TJX COMPANIES INC (TJX.DE) Stock Fundamental Analysis
Europe - FRA:TJX - US8725401090 - Common Stock
118.2 EUR
-0.86 (-0.72%)
TJX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 53 industry peers in the Specialty Retail industry. Both the health and profitability get an excellent rating, making TJX a very profitable company, without any liquidiy or solvency issues. 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.
Each year in the past 5 years TJX has been profitable.
In the past 5 years TJX always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of TJX (15.16%) is better than 98.11% of its industry peers.
TJX's Return On Equity of 56.80% is amongst the best of the industry. TJX outperforms 98.11% of its industry peers.
TJX's Return On Invested Capital of 22.39% is amongst the best of the industry. TJX outperforms 96.23% of its industry peers.
TJX had an Average Return On Invested Capital over the past 3 years of 21.84%. This is significantly above the industry average of 8.43%.
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
Looking at the Profit Margin, with a value of 8.47%, TJX belongs to the top of the industry, outperforming 92.45% of the companies in the same industry.
In the last couple of years the Profit Margin of TJX has grown nicely.
TJX has a better Operating Margin (11.02%) than 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.
Looking at the Gross Margin, with a value of 30.48%, TJX is in line with its industry, outperforming 45.28% of the companies in the same industry.
In the last couple of years the Gross Margin of TJX has declined.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so TJX is creating value.
TJX has less shares outstanding than it did 1 year ago.
TJX has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, TJX has an improved debt to assets ratio.
2.2 Solvency
TJX has an Altman-Z score of 6.84. This indicates that TJX is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of TJX (6.84) is better than 98.11% of its industry peers.
The Debt to FCF ratio of TJX is 0.76, which is an excellent value as it means it would take TJX, only 0.76 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of TJX (0.76) is better 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 better Debt to Equity ratio (0.34) than 75.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 0.76 | ||
| Altman-Z | 6.84 |
ROIC/WACC2.34
WACC9.58%
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 of 1.16. This is comparable to the rest of the industry: TJX outperforms 47.17% of its industry peers.
TJX has a Quick Ratio of 1.16. This is a bad value and indicates that TJX is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.51, TJX perfoms like the industry average, outperforming 50.94% of the companies in the same 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
The Earnings Per Share has been growing slightly by 6.04% over the past year.
The Earnings Per Share has been growing by 9.71% on average over the past years. This is quite good.
TJX shows a small growth in Revenue. In the last year, the Revenue has grown by 3.95%.
Measured over the past years, TJX shows a small growth in Revenue. The Revenue has been growing by 6.20% on average per year.
EPS 1Y (TTM)6.04%
EPS 3Y14.34%
EPS 5Y9.71%
EPS Q2Q%14.58%
Revenue 1Y (TTM)3.95%
Revenue growth 3Y5.1%
Revenue growth 5Y6.2%
Sales Q2Q%6.93%
3.2 Future
TJX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.66% yearly.
TJX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.75% yearly.
EPS Next Y8.23%
EPS Next 2Y9.29%
EPS Next 3Y9.47%
EPS Next 5Y9.66%
Revenue Next Year6.09%
Revenue Next 2Y5.93%
Revenue Next 3Y5.91%
Revenue Next 5Y5.75%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 31.77, 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 27.20, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 27.43, TJX can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TJX is on the same level as its industry peers.
TJX is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.71, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.77 | ||
| Fwd PE | 27.43 |
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 | 41.12 | ||
| EV/EBITDA | 20.76 |
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)3.86
PEG (5Y)3.27
EPS Next 2Y9.29%
EPS Next 3Y9.47%
5. Dividend
5.1 Amount
TJX has a Yearly Dividend Yield of 1.21%.
TJX's Dividend Yield is a higher than the industry average which is at 3.39.
Compared to an average S&P500 Dividend Yield of 2.38, TJX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
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 2Y9.29%
EPS Next 3Y9.47%
FRA:TJX (9/16/2025, 7:00:00 PM)
118.2
-0.86 (-0.72%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners92.38%
Inst Owner ChangeN/A
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap131.55B
Analysts84
Price Target129.29 (9.38%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
Yearly Dividend1.25
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)4.73%
PT rev (3m)2.16%
EPS NQ rev (1m)0.33%
EPS NQ rev (3m)1%
EPS NY rev (1m)1.49%
EPS NY rev (3m)1.76%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.16%
Revenue NY rev (1m)0.52%
Revenue NY rev (3m)0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.77 | ||
| Fwd PE | 27.43 | ||
| P/S | 2.73 | ||
| P/FCF | 41.12 | ||
| P/OCF | 26.9 | ||
| P/B | 18.27 | ||
| P/tB | 18.47 | ||
| EV/EBITDA | 20.76 |
EPS(TTM)3.72
EY3.15%
EPS(NY)4.31
Fwd EY3.65%
FCF(TTM)2.87
FCFY2.43%
OCF(TTM)4.39
OCFY3.72%
SpS43.37
BVpS6.47
TBVpS6.4
PEG (NY)3.86
PEG (5Y)3.27
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 | 6.84 |
F-Score6
WACC9.58%
ROIC/WACC2.34
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)6.04%
EPS 3Y14.34%
EPS 5Y9.71%
EPS Q2Q%14.58%
EPS Next Y8.23%
EPS Next 2Y9.29%
EPS Next 3Y9.47%
EPS Next 5Y9.66%
Revenue 1Y (TTM)3.95%
Revenue growth 3Y5.1%
Revenue growth 5Y6.2%
Sales Q2Q%6.93%
Revenue Next Year6.09%
Revenue Next 2Y5.93%
Revenue Next 3Y5.91%
Revenue Next 5Y5.75%
EBIT growth 1Y5.23%
EBIT growth 3Y9.84%
EBIT growth 5Y7.32%
EBIT Next Year26.04%
EBIT Next 3Y14.8%
EBIT Next 5Y10.86%
FCF growth 1Y-4.62%
FCF growth 3Y27.77%
FCF growth 5Y8.1%
OCF growth 1Y5.67%
OCF growth 3Y26%
OCF growth 5Y8.5%