📊 ROST Key Takeaways
Is Ross Stores, Inc.. (ROST) a Good Investment?
Ross Stores demonstrates solid fundamental health with strong profitability (13.4% operating margin, 10.8% net margin), excellent free cash flow generation ($627M), and a fortress balance sheet with minimal leverage (0.16x Debt/Equity) and $4.1B in cash. However, growth is modest (4.6% EPS growth YoY) and concerning data anomalies (reported 16,777% revenue growth is implausibly high) suggest caution in execution details.
Ross Stores shows strong retail fundamentals, with solid operating and net margins, high ROE, strong free cash flow generation, and a conservative balance sheet supported by significant cash and modest debt. Financial health appears resilient, but the extreme reported revenue YoY change and missing gross profit data reduce confidence in the growth picture and suggest caution around data quality and trend interpretation.
Ross Stores, Inc.. Key Strengths (ROST)
- Strong profitability with double-digit operating and net margins
- Robust free cash flow of $627M with 10.4% FCF margin demonstrating quality earnings
- Conservative capital structure with 0.16x Debt/Equity and excellent 61.2x interest coverage
- Fortress balance sheet with $4.1B cash providing financial flexibility
- Healthy current ratio of 1.54x supporting operational liquidity
- Strong profitability with 11.7% operating margin, 9.3% net margin, and 25.5% ROE
- Healthy balance sheet with $4.06B cash, low 0.26x debt/equity, and very high 144.1x interest coverage
- Consistent cash generation with $1.91B operating cash flow and $1.29B free cash flow
ROST Stock Risks: Ross Stores, Inc.. Investment Risks
- Modest earnings growth of 4.6% EPS YoY suggests limited top-line expansion despite positive fundamentals
- Quick ratio of 0.94x indicates potential near-term liquidity stress if immediate obligations rise sharply
- Data quality concerns with reported revenue growth figure of 16,777% YoY (anomalously high, likely comparison error)
- Missing gross margin data obscures cost structure and pricing power clarity
- Moderate ROE of 10.3% indicates capital efficiency below peer expectations for specialty retail
- Reported revenue growth of +12215.4% suggests a possible data mismatch or non-comparable period, limiting trend reliability
- Retail apparel demand is cyclical and margins can compress from promotions, shrink, freight, and inventory missteps
- Quick ratio of 0.90x indicates liquidity is partly dependent on inventory conversion rather than purely liquid assets
Key Metrics to Watch
- Operating cash flow sustainability and free cash flow margin stability
- Comparable store sales growth and gross margin trends
- Return on equity trajectory and capital allocation efficiency
- Inventory turnover and working capital management
- Comparable sales and revenue growth quality across normalized periods
- Operating margin and free cash flow margin sustainability
Ross Stores, Inc.. (ROST) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Ross Stores, Inc.. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
ROST Profit Margin, ROE & Profitability Analysis
ROST vs Consumer Sector: How Ross Stores, Inc.. Compares
How Ross Stores, Inc.. compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Ross Stores, Inc.. Stock Overvalued? ROST Valuation Analysis 2026
Based on fundamental analysis, Ross Stores, Inc.. has mixed fundamental signals relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Ross Stores, Inc.. Balance Sheet: ROST Debt, Cash & Liquidity
ROST Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Ross Stores, Inc..'s revenue has grown significantly by 20% over the 5-year period, indicating strong business expansion. The most recent EPS of $5.56 reflects profitable operations.
ROST Revenue Growth, EPS Growth & YoY Performance
ROST Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $5.0B | $479.2M | $1.47 |
| Q3 2025 | $5.1B | $479.2M | $1.48 |
| Q2 2025 | $5.3B | $479.2M | $1.56 |
| Q1 2025 | $4.9B | $479.2M | $1.46 |
| Q3 2024 | $4.9B | $371.2M | $1.33 |
| Q2 2024 | $4.9B | $371.2M | $1.32 |
| Q1 2024 | $4.5B | $371.2M | $1.09 |
| Q3 2023 | $4.6B | $338.4M | $1.00 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Ross Stores, Inc.. Dividends, Buybacks & Capital Allocation
ROST SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Ross Stores, Inc.. (CIK: 0000745732)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ROST
What is the AI rating for ROST?
Ross Stores, Inc.. (ROST) has a Combined AI Grade of A from Claude (A) and ChatGPT (A) with 77% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ROST's key strengths?
Claude: Strong profitability with double-digit operating and net margins. Robust free cash flow of $627M with 10.4% FCF margin demonstrating quality earnings. ChatGPT: Strong profitability with 11.7% operating margin, 9.3% net margin, and 25.5% ROE. Healthy balance sheet with $4.06B cash, low 0.26x debt/equity, and very high 144.1x interest coverage.
What are the risks of investing in ROST?
Claude: Modest earnings growth of 4.6% EPS YoY suggests limited top-line expansion despite positive fundamentals. Quick ratio of 0.94x indicates potential near-term liquidity stress if immediate obligations rise sharply. ChatGPT: Reported revenue growth of +12215.4% suggests a possible data mismatch or non-comparable period, limiting trend reliability. Retail apparel demand is cyclical and margins can compress from promotions, shrink, freight, and inventory missteps.
What is ROST's revenue and growth?
Ross Stores, Inc.. reported revenue of $6.0B.
Does ROST pay dividends?
Ross Stores, Inc.. pays dividends, with $143.6M distributed to shareholders in the trailing twelve months.
Where can I find ROST SEC filings?
Official SEC filings for Ross Stores, Inc.. (CIK: 0000745732) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ROST's EPS?
Ross Stores, Inc.. has a diluted EPS of $2.02.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is ROST's fundamental grade?
Based on our AI fundamental analysis in June 2026, Ross Stores, Inc.. has a A grade with 77% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is ROST stock overvalued or undervalued?
Valuation metrics for ROST: ROE of 10.3% (sector avg: 18%), net margin of 10.8% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
What is ROST's AI grade for 2026?
Our dual AI analysis gives Ross Stores, Inc.. a combined A grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is ROST's free cash flow?
Ross Stores, Inc..'s operating cash flow is $836.0M, with capital expenditures of $209.0M. FCF margin is 10.4%.
How does ROST compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 10.8% (avg: 8%), ROE 10.3% (avg: 18%), current ratio 1.54 (avg: 1.5).