Ross Stores (ROST) Analysis

This report is auto-generated by an AI stock research platform for informational purposes only. The content is for general information and research reference, and does not constitute financial advice. Data may lag or be incomplete. Always conduct your own research and consult qualified professionals before making any financial decisions. # [Qiltrack AI] Ross Stores Inc (ROST) 3-Minute Overview ### 🎯 Layer 1: 30-Second Key Takeaways > **💡 One-Sentence Summary** > > Simply put, Ross Stores is a large off-price retailer that sells branded apparel and home goods at discount prices, and the story here is a high-quality, steady cash generator that the market is currently pricing like a premium defensive winner. > **📍 Basic Profile** > > Market Cap **$72.9 billion** · Retail · NASDAQ NMS - GLOBAL MARKET · Price **$226.17** > **⚡ 3 Things You Should Know** > > 1. 💰 Efficient discount machine: Ross isn’t a flashy growth stock, but it converts discount retailing into strong returns, with **36.7% ROE**, **9.43% net margin**, and very low leverage. Basically, it means this is a retailer that knows how to make money without taking balance-sheet risk. > > 2. 📈 Growth is solid, not explosive: Revenue has grown at **6.76% CAGR over 3 years**, while EPS grew faster at **14.69%**, which suggests operating discipline and share efficiency are doing a lot of the work. That’s good quality growth—but it also means the easy multiple expansion may already have happened. > > 3. ⚠️ Great business, less obvious bargain: The stock is trading near its **52-week high** with a **~34x TTM P/E**, which is rich for a mature retailer. In other words, the market is betting Ross can keep delivering resilient traffic, margin stability, and few execution mistakes. > **🎯 Quick Health Check** > > | Dimension | Rating | Details | > |-----------|--------|---------| > | Profitability | Strong💪 | Net margin 9.43%, unusually solid for retail | > | Growth Rate | Steady📈 | 3-year revenue growth 6.76%, EPS growth 14.69% | > | Financial Health | Healthy💚 | Debt/equity 24.53%, interest coverage 663x | > | Valuation | Pricey | PE 34.0x | --- ### 📋 Layer 2: 2-Minute Deep Dive #### 📊 How Does This Company Make Money? **Business Model in One Sentence:** Ross Stores buys branded apparel and home-related merchandise opportunistically and sells it to value-focused shoppers through off-price retail stores, making money on high inventory turnover and disciplined merchandising. **Revenue Breakdown:** | Business | Share | Trend | Comment | |----------|-------|-------|---------| | Off-price retail stores | [Data unavailable] | ↑ | Core business benefits when consumers trade down and hunt for value | | Apparel & home merchandise | [Data unavailable] | → | Merchandise mix supports repeat traffic, but exact split was not provided | **Profitability Metrics:** | Metric | Value | Ranking | Interpretation | |--------|-------|---------|----------------| | Gross Margin | 27.71% | Average | Normal for a value retailer; Ross wins more through volume and discipline than luxury-like markup | | Net Margin | 9.43% | Top tier in retail | That’s impressively high for retail and suggests tight cost control | | ROE | 36.7% | Excellent>20% | A very strong signal that management is generating a lot of earnings from shareholder capital | --- #### 📈 How's the Growth? **Growth Assessment:** Steady Growth | Metric | Latest | vs Last Year | Trend | |--------|--------|--------------|-------| | Revenue Growth | [Data unavailable] | [Data unavailable] | [Data unavailable] | | Profit Growth | [Data unavailable] | [Data unavailable] | [Data unavailable] | **Growth Quality:** > What’s interesting is that the data we do have shows **EPS growing much faster than revenue** over the last 3 years. That usually points to good operating execution, margin support, and possibly buybacks—not just raw store expansion. So the growth looks fairly healthy, but this is still more of a “quality compounder” story than a hyper-growth one. --- #### 💰 Financial Health Check **One Sentence:** This looks like a retailer with a stable paycheck, modest debt, and plenty of room to cover its obligations—not someone living paycheck to paycheck. | Metric | Value | Safe Zone | Assessment | |--------|-------|-----------|------------| | Debt Ratio | 24.53% | <60% safe | ✅Safe | | Current Ratio | 1.58 | >1.5 healthy | ✅Safe | | Cash Flow | $6.24/share | >0 | ✅Positive | --- #### 🏷️ Is It Expensive Now? **Price Position (based on 52-week range):** - 52-Week Low: $124.49 - 52-Week High: $230.44 - Current: $226.17, **very close to high** | Position Range | Cheap Zone | Fair Zone | Pricey Zone | |----------------|------------|-----------|-------------| | Criteria | 0-33% | 33-66% | 66-100% | | **Current** | | | ●(95.97% position) | **Valuation Comparison:** | Comparison | Current | Reference | Assessment | |------------|---------|-----------|------------| | vs Own History | PE 34.0x | [Data unavailable] | [Data unavailable] | | vs Peers | PE 34.0x | Industry avg [Data unavailable] | [Data unavailable] | **What the Current Valuation is Betting On:** > Basically, the stock price suggests the market expects Ross to remain one of the safer names in retail: steady same-store demand, continued consumer trade-down behavior, clean execution on inventory, and no major margin disappointment. At this price, investors are paying for consistency. --- #### 📰 Any Recent News? | Date | Event | Impact | |------|-------|--------| | 2026-04 | Shares recently hit a fresh 52-week high | Positive + shows strong sentiment and momentum, but also raises the bar for future results | | 2026-04 | Recent commentary focused on valuation after strong price momentum | Neutral + fundamentals look good, but investors are increasingly asking whether most of the good news is already priced in | --- ### 📊 Layer 3: Want More? 3-Minute Complete Analysis #### I. Detailed Financial Data **Profitability Trends:** | Metric | This Year | Last Year | Year Before | 3-Year Trend | |--------|-----------|-----------|-------------|--------------| | Gross Margin | 27.71% | [Data unavailable] | [Data unavailable] | [Data unavailable] | | Net Margin | 9.43% | [Data unavailable] | [Data unavailable] | [Data unavailable] | | ROE | 36.7% | [Data unavailable] | [Data unavailable] | [Data unavailable] | **Growth Trends:** | Metric | This Year | Last Year | Year Before | 3-Year Trend | |--------|-----------|-----------|-------------|--------------| | Revenue Growth | [Data unavailable] | [Data unavailable] | [Data unavailable] | ↑ (3Y CAGR 6.76%) | | Profit Growth | [Data unavailable] | [Data unavailable] | [Data unavailable] | [Data unavailable] | | EPS Growth | [Data unavailable] | [Data unavailable] | [Data unavailable] | ↑ (3Y CAGR 14.69%) | --- #### II. Earnings Track Record **Last 4 Quarters vs Expectations:** | Quarter | EPS Expected | EPS Actual | Surprise | |---------|--------------|------------|----------| | 2026-03-31 | $1.94 | $2.00 | +3.02% Beat 😀 | | 2025-12-31 | $1.44 | $1.58 | +10.07% Beat 😀 | | 2025-09-30 | $1.57 | $1.56 | -0.39% Miss 😟 | | 2025-06-30 | $1.47 | $1.47 | +0.01% Beat 😀 | **Earnings Trend Interpretation:** Ross has been fairly dependable, with **3 beats in the last 4 quarters** and only one tiny miss. In other words, execution looks steady rather than dramatic, which fits the company’s broader profile as a reliable operator instead of a boom-bust story. --- #### III. What the Market Thinks **Analyst Ratings:** | Rating | Count | Percentage | |--------|-------|------------| | Strong Buy/Buy | 19 firms | 76% | | Hold | 6 firms | 24% | | Sell | 0 firms | 0% | **Target Price:** [Data unavailable] ~ [Data unavailable] (Median [Data unavailable]) **vs Current Price:** [Data unavailable] **Insider Activity:** Net selling in past 3 months > Worth noting, recent insider filings show multiple sales and tax-related disposals, with only one small acquisition-type entry. Insider selling doesn’t automatically mean trouble—executives sell for many reasons—but when a stock is near highs, it does slightly weaken the “management sees huge upside from here” argument. --- #### IV. Key Risk Alerts **3 Risks to Watch:** 1. **Valuation risk:** At roughly **34x earnings** and near the top of its 52-week range, Ross has less room for operational slips → If growth or margins cool even a bit, the stock could de-rate. 2. **Consumer spending risk:** Ross benefits from value-seeking behavior, but it still depends on healthy traffic and discretionary purchases → If lower-income consumers pull back sharply, sales momentum could soften. 3. **Execution risk in merchandising:** Off-price retail works when buyers source attractive branded inventory at the right price → If inventory quality, assortment, or turnover weakens, gross margin and traffic could both come under pressure. --- ### 🎬 Summary & Next Steps > **📝 Three-Sentence Summary** > > **What it is:** Ross Stores is a high-quality off-price retailer that wins by offering branded goods at discount prices with tight operating discipline. > > **Key strength:** Its biggest advantage is that it combines strong profitability and excellent returns on capital with a very clean balance sheet, which is rare in retail. > > **Key risk:** The main issue right now is not business weakness but price—this is a good company that may already be priced like one. --- > **🔍 Want to Learn More?** > > • Want to know if this company has a strong moat? → Try【Buffett Mode】for deeper analysis > > • Want to check for hidden landmines? → Try【Muddy Mode】for risk screening > > • Is this a growth stock? Want to calculate if it's worth the bet? → Try【Musk Mode】for analysis