Ross Stores, Inc. ROST

Competitive advantage analysis · consumer-cyclical

Corporate Default
Overall moat score
75/100
Strong

About Ross Stores, Inc.

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 brands in the United States. The company offers apparel, accessories, footwear, and home fashions products. It sells its products to middle income households and households with lower to more moderate incomes. Ross Stores, Inc. was incorporated … Full ROST analysis →

Competitive advantage assessment

Key strengths

  • ROIC Sustainably Above Peers ROIC at 86.2th percentile exceeds peers and WACC, demonstrating superior capital allocation.
  • Cost Leadership Position Operating margin at 87.9th percentile with strong OpEx control demonstrates cost leadership.

Key risks

  • Revenue Volatility Signals Weak Stickiness Revenue volatility is high (stability score 0.30), suggesting weak customer stickiness.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Moderate
69

Where ROST ranks in Apparel Retail

Ross Stores, Inc. ranks #5 of 34 scored companies in Apparel Retail by moat score — the top 15%. The widest moat in the group is lululemon athletica inc. (LULU) at 83/100.

Moat scores for companies ranked near ROST in Apparel Retail
# Company Moat score Rating
1 lululemon athletica inc. LULU 83/100 Strong
2 Buckle, Inc. (The) BKE 81/100 Strong
3 Abercrombie & Fitch Company ANF 76/100 Strong
4 Boot Barn Holdings, Inc. BOOT 76/100 Strong
5 Ross Stores, Inc. ROST 75/100 Strong
6 TJX Companies, Inc. (The) TJX 74/100 Moderate
7 Urban Outfitters, Inc. URBN 73/100 Moderate
8 Gap, Inc. (The) GAP 71/100 Moderate
9 Burlington Stores, Inc. BURL 65/100 Moderate

See every General Corporate company ranked by moat score →

How ROST scores on the Corporate Default defenses

Pricing Power

Score 69 · 20% of the moat score

Pricing power is the ability to raise prices without losing volume.

Cost Advantage

Score 92 · 15% of the moat score

A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.

Customer Stickiness

Score 68 · 15% of the moat score

Stickiness is what makes revenue repeat without being re-won every year.

Capital Efficiency

Score 88 · 18% of the moat score

Capital efficiency asks what the company earns on the money tied up in the business.

Resilience

Score 76 · 17% of the moat score

Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.

Scale & Market Position

Score 59 · 15% of the moat score

Scale matters only when it converts into economics.

How each Corporate Default defense is measured, in full →

Understanding ROST's moat

What is Ross Stores, Inc.'s moat score?

Ross Stores, Inc. (ROST) scores 75 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as strong. It ranks #5 of 34 scored companies in Apparel Retail, the top 15%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 33 companies in Apparel Retail. Its strongest defense is Cost Advantage (92/100) and its weakest is Scale & Market Position (59/100).

How does Ross Stores, Inc. compare with other Apparel Retail companies?

Ross Stores, Inc. ranks #5 of 34 scored companies in Apparel Retail by moat score. The widest moat in Apparel Retail is lululemon athletica inc. (LULU) at 83/100. The companies ranked closest are Boot Barn Holdings, Inc. (BOOT) at 76 just above it and TJX Companies, Inc. (The) (TJX) at 74 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 33 companies in Apparel Retail. The defenses are then weighted to produce the overall score out of 100.

Why is Ross Stores, Inc. scored with the Corporate Default template?

Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.

Which competitive defenses are measured for Ross Stores, Inc.?

The Corporate Default template measures 6 defenses, and ROST scores: Pricing Power (69), Cost Advantage (92), Customer Stickiness (68), Capital Efficiency (88), Resilience (76), Scale & Market Position (59). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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