TJX COMPANIES INC (TJX) Stock Fundamental Analysis
USA - NYSE:TJX - US8725401090 - Common Stock
148.07 USD
+2.26 (+1.55%)
149.2 USD
+1.13 (+0.76%)
We assign a fundamental rating of 6 out of 10 to TJX. TJX was compared to 122 industry peers in the Specialty Retail industry. TJX gets an excellent profitability rating and is at the same time showing great financial health properties. 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.
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 (15.13%) than 91.80% of its industry peers.
The Return On Equity of TJX (56.10%) is better than 97.54% of its industry peers.
Looking at the Return On Invested Capital, with a value of 22.51%, TJX belongs to the top of the industry, outperforming 90.98% of the companies in the same industry.
TJX had an Average Return On Invested Capital over the past 3 years of 21.84%. This is significantly above the industry average of 11.78%.
The last Return On Invested Capital (22.51%) for TJX is above the 3 year average (21.84%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.13% | ||
| ROE | 56.1% | ||
| ROIC | 22.51% |
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
With an excellent Profit Margin value of 8.59%, TJX belongs to the best of the industry, outperforming 86.07% of the companies in the same industry.
TJX's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 11.18%, TJX belongs to the top of the industry, outperforming 85.25% 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 has a worse Gross Margin (30.57%) than 63.93% of its industry peers.
TJX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.18% | ||
| PM (TTM) | 8.59% | ||
| GM | 30.57% |
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
TJX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for TJX has been reduced compared to 1 year ago.
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
TJX has an Altman-Z score of 6.89. This indicates that TJX is financially healthy and has little risk of bankruptcy at the moment.
TJX has a Altman-Z score of 6.89. This is amongst the best in the industry. TJX outperforms 95.90% of its industry peers.
TJX has a debt to FCF ratio of 0.71. This is a very positive value and a sign of high solvency as it would only need 0.71 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.71, TJX belongs to the best of the industry, outperforming 82.79% of the companies in the same industry.
A Debt/Equity ratio of 0.32 indicates that TJX is not too dependend on debt financing.
TJX has a Debt to Equity ratio (0.32) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 0.71 | ||
| Altman-Z | 6.89 |
ROIC/WACC2.44
WACC9.22%
2.3 Liquidity
TJX has a Current Ratio of 1.17. This is a normal value and indicates that TJX is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.17, TJX is doing worse than 61.48% of the companies in the same industry.
A Quick Ratio of 0.52 indicates that TJX may have some problems paying its short term obligations.
With a Quick ratio value of 0.52, TJX perfoms like the industry average, outperforming 49.18% 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 | 1.17 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.59% 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%.
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)3.95%
Revenue growth 3Y5.1%
Revenue growth 5Y6.2%
Sales Q2Q%7.49%
3.2 Future
The Earnings Per Share is expected to grow by 10.09% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.48% on average over the next years.
EPS Next Y9.06%
EPS Next 2Y9.68%
EPS Next 3Y9.59%
EPS Next 5Y10.09%
Revenue Next Year6.09%
Revenue Next 2Y5.93%
Revenue Next 3Y5.97%
Revenue Next 5Y5.48%
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
The Price/Earnings ratio is 32.69, which means the current valuation is very expensive for TJX.
Compared to the rest of the industry, the Price/Earnings ratio of TJX is on the same level as its industry peers.
TJX is valuated rather expensively when we compare the Price/Earnings ratio to 25.07, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 28.89, the valuation of TJX can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as TJX.
TJX is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 34.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.69 | ||
| Fwd PE | 28.89 |
4.2 Price Multiples
TJX's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. TJX is more expensive than 60.66% of the companies in the same industry.
TJX's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.78 | ||
| EV/EBITDA | 20.97 |
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)3.61
PEG (5Y)3.37
EPS Next 2Y9.68%
EPS Next 3Y9.59%
5. Dividend
5.1 Amount
TJX has a Yearly Dividend Yield of 1.17%.
TJX's Dividend Yield is a higher than the industry average which is at 5.60.
Compared to an average S&P500 Dividend Yield of 2.44, TJX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
5.2 History
The dividend of TJX is nicely growing with an annual growth rate of 10.48%!
TJX has been paying a dividend for at least 10 years, so it has 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
35.04% 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.
