Ross Stores, Inc. (ROST)

FairStock Score: 63/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for durable economics and a price that offers a margin of safety. Ross Stores is clearly a high-quality off-price retailer. In fiscal Q2 2026, the quarter ended 2026-08-01, revenue was $6.3B, net income $851.3M, and diluted EPS $2.66; a year earlier, in fiscal Q2 2025, the quarter ended 2025-08-02, those figures were $5.5B, $508.0M, and $1.56. Over the longer filed record, FY2025, period ended 2026-01-31, produced revenue of $22.8B, net income of $2.1B, and diluted EPS of $6.61, versus FY2023, period ended 2024-02-03, revenue of $20.4B, net income of $1.9B, and diluted EPS of $5.56. FairStock calculations show ROE of 42.63%, ROCE of 12.78%, Piotroski F-Score of 9/9, Altman Z-Score of 5.99, and TTM free cash flow of $2.8B. That is a strong financial profile. The Lynch category is FAST GROWER, with profit growth of 90.6% a year over five years and revenue growth of 12.7% as computed by FairStock. Yet at the 2026-10-13 close of $225.68, FairStock calculates a P/E of 27.29, P/B of 10.70, EV/EBITDA of 17.80, FCF yield of 3.9%, and a Graham Number of $62.64, implying a margin of safety of -260.28%. The PEG ratio is 0.40, so growth may justify some premium. Still, I see a wonderful business priced for continued success, not a bargain. The FairStock Score is 64/100, and the margin of safety is thin if growth normalizes.

In plain English: Ross Stores sells discounted branded clothing, accessories, footwear, and home goods through Ross Dress for Less and dd's DISCOUNTS. The business looks strong: sales and profits have grown, and it generates plenty of cash. But the shares look expensive compared with the money it makes and what it owns.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-08-01) · fiscal Q1 2026 10-Q (period ended 2026-05-02) · fiscal Q3 2025 10-Q (period ended 2025-11-01) · fiscal Q2 2025 10-Q (period ended 2025-08-02) · FY2025 10-K (period ended 2026-01-31) · FY2024 10-K (period ended 2025-02-01) · FY2023 10-K (period ended 2024-02-03)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer