Nasdaq: ROST · Apparel Retail
Ross Stores
Ross Stores, based in Dublin, California, operates off-price apparel and home fashion stores under Ross Dress for Less — which it calls the largest off-price apparel and home fashion chain in the U.S., with 1,904 locations — and dd’s DISCOUNTS (363 stores) as of January 31, 2026. Ross sells brand-name and designer apparel, accessories, footwear and home fashions at 20% to 60% below department and specialty store regular prices, mainly to middle-income households. Sales grew from $12.5 billion in fiscal 2020 (a pandemic year with $85 million of net earnings) to $22.8 billion in fiscal 2025, with net earnings of $2.1 billion. Home accents and bed and bath were 26% of fiscal 2025 sales.
Last updated
Analysis last edited: November 6, 2026 · Financial data fetched: November 1, 2026 15:27 (SEC EDGAR) · Source 10-K filed: March 31, 2026
Built on10-K FY2026 · filed 2026-03-3110-Q (quarter ended 2026-08-01) · filed 2026-09-01Proxy statement (2026)
Next update expectedAfter FY2027’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
01
At a glanceFrom SEC data
Eight headline measures, each placed among the companies covered on this site.
- Revenue growthCAGRSmooths out year-to-year swings into "grew X% a year on average." Makes growth pace comparable across companies of very different sizes.
- 12.7%
- Operating marginOperating marginHow many cents of operating profit are left per dollar of revenue. Reflects pricing power and cost structure.
- 11.9%
- ROIC minus WACCROIC − WACC spreadThe difference between ROIC and WACC. Consistently positive implies value creation; consistently negative implies value destruction.
- +17.8 pts
- Net debt ÷ EBITDAEBITDAOperating income with D&A added back. A rough proxy for cash-generating power that’s less distorted by capital intensity, depreciation method, or financing/tax differences than net income.
- -1.0x
- Cash conversionOperating CF ÷ net income (cash conversion)How much of reported profit shows up as actual cash. 1x or higher means profit is backed by cash.
- 1.41x
- Dividend raisesDividend per shareTotal annual dividend paid per share (sum of all declared payments for the year).
- 5 of 5
- P/E todayP/EShare price ÷ EPS — how many years of current earnings the stock price represents. This site uses the period-end figure as reported in the filing.
- 29.2x
- Betaβ (beta)How much a stock moves, on average, for a 1% move in the overall market. Above 1 means more volatile than the market, which raises the return shareholders require. This site computes it from about 2.5 years (roughly 130 weeks) of weekly returns, built from Yahoo Finance daily prices, regressed against an S&P 500 ETF (SPY) as the market proxy, then applies the well-known long-run mean-reversion adjustment (0.67 × β + 0.33) as the WACC default.
- 0.71
Higher than 72% of 372 non-financial companies
Average yearly growth over the years shown
Higher than 29% of 311 non-financial companies
Latest fiscal year (FY2026)
Higher than 84% of 311 non-financial companies
Return on capital above (or below) its estimated cost
Higher than 10% of 304 non-financial companies
Below 0 means more cash than debt
Higher than 42% of 349 non-financial companies
Operating cash flow ÷ net income
Years the dividend per share rose, of the last 5
Latest close 2026-11-04; trailing 12 months to 2026-08-01
Above 1 = moves more than the market
Each marker shows where this company sits among the non-financial companies covered on this site, not all listed companies (left = lowest, right = highest). A high position is not automatically good — for net debt ÷ EBITDA, higher means more debt. Details and formulas are in the sections below and in How to read this.
02
Valuation todayFrom SEC data
Price-based measures at the latest close, next to the same measures at the last fiscal year-end.
Share price$240.93close on 2026-11-04
Market cap$77.66B
- P/EP/EShare price ÷ EPS — how many years of current earnings the stock price represents. This site uses the period-end figure as reported in the filing. today
- 29.2x
- P/BP/BShare price ÷ book value per share. Below 1x means the market values the company below its accounting net worth. This site uses the closing price nearest the fiscal year-end and highlights sub-1x readings. today
- 12.6x
- EV/EBITDAEV/EBITDAEnterprise value (≈ market cap + interest-bearing debt − cash) as a multiple of EBITDA — roughly, "how many years of EBITDA to buy the whole company." Lower is generally viewed as cheaper, and it’s more comparable than P/E across companies with different debt loads or depreciation policies. This site excludes noncontrolling interests from the EV calculation. today
- 23.2x
- FCF yieldFree cash flow (FCF)Operating CF minus capital expenditures — cash generated by the business after funding its own investment, available for dividends, buybacks, acquisitions, or debt paydown. Acquisitions and securities purchases (also in investing CF) are not subtracted, so FCF can be positive in a year when total investing CF exceeds operating CF. today
- 2.8%
- Dividend yieldDividend per shareTotal annual dividend paid per share (sum of all declared payments for the year). today
- 0.7%
At FY2026 year-end: 28.5x
Earnings: trailing 12 months to 2026-08-01
At FY2026 year-end: 9.8x
Book value at FY2026 year-end
At FY2026 year-end: 17.9x
EBITDA for FY2026
At FY2026 year-end: 3.6%
Free cash flow for FY2026
Dividends per share for FY2026
“Today” uses the latest closing price (2026-11-04, Yahoo Finance daily closing prices) and shares outstanding at the last fiscal year-end. The rest of this page — including the financial table and ROIC vs. WACC — uses fiscal year-end prices. These are reference figures, not a judgment of whether the stock is cheap or expensive.
