%
Revenue Next 2Y5.84%
Revenue Next 3Y5.55%
Revenue Next 5Y6.35%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
ROST Yearly Revenue VS EstimatesROST Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 10B 20B 30B
ROST Yearly EPS VS EstimatesROST Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5 10 15

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Find the best growth stocksShow best growing peers

3

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 32.13, which means the current valuation is very expensive for ROST.
  • ROST's Price/Earnings ratio is in line with the industry average.
  • ROST is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.10, which is the current average of the S&P500 Index.
  • Based on the Price/Forward Earnings ratio of 28.19, the valuation of ROST can be described as expensive.
  • The rest of the industry has a similar Price/Forward Earnings ratio as ROST.
  • ROST's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.06.
Industry RankSector Rank
PE 32.13
Fwd PE 28.19
ROST Price Earnings VS Forward Price EarningsROST Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as ROST.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as ROST.
Industry RankSector Rank
P/FCF 33.88
EV/EBITDA 20.31
ROST Per share dataROST EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ROST does not grow enough to justify the current Price/Earnings ratio.
  • The excellent profitability rating of ROST may justify a higher PE ratio.
PEG (NY)7.19
PEG (5Y)4.9
EPS Next 2Y7.44%
EPS Next 3Y7.64%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. Dividend

5.1 Amount

  • With a yearly dividend of 0.80%, ROST is not a good candidate for dividend investing.
  • ROST's Dividend Yield is a higher than the industry average which is at 2.28.
  • With a Dividend Yield of 0.80, ROST pays less dividend than the S&P500 average, which is at 1.83.
Industry RankSector Rank
Dividend Yield 0.8%

5.2 History

  • On average, the dividend of ROST grows each year by 7.61%, which is quite nice.
  • ROST has paid a dividend for at least 10 years, which is a reliable track record.
  • ROST has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)7.61%
Div Incr Years4
Div Non Decr Years4
ROST Yearly Dividends per shareROST Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5

5.3 Sustainability

  • ROST pays out 24.85% of its income as dividend. This is a sustainable payout ratio.
  • ROST's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP24.85%
EPS Next 2Y7.44%
EPS Next 3Y7.64%
ROST Yearly Income VS Free CF VS DividendROST Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B
ROST Dividend Payout.ROST Dividend Payout, showing the Payout Ratio.ROST Dividend Payout.PayoutRetained Earnings

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Find the best dividend stocksShow peers with best dividend

ROSS STORES INC

NASDAQ:ROST (2/27/2026, 8:00:02 PM)

After market: 205.64 0 (0%)

