TJX COMPANIES INC (TJX) Stock Fundamental Analysis
NYSE:TJX - New York Stock Exchange, Inc. - US8725401090 - Common Stock - Currency: USD
TJX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 121 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. TJX is quite expensive at the moment. 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.
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
Looking at the Return On Assets, with a value of 15.16%, TJX belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
With an excellent Return On Equity value of 56.80%, TJX belongs to the best of the industry, outperforming 95.87% of the companies in the same industry.
TJX has a Return On Invested Capital of 22.39%. This is amongst the best in the industry. TJX outperforms 89.26% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TJX is significantly above the industry average of 13.07%.
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 85.95% of its industry peers.
In the last couple of years the Profit Margin of TJX has grown nicely.
TJX has a Operating Margin of 11.02%. This is amongst the best in the industry. TJX outperforms 85.12% of its industry peers.
TJX's Operating Margin has been stable in the last couple of years.
TJX has a worse Gross Margin (30.48%) than 64.46% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so TJX is creating value.
Compared to 1 year ago, TJX has less shares outstanding
Compared to 5 years ago, TJX has less shares outstanding
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.
Looking at the Altman-Z score, with a value of 6.44, TJX belongs to the top of the industry, outperforming 92.56% of the companies in the same industry.
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.
TJX's Debt to FCF ratio of 0.76 is amongst the best of the industry. TJX outperforms 83.47% of its industry peers.
A Debt/Equity ratio of 0.34 indicates that TJX is not too dependend on debt financing.
TJX's Debt to Equity ratio of 0.34 is in line compared to the rest of the industry. TJX outperforms 54.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 0.76 | ||
| Altman-Z | 6.44 |
ROIC/WACC2.37
WACC9.45%
2.3 Liquidity
TJX has a Current Ratio of 1.16. 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 worse Current ratio (1.16) than 62.81% 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.
TJX has a Quick ratio of 0.51. This is comparable to the rest of the industry: TJX outperforms 52.89% of its industry peers.
The current and quick ratio evaluation for TJX is rather negative, while it does have 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 5.46% over the past year.
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.
TJX shows a small growth in Revenue. In the last year, the Revenue has grown by 3.79%.
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
TJX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.22% yearly.
TJX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.58% yearly.
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
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
The Price/Earnings ratio is 29.47, which means the current valuation is very expensive for TJX.
TJX's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of TJX to the average of the S&P500 Index (27.30), we can say TJX is valued inline with the index average.
With a Price/Forward Earnings ratio of 24.90, TJX is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as TJX.
The average S&P500 Price/Forward Earnings ratio is at 21.76. TJX is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.47 | ||
| Fwd PE | 24.9 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TJX is valued a bit more expensive than the industry average as 60.33% of the companies are valued more cheaply.
Based on the Price/Free Cash Flow ratio, TJX is valued a bit cheaper than the industry average as 61.16% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.03 | ||
| EV/EBITDA | 18.68 |
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.
The excellent profitability rating of TJX may justify a higher PE ratio.
PEG (NY)4.41
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.
Compared to an average industry Dividend Yield of 4.99, TJX pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.35, TJX pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
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
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%
125.26
+0.09 (+0.07%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners92.55%
Inst Owner Change0%
Ins Owners0.09%
Ins Owner Change3.83%
Market Cap139.85B
Analysts84
Price Target144.67 (15.5%)
Short Float %1.24%
Short Ratio2.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
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)3.63%
PT rev (3m)3.52%
EPS NQ rev (1m)0.23%
EPS NQ rev (3m)-2.38%
EPS NY rev (1m)0.31%
EPS NY rev (3m)-0.03%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)0.33%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.47 | ||
| Fwd PE | 24.9 | ||
| P/S | 2.45 | ||
| P/FCF | 37.03 | ||
| P/OCF | 24.23 | ||
| P/B | 16.45 | ||
| P/tB | 16.63 | ||
| EV/EBITDA | 18.68 |
EPS(TTM)4.25
EY3.39%
EPS(NY)5.03
Fwd EY4.02%
FCF(TTM)3.38
FCFY2.7%
OCF(TTM)5.17
OCFY4.13%
SpS51.05
BVpS7.62
TBVpS7.53
PEG (NY)4.41
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
WACC9.45%
ROIC/WACC2.37
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%