03
What changed since last earningsFrom SEC data
The latest reported quarter against the same quarter a year earlier, the balance sheet against the previous quarter-end, and what management said in its latest earnings release.
Quarter ended Aug 1, 2026.
- Revenue$5.53B → $6.26B (vs. a year earlier)↑ +13.3%$5.53B → $6.26B (vs. a year earlier)
- Operating margin11.5% → 17.6% (vs. a year earlier)↑ +6.1 pts11.5% → 17.6% (vs. a year earlier)
- Net income$508M → $851M (vs. a year earlier)↑ +67.6%$508M → $851M (vs. a year earlier)
- Diluted EPS$1.56 → $2.66 (vs. a year earlier)↑ +70.5%$1.56 → $2.66 (vs. a year earlier)
- Cash$4.13B → $4.29B (vs. previous quarter-end)↑ +3.8%$4.13B → $4.29B (vs. previous quarter-end)
- Long-term debt$1.02B → $1.02B (vs. previous quarter-end)→ +0.0%$1.02B → $1.02B (vs. previous quarter-end)
Source: Form 10-Q ↗ (SEC XBRL). Long-term debt is the tagged long-term debt figure and leaves out short-term borrowings.
From the earnings release of Aug 20, 2026.
Management outlook ↑ Raised
Raised second-half and fiscal 2026 outlook. Source sentence
Raises Second Half and Fiscal 2026 Outlook
Key changes
Q2 sales up 13% to $6.3B. Source sentence
Sales for the second quarter increased 13% to $6.3 billion, up from $5.5 billion in 2025.
Comparable sales up 10%. Source sentence
Comparable store sales rose a very strong 10% for the quarter on top of a 2% gain last year.
EPS $2.66, including about $0.60 per share of benefit. Source sentence
Earnings per share for the second quarter were $2.66, which includes an approximate $0.60 per share benefit from the tariff refunds, well above our guidance of $1.85 to $1.93.
Written by AI. A line appears only if its figures and direction match the quoted sentence, which an automatic check confirms. Companies' outlooks are their own and may not be met. Read the release ↗
04
Company profileFrom SEC dataShow
- Legal name
- ROSS STORES, INC.
- Headquarters
- DUBLIN, CA
- Incorporated in
- Delaware
- Fiscal year end
- 02/01
- Exchange & ticker
- Nasdaq: ROST
- Industry
- Apparel Retail
- CIK
- 745732
Workforce (as of FY2026 year-end)
Employees
111,000
Source: Form 10-K (FY2026) cover page and business description
05
Earnings calendarFrom SEC dataShow
When the company reports each quarter: the quarter-end date, the day results were released, and when the 10-Q or 10-K was filed.
Next report
Q3 FY2027
Quarter end: November 2026. In past years, Q3 results were released 19 days after quarter end (Nov 20, 2025; Nov 21, 2024; Nov 16, 2023). No date has been announced in the sources this site uses.
Reporting pattern
- Fiscal year ends around February 1.
- Reports four times a year: three quarterly reports (10-Q) and an annual report (10-K) for Q4.
- Earnings releases came 19–31 days after quarter end over the last 12 quarters.
| Quarter | Quarter ended | Earnings release (8-K) | Report filed (10-Q / 10-K) |
|---|---|---|---|
| Q2 FY2027 | Aug 1, 2026 | Aug 20, 2026 (+19 days) | Sep 1, 2026 10-Q (+31 days) |
| Q1 FY2027 | May 2, 2026 | May 21, 2026 (+19 days) | Jun 2, 2026 10-Q (+31 days) |
| Q4 FY2026 | Jan 31, 2026 | Mar 3, 2026 (+31 days) | Mar 31, 2026 10-K (+59 days) |
| Q3 FY2026 | Nov 1, 2025 | Nov 20, 2025 (+19 days) | Dec 10, 2025 10-Q (+39 days) |
| Q2 FY2026 | Aug 2, 2025 | Aug 21, 2025 (+19 days) | Sep 10, 2025 10-Q (+39 days) |
| Q1 FY2026 | May 3, 2025 | May 22, 2025 (+19 days) | Jun 11, 2025 10-Q (+39 days) |
| Q4 FY2025 | Feb 1, 2025 | Mar 4, 2025 (+31 days) | Apr 1, 2025 10-K (+59 days) |
| Q3 FY2025 | Nov 2, 2024 | Nov 21, 2024 (+19 days) | Dec 11, 2024 10-Q (+39 days) |
| Q2 FY2025 | Aug 3, 2024 | Aug 22, 2024 (+19 days) | Sep 11, 2024 10-Q (+39 days) |
| Q1 FY2025 | May 4, 2024 | May 23, 2024 (+19 days) | Jun 12, 2024 10-Q (+39 days) |
| Q4 FY2024 | Feb 3, 2024 | Mar 5, 2024 (+31 days) | Apr 2, 2024 10-K (+59 days) |
| Q3 FY2024 | Oct 28, 2023 | Nov 16, 2023 (+19 days) | Dec 6, 2023 10-Q (+39 days) |
Source: SEC EDGAR filing history. Release dates are the dates the earnings release was furnished to the SEC on Form 8-K (Item 2.02), which is normally the day results are announced. For a quarter whose 10-Q or 10-K isn’t filed yet, the date is the latest Item 2.02 8-K since the previous report, which may be a preliminary or other results-related update. Fiscal years are labeled by the calendar year in which they end.
