ROSS STORES, INC. (ROST) Stock Analysis

Analysis from 10-Q filed 2025-12-10. Data as of Q1 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 20.6%. FCF margin 9.7%. D/E 0.2x. Source: 10-Q filed 2025-12-10.

Metric	Value	Context
ROIC	20.6%	Above industry average
FCF Margin	9.7%	Healthy cash flow
Debt/Equity	0.2x	Conservative leverage

ROIC 20.6% — Top 25% of sector peers. FCF margin 9.7% — Top 25%.

Explore ROSS STORES, INC.: Earnings History | Filings | ROIC Analysis

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.

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Profitability: ROSS STORES, INC. earns 20.6% ROIC, Top 25% in Consumer Discretionary

ROIC TTM 20.6%, sector median 8.1%, Top 25%. DuPont: NOPAT margin 9.0% × asset turnover 1.5x. Gross margin 27.7%. Operating margin 11.9%. Source: 10-Q filed 2025-12-10.

Metric	ROST	Rating	Context
Return on Invested Capital (ROIC)	20.6%	Excellent	Above sector median of 8.1%
Return on Equity (ROE)	37.2%	Excellent	Efficient use of shareholder equity
Gross Margin	27.7%	Adequate	Competitive pricing environment
Operating Margin	11.9%	Good	Moderate operational efficiency

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Cash Flow: ROSS STORES, INC. generates $2.2B FCF at 9.7% margin, positive NaN/8 quarters

FCF TTM $2.2B. FCF margin 9.7%, Top 25%. OCF/Net income 1.4x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-12-10.

Metric	ROST	Rating	Context
Free Cash Flow Margin	9.7%	Adequate	Healthy cash generation
Free Cash Flow (TTM)	$2.2B	Good	Positive cash generation
OCF/Net Income	1.4x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

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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

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Valuation: ROSS STORES, INC. trades at 28.3x earnings

P/E 28.3x. EV/Sales 2.6x. FCF yield 3.6%. Dividend yield 0.9%. Source: 10-Q filed 2025-12-10.

Metric	ROST	Rating	Context
P/E Ratio	28.3x	Adequate	Premium valuation
EV/Sales	2.6x	Good	Attractive revenue multiple
FCF Yield	3.6%	Adequate	Lower cash yield
Dividend Yield	0.9%	Adequate	Growth focus over income

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Capital Allocation: ROSS STORES, INC. returns 2.6% shareholder yield

Total shareholder yield 2.6% (div 0.9% + buyback 1.7%). Capital returned $1.6B TTM. Source: 10-Q filed 2025-12-10.

Metric	ROST	Rating	Context
Total Shareholder Yield	2.6%	Adequate	Dividend + buyback yield combined
Buyback Yield	1.7%	Adequate	Minimal buyback activity
Total Capital Returned (TTM)	$1.6B	Good	Dividends + buybacks returned to shareholders

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Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	20.6%	Top 25%	2.6x above
Free Cash Flow Margin	9.7%	Top 25%	4.3x above
Gross Margin	27.7%	Bottom 50%	0.7x below
Operating Margin	11.9%	Top 25%	2.8x above
Return on Equity (ROE)	37.2%	Top 25%	3.6x above
P/E Ratio	28.3x	N/A	-

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Financial Scorecard

Metric	ROST	Rating	Sector Context
Return on Invested Capital (ROIC)	20.6%	Excellent	Top 25% of sector (median: 8.1%)
Free Cash Flow Margin	9.7%	Adequate	Top 25% of sector (median: 2.3%)
Gross Margin	27.7%	Adequate	Bottom 50% of sector (median: 39.0%)
Debt to Equity Ratio	24.5%	Excellent	Conservative capital structure
P/E Ratio (Price-to-Earnings)	28.3x	Adequate	Growth premium
Free Cash Flow Yield	3.6%	Adequate	Moderate yield

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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 20.6%. Sector median 8.1%. 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 9.7%, generating $2.2 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 28.3x, which is above the sector median of N/A. EV/Sales 2.6x. 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 0.9%. Total shareholder yield (dividend + buybacks) 2.6%. Source: 10-Q filed 2025-12-10.

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

ROSS STORES, INC. (ROST) grew revenue by 7.7% year-over-year. EPS +4.6% 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 1.7%. 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 20.6%, sector median 8.1% (Top 25%). FCF margin 9.7%, sector median 2.3% (Top 25%). Gross margin 27.7%, 11.2pp 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.

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Data Source: Data sourced from 10-Q filed 2025-12-10. TTM metrics as of Q1 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.