ROSS STORES, INC. (ROST) Stock Analysis

Analysis from 10-Q filed 2025-12-10. Data as of Q2 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC N/A. FCF margin 1966.8%. D/E 0.2x. Source: 10-Q filed 2025-12-10.

Metric	Value	Context
ROIC	N/A	Below expectations
FCF Margin	1966.8%	Strong cash generation
Debt/Equity	0.2x	Conservative leverage

FCF margin 1966.8% — Top 5%.

Explore ROSS STORES, INC.: Earnings History | Filings

Programmatic access: Available via MCP at mcp.metricduck.com. Tools for ROST: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.

---

Profitability: ROSS STORES, INC. earns N/A ROIC

ROIC TTM N/A, sector median 6.9%. DuPont: NOPAT margin 1654.0% × asset turnover 0.0x. Gross margin -12673.8%. Source: 10-Q filed 2025-12-10.

Metric	ROST	Rating	Context
Return on Invested Capital (ROIC)	N/A	Red flag	Below sector median of 6.9%
Return on Equity (ROE)	39.0%	Excellent	Efficient use of shareholder equity
Gross Margin	-12673.8%	Warning	Competitive pricing environment

---

Cash Flow: ROSS STORES, INC. generates $2.6B FCF at 1966.8% margin, positive NaN/8 quarters

FCF TTM $2.6B. FCF margin 1966.8%, Top 5%. OCF/Net income 1.5x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-12-10.

Metric	ROST	Rating	Context
Free Cash Flow Margin	1966.8%	Excellent	Excellent cash conversion
Free Cash Flow (TTM)	$2.6B	Good	Positive cash generation
OCF/Net Income	1.5x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

---

Balance Sheet: ROSS STORES, INC. at 0.2x leverage

Debt/Equity 0.2x. Net cash $3.1B. Source: 10-Q filed 2025-12-10.

Metric	ROST	Rating	Context
Debt to Equity	0.2x	Excellent	Conservative capital structure
Net Cash Position	$3.1B	Excellent	Net cash positive

---

Valuation: ROSS STORES, INC. trades at 32.0x earnings

P/E 32.0x. EV/Sales 384.7x. FCF yield 3.6%. Dividend yield 0.7%. Source: 10-Q filed 2025-12-10.

Metric	ROST	Rating	Context
P/E Ratio	32.0x	Adequate	Premium valuation
EV/Sales	384.7x	Warning	Growth premium priced in
FCF Yield	3.6%	Adequate	Lower cash yield
Dividend Yield	0.7%	Adequate	Growth focus over income

---

Capital Allocation: ROSS STORES, INC. returns 2.2% shareholder yield

Total shareholder yield 2.2% (div 0.7% + buyback 1.5%). Capital returned $1.6B TTM. Source: 10-Q filed 2025-12-10.

Metric	ROST	Rating	Context
Total Shareholder Yield	2.2%	Adequate	Dividend + buyback yield combined
Buyback Yield	1.5%	Adequate	Minimal buyback activity
Total Capital Returned (TTM)	$1.6B	Good	Dividends + buybacks returned to shareholders

---

Sector Rankings

Metric	Value	Percentile	vs Median
Free Cash Flow Margin	1966.8%	Top 5%	772.0x above
Gross Margin	-12673.8%	Bottom 10%	-327.3x below
Return on Equity (ROE)	39.0%	Top 25%	3.4x above
P/E Ratio	32.0x	N/A	-

---

Financial Scorecard

Metric	ROST	Rating	Sector Context
Free Cash Flow Margin	19.7x	Excellent	Top 5% of sector (median: 2.5%)
Gross Margin	-126.7x	Red flag	Competitive pricing environment
Debt to Equity Ratio	16.1%	Excellent	Conservative capital structure
P/E Ratio (Price-to-Earnings)	32.0x	Adequate	Growth premium
Free Cash Flow Yield	3.6%	Adequate	Moderate yield

---

Frequently Asked Questions

Q: What is ROSS STORES, INC.'s Return on Invested Capital (ROIC)?

ROSS STORES, INC. (ROST) has a trailing twelve-month Return on Invested Capital (ROIC) of N/A. Sector median 6.9%. Source: 10-Q filed 2025-12-10.

Q: What is ROSS STORES, INC.'s Free Cash Flow Margin?

ROSS STORES, INC. (ROST) has a free cash flow margin of 1966.8%, generating $2.6 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-12-10.

Q: What is ROSS STORES, INC.'s P/E ratio and how does it compare to peers?

ROSS STORES, INC. (ROST) trades at a P/E ratio of 32.0x, which is above the sector median of N/A. EV/Sales 384.7x. FCF yield 3.6%. Source: 10-Q filed 2025-12-10.

Q: Does ROSS STORES, INC. pay a dividend?

ROSS STORES, INC. (ROST) currently pays a dividend yield of 0.7%. Total shareholder yield (dividend + buybacks) 2.2%. Source: 10-Q filed 2025-12-10.

Q: What is ROSS STORES, INC.'s revenue and earnings growth?

ROSS STORES, INC. (ROST) declined revenue by 16.4% year-over-year. EPS +13.4% YoY. Source: 10-Q filed 2025-12-10.

Q: Is ROSS STORES, INC. buying back stock?

ROSS STORES, INC. (ROST) repurchased $1.1 billion of stock over the trailing twelve months. This represents a buyback yield of 1.5%. Source: 10-Q filed 2025-12-10.

Q: How does ROSS STORES, INC. compare to competitors in Consumer Discretionary?

Compared to other companies in Consumer Discretionary, ROSS STORES, INC. (ROST) shows: ROIC N/A, sector median 6.9% (NaNx). FCF margin 1966.8%, sector median 2.5% (Top 5%). Gross margin -12673.8%, 12712.5pp below sector median. These rankings are based on MetricDuck's analysis of all Consumer Discretionary companies with available SEC filings.

Q: What warning signs should I watch for with ROSS STORES, INC.?

No quantitative warning flags fired for ROSS STORES, INC. (ROST) on margin trend, FCF trend, ROIC trend, or leverage thresholds. Source: 10-Q filed 2025-12-10.

---

Data Source: Data sourced from 10-Q filed 2025-12-10. TTM metrics as of Q2 2026.

Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.

Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.

This analysis is for informational purposes only and does not constitute investment advice.