Gap vs Ross Stores
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The short version
- Ross Stores is the larger business, with $22.8B of revenue in fiscal 2025 against $15.4B for Gap.
- Ross Stores grew revenue faster (7.7%, against 1.9%).
- Ross Stores kept more of each dollar of sales as operating profit (11.9% operating margin, against 7.3%).
- Ross Stores turned more of its sales into free cash flow (9.7% FCF margin, against 5.4%).
- Ross Stores earned a higher return on the capital invested in it (67.0%, against 36.1%).
- Investors pay more for each dollar of Ross Stores’s earnings: a P/E of 27.8x against 6.7x for Gap.
| Latest fiscal year | GAP · FY25 | ROST · FY25 |
|---|---|---|
| Size | ||
| Market cap | $8.1B | $73.2B |
| Revenue | $15.4B | $22.8B |
| Free cash flow | $823M | $2.2B |
| Net income | $816M | $2.1B |
| Growth | ||
| Revenue growth | 1.9% | 7.7% |
| 5-year growth | 2.2% | 12.7% |
| Share count change | 0.0% | −2.0% |
| Profitability | ||
| Gross margin | 40.8% | 27.7% |
| Operating margin | 7.3% | 11.9% |
| Net margin | 5.3% | 9.4% |
| FCF margin | 5.4% | 9.7% |
| Return on capital | 36.1% | 67.0% |
| Return on equity | 23.1% | 36.7% |
| Balance sheet | ||
| Net debt | −$1.5B | −$3.1B |
| Net debt / EBITDA | −0.9x | −1.0x |
| Dividends and buybacks | $402M | $1.6B |
| Valuation & quality | ||
| P/E | 6.7x | 27.8x |
| Piotroski F-score | 6 | 6 |
Revenue
FY16
GAP $15.5B
ROST $12.9B
FY17
GAP $15.9B
ROST $14.1B
FY18
GAP $16.6B
ROST $15.0B
FY19
GAP $16.4B
ROST $16.0B
FY20
GAP $13.8B
ROST $12.5B
FY21
GAP $16.7B
ROST $18.9B
FY22
GAP $15.6B
ROST $18.7B
FY23
GAP $14.9B
ROST $20.4B
FY24
GAP $15.1B
ROST $21.1B
FY25
GAP $15.4B
ROST $22.8B
GAP
ROST
Operating margin
FY16
GAP 7.7%
ROST —
FY17
GAP 9.3%
ROST —
FY18
GAP 8.2%
ROST —
FY19
GAP 3.5%
ROST —
FY20
GAP −6.3%
ROST —
FY21
GAP 4.9%
ROST —
FY22
GAP −0.4%
ROST 10.7%
FY23
GAP 3.8%
ROST 11.3%
FY24
GAP 7.4%
ROST 12.2%
FY25
GAP 7.3%
ROST 11.9%
GAP
ROST
Free cash flow
FY16
GAP $1.2B
ROST $1.3B
FY17
GAP $649M
ROST $1.3B
FY18
GAP $676M
ROST $1.7B
FY19
GAP $709M
ROST $1.6B
FY20
GAP −$155M
ROST $1.8B
FY21
GAP $115M
ROST $1.2B
FY22
GAP −$78.0M
ROST $1.0B
FY23
GAP $1.1B
ROST $1.8B
FY24
GAP $1.0B
ROST $1.6B
FY25
GAP $823M
ROST $2.2B
GAP
ROST
Return on capital
FY16
GAP 26.7%
ROST 54.6%
FY17
GAP 34.8%
ROST 65.7%
FY18
GAP 34.2%
ROST 73.4%
FY19
GAP 12.0%
ROST 73.8%
FY20
GAP −25.5%
ROST 8.7%
FY21
GAP 22.3%
ROST —
FY22
GAP −1.9%
ROST 80.1%
FY23
GAP 21.5%
ROST 75.2%
FY24
GAP 37.7%
ROST 71.9%
FY25
GAP 36.1%
ROST 67.0%
GAP
ROST
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.