205.64

+2.14 (+1.05%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)11-20
Earnings (Next)05-20
Inst Owners94%
Inst Owner Change-0.3%
Ins Owners2.09%
Ins Owner Change-3.32%
Market Cap66.51B
Revenue(TTM)22.03B
Net Income(TTM)2.09B
Analysts81.6
Price Target202.67 (-1.44%)
Short Float %2.39%
Short Ratio3.07
Dividend
Industry RankSector Rank
Dividend Yield 0.8%
Yearly Dividend1.47
Dividend Growth(5Y)7.61%
DP24.85%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.84%
Min EPS beat(2)-0.39%
Max EPS beat(2)10.06%
EPS beat(4)3
Avg EPS beat(4)3.92%
Min EPS beat(4)-0.39%
Max EPS beat(4)10.06%
EPS beat(8)7
Avg EPS beat(8)4.75%
EPS beat(12)11
Avg EPS beat(12)5.07%
EPS beat(16)14
Avg EPS beat(16)5.35%
Revenue beat(2)1
Avg Revenue beat(2)-0.7%
Min Revenue beat(2)-2.76%
Max Revenue beat(2)1.36%
Revenue beat(4)1
Avg Revenue beat(4)-1.44%
Min Revenue beat(4)-2.76%
Max Revenue beat(4)1.36%
Revenue beat(8)2
Avg Revenue beat(8)-1.29%
Revenue beat(12)3
Avg Revenue beat(12)-1%
Revenue beat(16)4
Avg Revenue beat(16)-1.2%
PT rev (1m)0.39%
PT rev (3m)14%
EPS NQ rev (1m)0.85%
EPS NQ rev (3m)4.54%
EPS NY rev (1m)0.03%
EPS NY rev (3m)3.94%
Revenue NQ rev (1m)0.21%
Revenue NQ rev (3m)2.57%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)2.62%
Valuation
Industry RankSector Rank
PE 32.13
Fwd PE 28.19
P/S 3.02
P/FCF 33.88
P/OCF 23.86
P/B 11.3
P/tB 11.3
EV/EBITDA 20.31
EPS(TTM)6.4
EY3.11%
EPS(NY)7.3
Fwd EY3.55%
FCF(TTM)6.07
FCFY2.95%
OCF(TTM)8.62
OCFY4.19%
SpS68.1
BVpS18.19
TBVpS18.19
PEG (NY)7.19
PEG (5Y)4.9
Graham Number51.18
Profitability
Industry RankSector Rank
ROA 13.53%
ROE 35.45%
ROCE 25.25%
ROIC 19.14%
ROICexc 31.42%
ROICexgc 31.42%
OM 11.91%
PM (TTM) 9.47%
GM 27.55%
FCFM 8.91%
ROA(3y)12.8%
ROA(5y)10.34%
ROE(3y)37.23%
ROE(5y)31.34%
ROIC(3y)17.29%
ROIC(5y)14.87%
ROICexc(3y)32.61%
ROICexc(5y)29.08%
ROICexgc(3y)32.61%
ROICexgc(5y)29.08%
ROCE(3y)22.8%
ROCE(5y)19.61%
ROICexgc growth 3Y-3.26%
ROICexgc growth 5Y2.96%
ROICexc growth 3Y-3.26%
ROICexc growth 5Y2.96%
OM growth 3Y-0.26%
OM growth 5Y-1.77%
PM growth 3Y2.8%
PM growth 5Y-0.91%
GM growth 3Y0.3%
GM growth 5Y-0.21%
F-Score6
Asset Turnover1.43
Health
Industry RankSector Rank
Debt/Equity 0.17
Debt/FCF 0.77
Debt/EBITDA 0.33
Cap/Depr 167.64%
Cap/Sales 3.74%
Interest Coverage 47.05
Cash Conversion 89.46%
Profit Quality 94.12%
Current Ratio 1.52
Quick Ratio 0.9
Altman-Z 6.74
F-Score6
WACC9.32%
ROIC/WACC2.05
Cap/Depr(3y)169.59%
Cap/Depr(5y)154.94%
Cap/Sales(3y)3.55%
Cap/Sales(5y)3.37%
Profit Quality(3y)80.07%
Profit Quality(5y)494.81%
High Growth Momentum
Growth
EPS 1Y (TTM)0.79%
EPS 3Y9.15%
EPS 5Y6.56%
EPS Q2Q%6.76%
EPS Next Y4.47%
EPS Next 2Y7.44%
EPS Next 3Y7.64%
EPS Next 5Y9.96%
Revenue 1Y (TTM)3.71%
Revenue growth 3Y3.76%
Revenue growth 5Y5.67%
Sales Q2Q%10.44%
Revenue Next Year7.1%
Revenue Next 2Y5.84%
Revenue Next 3Y5.55%
Revenue Next 5Y6.35%
EBIT growth 1Y0.99%
EBIT growth 3Y3.49%
EBIT growth 5Y3.8%
EBIT Next Year24.54%
EBIT Next 3Y11.96%
EBIT Next 5Y11.43%
FCF growth 1Y-2.11%
FCF growth 3Y11.5%
FCF growth 5Y0.26%
OCF growth 1Y0.19%
OCF growth 3Y10.67%
OCF growth 5Y1.65%

ROSS STORES INC / ROST FAQ

What is the ChartMill fundamental rating of ROSS STORES INC (ROST) stock?

ChartMill assigns a fundamental rating of 7 / 10 to ROST.


What is the valuation status of ROSS STORES INC (ROST) stock?

ChartMill assigns a valuation rating of 3 / 10 to ROSS STORES INC (ROST). This can be considered as Overvalued.


How profitable is ROSS STORES INC (ROST) stock?

ROSS STORES INC (ROST) has a profitability rating of 8 / 10.


What is the valuation of ROSS STORES INC based on its PE and PB ratios?

The Price/Earnings (PE) ratio for ROSS STORES INC (ROST) is 32.13 and the Price/Book (PB) ratio is 11.3.


Is the dividend of ROSS STORES INC sustainable?

The dividend rating of ROSS STORES INC (ROST) is 5 / 10 and the dividend payout ratio is 24.85%.