Ross Stores

ROST · Nasdaq · Consumer Discretionary · Financials, fiscal 2016 to 2025

ROST · Last close · October 26, 2026

$234.11

Ross Stores' revenue rose 7.7% to $22.8 billion in fiscal 2025. Its operating margin was 11.9%, down from 12.2% a year earlier. Free cash flow was $2.2 billion, up 34.9%. It paid out $1.6 billion in dividends and buybacks, 71% of free cash flow. The diluted share count fell 2.0%.

Ross Stores, Inc. Latest fiscal year ended January 31, 2026 10-K filed March 31, 2026 · 0000745732-26-000006 Updated October 9, 2026

Revenue

$22.8B

7.7%

Operating margin

11.9%

0.3 pts

Net income

$2.1B

2.6%

Free cash flow

$2.2B

34.9%

Return on capital

67.0%

5.0 pts

Market cap

$74.8B

Oct 26 close

P/E

28.3x

On $8.26 EPS, 4 qtrs

Operating margin is operating income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on capital is after-tax operating income as a share of the money invested in the business: debt plus equity, minus cash. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.

What Ross Stores does

Ross Stores runs two chains of off-price stores that sell apparel, shoes, accessories and home goods: Ross Dress for Less and dd's DISCOUNTS. Off-price means it sells name-brand and designer goods at prices below what department and specialty stores charge. As of January 31, 2026, Ross had 1,904 locations in 44 states, the District of Columbia, Guam and Puerto Rico, and it also ran 363 dd's DISCOUNTS stores in 22 states.

Ross says its prices run 20% to 60% below department and specialty store regular prices, and that its customers are mainly from middle income households. dd's DISCOUNTS sells more moderately priced goods to households with lower to more moderate incomes. Revenue comes from selling goods in its stores. The company says it is the largest off-price apparel and home fashion chain in the United States.

Ross buys most of its goods directly from manufacturers, often late in the buying cycle. It buys leftover or canceled orders and overruns, and takes goods straight from brands and factories. Some goods are stored in its warehouses and sold later, a practice it calls packaway. It generally does not ask vendors for promotional allowances or return privileges. New goods arrive in stores three to six times a week.

Its biggest risks, as it describes them

Changes in U.S. trade or tax policy, such as tariffs, on goods made in other countries.
Unexpected changes in consumer spending and tastes, and strong competition in retail.
Depending on a steady supply of attractive brand name merchandise at desirable discounts.
Managing inventory, markdowns and inventory losses so it can reach its planned margins.
Finding good new store sites and entering new markets to keep growing.

From Ross Stores's annual report on Form 10-K, filed March 31, 2026, in our words; the 10-K has the full description and every risk factor. Updated with each new 10-K.

Charts show fiscal years, from the 10-K filings.

Revenue and margins

Revenue

US$ billions, fiscal years

Margins

Percent of revenue

GrossOperatingNetFree cash flow

Net income and earnings per share

From fiscal 2016 to 2025, earnings per share grew 9.9% a year and net income 7.5% a year, as buybacks cut the share count by 18%.

Net income

US$ billions, fiscal years; loss years in red.

Diluted earnings per share

US$ per share, fiscal years, restated for any stock splits; loss years in red.

Returns on capital

Return on capital and on equity

Percent. Return on capital is after-tax operating income over the money invested in the business (debt plus equity, minus cash); return on equity is net income over shareholders' equity. Both use the average of opening and closing balances.

Return on capitalReturn on equity

Cash flow

Free cash flow

US$ billions. Cash from operations minus capital expenditure; negative years in red.

Payouts and share count

Dividends and buybacks

US$ billions, cash paid in each fiscal year

DividendsShare buybacks

Diluted share count

Weighted-average diluted shares, millions

Valuation

Two ways to value Ross Stores yourself, both starting from its filings: a discounted cash flow model and the price-to-earnings method.

What Ross Stores says to expect

Third and fourth quarter 2026: comparable store salesComparable store sales are now expected to increase 6% to 7% in the third quarter and 4% to 5% in the fourth quarter.
Fiscal 2026: earnings per shareBased on our strong first half results and our updated second half guidance, we are increasing our 2026 fiscal year earnings per share projections to be in the range of $8.61 to $8.77, which again includes an approximate $0.60 earnings per share benefit from IEEPA tariff refunds recognized in the second quarter.

The company's own words, from its earnings release (Form 8-K, Exhibit 99), filed August 20, 2026. They are its expectations, not ours, and not a forecast or price target from The Filing Desk. Replaced when the next release is out.

Discounted cash flow (DCF)

A discounted cash flow (DCF) model values a business as the cash it may generate in future, discounted back to today. The starting figures come from Ross Stores' 10-K (or, for net cash and shares, its latest 10-Q) and the assumptions are yours: start from one of three example scenarios, then change any figure to see what it implies for a share, and how that compares with the last share price.

