ROSS STORES INC (ROST) Stock Fundamental Analysis

NASDAQ:ROST • US7782961038

201.89 USD
+0.44 (+0.22%)
At close: Feb 23, 2026
202.3 USD
+0.41 (+0.2%)
After Hours: 2/23/2026, 8:13:56 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

7

We assign a fundamental rating of 7 out of 10 to ROST. ROST was compared to 123 industry peers in the Specialty Retail industry. ROST scores excellent points on both the profitability and health parts. This is a solid base for a good stock. ROST is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

  • In the past year ROST was profitable.
  • In the past year ROST had a positive cash flow from operations.
  • 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.
  • With an excellent Return On Equity value of 35.45%, ROST belongs to the best of the industry, outperforming 87.80% of the companies in the same industry.
  • With an excellent Return On Invested Capital value of 19.14%, ROST belongs to the best of the industry, outperforming 86.99% of the companies in the same industry.
  • ROST had an Average Return On Invested Capital over the past 3 years of 17.29%. This is significantly above the industry average of 12.00%.
  • The last Return On Invested Capital (19.14%) for ROST is above the 3 year average (17.29%), which is a sign of increasing profitability.
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

  • The Profit Margin of ROST (9.47%) is better than 88.62% of its industry peers.
  • In the last couple of years the Profit Margin of ROST has remained more or less at the same level.
  • ROST's Operating Margin of 11.91% is amongst the best of the industry. ROST outperforms 86.18% of its industry peers.
  • In the last couple of years the Operating Margin of ROST has declined.
  • Looking at the Gross Margin, with a value of 27.55%, ROST is doing worse than 70.73% of the companies in the same industry.
  • In the last couple of years the Gross Margin of ROST has remained more or less at the same level.
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

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ROST is creating value.
  • The number of shares outstanding for ROST has been reduced compared to 1 year ago.
  • Compared to 5 years ago, ROST has less shares outstanding
  • ROST has a better debt/assets ratio than last year.
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 6.71 indicates that ROST is not in any danger for bankruptcy at the moment.
  • ROST has a Altman-Z score of 6.71. This is amongst the best in the industry. ROST outperforms 92.68% 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.
  • ROST's Debt to FCF ratio of 0.77 is amongst the best of the industry. ROST outperforms 80.49% of its industry peers.
  • A Debt/Equity ratio of 0.17 indicates that ROST is not too dependend on debt financing.
  • The Debt to Equity ratio of ROST (0.17) is better than 64.23% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.17
Debt/FCF 0.77
Altman-Z 6.71
ROIC/WACC2.02
WACC9.46%
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 Current ratio of 1.52. This is in the better half of the industry: ROST outperforms 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 Quick ratio of 0.90. This is in the better half of the industry: ROST outperforms 69.92% of its industry peers.
  • The current and quick ratio evaluation for ROST is rather negative, while it does have 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

  • ROST shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.79%.
  • Measured over the past 5 years, ROST shows a small growth in Earnings Per Share. The EPS has been growing by 6.56% on average per year.
  • The Revenue has been growing slightly by 3.71% in the past year.
  • ROST shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.67% yearly.
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

  • The Earnings Per Share is expected to grow by 9.96% on average over the next years. This is quite good.
  • 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 31.55, which means the current valuation is very expensive for ROST.
  • ROST's Price/Earnings ratio is in line with the industry average.
  • When comparing the Price/Earnings ratio of ROST to the average of the S&P500 Index (26.64), we can say ROST is valued inline with the index average.
  • Based on the Price/Forward Earnings ratio of 27.67, 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 27.75.
Industry RankSector Rank
PE 31.55
Fwd PE 27.67
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

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ROST is on the same level as its industry peers.
  • ROST's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 33.26
EV/EBITDA 20.14
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 an expensive valuation of the company.
  • ROST has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)7.06
PEG (5Y)4.81
EPS Next 2Y7.44%
EPS Next 3Y7.64%

More info and screens

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

5

5. Dividend

5.1 Amount

  • With a yearly dividend of 0.81%, ROST is not a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 2.21, ROST pays a bit more dividend than its industry peers.
  • With a Dividend Yield of 0.81, ROST pays less dividend than the S&P500 average, which is at 1.80.
Industry RankSector Rank
Dividend Yield 0.81%

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

More info and screens

Find the best dividend stocksShow peers with best dividend

ROSS STORES INC

NASDAQ:ROST (2/23/2026, 8:13:56 PM)

After market: 202.3 +0.41 (+0.2%)

201.89

+0.44 (+0.22%)

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 Cap65.30B
Revenue(TTM)22.03B
Net Income(TTM)2.09B
Analysts81.6
Price Target194.65 (-3.59%)
Short Float %2.39%
Short Ratio3.07
Dividend
Industry RankSector Rank
Dividend Yield 0.81%
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 31.55
Fwd PE 27.67
P/S 2.96
P/FCF 33.26
P/OCF 23.42
P/B 11.1
P/tB 11.1
EV/EBITDA 20.14
EPS(TTM)6.4
EY3.17%
EPS(NY)7.3
Fwd EY3.61%
FCF(TTM)6.07
FCFY3.01%
OCF(TTM)8.62
OCFY4.27%
SpS68.1
BVpS18.19
TBVpS18.19
PEG (NY)7.06
PEG (5Y)4.81
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 6.71
F-Score6
WACC9.46%
ROIC/WACC2.02
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 31.55 and the Price/Book (PB) ratio is 11.1.


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%.