06
Flagship products & servicesSite analysis
Stores
Ross Dress for Less
Brand-name apparel, accessories, footwear and home fashions at 20%–60% off department store prices.
Stores
dd’s DISCOUNTS
More moderately priced apparel and home fashions at 20%–70% off moderate department and discount store prices.
From the Form 10-K, FY2026, year ended 2026-01-31.
U.S., worldwide and country/regional share of flagship products/services
Only shares the company itself states (in its filings or press releases, sometimes citing a research firm) are shown. Scope and timing vary by figure — treat these as approximate.
Off-price apparel and home
U.S. off-price apparel and home fashion chains
U.S. share
Largest
Company-disclosedRoss is “the largest off-price apparel and home fashion chain in the United States” (no share stated).
Worldwide share
—
Not disclosed
07
Recent strategic focusSite analysis
Recent developments.
Q2 fiscal 2026
Sales $6,265M (vs $5,529M); comparable store sales +10%; operating income $1,104M including about $253M of IEEPA tariff refunds; diluted EPS $2.66 (vs $1.56).
Source: Form 10-Q (quarter ended 2026-08-01)
Store growth
Opened 47 stores in Q2 fiscal 2026 and raised its opening plan.
Source: Form 10-Q (quarter ended 2026-08-01)
Leadership
Michael Balmuth ceased to be Executive Chairman on January 31, 2026.
Source: Form 8-K (2025-11-24)
Capex ÷ D&A (FY2026)
1.61x
Well above depreciation — expansion-stage investment
formulacapital expenditures ÷ depreciation & amortization
e.g.$819M ÷ $509M = 1.61x
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
Where the money goes, over time
Unit: $M. Capex went from $405M in FY2021 to $819M in FY2026
- Capex
formulacapital expenditures ÷ depreciation & amortization
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-03-31
08
Key figures at a glanceFrom SEC data
FY2021–FY2026, 6 years.
Revenue (FY2026)
$22.75B
As reported in the 10-K
Revenue CAGR (5 years)
+12.7%▲favorable
formula(last-period revenue ÷ first-period revenue) ^ (1 ÷ years) − 1
e.g.($22,751M ÷ $12,532M) ^ (1÷5) − 1 = 12.7%
termsCAGR · ^ (exponent) · Revenue (net sales)
Operating margin (FY2026)
11.9%
formulaoperating income ÷ revenue × 100
e.g.$2,707M ÷ $22,751M × 100 = 11.9%
ROE (FY2026)
36.7%▲favorable
6-year average: 33.9%
As reported in the 10-K
P/B (FY2026 end)
9.83x
formulafiscal year-end closing price ÷ book value per share
e.g.$188.65 ÷ $19.20 = 9.83x
Period-end (fiscal year-end) value, not today's P/B
EV/EBITDA (FY2026 end)
17.9x
formula(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization)
e.g.($60,808M + $1,518M − $4,594M) ÷ ($2,707M + $509M) = 17.9x
termsEV/EBITDA · Market capitalization · Interest-bearing debt · EBITDA · Depreciation & amortization (D&A)
Period-end (fiscal year-end) value, not today's multiple
- ▲
Revenue grew +12.7% a year over 5 years (strong growth)
From $12.53B in FY2021 to $22.75B in FY2026. The annualized rate (CAGR) makes it possible to compare growth pace across companies of different sizes.
- ―
Equity ratio is 39.8% (a middling level)
The share of total assets funded by equity rather than debt. 50%+ is often read as low bankruptcy risk, though the right level varies by industry (real estate and leasing run lower, for instance).
- ▲
Free cash flow was positive in 6 of 6 years
Operating cash flow minus capital expenditures: the cash left over after funding the business’s own investment, available for dividends, buybacks, acquisitions, or debt paydown. A negative year can mean heavy investment, or weak core earnings — worth distinguishing.
- ▲
ROE averaged 33.9% over 6 years (latest: 36.7%)
How much profit was generated on shareholders’ equity. Roughly 10%+ is often cited as solid for a U.S. company, though this varies a lot by industry and capital intensity.
09
Business modelSite analysis
Business Model Canvas
The whole company in nine blocks. Left side: how it delivers (partners, activities, resources, costs). Right side: who it serves and how it earns. Every entry comes from the company’s filings shown on this page.
08 · who helps
Key partners
No partners or suppliers named in the filings.
07 · what it does
Key activities
- Opportunistic merchandise buying
- Store operations
- Distribution and logistics
06 · what it draws on
Key resources
- About 111,000 associates (January 2026)
- 1,904 Ross and 363 dd’s DISCOUNTS stores
- Buying offices and distribution centers
02 · why customers buy
Value propositions
- Brand-name apparel and home fashions at everyday savings off department store prices.
