TJX COMPANIES INC (TJX.DE) Stock Fundamental Analysis
FRA:TJX - Deutsche Boerse Ag - US8725401090 - Common Stock - Currency: EUR
We assign a fundamental rating of 6 out of 10 to TJX. TJX was compared to 49 industry peers in the Specialty Retail industry. TJX has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. While showing a medium growth rate, TJX is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year TJX was profitable.
In the past year TJX had a positive cash flow from operations.
TJX had positive earnings in each of the past 5 years.
In the past 5 years TJX always reported a positive cash flow from operatings.
1.2 Ratios
TJX's Return On Assets of 15.16% is amongst the best of the industry. TJX outperforms 97.96% of its industry peers.
Looking at the Return On Equity, with a value of 56.80%, TJX belongs to the top of the industry, outperforming 97.96% of the companies in the same industry.
TJX's Return On Invested Capital of 22.39% is amongst the best of the industry. TJX outperforms 95.92% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TJX is significantly above the industry average of 8.30%.
The last Return On Invested Capital (22.39%) for TJX is above the 3 year average (21.84%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.16% | ||
| ROE | 56.8% | ||
| ROIC | 22.39% |
ROA(3y)14.23%
ROA(5y)10.91%
ROE(3y)58.06%
ROE(5y)46.09%
ROIC(3y)21.84%
ROIC(5y)17.51%
1.3 Margins
TJX has a better Profit Margin (8.47%) than 91.84% of its industry peers.
In the last couple of years the Profit Margin of TJX has grown nicely.
With an excellent Operating Margin value of 11.02%, TJX belongs to the best of the industry, outperforming 87.76% of the companies in the same industry.
TJX's Operating Margin has been stable in the last couple of years.
TJX has a Gross Margin of 30.48%. This is comparable to the rest of the industry: TJX outperforms 40.82% of its industry peers.
TJX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.02% | ||
| PM (TTM) | 8.47% | ||
| GM | 30.48% |
OM growth 3Y4.52%
OM growth 5Y1.05%
PM growth 3Y8.47%
PM growth 5Y1.93%
GM growth 3Y-4.63%
GM growth 5Y-2.98%
2. Health
2.1 Basic Checks
TJX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for TJX has been reduced compared to 1 year ago.
The number of shares outstanding for TJX has been reduced compared to 5 years ago.
Compared to 1 year ago, TJX has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.44 indicates that TJX is not in any danger for bankruptcy at the moment.
TJX has a Altman-Z score of 6.44. This is amongst the best in the industry. TJX outperforms 97.96% of its industry peers.
TJX has a debt to FCF ratio of 0.76. This is a very positive value and a sign of high solvency as it would only need 0.76 years to pay back of all of its debts.
TJX has a Debt to FCF ratio of 0.76. This is amongst the best in the industry. TJX outperforms 100.00% of its industry peers.
TJX has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
TJX's Debt to Equity ratio of 0.34 is fine compared to the rest of the industry. TJX outperforms 69.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 0.76 | ||
| Altman-Z | 6.44 |
ROIC/WACC2.38
WACC9.41%
2.3 Liquidity
A Current Ratio of 1.16 indicates that TJX should not have too much problems paying its short term obligations.
TJX has a Current ratio (1.16) which is in line with its industry peers.
A Quick Ratio of 0.51 indicates that TJX may have some problems paying its short term obligations.
TJX has a Quick ratio (0.51) which is comparable to the rest of the industry.
TJX does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
TJX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.46%.
The Earnings Per Share has been growing by 9.71% on average over the past years. This is quite good.
The Revenue has been growing slightly by 3.79% in the past year.
TJX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.20% yearly.
EPS 1Y (TTM)5.46%
EPS 3Y14.34%
EPS 5Y9.71%
EPS Q2Q%-1.08%
Revenue 1Y (TTM)3.79%
Revenue growth 3Y5.1%
Revenue growth 5Y6.2%
Sales Q2Q%5.06%
3.2 Future
The Earnings Per Share is expected to grow by 9.22% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.58% on average over the next years.
EPS Next Y6.68%
EPS Next 2Y8.67%
EPS Next 3Y9.34%
EPS Next 5Y9.22%
Revenue Next Year5.17%
Revenue Next 2Y5.45%
Revenue Next 3Y5.71%
Revenue Next 5Y5.58%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 29.39, TJX can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of TJX is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.45, TJX is valued at the same level.
Based on the Price/Forward Earnings ratio of 24.85, the valuation of TJX can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as TJX.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, TJX is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.39 | ||
| Fwd PE | 24.85 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as TJX.
TJX's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.95 | ||
| EV/EBITDA | 18.63 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
TJX has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.4
PEG (5Y)3.03
EPS Next 2Y8.67%
EPS Next 3Y9.34%
5. Dividend
5.1 Amount
TJX has a Yearly Dividend Yield of 1.35%. Purely for dividend investing, there may be better candidates out there.
TJX's Dividend Yield is a higher than the industry average which is at 4.99.
Compared to an average S&P500 Dividend Yield of 2.42, TJX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
5.2 History
The dividend of TJX is nicely growing with an annual growth rate of 10.48%!
