TJX COMPANIES INC (TJX) Stock Fundamental Analysis
USA - NYSE:TJX - US8725401090 - Common Stock
140.04 USD
+0.49 (+0.35%)
139.96 USD
-0.08 (-0.06%)
Taking everything into account, TJX scores 6 out of 10 in our fundamental rating. TJX was compared to 121 industry peers in the Specialty Retail industry. TJX gets an excellent profitability rating and is at the same time showing great financial health properties. 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.
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
TJX's Return On Assets of 15.16% is amongst the best of the industry. TJX outperforms 91.74% of its industry peers.
The Return On Equity of TJX (56.80%) is better than 97.52% of its industry peers.
The Return On Invested Capital of TJX (22.39%) is better than 90.08% 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 12.16%.
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 85.12% of the companies in the same industry.
TJX's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 11.02%, TJX belongs to the best of the industry, outperforming 86.78% 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.
Looking at the Gross Margin, with a value of 30.48%, TJX is doing worse than 62.81% 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.
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 6.84 indicates that TJX is not in any danger for bankruptcy at the moment.
TJX's Altman-Z score of 6.84 is amongst the best of the industry. TJX outperforms 91.74% 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's Debt to FCF ratio of 0.76 is amongst the best of the industry. TJX outperforms 82.64% of its industry peers.
A Debt/Equity ratio of 0.34 indicates that TJX is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.34, TJX is in line with its industry, outperforming 56.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 0.76 | ||
| Altman-Z | 6.84 |
ROIC/WACC2.34
WACC9.57%
2.3 Liquidity
A Current Ratio of 1.16 indicates that TJX should not have too much problems paying its short term obligations.
TJX's Current ratio of 1.16 is on the low side compared to the rest of the industry. TJX is outperformed by 63.64% of 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 in line with its industry peers.
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 6.04%.
Measured over the past years, TJX shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.71% on average per year.
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)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.
The Revenue is expected to grow by 5.75% on average over the next years.
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.
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
A Price/Earnings ratio of 31.90 indicates a quite expensive valuation of TJX.
Compared to the rest of the industry, the Price/Earnings ratio of TJX is on the same level as its industry peers.
When comparing the Price/Earnings ratio of TJX to the average of the S&P500 Index (27.20), we can say TJX is valued inline with the index average.
A Price/Forward Earnings ratio of 27.52 indicates a quite expensive valuation of TJX.
TJX's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.70. TJX is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.9 | ||
| Fwd PE | 27.52 |
4.2 Price Multiples
TJX's Enterprise Value to EBITDA ratio is in line with the industry average.
TJX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TJX is cheaper than 60.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.26 | ||
| 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)3.88
PEG (5Y)3.28
EPS Next 2Y9.29%
EPS Next 3Y9.47%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.21%, TJX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.21, TJX pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.21, TJX pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
5.2 History
On average, the dividend of TJX grows each year by 10.48%, which is quite nice.
TJX has paid a dividend for at least 10 years, which is a reliable track record.
TJX has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)10.48%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
TJX pays out 35.03% of its income as dividend. This is a 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 2Y9.29%
EPS Next 3Y9.47%
140.04
+0.49 (+0.35%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners92.38%
Inst Owner Change0.23%
Ins Owners0.09%
Ins Owner Change4.59%
Market Cap155.86B
Analysts84
Price Target152.96 (9.23%)
Short Float %1.32%
Short Ratio2.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
Yearly Dividend1.46
Dividend Growth(5Y)10.48%
DP35.03%
Div Incr Years4
Div Non Decr Years4
Ex-Date
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)5.97%
PT rev (3m)6.27%
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 | 31.9 | ||
| Fwd PE | 27.52 | ||
| P/S | 2.73 | ||
| P/FCF | 41.26 | ||
| P/OCF | 27 | ||
| P/B | 18.33 | ||
| P/tB | 18.54 | ||
| EV/EBITDA | 20.76 |
EPS(TTM)4.39
EY3.13%
EPS(NY)5.09
Fwd EY3.63%
FCF(TTM)3.39
FCFY2.42%
OCF(TTM)5.19
OCFY3.7%
SpS51.21
BVpS7.64
TBVpS7.55
PEG (NY)3.88
PEG (5Y)3.28
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
WACC9.57%
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%