04 · how it keeps them
Customer relationships
- 'Treasure hunt' shopping by value-conscious customers.
03 · how it reaches them
Channels
- Ross Dress for Less and dd's DISCOUNTS stores.
01 · who it serves
Customer segments
- Middle-income households (Ross)
- Value shoppers at dd’s DISCOUNTS
09 · where money goes
Cost structure
FY2026, share of revenue ($22.75B)
- Cost of revenue72.3%
- Selling, general & administrative15.8%
Operating profit left: 11.9% of revenue. Depreciation & amortization (inside the costs above): $509M. Capital spending: $819M.
Source: Form 10-K income statement and cash-flow statement (SEC XBRL).
05 · how money comes in
Revenue streams
- Sales $22,751M (fiscal 2025)
- Home 26%; Ladies 22%; Men’s 15%; Accessories etc. 15%; Shoes 13%; Children’s 9%
- Stores only — one reportable segment
Value propositions, channels and customer relationships: Form 10-K (FY2026)
Buys brand-name merchandise opportunistically (including packaway inventory) and sells it in stores at everyday discounts to department-store prices.
01 what it draws on
Inputs & resources
- About 111,000 associates (January 2026)
- 1,904 Ross and 363 dd’s DISCOUNTS stores
- Buying offices and distribution centers
02 what it does
Activities
- Opportunistic merchandise buying
- Store operations
- Distribution and logistics
03 who it serves
Customers
- Middle-income households (Ross)
- Value shoppers at dd’s DISCOUNTS
04 how money comes in
How it earns
- Sales $22,751M (fiscal 2025)
- Home 26%; Ladies 22%; Men’s 15%; Accessories etc. 15%; Shoes 13%; Children’s 9%
- Stores only — one reportable segment
How the business makes money
- One reportable segment.
- Fiscal years end around January 31.
- Quarterly dividend raised to $0.4450 in March 2026.
Government & regulation around the business
Non-market factors from the company’s filings: what governments and regulators fund, buy, set, approve or restrict, and which part of the flow above each one touches.
Ross sources from China and other countries exposed to tariffs.
Trade & export rules
Tariffs and trade rules
Cannot predict tariffs on China and other sourcing countries.
Constrains the businessTouches: Inputs & resourcesSource: Form 10-K (FY2026)
Revenue by segment (FY2026)
Unit: $M — bar length = revenue, (%) = share of total company revenue
Off-price retail (single segment)
22,751 (100%)
Source: Form 10-K (FY2026, year ended 2026-01-31) One reportable segment; fiscal 2025 ended January 31, 2026.
10
Contract structureSite analysisShow
Short-term or spot sales carry different earnings quality than long-term or auto-renewing contracts — this shows how the company actually contracts with its customers.
11
Customers & suppliersSite analysis
Who the company sells to and buys from. Companies rarely name either, so named counterparties come only from the company's own filings and press releases; otherwise this lists the concentration figures the 10-K discloses.
Customers
Value-conscious shoppers, mainly middle-income households.
Named by the company
Suppliers
Many apparel and home goods vendors.
Named by the company
No single supplier is named as material.
12
Competitors & peersSite analysis
Competitors the 10-K names, and the peer group the company itself chose in its proxy statement. Nothing here is this site's own pick.
Ross competes with other off-price retailers, traditional department stores, mass merchandisers, specialty stores, online businesses and other retailers; the 10-K names no specific competitors.
Competitors named in the 10-K
No competitor is named in the 10-K.
Peer group the company chose
Peer group, from the proxy statement. Peers are companies the board considers comparable — for example when setting executive pay — not necessarily direct competitors.
Fiscal 2025 compensation peer group from the 2026 proxy statement (also includes Foot Locker).
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Company names link to this site’s analysis where one exists; “site ↗” opens the company’s own website.
13
Six years of financialsFrom SEC data
Each chart's axis holds a single unit (never mixing dollars, %, and $/share). The table's per-period header links to the filing the numbers came from.
