# Ross Stores Inc (ROST) — Stock CV

Ross Stores Inc is a $71.0B consumer company. Revenue shrank 3.8% over the last year, it keeps 11¢ of every dollar of sales as profit, and its net debt equals ~0.1 years of free cash flow. It trades at 26.7× earnings — in the most expensive third of its own history.

> Ross Stores, founded in 1982, is a US-focused off-price apparel and home fashion retailer operating more than 2,100 stores across 43 states, primarily under the Ross Dress for Less banner, with a smaller footprint through dd's Discounts. In fiscal 2025, the company generated over $22 billion in sales.

## Identity

- **Ticker**: ROST
- **Sector**: Consumer Cyclical
- **Industry**: Retail-Family Clothing Stores
- **Headquarters**: DUBLIN, CA
- **Employees**: 111 000
- **Website**: https://www.rossstores.com
- **Market cap**: $71.0B
- **Last price**: $222.27
- **Financial profile**: Strong

## Vitals (TTM)

- **Revenue**: $53.3B
- **Net income**: $5.80B
- **Free cash flow**: $5.34B
- **Net debt**: $451M
- **P/E**: 26.7
- **Revenue growth (YoY)**: -3.8%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 57 |
| Growth | 29 |
| Profitability | 82 |
| Health | 88 |
| Quality | 60 |
| Moat | 56 |

## Qualifications (beginner checklist) — 10 of 11 passed

- [ ] Revenue growing — -3.8% YoY
- [x] Profitable — $5.80B TTM
- [x] Profit growing — +14.7% YoY
- [x] Generates cash — $5.34B TTM
- [x] Debt under control — ~0.1y of cash flow to repay
- [x] Established company — $71.0B market cap
- [x] Not printing shares — -7.4% shares over ~5y
- [x] Proven track record — 11/12 profitable years
- [x] Financially stable — Altman Z 6.4 — safe
- [x] Pays a dividend — yield 0.77%
- [x] Valuation not extreme — P/E 26.7

## Experience (career milestones)

- **FY2026** — Best year on record: $5.80B net income
- **FY2024** — Revenue crossed $50B: $51.3B for the year
- **2024** — It is the 2nd largest off-price retailer in the U.S.; as of July 2024, Ross operates 1,795 stores in 43 U.S
- **FY2016** — First recorded profitable year: $2.80B net income
- **FY2016** — Revenue already above $10B: $31.6B in first reported year
- **FY2016** — Positive free cash flow every year since: 12-year streak
- **Aug 8, 1985** — Ross Stores, Inc. became a public company via an initial public offering, at an initial price of…
- **1982** — A group of investors, including Mervin Morris, founder of the Mervyn's chain of department stores, purchased…

## Strengths

- Could repay net debt from ~0.2 years of free cash flow
- Interest covered 700.3× by operating earnings
- High returns on invested capital (ROIC 29.9%)
- Altman Z-Score 6.41 — low bankruptcy-risk zone

## Watch-outs

- Revenue shrinking 3.8% year over year

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2023 | $48.5B | $4.30B | $3.00B |
| FY2024 | $51.3B | $5.10B | $3.46B |
| FY2025 | $53.5B | $5.12B | $4.04B |
| FY2026 | $57.2B | $5.80B | $5.37B |
| FY2027 | $18.3B | $2.15B | $1.88B |

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Source: https://stockcv.com/ROST — derived from company filings; may be delayed or incomplete. Information, not investment advice.