Dividend Growth(5Y)10.48%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
35.03% of the earnings are spent on dividend by TJX. This is a low number and sustainable payout ratio.
TJX's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP35.03%
EPS Next 2Y8.67%
EPS Next 3Y9.34%
FRA:TJX (7/2/2025, 7:00:00 PM)
106.08
+1.58 (+1.51%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners92.55%
Inst Owner ChangeN/A
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap118.44B
Analysts84
Price Target125.99 (18.77%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
Yearly Dividend1.24
Dividend Growth(5Y)10.48%
DP35.03%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.7%
Min EPS beat(2)0.61%
Max EPS beat(2)4.79%
EPS beat(4)4
Avg EPS beat(4)2.96%
Min EPS beat(4)0.61%
Max EPS beat(4)4.79%
EPS beat(8)8
Avg EPS beat(8)4.79%
EPS beat(12)11
Avg EPS beat(12)4.34%
EPS beat(16)14
Avg EPS beat(16)5.59%
Revenue beat(2)0
Avg Revenue beat(2)-0.16%
Min Revenue beat(2)-0.25%
Max Revenue beat(2)-0.07%
Revenue beat(4)1
Avg Revenue beat(4)-0.09%
Min Revenue beat(4)-0.25%
Max Revenue beat(4)0.16%
Revenue beat(8)4
Avg Revenue beat(8)0.1%
Revenue beat(12)5
Avg Revenue beat(12)-0.25%
Revenue beat(16)7
Avg Revenue beat(16)0.03%
PT rev (1m)1.78%
PT rev (3m)-1.14%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.6%
EPS NY rev (1m)0.31%
EPS NY rev (3m)-0.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.32%
Revenue NY rev (1m)0.38%
Revenue NY rev (3m)0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.39 | ||
| Fwd PE | 24.85 | ||
| P/S | 2.45 | ||
| P/FCF | 36.95 | ||
| P/OCF | 24.17 | ||
| P/B | 16.41 | ||
| P/tB | 16.6 | ||
| EV/EBITDA | 18.63 |
EPS(TTM)3.61
EY3.4%
EPS(NY)4.27
Fwd EY4.02%
FCF(TTM)2.87
FCFY2.71%
OCF(TTM)4.39
OCFY4.14%
SpS43.33
BVpS6.46
TBVpS6.39
PEG (NY)4.4
PEG (5Y)3.03
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.16% | ||
| ROE | 56.8% | ||
| ROCE | 29.85% | ||
| ROIC | 22.39% | ||
| ROICexc | 28.07% | ||
| ROICexgc | 28.23% | ||
| OM | 11.02% | ||
| PM (TTM) | 8.47% | ||
| GM | 30.48% | ||
| FCFM | 6.63% |
ROA(3y)14.23%
ROA(5y)10.91%
ROE(3y)58.06%
ROE(5y)46.09%
ROIC(3y)21.84%
ROIC(5y)17.51%
ROICexc(3y)30.48%
ROICexc(5y)25.26%
ROICexgc(3y)30.69%
ROICexgc(5y)25.45%
ROCE(3y)29.12%
ROCE(5y)23.34%
ROICexcg growth 3Y0.34%
ROICexcg growth 5Y4.93%
ROICexc growth 3Y0.41%
ROICexc growth 5Y4.95%
OM growth 3Y4.52%
OM growth 5Y1.05%
PM growth 3Y8.47%
PM growth 5Y1.93%
GM growth 3Y-4.63%
GM growth 5Y-2.98%
F-Score6
Asset Turnover1.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 0.76 | ||
| Debt/EBITDA | 0.39 | ||
| Cap/Depr | 175.7% | ||
| Cap/Sales | 3.5% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.87% | ||
| Profit Quality | 78.2% | ||
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.51 | ||
| Altman-Z | 6.44 |
F-Score6
WACC9.41%
ROIC/WACC2.38
Cap/Depr(3y)172.21%
Cap/Depr(5y)140.45%
Cap/Sales(3y)3.17%
Cap/Sales(5y)2.68%
Profit Quality(3y)86.1%
Profit Quality(5y)946.84%
High Growth Momentum
Growth
EPS 1Y (TTM)5.46%
EPS 3Y14.34%
EPS 5Y9.71%
EPS Q2Q%-1.08%
EPS Next Y6.68%
EPS Next 2Y8.67%
EPS Next 3Y9.34%
EPS Next 5Y9.22%
Revenue 1Y (TTM)3.79%
Revenue growth 3Y5.1%
Revenue growth 5Y6.2%
Sales Q2Q%5.06%
Revenue Next Year5.17%
Revenue Next 2Y5.45%
Revenue Next 3Y5.71%
Revenue Next 5Y5.58%
EBIT growth 1Y5.23%
EBIT growth 3Y9.84%
EBIT growth 5Y7.32%
EBIT Next Year26.31%
EBIT Next 3Y14.46%
EBIT Next 5Y10.79%
FCF growth 1Y-4.62%
FCF growth 3Y27.77%
FCF growth 5Y8.1%
OCF growth 1Y5.67%
OCF growth 3Y26%
OCF growth 5Y8.5%