TJX COMPANIES INC (TJX.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:TJX - US8725401090 - Common Stock
123.82 EUR
-0.2 (-0.16%)
Taking everything into account, TJX scores 6 out of 10 in our fundamental rating. TJX was compared to 56 industry peers in the Specialty Retail industry. TJX scores excellent on profitability, but there are some minor concerns on its financial health. TJX is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- TJX had positive earnings in the past year.
- In the past year TJX had a positive cash flow from operations.
- In the past 5 years TJX has always been profitable.
- Each year in the past 5 years TJX had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of TJX (14.55%) is better than 96.43% of its industry peers.
- With an excellent Return On Equity value of 54.70%, TJX belongs to the best of the industry, outperforming 94.64% of the companies in the same industry.
- TJX's Return On Invested Capital of 23.62% is amongst the best of the industry. TJX outperforms 94.64% 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 10.20%.
- The last Return On Invested Capital (23.62%) for TJX is above the 3 year average (21.84%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.55% | ||
| ROE | 54.7% | ||
| ROIC | 23.62% |
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 8.68%. This is amongst the best in the industry. TJX outperforms 87.50% of its industry peers.
- In the last couple of years the Profit Margin of TJX has grown nicely.
- Looking at the Operating Margin, with a value of 11.31%, TJX belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
- In the last couple of years the Operating Margin of TJX has remained more or less at the same level.
- TJX's Gross Margin of 30.85% is in line compared to the rest of the industry. TJX outperforms 42.86% of its industry peers.
- In the last couple of years the Gross Margin of TJX has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.31% | ||
| PM (TTM) | 8.68% | ||
| GM | 30.85% |
OM growth 3Y4.52%
OM growth 5Y1.05%
PM growth 3Y8.47%
PM growth 5Y1.93%
GM growth 3Y1.68%
GM growth 5Y0.82%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), TJX is creating value.
- The number of shares outstanding for TJX has been reduced compared to 1 year ago.
- TJX has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for TJX has been reduced compared to a year ago.
2.2 Solvency
- TJX has a debt to FCF ratio of 0.65. This is a very positive value and a sign of high solvency as it would only need 0.65 years to pay back of all of its debts.
- TJX's Debt to FCF ratio of 0.65 is amongst the best of the industry. TJX outperforms 98.21% of its industry peers.
- A Debt/Equity ratio of 0.20 indicates that TJX is not too dependend on debt financing.
- The Debt to Equity ratio of TJX (0.20) is better than 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 0.65 | ||
| Altman-Z | N/A |
ROIC/WACC2.45
WACC9.63%
2.3 Liquidity
- TJX has a Current Ratio of 1.09. 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 (1.09) which is comparable to the rest of the industry.
- TJX has a Quick Ratio of 1.09. This is a bad value and indicates that TJX is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.43, TJX is doing worse than 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
- TJX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.59%.
- TJX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.71% yearly.
- The Revenue has been growing slightly by 4.53% in the past year.
- The Revenue has been growing slightly by 6.20% on average over the past years.
EPS 1Y (TTM)6.59%
EPS 3Y14.34%
EPS 5Y9.71%
EPS Q2Q%12.28%
Revenue 1Y (TTM)4.53%
Revenue growth 3Y5.1%
Revenue growth 5Y6.2%
Sales Q2Q%7.49%
3.2 Future
- The Earnings Per Share is expected to grow by 10.34% on average over the next years. This is quite good.
- Based on estimates for the next years, TJX will show a small growth in Revenue. The Revenue will grow by 5.64% on average per year.
EPS Next Y10.89%
EPS Next 2Y10.71%
EPS Next 3Y10.95%
EPS Next 5Y10.34%
Revenue Next Year6.63%
Revenue Next 2Y6.09%
Revenue Next 3Y6.19%
Revenue Next 5Y5.64%
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
- Based on the Price/Earnings ratio of 32.58, the valuation of TJX can be described as expensive.
- The rest of the industry has a similar Price/Earnings ratio as TJX.
- TJX is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
- TJX is valuated quite expensively with a Price/Forward Earnings ratio of 28.29.
- TJX's Price/Forward Earnings ratio is in line with the industry average.
- When comparing the Price/Forward Earnings ratio of TJX to the average of the S&P500 Index (25.83), we can say TJX is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.58 | ||
| Fwd PE | 28.29 |
4.2 Price Multiples
- 64.29% of the companies in the same industry are cheaper than TJX, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of TJX indicates a slightly more expensive valuation: TJX is more expensive than 62.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.13 | ||
| EV/EBITDA | 20.57 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TJX does not grow enough to justify the current Price/Earnings ratio.
- TJX has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.99
PEG (5Y)3.35
EPS Next 2Y10.71%
EPS Next 3Y10.95%
5. Dividend
5.1 Amount
- TJX has a Yearly Dividend Yield of 1.11%. 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 1.47.
- Compared to the average S&P500 Dividend Yield of 1.82, TJX is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
5.2 History
- On average, the dividend of TJX grows each year by 10.53%, which is quite nice.
Dividend Growth(5Y)10.53%
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.
- The dividend of TJX is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP35.03%
EPS Next 2Y10.71%
EPS Next 3Y10.95%
TJX COMPANIES INC / TJX.DE FAQ
Can you provide the ChartMill fundamental rating for TJX COMPANIES INC?
ChartMill assigns a fundamental rating of 6 / 10 to TJX.DE.
What is the valuation status of TJX COMPANIES INC (TJX.DE) stock?
ChartMill assigns a valuation rating of 2 / 10 to TJX COMPANIES INC (TJX.DE). This can be considered as Overvalued.
What is the profitability of TJX stock?
TJX COMPANIES INC (TJX.DE) has a profitability rating of 9 / 10.
Can you provide the PE and PB ratios for TJX stock?
The Price/Earnings (PE) ratio for TJX COMPANIES INC (TJX.DE) is 32.58 and the Price/Book (PB) ratio is 17.53.
What is the expected EPS growth for TJX COMPANIES INC (TJX.DE) stock?
The Earnings per Share (EPS) of TJX COMPANIES INC (TJX.DE) is expected to grow by 10.89% in the next year.