TJX COMPANIES INC (TJX.DE) Stock Fundamental Analysis
FRA:TJX - Deutsche Boerse Ag - US8725401090 - Common Stock - Currency: EUR
TJX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 54 industry peers in the Specialty Retail industry. TJX has an excellent profitability rating, but there are some minor concerns on its financial health. 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.
TJX had a positive operating cash flow in the past year.
TJX had positive earnings in each of the past 5 years.
TJX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TJX has a better Return On Assets (15.32%) than 92.45% of its industry peers.
TJX's Return On Equity of 57.95% is amongst the best of the industry. TJX outperforms 96.23% of its industry peers.
TJX's Return On Invested Capital of 22.79% is amongst the best of the industry. TJX outperforms 92.45% 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 9.99%.
The 3 year average ROIC (21.84%) for TJX is below the current ROIC(22.79%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.32% | ||
| ROE | 57.95% | ||
| ROIC | 22.79% |
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 Profit Margin of 8.63%. This is amongst the best in the industry. TJX outperforms 90.57% of its industry peers.
In the last couple of years the Profit Margin of TJX has grown nicely.
TJX's Operating Margin of 11.18% is amongst the best of the industry. TJX outperforms 88.68% of its industry peers.
In the last couple of years the Operating Margin of TJX has remained more or less at the same level.
The Gross Margin of TJX (30.60%) is comparable to the rest of the industry.
TJX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.18% | ||
| PM (TTM) | 8.63% | ||
| GM | 30.6% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), TJX is creating value.
Compared to 1 year ago, TJX has less shares outstanding
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
The Debt to FCF ratio of TJX is 0.68, which is an excellent value as it means it would take TJX, only 0.68 years of fcf income to pay off all of its debts.
TJX has a better Debt to FCF ratio (0.68) than 98.11% of its industry peers.
A Debt/Equity ratio of 0.34 indicates that TJX is not too dependend on debt financing.
TJX has a Debt to Equity ratio of 0.34. This is in the better half of the industry: TJX outperforms 73.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 0.68 | ||
| Altman-Z | N/A |
ROIC/WACC2.39
WACC9.53%
2.3 Liquidity
TJX has a Current Ratio of 1.18. This is a normal value and indicates that TJX is financially healthy and should not expect problems in meeting its short term obligations.
TJX has a Current ratio (1.18) which is in line with its industry peers.
TJX has a Quick Ratio of 1.18. This is a bad value and indicates that TJX is not financially healthy enough and could expect problems in meeting its short term obligations.
TJX has a Quick ratio (0.60) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
TJX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.36%, which is quite good.
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 3.95% 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)10.36%
EPS 3Y14.34%
EPS 5Y9.71%
EPS Q2Q%0.82%
Revenue 1Y (TTM)3.95%
Revenue growth 3Y5.1%
Revenue growth 5Y6.2%
Sales Q2Q%-0.37%
3.2 Future
The Earnings Per Share is expected to grow by 10.57% on average over the next years. This is quite good.
TJX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.49% yearly.
EPS Next Y8.98%
EPS Next 2Y10.2%
EPS Next 3Y11.35%
EPS Next 5Y10.57%
Revenue Next Year4.75%
Revenue Next 2Y5.22%
Revenue Next 3Y5.72%
Revenue Next 5Y5.49%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
TJX is valuated quite expensively with a Price/Earnings ratio of 28.84.
TJX's Price/Earnings ratio is a bit cheaper when compared to the industry. TJX is cheaper than 66.04% of the companies in the same industry.
TJX is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 29.35, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 26.44, TJX can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, TJX is valued a bit cheaper than the industry average as 62.26% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.10. TJX is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.84 | ||
| Fwd PE | 26.44 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as TJX.
The rest of the industry has a similar Price/Free Cash Flow ratio as TJX.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.87 | ||
| EV/EBITDA | 18.3 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of TJX may justify a higher PE ratio.
PEG (NY)3.21
PEG (5Y)2.97
EPS Next 2Y10.2%
EPS Next 3Y11.35%
5. Dividend
5.1 Amount
TJX has a Yearly Dividend Yield of 1.24%.
TJX's Dividend Yield is a higher than the industry average which is at 5.08.
