Reading the tape
NASDAQ: ROST
Ross Stores, Inc.
Consumer Cyclical · Apparel - Retail
Market Cap
$73.04B
52w High
$231.16
52w Low
$124.49
P/E
33.66
Volume
2.19M
Outstanding Shares
323.44M
Price vs Fundamentals
Why The Stock Is Moving
Optimism is getting priced inModerate confidence
Note: The most recent financial data is over 3 months old. Metrics shown may not reflect the latest reporting period.
1Y Price: 57.5%Revenue (TTM): 7.67%FCF (TTM): 34.87%P/FCF: 94th pct
What changed
The stock rose 57.5% over the last year. Revenue grew 7.67% over the trailing twelve months. Operating margin moved from 12.24% to 11.9%. Free cash flow grew 34.87% over the trailing twelve months.
What the market seems to be pricing
The stock is trading toward the richer end of its historical P/FCF range (94th percentile) while business metrics are improving. More of the upside is already embedded in the multiple now.
What would invalidate this read
Operating margin is at 11.9% — continued expansion would be needed to justify the premium. Revenue growth of 7.67% is encouraging, but any deceleration puts the stretched multiple at risk. This read changes if revenue, margins, and cash flow continue to improve faster than expected — in that case the richer multiple could still prove conservative.
Company profile
Ross Stores, Inc., together with its subsidiaries, operates off-price retail apparel and home fashion stores under the Ross Dress for Less and dd's DISCOUNTS brand names.
CEOJames G. Conroy
SectorConsumer Cyclical
IndustryApparel - Retail
Employees107,000
IPO dateAug 8, 1985
Valuation
Forward P/E—
EV/EBITDA17.00
Enterprise value$60.94B
Stock splits
Jun 12, 2015↑ Forward
Every 1 shares became 2
Dec 16, 2011↑ Forward
Every 1 shares became 2
Dec 19, 2003↑ Forward
Every 1 shares became 2
Sep 23, 1999↑ Forward
Every 1 shares became 2
Mar 6, 1997↑ Forward
Every 1 shares became 2
Profitability & growth
Revenue growth12.23%
Gross margin27.95%▲0.62%vs FY2025
Operating margin11.9%▼2.75%vs FY2025
ROE34.67%▼8.65%vs FY2025
Analyst consensus
RatingBuy
Target price$213.80▼5.32%
31
Buy
12
Hold
4
Sell
Analyst ratings tend to be lagging indicators. Use as one signal among many.
Earnings
Full quarter-by-quarter history of actuals vs estimates. Switch into compare mode to inspect one metric year-over-year.
Next report
May 21, 2026
Q2 FY26 · EPS est $1.65 · Revenue est $5.59B
View
Dividends
$1.66/shareQuarterly5yr growth streakSafeROST pays a dividend with a 0.74% dividend yield, 5 consecutive years of growth, growing at 41.56% annually, covered 4.2× by free cash flow.
Dividend Yield
0.74%
Annual Div / Share
$1.66
5yr CAGR
+41.56%
Doubles every ~2.0yr
Payout Ratio
24.62%
Safe
Dividend Growth Rate
3yr CAGR
+9.32%
5yr CAGR
+41.56%
10yr CAGR
+13.17%
Dividend Safety
10/10Safe
Dividend History
Annual dividends paid per share
YearAnnual DivYoY
2025$1.62+10.2%
2024$1.47+9.7%
2023$1.34+8.1%
2022$1.24+8.8%
2021$1.14+300.0%
2020$0.28-72.1%
2019$1.02+13.3%
Income Projection
Invest
$
Growth rate:
Reinvest dividends
Today
$7/yr
$1/mo
In 5 yrs
$13/yr+76%
$1/mo
In 10 yrs
$23/yr+211%
$2/mo
| Today | In 5 yrs | In 10 yrs |
|---|---|---|
$7/yr $1/mo | $13/yr+76% $1/mo | $23/yr+211% $2/mo |
Long-range projections use a capped 12% annual growth assumption.
Yield-on-cost grows from 0.74% → 2.28% over 10yr
Analysis
Dividend Strengths
Well-covered by free cash flow
The dividend is covered 4.2× by free cash flow, indicating the company generates sufficient cash to sustain and potentially grow the payout without straining its finances.
Strong dividend growth rate
The 5-year CAGR of 41.56% meaningfully outpaces inflation, compounding real income growth for long-term holders.
Risks to Watch
No strong risk signal stands out from the latest period pair.