TJX COMPANIES INC (TJX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TJX - US8725401090 - Common Stock
151.92 USD
-1.21 (-0.79%)
151.83 USD
-0.09 (-0.06%)
Taking everything into account, TJX scores 5 out of 10 in our fundamental rating. TJX was compared to 122 industry peers in the Specialty Retail industry. TJX scores excellent on profitability, but there are some minor concerns on its financial health. TJX is quite expensive at the moment. It does show a decent growth rate.
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.
TJX had positive earnings in each of the past 5 years.
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 14.55%, TJX belongs to the top of the industry, outperforming 91.80% of the companies in the same industry.
TJX has a better Return On Equity (54.70%) than 97.54% of its industry peers.
The Return On Invested Capital of TJX (23.62%) is better than 91.80% 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 11.71%.
The 3 year average ROIC (21.84%) for TJX is below the current ROIC(23.62%), indicating increased profibility in the last year.
| 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's Profit Margin of 8.68% is amongst the best of the industry. TJX outperforms 86.07% of its industry peers.
TJX's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 11.31%, TJX belongs to the best of the industry, outperforming 85.25% of the companies in the same industry.
TJX's Operating Margin has been stable in the last couple of years.
TJX has a worse Gross Margin (30.85%) than 63.11% 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
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.
TJX has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of TJX is 0.65, which is an excellent value as it means it would take TJX, only 0.65 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.65, TJX belongs to the top of the industry, outperforming 84.43% of the companies in the same industry.
TJX has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.20, TJX is doing good in the industry, outperforming 63.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 0.65 | ||
| Altman-Z | N/A |
ROIC/WACC2.54
WACC9.3%
2.3 Liquidity
A Current Ratio of 1.09 indicates that TJX should not have too much problems paying its short term obligations.
The Current ratio of TJX (1.09) is worse than 66.39% of its industry peers.
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.
With a Quick ratio value of 0.43, TJX perfoms like the industry average, outperforming 45.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.59% over the past year.
TJX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.71% yearly.
Looking at the last year, TJX shows a small growth in Revenue. The Revenue has grown by 4.53% in the last 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)6.59%
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
Based on estimates for the next years, TJX will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.14% on average per year.
The Revenue is expected to grow by 5.77% on average over the next years.
EPS Next Y9.06%
EPS Next 2Y9.68%
EPS Next 3Y10.65%
EPS Next 5Y10.14%
Revenue Next Year6.09%
Revenue Next 2Y5.93%
Revenue Next 3Y6.02%
Revenue Next 5Y5.77%
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 33.54, the valuation of TJX can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of TJX is on the same level as its industry peers.
TJX's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.31.
Based on the Price/Forward Earnings ratio of 29.65, the valuation of TJX can be described as expensive.
TJX's Price/Forward Earnings ratio is in line with the industry average.
TJX is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 36.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.54 | ||
| Fwd PE | 29.65 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TJX is on the same level as its industry peers.
TJX's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.27 | ||
| EV/EBITDA | 21.18 |
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)3.7
PEG (5Y)3.45
EPS Next 2Y9.68%
EPS Next 3Y10.65%
5. Dividend
5.1 Amount
TJX has a Yearly Dividend Yield of 1.11%.
TJX's Dividend Yield is a higher than the industry average which is at 5.66.
Compared to an average S&P500 Dividend Yield of 2.34, TJX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
5.2 History
The dividend of TJX is nicely growing with an annual growth rate of 10.53%!
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)10.53%
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 2Y9.68%
EPS Next 3Y10.65%
151.92
-1.21 (-0.79%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners93.12%
Inst Owner Change-1.13%
Ins Owners0.09%
Ins Owner Change-1.32%
Market Cap169.08B
Revenue(TTM)58.98B
Net Income(TTM)5.12B
Analysts84.62
Price Target156.3 (2.88%)
Short Float %1.2%
Short Ratio2.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
Yearly Dividend1.46
Dividend Growth(5Y)10.53%
DP35.03%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.59%
Min EPS beat(2)3.7%
Max EPS beat(2)7.47%
EPS beat(4)4
Avg EPS beat(4)4.14%
Min EPS beat(4)0.61%
Max EPS beat(4)7.47%
EPS beat(8)8
Avg EPS beat(8)4.58%
EPS beat(12)11
Avg EPS beat(12)4.5%
EPS beat(16)14
Avg EPS beat(16)3.77%
Revenue beat(2)2
Avg Revenue beat(2)0.85%
Min Revenue beat(2)0.77%
Max Revenue beat(2)0.94%
Revenue beat(4)2
Avg Revenue beat(4)0.35%
Min Revenue beat(4)-0.25%
Max Revenue beat(4)0.94%
Revenue beat(8)4
Avg Revenue beat(8)0.09%
Revenue beat(12)7
Avg Revenue beat(12)0.28%
Revenue beat(16)7
Avg Revenue beat(16)-0.46%
PT rev (1m)2.19%
PT rev (3m)2.8%
EPS NQ rev (1m)0.95%
EPS NQ rev (3m)1.05%
EPS NY rev (1m)0.09%
EPS NY rev (3m)0.76%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-0.09%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.54 | ||
| Fwd PE | 29.65 | ||
| P/S | 2.87 | ||
| P/FCF | 38.27 | ||
| P/OCF | 26.33 | ||
| P/B | 18.07 | ||
| P/tB | 18.25 | ||
| EV/EBITDA | 21.18 |
EPS(TTM)4.53
EY2.98%
EPS(NY)5.12
Fwd EY3.37%
FCF(TTM)3.97
FCFY2.61%
OCF(TTM)5.77
OCFY3.8%
SpS52.99
BVpS8.41
TBVpS8.32
PEG (NY)3.7
PEG (5Y)3.45
Graham Number29.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.55% | ||
| ROE | 54.7% | ||
| ROCE | 31.49% | ||
| ROIC | 23.62% | ||
| ROICexc | 30.24% | ||
| ROICexgc | 30.41% | ||
| OM | 11.31% | ||
| PM (TTM) | 8.68% | ||
| GM | 30.85% | ||
| FCFM | 7.49% |
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 3Y1.68%
GM growth 5Y0.82%
F-Score6
Asset Turnover1.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 0.65 | ||
| Debt/EBITDA | 0.24 | ||
| Cap/Depr | 162.98% | ||
| Cap/Sales | 3.4% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.28% | ||
| Profit Quality | 86.31% | ||
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.43 | ||
| Altman-Z | N/A |
F-Score6
WACC9.3%
ROIC/WACC2.54
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 3Y10.65%
EPS Next 5Y10.14%
Revenue 1Y (TTM)4.53%
Revenue growth 3Y5.1%
Revenue growth 5Y6.2%
Sales Q2Q%7.49%
Revenue Next Year6.09%
Revenue Next 2Y5.93%
Revenue Next 3Y6.02%
Revenue Next 5Y5.77%
EBIT growth 1Y6.84%
EBIT growth 3Y9.84%
EBIT growth 5Y7.32%
EBIT Next Year28.17%
EBIT Next 3Y15.52%
EBIT Next 5Y11.27%
FCF growth 1Y-4.88%
FCF growth 3Y27.77%
FCF growth 5Y8.1%
OCF growth 1Y2.22%
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 5 / 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 35.03%.