Fundamental analysis · SEC EDGAR · TTM through 02/05/2026

Fundamental analysis of Ross Stores, Inc.

ROST · Nasdaq · Consumer

Fundamental quality

ATTRACTIVE

88

out of 100

Ross Stores, Inc. grows profitably: it increases revenue at double digits (13% a year) without giving up profitability (net margin 9.7%). On fundamental quality it scores 88 out of 100, profiling it as a company with solid fundamentals. Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

Ross Stores is the hidden-treasure store: brand-name clothing and home goods at closeout prices, bought as other retailers' excess. No e-commerce, barely any advertising: just the thrill of the bargain hunt — a model Amazon-proof by design.

What will shape its future

  • Retail's excess inventory: other people's chaos is its raw material.
  • The lower-middle-income consumer, who arrives in crises and doesn't always leave in booms.
  • Physical store expansion, its only growth lever and its contrarian bet.

Breakdown by area

I.Growth
95

EPS growth: 87.5% · Revenue growth: 13%

II.Profitability
79

Net margin: 9.7% · ROE: 36.7% · ROIC: 69.3%

III.Financial health
86

Net debt/EBITDA: -0.91x · FCF: 11.1%

Source: SEC EDGAR · TTM through 02/05/2026

The score includes +1 for dividend strength: 5 consecutive years of increases. Keeping that streak demands growing cash generation and balance-sheet discipline.

The score combines growth, profitability and financial strength, and here its pillars hold up evenly.

Versus its sector

Percentile against the other 98 Consumer companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 70%
ROEbeats 79%
Growthbeats 70%
Cash generationbeats 72%
Less debtbeats 90%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Ross Stores, Inc. strengths

  • Growing earnings per share (87.5% annualized).
  • Outstanding return on equity (ROE of 36.7%): it puts shareholder capital to good use.
  • Expanding margins: net margin has risen from 1% to 9% in recent years.
  • Revenue growing (13% annualized).

Ross Stores, Inc. risks and weaknesses

  • No clear weaknesses in the recent fundamentals, though the system doesn't assess qualitative factors (competition, regulation, management).

Ross Stores, Inc. historical evolution

YearRevenueNet incomeFree cash flowNet debt
202112,532851,841-2,306
202218,9161,7231,181-2,470
202318,6961,5121,035-2,095
202420,3771,8751,752-2,412
202521,1292,0911,637-2,516
202622,7512,1452,208-3,077

Between 2021 and 2026, revenue went from $12,532M to $22,751M (+82%) and net income went from $85M to $2,145M (+2412%). Meanwhile, its margins have widened (from 1% to 9%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Latest results

Versus the same period a year earlier

Figures for the quarter ended May 2, 2026, versus the quarter ended May 3, 2025 (SEC filings):

  • Revenue+20.6%
  • Net income+35.6%

Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.

Dividend

$1.62

per share, yearly

24.6% of earnings

Payout

at least 5 straight years raising it

Growth

That is what we can verify in the SEC filings, whose structured data only starts in 2008 and which many companies begin tagging later. The real streak may be considerably longer.

The dividend yield depends on today's price. Compute it in the analyzer → · See all dividend-paying stocks →

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Is Ross Stores, Inc. cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

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Frequently asked questions

Is Ross Stores, Inc. a good company to invest in?

In terms of business quality, Ross Stores, Inc. scores 88 out of 100 in our analysis, placing it as a company of high fundamental quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Ross Stores, Inc. a profitable company?

Ross Stores, Inc. is profitable, with a net margin of 9.7%, though a thin one.

Does Ross Stores, Inc. have a lot of debt?

No. Ross Stores, Inc. has a net cash position: more cash than debt.

Is Ross Stores, Inc. growing?

Its revenue has grown 13% annualized in recent years and its earnings per share 87.5%.

Does Ross Stores, Inc. generate cash?

Yes. It converts about 11.1% of its revenue into free cash flow, and has done so positively year after year.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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