Value per share on three example scenarios, from Ross Stores' cash from operations minus depreciation in fiscal 2025 (free cash flow before spending to grow: capital spending was 1.6 times depreciation, which holds its free cash flow down) of $2.5B, net cash of $3.1B at January 31, 2026 and 324 million diluted shares, from its filings. The scenarios are fitted to Ross Stores: the base scenario's growth in years 1 to 5 is its revenue growth over the last 3 years, 6.8% a year; the cautious and optimistic ones are lower and higher, and growth in years 6 to 10 is halfway to the long-run rate. The base scenario's discount rate is 9% for a business of moderate risk (Apparel Retail); the cautious and optimistic ones use a point more and a point less. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.

From the filings

Starting free cash flow, US$ millions

Cash from operations minus depreciation in fiscal 2025: a rough guide to cash flow before spending to grow, for a company building heavily.

Net cash, US$ millions

Cash and short-term investments minus debt and finance leases at January 31, 2026. Negative means net debt.

Diluted shares, millions

Weighted-average diluted shares in fiscal 2025.

Your assumptions

Start from

Fitted to Ross Stores's own revenue growth, as above. Cautious: growth of 3.5% then 3% a year, 2% after year 10, a 10% discount rate. Base: growth of 7% then 5% a year, 2.5% after year 10, a 9% discount rate. Optimistic: growth of 10% then 6.5% a year, 3% after year 10, a 8% discount rate.

Free cash flow growth, years 1 to 5 (% a year)

Free cash flow growth, years 6 to 10 (% a year)

Growth after year 10 (% a year)Long-run growth forever after year 10. Usually close to inflation, and always below the discount rate.

Discount rate (% a year)The yearly return an investor wants for the risk. A higher rate gives a lower value.

Value per share on these assumptions

—

Last close, October 26, 2026: $234.11
Value on these assumptions, against the last close: —

Cash flows in years 1 to 10, valued today: —
Everything after year 10, valued today: —
Plus net cash: —
Share of value from after year 10: —

Projected free cash flow

US$ billions. Each column is one year's projected free cash flow, split into what it is worth today and the part removed by discounting.

Value todayRemoved by discounting

How the value changes with two assumptions

Value per share in US$, with the growth rates above. The highlighted cell matches the current assumptions.

How the model works. Free cash flow grows at the first rate for five years and the second rate for five more, and each year is discounted at the discount rate. Everything after year 10 is valued as year-10 cash flow × (1 + growth after year 10) ÷ (discount rate − growth after year 10), discounted back ten years. Net cash is added and the total is divided by diluted shares. The result depends entirely on the assumptions. It is not a forecast, a price target or a recommendation. The last close is the consolidated US closing price, from Databento.

Price-to-earnings (P/E) method

Another common way to value a company is to multiply its earnings per share by a price-to-earnings (P/E) multiple: the number of years of today's earnings an investor pays for a share. A higher multiple usually means investors expect earnings to grow. Choose a multiple, for example from similar companies, to see the value it gives.

Value per share on three example scenarios, from Ross Stores' earnings per share of $8.26 (over the last four quarters). Each grows earnings for a year at the cash flow scenarios' rates and applies a multiple to next year's earnings: 21.4×, the middle of Ross Stores' own P/E today, its peers' median and its sector's median (its peers' median) for the base scenario, 20% less and more for the cautious and optimistic ones. The price is brought back a year at 10%, 9% and 8%. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.

Earnings per share, US$

Diluted earnings per share over the four quarters to August 1, 2026, from the 10-Qs and 10-K.

P/E multiple

P/E today is the last close divided by the latest earnings per share, the four quarters' where available. Peers: Gap, Burlington Stores, TJX Companies, Victoria's Secret.

Earnings growth in the years ahead (% a year) Starts at Ross Stores' revenue growth over the last 3 years, 6.8% a year, as the base scenario does.

Earnings per share in the years ahead, US$

Year 1Year 2Year 3Year 4Year 5

Type your own estimate for any year; the years after it carry on at the growth rate.

Apply the multiple to earnings

A multiple on a future year's earnings gives the price then, brought back to today at the discount rate below.

Discount rate (% a year) The yearly return an investor wants for the risk, as in the cash flow model.