Revenue over time
Unit: $M
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-03-31
Profit over time (operating → net)
Unit: $M
- Operating income
- Pretax income
- Net income
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-03-31
Margins over time
Unit: %
- Operating margin
- Net margin
formulaoperating income ÷ revenue × 100
formulanet income attributable to the company ÷ revenue × 100
Cash flow over time
Unit: $M (below zero = cash went out)
- Operating CF
- Investing CF
- Free CF
formulacash flow from operations − capital expenditures
termsFree cash flow (FCF) · Cash flow from operations (operating CF) · Capital expenditures (capex)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-03-31
Financial stability & capital efficiency
Unit: %
- Equity ratio
- ROE
formulatotal equity ÷ total assets × 100 (as reported in the 10-K)
termsStockholders’ equity · Total assets
formulanet income ÷ average equity (beginning + ending, ÷2) × 100 (as reported in the 10-K)
termsNet income (attributable to the company) · Stockholders’ equity
Earnings per share (EPS) and dividend per share
Unit: $
- EPS
- Dividend per share
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-03-31
| Line item | FY202110-K on EDGAR ↗ | FY202210-K on EDGAR ↗ | FY202310-K on EDGAR ↗ | FY202410-K on EDGAR ↗ | FY202510-K on EDGAR ↗ | FY202610-K on EDGAR ↗ |
|---|---|---|---|---|---|---|
| Income statement ($M) | ||||||
| Revenue | 12,532 | 18,916 | 18,696 | 20,377 | 21,129 | 22,751 |
| Operating income | — | — | 1,990 | 2,308 | 2,586 | 2,707 |
| Pretax income | 106 | 2,259 | 1,987 | 2,472 | 2,757 | 2,842 |
| Net income (attributable) | 85 | 1,723 | 1,512 | 1,875 | 2,091 | 2,145 |
| Revenue growthcalc(this year’s revenue − last year’s revenue) ÷ last year’s revenue × 100 | — | 50.9% | -1.2% | 9.0% | 3.7% | 7.7% |
| Operating margincalcoperating income ÷ revenue × 100 | — | — | 10.6% | 11.3% | 12.2% | 11.9% |
| Net margincalcnet income attributable to the company ÷ revenue × 100 | 0.7% | 9.1% | 8.1% | 9.2% | 9.9% | 9.4% |
| Balance sheet ($M) | ||||||
| Total assets | 12,718 | 13,640 | 13,416 | 14,300 | 14,905 | 15,549 |
| Total equity | 3,291 | 4,060 | 4,289 | 4,871 | 5,509 | 6,187 |
| Interest-bearing debtSum of short- and long-term borrowings, notes/bonds payable | 2,513 | 2,452 | 2,457 | 2,461 | 2,215 | 1,518 |
| Equity ratio | 25.9% | 29.8% | 32.0% | 34.1% | 37.0% | 39.8% |
| ROE | 2.6% | 46.9% | 36.2% | 40.9% | 40.3% | 36.7% |
| Cash flow ($M) | ||||||
| Operating CF | 2,246 | 1,739 | 1,689 | 2,514 | 2,357 | 3,027 |
| Investing CF | -405 | -558 | -654 | -763 | -637 | -819 |
| Financing CF | 1,702 | -1,152 | -1,405 | -1,428 | -1,859 | -2,342 |
| Free cash flowcalccash flow from operations − capital expenditures | 1,841 | 1,181 | 1,035 | 1,752 | 1,637 | 2,208 |
| Cash and equivalents | 4,819 | 4,922 | 4,552 | 4,872 | 4,731 | 4,594 |
| Per share & other | ||||||
| EPS ($) | 0.24 | 4.87 | 4.38 | 5.56 | 6.32 | 6.61 |
| BVPS ($) | 9.23 | 11.54 | 12.51 | 14.53 | 16.75 | 19.20 |
| Dividend per share ($) | 0.29 | 1.14 | 1.24 | 1.34 | 1.47 | 1.62 |
| Payout ratiocalcdividend per share ÷ diluted EPS × 100 | 118.8% | 23.4% | 28.3% | 24.1% | 23.3% | 24.5% |
| P/E (x) | 463.7 | 19.7 | 27.3 | 25.8 | 23.8 | 28.5 |
| EV/EBITDA (x)calc(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization) | — | — | 16.3 | 16.8 | 15.5 | 17.9 |
| P/B (x)calcfiscal year-end closing price ÷ book value per share | 12.06 | 8.30 | 9.55 | 9.89 | 8.99 | 9.83 |
P/B and EV/EBITDA use each period’s period-end (fiscal year-end) figures, not the current share price. Figures without a "calc" tag are as reported in the Form 10-K (the consolidated financial statements and, for older years, earlier 10-Ks), pulled automatically from SEC EDGAR. Where a later filing restated a prior period, the restated figure is used.
Last 8 quarters
Three-month figures from 10-Q filings. Change is versus the same quarter a year earlier. Newest quarter on top.
| Quarter ended | Revenue | Operating income | Net income | Diluted EPS |
|---|---|---|---|---|
| 2026-08-01 | $6.26B+13.3% | $1.1B+72.9% | $851M+67.6% | $2.66 |
| 2026-05-02 | $6.01B+20.6% | $804M+32.6% | $650M+35.6% | $2.02 |
| 2026-01-31 † | $6.64B+12.2% | $814M+11.4% | $646M+10.1% | — |
| 2025-11-01 | $5.6B+10.4% | $648M+7.3% | $512M+4.7% | $1.58 |
| 2025-08-02 | $5.53B | $638M | $508M | $1.56 |
| 2025-05-03 | $4.98B | $606M | $479M | $1.47 |
| 2025-02-01 † | $5.91B | $731M | $587M | — |
| 2024-11-02 | $5.07B | $604M | $489M | $1.48 |
† Fourth quarter = the 10-K’s annual figure minus the first three quarters; quarterly EPS isn’t derived this way because share counts change during the year.
14
Is ROIC above WACC?From SEC data
ROIC (the return on money invested in the business) above WACC (the cost of raising that money) means the company is creating value. WACC is an estimate, so its assumptions can be adjusted below.