DP35.04%
EPS Next 2Y9.68%
EPS Next 3Y9.59%
148.07
+2.26 (+1.55%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners93.12%
Inst Owner Change-1.15%
Ins Owners0.09%
Ins Owner Change-0.21%
Market Cap164.79B
Revenue(TTM)56.36B
Net Income(TTM)4.97B
Analysts84.62
Price Target156.3 (5.56%)
Short Float %1.2%
Short Ratio2.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
Yearly Dividend1.46
Dividend Growth(5Y)10.48%
DP35.04%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.04%
Min EPS beat(2)0.61%
Max EPS beat(2)7.47%
EPS beat(4)4
Avg EPS beat(4)4.03%
Min EPS beat(4)0.61%
Max EPS beat(4)7.47%
EPS beat(8)8
Avg EPS beat(8)4.5%
EPS beat(12)11
Avg EPS beat(12)4.74%
EPS beat(16)14
Avg EPS beat(16)3.74%
Revenue beat(2)1
Avg Revenue beat(2)0.34%
Min Revenue beat(2)-0.25%
Max Revenue beat(2)0.94%
Revenue beat(4)1
Avg Revenue beat(4)0.11%
Min Revenue beat(4)-0.25%
Max Revenue beat(4)0.94%
Revenue beat(8)4
Avg Revenue beat(8)0.03%
Revenue beat(12)6
Avg Revenue beat(12)0.05%
Revenue beat(16)7
Avg Revenue beat(16)-0.44%
PT rev (1m)1.26%
PT rev (3m)7.31%
EPS NQ rev (1m)0.35%
EPS NQ rev (3m)-0.07%
EPS NY rev (1m)0.12%
EPS NY rev (3m)2.26%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)0.85%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.69 | ||
| Fwd PE | 28.89 | ||
| P/S | 2.84 | ||
| P/FCF | 40.78 | ||
| P/OCF | 27.77 | ||
| P/B | 18.59 | ||
| P/tB | 18.79 | ||
| EV/EBITDA | 20.97 |
EPS(TTM)4.53
EY3.06%
EPS(NY)5.12
Fwd EY3.46%
FCF(TTM)3.63
FCFY2.45%
OCF(TTM)5.33
OCFY3.6%
SpS52.05
BVpS7.97
TBVpS7.88
PEG (NY)3.61
PEG (5Y)3.37
Graham Number28.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.13% | ||
| ROE | 56.1% | ||
| ROCE | 30.01% | ||
| ROIC | 22.51% | ||
| ROICexc | 28.68% | ||
| ROICexgc | 28.84% | ||
| OM | 11.18% | ||
| PM (TTM) | 8.59% | ||
| GM | 30.57% | ||
| FCFM | 6.98% |
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%
ROICexgc growth 3Y0.34%
ROICexgc 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 Turnover1.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 0.71 | ||
| Debt/EBITDA | 0.37 | ||
| Cap/Depr | 160.65% | ||
| Cap/Sales | 3.27% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.53% | ||
| Profit Quality | 81.24% | ||
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | 6.89 |
F-Score6
WACC9.22%
ROIC/WACC2.44
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)6.59%
EPS 3Y14.34%
EPS 5Y9.71%
EPS Q2Q%12.28%
EPS Next Y9.06%
EPS Next 2Y9.68%
EPS Next 3Y9.59%
EPS Next 5Y10.09%
Revenue 1Y (TTM)3.95%
Revenue growth 3Y5.1%
Revenue growth 5Y6.2%
Sales Q2Q%7.49%
Revenue Next Year6.09%
Revenue Next 2Y5.93%
Revenue Next 3Y5.97%
Revenue Next 5Y5.48%
EBIT growth 1Y6.18%
EBIT growth 3Y9.84%
EBIT growth 5Y7.32%
EBIT Next Year28.17%
EBIT Next 3Y14.87%
EBIT Next 5Y10.86%
FCF growth 1Y-11.77%
FCF growth 3Y27.77%
FCF growth 5Y8.1%
OCF growth 1Y-3.71%
OCF growth 3Y26%
OCF growth 5Y8.5%
TJX COMPANIES INC / TJX FAQ
Can you provide the ChartMill fundamental rating for TJX COMPANIES INC?
ChartMill assigns a fundamental rating of 6 / 10 to TJX.
Can you provide the valuation status for TJX COMPANIES INC?
ChartMill assigns a valuation rating of 2 / 10 to TJX COMPANIES INC (TJX). This can be considered as Overvalued.
What is the profitability of TJX stock?
TJX COMPANIES INC (TJX) has a profitability rating of 8 / 10.
What is the expected EPS growth for TJX COMPANIES INC (TJX) stock?
The Earnings per Share (EPS) of TJX COMPANIES INC (TJX) is expected to grow by 9.06% in the next year.
Can you provide the dividend sustainability for TJX stock?
The dividend rating of TJX COMPANIES INC (TJX) is 5 / 10 and the dividend payout ratio is 35.04%.