Ross StoresROST +1.57%91 3-Year ROIIC % is 26.87 as of Jan. 2026, which is 35% above its 10-year median of 19.95. GuruFocus rates ROST with a GF Score™ of 91/100 and a GF Value™ of $174.34 (Modestly Overvalued). Among 1,052 Retail - Cyclical companies, Ross Stores ranks better than 78.04% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Ross Stores's 3-Year ROIIC % for the quarter that ended in Jan. 2026 was 26.87%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Ross Stores's 3-Year ROIIC % or its related term are showing as below:
ROST's 3-Year ROIIC % is ranked better than 78.04% of 1052
companies
in the Retail - Cyclical industry
Industry Median: 4.86
vs ROST: 26.87
Ross Stores (NAS:ROST) 3-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Ross Stores 3-Year ROIIC % Related Terms
Ross Stores 3-Year ROIIC % Historical Data
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The historical data trend for Ross Stores's 3-Year ROIIC % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
ROST vs BURL, LULU, GAP: 3-Year ROIIC % Comparison
For the Apparel Retail subindustry, Ross Stores's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Ross Stores 3-Year ROIIC % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Ross Stores's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Ross Stores's 3-Year ROIIC % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Ross Stores (ROST) has a 3-Year ROIIC % of 26.87 as of Jan. 2026. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Ross Stores and its competitors. This is 35% above median its historical median of 19.95. According to the industry distribution chart, Ross Stores ranks #231 out of 1052 companies in the Retail - Cyclical industry, placing it in the top 22%.
Is Ross Stores' 3-Year ROIIC % too high?
Ross Stores' current 3-Year ROIIC % of 26.87 is 35% above median its 10-year median of 19.95. The Retail - Cyclical industry median 3-Year ROIIC % is 4.86. Ross Stores' value of 26.87 is 452.9% above this industry median. Based on the distribution chart, Ross Stores ranks #231 out of 1052 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Ross Stores has a GF Score™ of 91/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ross Stores' 3-Year ROIIC % compare to BURL and LULU?
According to the Retail - Cyclical industry distribution chart, Ross Stores ranks #231 out of 1052 companies for 3-Year ROIIC %. This places Ross Stores in the top 22% of its industry — outperforming the majority of peers. The industry median 3-Year ROIIC % is 4.86. Ross Stores' value of 26.87 is 452.9% above this benchmark. While the company's 10-year median is 19.95 vs. the industry median of 4.86, Ross Stores has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year ROIIC % for a Retail - Cyclical company?
The median 3-Year ROIIC % among Retail - Cyclical companies is 4.86, based on 1,052 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ross Stores's current 3-Year ROIIC % of 26.87 is 452.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Ross Stores and its competitors. For the Retail - Cyclical industry, the median 3-Year ROIIC % is 4.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ross Stores's current 3-Year ROIIC % is 26.87, which is 35% above median its own 10-year median of 19.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ross Stores stock overvalued right now?
Based on GuruFocus' analysis, Ross Stores (ROST) is currently considered Modestly Overvalued. The stock's GF Value™ is $174.34, compared to a current price of $214.67 — trading 23.1% above its estimated fair value. The current 3-Year ROIIC % is 26.87, which is 35% above median its 10-year median of 19.95 and 452.9% above the Retail - Cyclical industry median of 4.86. Ross Stores' overall GF Score™ is 91/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Ross Stores (ROST), the current 3-Year ROIIC % is 26.87 as of Jan. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Ross Stores (ROST) Overvalued in 2026?
Based on GuruFocus' analysis, Ross Stores stock appears to be overvalued.
The current stock price of $214.67 is trading 23.1% above its estimated GF Value™ of $174.34.
GuruFocus considers Ross Stores to be Modestly Overvalued.
Key valuation signals for ROST:
3-Year ROIIC %: 26.87 (35% above median its 10-year median of 19.95)
GF Value™: $174.34 vs. price of $214.67 (23.1% above fair value)
Industry Position: 452.9% above the Retail - Cyclical median (#231 of 1052)
No single metric tells the full story. See the ROST stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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. Ross offers branded apparel, footwear, accessories, and home goods at a 20%-60% discount to department and specialty store prices, sourcing closeouts and excess inventory from vendors worldwide.
91GF Score
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