Value per share today at this multiple

—

Last close, October 26, 2026: $234.11
Value at this multiple, against the last close: —
Ross Stores' P/E at the last close: 28.3×

Company	Last close	Earnings per share	P/E today
Ross StoresROST	$234.11	$8.26	28.3×
TJX CompaniesTJX	$143.70	$5.40	26.6×
Burlington StoresBURL	$241.26	$11.13	21.7×
Victoria's SecretVSXY	$94.96	$4.49	21.1×
GapGAP	$22.26	$3.34	6.7×

How the P/E method works. Value per share is earnings per share times the multiple. On a future year's earnings, that gives the price in that year, which is brought back to today at the discount rate: price ÷ (1 + discount rate) for each year ahead. It is quick and easy to compare across companies, but it ignores debt and cash, and earnings can swing with one-off gains and charges, so a multiple says most about steady, profitable businesses. Like the cash flow model, the result depends entirely on the assumptions you choose. It is not a forecast, a price target or a recommendation.

Balance sheet

Fiscal year end	FY21	FY22	FY23	FY24	FY25
Cash and short-term investments	4.9	4.6	4.9	4.7	4.6
Debt incl. finance leases	2.5	2.5	2.5	2.2	1.5
Net debt (negative means net cash)	−2.5	−2.1	−2.4	−2.5	−3.1
Net debt to EBITDA	−0.9x	−0.9x	−0.9x	−0.8x	−1.0x
Debt to equity	0.6x	0.6x	0.5x	0.4x	0.2x
Interest coverage	27.8x	24.8x	28.7x	32.2x	48.5x
Current ratio	1.8x	1.9x	1.8x	1.6x	1.6x
Quick ratio	1.2x	1.3x	1.2x	1.1x	1.0x

US$ billions unless stated, at each fiscal year end. Net debt to EBITDA is debt minus cash, divided by operating income before depreciation and amortization: roughly how many years of those earnings the net debt equals. Debt to equity is debt as a multiple of shareholders' equity. Interest coverage is operating income divided by interest expense. The current ratio is current assets over current liabilities; the quick ratio leaves out inventory.

Insider trades

Over the 12 months between October 27, 2025 and October 26, 2026, no insider bought Ross Stores shares on the open market, and 7 insiders sold $23.0 million, $4.7 million of it under trading plans set up in advance.

Date	Insider	Trade	Shares	Price	Value	Filing
Sep 14, 2026	James Grant ConroyChief Executive Officer, Director	Sold	49,205	$229.48	$11.3 million	Form 4
Sep 14, 2026	Stephen C BrinkleyPresident, Operations	Sold	6,424	$229.66	$1.5 million	Form 4
Mar 26, 2026	William W Sheehan IIEVP, Chief Financial Officer	Sold	4,883	$216.95	$1.1 million	Form 4
Mar 25, 2026	Michael J. HartshornGroup President, COO, Director	Sold plan	15,813	$214.91	$3.4 million	Form 4
Mar 25, 2026	Karen SykesPresident, CMO Dd's Discounts	Sold	5,506	$213.40	$1.2 million	Form 4
Mar 24, 2026	Karen FlemingPres, CMO Ross Dress for Less	Sold	7,000	$212.76	$1.5 million	Form 4
Mar 24, 2026	Michael J. HartshornGroup President, COO, Director	Sold plan	6,061	$214.52	$1.3 million	Form 4
Mar 24, 2026	Stephen C BrinkleyPresident, Operations	Sold	4,154	$212.91	$884,428	Form 4
Mar 10, 2026	Karen SykesPresident, CMO Dd's Discounts	Sold	2,556	$213.91	$546,754	Form 4
Mar 10, 2026	Patricia H MuellerDirector	Sold	1,881	$213.13	$400,898	Form 4

Open-market purchases and sales by officers, directors and 10% owners, from their Form 4 filings with the SEC: one row per person, day and filing, at the day's average price. Grants, option exercises and shares withheld for tax aren't counted. Insiders buy and sell for many reasons, such as taxes, spreading their savings or a plan set up months earlier, so a trade on its own says little about where a company is heading. For information only, not investment advice. Insider trades at all companies

Piotroski F-score

The F-score counts how many of nine simple tests of profitability, funding and efficiency a company passed in a year (Piotroski, 2000). The more tests passed, the stronger the year: 8 or 9 is strong, 0 to 2 weak. Companies that report no gross profit are scored on the other eight.

Test	FY23	FY24	FY25
Net income is positive	Pass	Pass	Pass
Cash from operations is positive	Pass	Pass	Pass
Return on assets rose	Pass	Pass	Fail
Cash from operations exceeds net income	Pass	Pass	Pass
Debt fell relative to assets	Pass	Pass	Pass
Current ratio rose	Fail	Fail	Fail
Share count didn't rise	Pass	Pass	Pass
Gross margin rose	Pass	Pass	Fail
Revenue rose relative to assets	Pass	Fail	Pass
F-score	8 of 9	7 of 9	6 of 9
Accruals ratio	−4.6%	−1.8%	−5.8%

The accruals ratio is net income minus cash from operations, over average total assets.

Compare

Put Ross Stores side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.

Similar companies

Company	Year	Revenue growth	Operating margin	Free cash flow margin	Return on capital	Net debt to EBITDA	F-score	Compare
Ross Stores	FY25	7.7%	11.9%	9.7%	67.0%	−1.0x	6
Gap	FY25	1.9%	7.3%	5.4%	36.1%	−0.9x	6	Compare
Burlington Stores	FY25	8.8%	—	1.5%	28.1%	0.6x	7	Compare
TJX Companies	FY26	7.1%	—	8.1%	87.1%	−0.4x	8	Compare
Victoria's Secret	FY25	5.2%	4.1%	4.8%	17.7%	0.9x	6	Compare

Each company's latest fiscal year. Fiscal years end in different months, so the periods don't line up exactly. Free cash flow margin is free cash flow as a share of revenue. Net debt to EBITDA is explained under the balance sheet, and the F-score above.

10 years of figures

Fiscal year	FY16	FY17	FY18	FY19	FY20	FY21	FY22	FY23	FY24	FY25
Income statement
Revenue	12.9	14.1	15.0	16.0	12.5	18.9	18.7	20.4	21.1	22.8
Revenue growth	7.8%	9.8%	6.0%	7.0%	−21.9%	51.0%	−1.2%	9.0%	3.7%	7.7%
Gross profit	3.7	4.1	4.3	4.5	2.7	5.2	4.7	5.6	5.9	6.3
Research and development	—	—	—	—	—	—	—	—	—	—
Operating income	—	—	—	—	—	—	2.0	2.3	2.6	2.7
Net income	1.1	1.4	1.6	1.7	0.1	1.7	1.5	1.9	2.1	2.1
Diluted EPS (US$)	2.83	3.55	4.26	4.60	0.24	4.87	4.38	5.56	6.32	6.61
Diluted shares (millions)	395	384	373	361	355	354	345	337	331	324
Cash flow
Cash from operations	1.6	1.7	2.1	2.2	2.2	1.7	1.7	2.5	2.4	3.0
Capital expenditure	0.3	0.4	0.4	0.6	0.4	0.6	0.7	0.8	0.7	0.8
Free cash flow	1.3	1.3	1.7	1.6	1.8	1.2	1.0	1.8	1.6	2.2
Dividends paid	0.2	0.2	0.3	0.4	0.1	0.4	0.4	0.5	0.5	0.5
Share buybacks	0.7	0.9	1.1	1.3	0.1	0.7	0.9	0.9	1.1	1.1
Acquisitions	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Stock-based compensation	0.1	0.1	0.1	0.1	0.1	0.1	0.1	0.1	0.2	0.2
Balance sheet at fiscal year end
Cash and short-term investments	1.1	1.3	1.4	1.4	4.8	4.9	4.6	4.9	4.7	4.6
Debt incl. finance leases	0.4	0.4	0.3	0.3	2.5	2.5	2.5	2.5	2.2	1.5
Total assets	5.3	5.7	6.1	9.3	12.7	13.6	13.4	14.3	14.9	15.5
Total liabilities	2.6	2.7	2.8	6.0	9.4	9.6	9.1	9.4	9.4	9.4
Shareholders' equity	2.7	3.0	3.3	3.4	3.3	4.1	4.3	4.9	5.5	6.2
Margins and ratios
Gross margin	28.7%	28.9%	28.4%	28.1%	21.5%	27.5%	25.4%	27.4%	27.8%	27.7%
Operating margin	—	—	—	—	—	—	10.7%	11.3%	12.2%	11.9%
Net margin	8.7%	9.6%	10.6%	10.4%	0.7%	9.1%	8.1%	9.2%	9.9%	9.4%
Free cash flow margin	9.8%	9.3%	11.0%	10.1%	14.7%	6.2%	5.5%	8.6%	7.8%	9.7%
Return on capital	54.6%	65.7%	73.4%	73.8%	8.7%	—	80.0%	75.2%	71.9%	67.0%
Return on equity	42.8%	47.0%	50.0%	49.8%	2.6%	46.9%	36.2%	40.9%	40.3%	36.7%
Return on assets	22.0%	24.7%	26.9%	21.5%	0.8%	13.1%	11.2%	13.5%	14.3%	14.1%
Net debt to EBITDA	−0.3x	−0.4x	−0.5x	−0.4x	−4.2x	−0.9x	−0.9x	−0.9x	−0.8x	−1.0x

US$ billions unless stated. Where a later 10-K restated a year, the latest filed figure is shown. Download all figures (CSV, US$ millions)

Source: Ross Stores' Form 10-K filings, from SEC EDGAR. For information only, not investment advice. The Filing Desk is not affiliated with Ross Stores.