Investment Thesis
Ross Stores demonstrates exceptional financial health with robust profitability metrics (9.3% net margin, 25.5% ROE), strong cash generation ($1.3B free cash flow), and conservative leverage (0.26x debt/equity). The company maintains solid liquidity (1.52x current ratio) and generates substantial returns on assets (9.7%), indicating efficient capital deployment in a competitive retail environment.
ROST Strengths
- Strong net margin at 9.3% with healthy operating margin of 11.7%, indicating pricing power and operational efficiency
- Exceptional return on equity of 25.5% demonstrates effective use of shareholder capital
- Robust free cash flow of $1.3B (8% FCF margin) provides capital flexibility for dividends, buybacks, and debt reduction
- Conservative capital structure with debt/equity of 0.26x and industry-leading interest coverage of 144.1x
- Solid cash position of $4.1B relative to $1.5B long-term debt, ensuring financial flexibility
- Strong operating cash flow of $1.9B nearly covers net income, indicating high-quality earnings
ROST Risks
- Extraordinary revenue growth of 12,215% YoY suggests potential data anomaly or accounting change; sustainability unclear
- Gross margin data unavailable, limiting visibility into merchandise mix, pricing strategy, and supply chain cost trends
- Quick ratio of 0.90x indicates potential liquidity stress if operational disruptions occur or inventory becomes less liquid
- Significant insider activity (10 Form 4 filings in 90 days) warrants monitoring for potential signal of insider sentiment
- Retail sector faces structural headwinds from e-commerce competition and consumer spending volatility
Key Metrics to Watch
- Gross margin trends and merchandise cost inflation
- Free cash flow sustainability and capital allocation decisions
- Same-store sales growth and comparable store performance
- Inventory turnover and working capital efficiency
- Operating margin expansion or contraction amid pricing pressures
ROST Financial Metrics
ROST Profitability Ratios
ROST Balance Sheet & Liquidity
ROST 5-Year Financial Trend
5-Year Trend Summary: ROSS STORES, INC.'s revenue has grown significantly by 32% over the 5-year period, indicating strong business expansion. The most recent EPS of $4.38 reflects profitable operations.
ROST Growth Metrics (YoY)
ROST Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| 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 |
| Q2 2023 | $4.6B | $338.4M | $1.11 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
ROST Capital Allocation
ROST SEC Filings
Access official SEC EDGAR filings for ROSS STORES, INC. (CIK: 0000745732)