ROIC (FY2026)
26.5%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
e.g.$2,707M × (1 − 24.5%) ÷ $7,715M × 100 = 26.5%
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
WACC (this site’s estimate)
8.73%
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
e.g.Equity weight: $60.81B ÷ ($60.81B + $1.52B) = 97.6%
e.g.Debt weight: $1.52B ÷ ($60.81B + $1.52B) = 2.4%
e.g.WACC: 8.9% × 97.6% + 5.0% × (1 − 24.5%) × 2.4% = 8.73%
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
How firm is this? With the equity risk premium ±1 point and beta ±0.2, WACC runs 7.2%–10.7% and ROIC − WACC runs +15.8 to +19.3 points. The sign holds across this range. This describes the latest year and does not predict future value creation.
WACC 8.73% is this site’s estimate under the assumptions below (not a figure the company has published)
- Risk-free rate
- 4.95% (10-year Treasury, 2026-11-03)
- β
- 0.71 (price-derived adjusted beta)
- Equity risk premium
- 5.5%
- Cost of equity
- 8.86%
- Cost of debt
- 4.95% (no debt on record, using the risk-free rate)
- Tax rate
- 24.5% (effective rate, FY2024–FY2026)
- Capital structure (equity : debt)
- 98% : 2%
ROIC over time, vs. WACC
Unit: % — bars = each period's ROIC, horizontal line = latest WACC. Bars above the line are green, below are red
- ROIC (above WACC)
- ROIC (below WACC)
- WACC 8.73%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
Try different WACC assumptions
β and the equity risk premium are estimates with a real range of plausible values — move the sliders to check whether ROIC > WACC still holds. The risk-free rate starts at the 10-year Treasury yield on 2026-11-03 (U.S. Treasury).
Initial β: 0.71 (price-derived adjusted beta. Raw β 0.56, R² 0.10, 130 weeks)
formula0.67 × β + 0.33 (β = the slope of weekly stock returns regressed on weekly market returns)
e.g.0.67 × 0.562 + 0.33 = 0.707
termsβ (beta)
Period 2024-05-10–2026-11-04, using S&P 500 ETF (SPY) as the market proxy. Source: Yahoo Finance price history.
formularisk-free rate + β × equity risk premium
e.g.5.0% + 0.71 × 5.5% = 8.9%
termsCAPM · Risk-free rate · β (beta) · Equity risk premium (market risk premium)
formulafiscal year-end closing price × shares outstanding (= market cap)
formulainterest expense ÷ interest-bearing debt × 100 (clamped to 0–10%; falls back to the risk-free rate if there’s no debt)
15
What the price implies (DCF)From SEC data
A company's value can be written as its free cash flow divided by (cost of capital − perpetual growth). Working that backwards from the market's valuation shows how much growth the share price assumed — compared here with the company's actual past growth.
Growth the price implies (price on 2026-11-04)
5.8%
Perpetual FCF growth: g = r − FCF ÷ EV = 8.7% − 3.0%
Past FCF growth (FY2021–FY2026)
+3.7%
Compound annual rate, 5 years
Past revenue growth (FY2021–FY2026)
+12.7%
Compound annual rate, 5 years
Inputs (FY2026): free cash flow $2.21B (operating CF − capex); enterprise value $74.58B = market cap $77.66B (latest close, 2026-11-04) + debt $1.52B − cash and short-term investments $4.59B; r = WACC of 8.7% using this page’s default assumptions (β 0.71, risk-free 5.0%, market premium 5.5%).
Three WACC scenarios
The same calculation under cautious, base and optimistic cost-of-capital assumptions (risk-free rate fixed at the 10-year Treasury yield). Pick one to load it into the sliders below.
Try your own assumptions
V = FCF ÷ (r − g). It starts at the implied growth rate, where the theoretical value equals today’s enterprise value.
Theoretical enterprise value
$76.12B
FCF $2.21B ÷ (8.7% − 5.8%)
Theoretical ÷ actual enterprise value
1.02x
Above 1x: these assumptions value the business above the market did
How sensitive the answer is
Theoretical ÷ actual enterprise value for each combination of r and g.
| g \ r | 6.7% | 7.7% | 8.7% | 9.7% | 10.7% |
|---|---|---|---|---|---|
| 0% | 0.44x | 0.38x | 0.34x | 0.31x | 0.28x |
| 2% | 0.63x | 0.52x | 0.44x | 0.38x | 0.34x |
| 4% | 1.10x | 0.80x | 0.63x | 0.52x | 0.44x |
| 6% | 4.23x | 1.74x | 1.10x | 0.80x | 0.63x |
| 8% | — | — | 4.23x | 1.74x | 1.10x |
A simplified model for seeing what the market price assumes, not a forecast or a target price. It treats free cash flow as growing at one constant rate forever; the result swings widely with small changes in r and g, and is undefined when g reaches r. Free cash flow here is operating cash flow minus capex, which is after interest — a full DCF of enterprise value would use cash flow before interest. Market cap uses the latest close (2026-11-04) × shares at fiscal year-end; free cash flow and WACC inputs are from the latest fiscal year.
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Earnings qualityFrom SEC dataShow
The same reported profit can mean different things depending on whether it's backed by cash, driven by the core business, or the result of a one-off item. Four checks below.
- ✓
Operating CF ÷ net income: averages 5.39x
Profit is backed by cash coming in.
- ✓
Accrual ratio (latest): -5.8%
A small share of profit rests on accounting estimates.
- ✓
Core-earnings share (operating income ÷ pretax income): 95%
Most profit comes from core operations.
