Ross Stores Inc
Exchange: NASDAQSector: Consumer CyclicalIndustry: Apparel Retail
Ross Stores, Inc. is an S&P 500, Fortune 500, and Nasdaq 100 (ROST) company headquartered in Dublin, California, with fiscal 2025 revenues of $22.8 billion. Currently, the Company operates Ross Dress for Less ® ("Ross"), the largest off-price apparel and home fashion chain in the United States with 1,917 locations in 44 states, the District of Columbia, Guam, and Puerto Rico. Ross offers first-quality, in-season, and designer apparel, accessories, footwear, and home fashions for the entire family at savings of 20% to 60% off department and specialty store regular prices every day. The Company also operates 366 dd's DISCOUNTS ® stores in 23 states that feature a more moderately-priced assortment of first-quality, in-season apparel, accessories, footwear, and home fashions for the entire family at savings of 20% to 70% off moderate department and discount store regular prices every day.
Did you know?
Carries 1.1x more debt than cash on its balance sheet.
Current Price
$228.84
+0.46%GoodMoat Value
$130.83
42.8% overvaluedProfile
Valuation (TTM)
Market Cap$74.02B
P/E34.51
EV$70.43B
P/B11.96
Shares Out323.44M
P/Sales3.25
Revenue$22.75B
EV/EBITDA23.20
Ross Stores Inc (ROST) Stock Analysis
GoodMoat Analysis
Ross Stores operates a leading off-price apparel and home fashion retail chain, leveraging a proven sourcing and distribution model. While it demonstrates strong operational metrics like a 37.9% ROE, its Moat Score is likely low, and the stock appears significantly overvalued relative to the GoodMoat Target price.
Read full analysis
Ross Stores (ROST) is a major player in the off-price retail sector, selling branded apparel and home goods at discounted prices through its Ross Dress for Less and dd's DISCOUNTS stores. Its primary competitive advantages stem from its scale and operational efficiency in sourcing and logistics, which allow it to acquire and distribute excess inventory from vendors at low costs. Applying the GoodMoat framework, Ross likely meets a few moat criteria, such as scale privilege in its distribution network and a strong brand in its niche, but it would struggle to score highly across the 14-point scale, likely falling short of the 5+ threshold needed to indicate a durable moat. This suggests it may not pass the initial Moat & Quality Gate for deep analysis. Financially, the company shows strength with an ROE of 37.9% and revenue growth of 12.2% YoY. However, valuation is a major concern. The current price of $216.03 is nearly double the GoodMoat Target of $109.20, indicating a deeply unfavourable margin of safety. With a P/E of 33.7 and a modest FCF yield of 2.4%, the stock is priced for perfection. For a value investor, the combination of a likely sub-5 Moat Score and extreme overvaluation relative to the framework's target makes this an unfavourable candidate for further investigation without a significant price correction. Analysis based on data as of 2024-05-15.
Market Cap$74.02B
Current Price$228.84
P/E Ratio34.51
Forward P/E—
PEG Ratio2.82
EPS$6.61
Book Value$19.13
P/B Ratio11.96
ROST Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 5.3% FCF growth (CAGR)
Cash vs Debt
Net Debt: 618M
Revenue
16.0B
FY20
12.5B
FY21
18.9B
FY22
18.7B
FY23
20.4B
FY24
21.1B
FY25
22.8B
FY26
Net Income
1.7B
FY20
85M
FY21
1.7B
FY22
1.5B
FY23
1.9B
FY24
2.1B
FY25
2.1B
FY26
ROST 52-Week Range
$125.72
$228.84
50-Day MA: $215.55200-Day MA: $176.79
Did you know?
Profit margin stands at 9.4%.
Ross Stores Inc (ROST) Financial Summary
Ross Stores Inc (ROST) is a Consumer Cyclical company in the Apparel Retail industry, listed on NASDAQ. The stock currently trades at $228.84 with a market capitalization of $74.02B.
Key valuation metrics include a P/E ratio of 34.51, price-to-book ratio of 11.96, and EPS of $6.61. The company reports a profit margin of 9.4% and return on equity of 34.7%.
ROST Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $74.02B |
| P/E Ratio | 34.51 |
| EPS | $6.61 |
| P/B Ratio | 11.96 |
| P/S Ratio | 3.25 |
| EV/EBITDA | 23.20 |
| Dividend Yield | 0.71% |
| Profit Margin | 9.4% |
| Return on Equity | 34.7% |
| Debt/Equity | 0.84 |
ROST Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY20 | $16.04B | $1.66B |
| FY21 | $12.53B | $85.38M |
| FY22 | $18.92B | $1.72B |
| FY23 | $18.70B | $1.51B |
| FY24 | $20.38B | $1.87B |
| FY25 | $21.13B | $2.09B |
| FY26 | $22.75B | $2.15B |
Ross Stores Inc (ROST) Valuation
Based on GoodMoat's DCF model, Ross Stores Inc has a fair value estimate of $130.83. At the current price of $228.84, the stock appears 74.9% overvalued relative to our intrinsic value estimate.
ROST Quality Indicators
Ross Stores Inc maintains a profit margin of 9.4% and an operating margin of 11.9%. Return on equity stands at 34.7%. The current ratio is 1.58. Debt-to-equity ratio is 0.84.
About Ross Stores Inc
Ross Stores, Inc. is an S&P 500, Fortune 500, and Nasdaq 100 (ROST) company headquartered in Dublin, California, with fiscal 2025 revenues of $22.8 billion. Currently, the Company operates Ross Dress for Less ® ("Ross"), the largest off-price apparel and home fashion chain in the United States with 1,917 locations in 44 states, the District of Columbia, Guam, and Puerto Rico. Ross offers first-quality, in-season, and designer apparel, accessories, footwear, and home fashions for the entire family at savings of 20% to 60% off department and specialty store regular prices every day. The Company also operates 366 dd's DISCOUNTS ® stores in 23 states that feature a more moderately-priced assortment of first-quality, in-season apparel, accessories, footwear, and home fashions for the entire family at savings of 20% to 70% off moderate department and discount store regular prices every day.
ROST Free Cash Flow
Ross Stores Inc generated $2.21B in trailing twelve-month free cash flow, representing an FCF yield of 2.98%. This moderate FCF yield indicates reasonable cash generation.
ROST Shares Outstanding
Ross Stores Inc has 0.32 billion shares outstanding at a share price of $228.84, giving it a market capitalization of $74.02B.
ROST Recent Insider Trades
Recent insider transactions at Ross Stores Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Sheehan William W II (EVP, CHIEF FINANCIAL OFFICER) | SELL | 4,883 | $1.06M |
| Sykes Karen (PRESIDENT, CMO DD'S DISCOUNTS) | SELL | 5,506 | $1.17M |
| Brinkley Stephen C (PRESIDENT, OPERATIONS) | SELL | 4,154 | $884428.56 |