Compared to an average S&P500 Dividend Yield of 2.33, TJX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
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
33.88% of the earnings are spent on dividend by TJX. This is a low number and sustainable payout ratio.
The dividend of TJX is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP33.88%
EPS Next 2Y10.2%
EPS Next 3Y11.35%
FRA:TJX (3/6/2025, 7:00:00 PM)
113.06
-0.02 (-0.02%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners92.57%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap127.10B
Analysts81.43
Price Target132.21 (16.94%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
Yearly Dividend1.34
Dividend Growth(5Y)10.48%
DP33.88%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.01%
Min EPS beat(2)3.24%
Max EPS beat(2)4.79%
EPS beat(4)4
Avg EPS beat(4)4.26%
Min EPS beat(4)3.21%
Max EPS beat(4)5.8%
EPS beat(8)8
Avg EPS beat(8)5.4%
EPS beat(12)11
Avg EPS beat(12)5.3%
EPS beat(16)14
Avg EPS beat(16)8.17%
Revenue beat(2)0
Avg Revenue beat(2)-0.13%
Min Revenue beat(2)-0.18%
Max Revenue beat(2)-0.07%
Revenue beat(4)1
Avg Revenue beat(4)-0.24%
Min Revenue beat(4)-0.87%
Max Revenue beat(4)0.16%
Revenue beat(8)4
Avg Revenue beat(8)-0.03%
Revenue beat(12)5
Avg Revenue beat(12)-0.44%
Revenue beat(16)8
Avg Revenue beat(16)1.04%
PT rev (1m)2.76%
PT rev (3m)5.5%
EPS NQ rev (1m)-1.14%
EPS NQ rev (3m)-0.96%
EPS NY rev (1m)0%
EPS NY rev (3m)0.13%
Revenue NQ rev (1m)-0.49%
Revenue NQ rev (3m)-0.58%
Revenue NY rev (1m)-0.87%
Revenue NY rev (3m)-0.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.84 | ||
| Fwd PE | 26.44 | ||
| P/S | 2.45 | ||
| P/FCF | 32.87 | ||
| P/OCF | 22.56 | ||
| P/B | 16.44 | ||
| P/tB | 16.63 | ||
| EV/EBITDA | 18.3 |
EPS(TTM)3.92
EY3.47%
EPS(NY)4.28
Fwd EY3.78%
FCF(TTM)3.44
FCFY3.04%
OCF(TTM)5.01
OCFY4.43%
SpS46.18
BVpS6.88
TBVpS6.8
PEG (NY)3.21
PEG (5Y)2.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.32% | ||
| ROE | 57.95% | ||
| ROCE | 30.38% | ||
| ROIC | 22.79% | ||
| ROICexc | 30.68% | ||
| ROICexgc | 30.87% | ||
| OM | 11.18% | ||
| PM (TTM) | 8.63% | ||
| GM | 30.6% | ||
| FCFM | 7.45% |
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-Score7
Asset Turnover1.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 0.68 | ||
| Debt/EBITDA | 0.39 | ||
| Cap/Depr | 173.73% | ||
| Cap/Sales | 3.4% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 82.58% | ||
| Profit Quality | 86.31% | ||
| Current Ratio | 1.18 | ||
| Quick Ratio | 0.6 | ||
| Altman-Z | N/A |
F-Score7
WACC9.53%
ROIC/WACC2.39
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)10.36%
EPS 3Y14.34%
EPS 5Y9.71%
EPS Q2Q%0.82%
EPS Next Y8.98%
EPS Next 2Y10.2%
EPS Next 3Y11.35%
EPS Next 5Y10.57%
Revenue 1Y (TTM)3.95%
Revenue growth 3Y5.1%
Revenue growth 5Y6.2%
Sales Q2Q%-0.37%
Revenue Next Year4.75%
Revenue Next 2Y5.22%
Revenue Next 3Y5.72%
Revenue Next 5Y5.49%
EBIT growth 1Y8.71%
EBIT growth 3Y9.84%
EBIT growth 5Y7.32%
EBIT Next Year28.05%
EBIT Next 3Y16.06%
EBIT Next 5Y10.21%
FCF growth 1Y-3.16%
FCF growth 3Y27.77%
FCF growth 5Y8.1%
OCF growth 1Y0.97%
OCF growth 3Y26%
OCF growth 5Y8.5%