- ✓
Days sales outstanding: 3 → 3 days
No major slowdown in collecting on sales.
Operating CF vs. net income
Unit: $M — operating CF above net income means profit is backed by cash
- Operating CF
- Net income
formulacash flow from operations ÷ net income attributable to the company
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formula(net income − operating CF) ÷ average total assets × 100
termsNet income (attributable to the company) · Cash flow from operations (operating CF) · Total assets
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-03-31
Profit bridge (FY2026)
Unit: $M — what moved profit from operating income to net income
- Profit (each stage)
- Pushed profit up
- Pushed profit down
formulaoperating income ÷ income before income taxes × 100
termsOperating income · Income before income taxes (pretax income)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-03-31
Receivables & inventory days
Unit: days — days grow when receivables or inventory build up faster than sales
- Days sales outstanding
- Days inventory outstanding
formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365
formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365
termsInventory · Cost of revenue (COGS)
Worked examples (latest period)
formulacash flow from operations ÷ net income attributable to the company
e.g.$3,027M ÷ $2,145M = 1.41x
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formulaoperating income ÷ income before income taxes × 100
e.g.$2,707M ÷ $2,842M × 100 = 95%
termsOperating income · Income before income taxes (pretax income)
formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365
e.g.($144M + $181M) ÷ 2 ÷ $22,751M × 365 = 3 days
formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365
e.g.($2,445M + $2,631M) ÷ 2 ÷ $16,447M × 365 = 56 days
termsInventory · Cost of revenue (COGS)
17
Who holds the sharesFrom SEC dataShow
How much of the stock large institutional investors report owning on SEC Form 13F, how much the directors and executive officers hold (and how much of the vote they control), and roughly how much is left for individual investors. Shown next to beta so the holder mix can be read alongside how much the stock swings.
Institutions, insiders and everyone else, 13F holdings as of 2026-06-30
“Everyone else” is what remains after shares reported on Form 13F and shares held by directors and executive officers: mostly individual investors, plus non-insider families or foundations and smaller or foreign institutions. The figures have different dates and 13F reports count some shares twice — read it as an approximate split.
- Held by 13F filers
- 94.0%
- Directors & officers (shares)
- 2.1%
- Everyone else (est.)
- 3.9%
- Directors & officers (voting power)
- 2.1%
- Institutional-ownership rank
- 135 of 416
- Beta (adjusted)
- 0.71
individuals and other non-13F holders
no separate voting figure; shown as shares
1 = most institutional; 32% of covered companies have more
above 1 = swings more than the market
- 300.2M shares reported by 1,415 13F filers ÷ 319.5M shares outstanding on 2026-08-14. Option positions are excluded.
- Directors and executive officers as a group, from the proxy statement’s beneficial-ownership table; includes shares they can acquire within 60 days.
- A large “everyone else” share can still reflect a family, trust or foundation stake held outside the board; check the proxy statement’s 5% holders.
Sources: SEC Form 13F data set (holdings as of 2026-06-30) · Form DEF 14A filed 2026-04-07 (beneficial ownership table) · Form 10-Q cover page (shares outstanding as of 2026-08-14)
18
Strengths & weaknessesSite analysis
Strengths
1. Scale leader
Ross is the largest off-price apparel and home fashion chain in the U.S.
Evidence: Form 10-K (FY2026, year ended 2026-01-31)
2. Growth
Sales rose from $18.7B (fiscal 2022) to $22.8B (fiscal 2025).
Evidence: Form 10-K (FY2026, year ended 2026-01-31)
3. Cash return
Repurchased $1.05B of stock in fiscal 2025 and repaid $700M of notes.
Evidence: Form 10-K (FY2026, year ended 2026-01-31)
Weaknesses
1. Pandemic sensitivity
Net earnings fell to $85M in fiscal 2020 when stores closed.
Evidence: Form 10-K (FY2026, year ended 2026-01-31)
2. U.S.-only stores
All stores are in the U.S. and its territories.
Evidence: Form 10-K (FY2026, year ended 2026-01-31)
3. Tariff exposure
Merchandise costs are affected by import tariffs.
Evidence: Form 10-Q (quarter ended 2026-08-01)
19
What draws investors to itSite analysis
Why the stock can look attractive to investors — each point paired with what has to hold for it to stay true, and the opposing view. This is this site's analysis, not a recommendation to buy or sell.
P/E (FY2026)
28.5x
Price at fiscal year-end ÷ diluted EPS
Dividend yield (FY2026)
0.86%
Dividends per share ÷ fiscal year-end price
Payout ratio (FY2026)
25%
Dividends per share ÷ diluted EPS
FCF yield (FY2026)
3.6%
(Operating CF − capex) ÷ market cap
1. Off-price share gains
Largest U.S. off-price apparel and home fashion chain, still adding stores.
- What has to hold
- Consumers stay price-conscious.
- The other side
- Competition from TJX, Burlington and others.
Evidence: Form 10-K (FY2026, year ended 2026-01-31)
2. Shareholder returns
DPS rose from $1.14 (fiscal 2021) to $1.62 (fiscal 2025); shares outstanding fell from 357M to 322M.
- What has to hold
- Earnings keep growing.
- The other side
- Margin pressure.
Evidence: Form 10-K (FY2026, year ended 2026-01-31)
20
ResilienceSite analysisShow
How well the company could absorb a bad year: its financial buffer, how its revenue and profit held up in the worst year on record, and what the 10-K says about the business's exposure to shocks. Figures and filing statements only — no overall rating.
1. Financial buffer (FY2026)
Cash & short-term investments ÷ debt due within a year
9.2x
$4.59B vs. $500M
Interest coverage (operating income ÷ interest expense)
Not disclosed
Interest expense isn’t reported as a separate line.
Free cash flow ÷ dividends paid
4.2x
$2.21B vs. $528M (FCF = operating CF − capex)
2. Worst year in the record, and the recovery
| Figure | Worst year-over-year change | Back to the prior level? |
|---|---|---|
| Revenue | -1.2% in FY2023 ($18.92B → $18.7B) | Yes, by FY2024 |
| Operating income | No decline in the record | — |
Covers only the 6 fiscal years on record (FY2021–FY2026), which may not include a full recession — the worst year here isn’t necessarily how the company would fare in a severe downturn.
3. Business resilience (from the 10-K)
Profitable in fiscal 2020
Stayed profitable ($85M) through the pandemic year.
Source: Form 10-K (FY2026, year ended 2026-01-31)
21
Legal & regulatory mattersSite analysisShow
Lawsuits, government investigations, enforcement actions and settlements the company discloses — where each stands, what is at stake, and what comes next. From the 10-K's Legal Proceedings and contingencies note, the latest 10-Q, and 8-Ks.
Ross believes pending class/representative actions and other proceedings will not have a material adverse effect; it is a plaintiff in a COVID-19 business interruption insurance suit.
1 open matter
COVID-19 business interruption insurance suit (as plaintiff)
PendingContract disputeRoss Stores; insurance companies
Ross has sued various insurers seeking coverage for business interruption and other losses from the COVID-19 pandemic.
Company statement:
Based on Form 10-Q (quarter ended 2026-08-01) — Legal Proceedings, reviewed 2026-11-02. Routine ordinary-course claims are not listed. “Major” is this site’s judgment of which matters could materially affect results.
22
Risks (including geopolitical)Site analysis
Starting from the 10-K's Risk Factors section, organized by category — geopolitical, currency, raw materials, regulatory, disaster, and more — with impact and likelihood assessed by this site.
Risk map
Vertical = impact on results, horizontal = likelihood. Upper right = most severe. Numbers match the list below (placement is this site’s own assessment).
Likelihood →
"Company disclosure" vs. "this site’s assessment"
The description and mitigation for each risk are this site’s summary of the 10-K’s "Risk Factors" section. Impact and likelihood are this site’s own assessment, not the company’s — where the company discloses its own likelihood assessment, that is noted in the summary.
Impact is judged from how large the affected business is relative to total revenue/profit, and from the risk’s track record of moving results in the past. Likelihood is judged from the filing’s wording and the current business environment (already occurring, or recurring). See the rating criteria.
- 1Competition & technology shift
Competition
- Company disclosure (summarized from the 10-K)
- Competes with off-price retailers, department stores, discount stores, warehouse stores and online retailers.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood High
- 2Demand & macro
Consumer spending
- Company disclosure (summarized from the 10-K)
- Middle- and lower-income customers are sensitive to economic pressure.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood High
- 3Supply chain
Merchandise availability
- Company disclosure (summarized from the 10-K)
- Depends on buying excess and closeout inventory from vendors.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood Med
- 4Geopolitics & supply chain
Tariffs
- Company disclosure (summarized from the 10-K)
- Import tariffs affect merchandise costs.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood High
- 5Labor & workforce
Wages
- Company disclosure (summarized from the 10-K)
- Workforce of about 111,000 associates.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood High
23
What changed in the risk factorsFrom SEC data
Paragraphs in the latest 10-K's Risk Factors that have little overlap with the year before, and paragraphs that were dropped.
New or substantially reworded (1)
Competitive pressures and the pace of change in the retailing industry are high.
No longer in the text (2)
Competitive pressures in the apparel and home-related merchandise retailing industry are high.
Unexpected changes in the level of consumer spending on or preferences for apparel and home-related merchandise could adversely affect us.
Matched automatically, quoted as filed, and may include rewording of an existing risk. Compares Item 1A of the 10-K filed Mar 31, 2026 ↗ with the 10-K filed Apr 1, 2025 ↗.
24
What to watch going forwardSite analysis
- Comparable store sales.
- Operating margin excluding tariff refunds.
- New store openings.
25
Source documentsShow
This page's financial figures come from the Form 10-Ks listed below. Check the original filings for full detail.
Other sources referenced in the analysis
Last updated
Analysis last edited: November 6, 2026 · Financial data fetched: November 1, 2026 15:27 (SEC EDGAR) · Source 10-K filed: March 31, 2026
Built on10-K FY2026 · filed 2026-03-31Proxy statement (2026)
Next update expectedAfter FY2027’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
This page is this site’s own analysis based on public information, and does not represent Ross Stores’s views. It is not a recommendation to buy or sell any security, and this site does not guarantee the accuracy of any figure or statement here. Always verify against the original source documents before making an investment decision.