TJX COMPANIES INC (TJX) Stock Fundamental Analysis
NYSE:TJX - New York Stock Exchange, Inc. - US8725401090 - Common Stock - Currency: USD
Taking everything into account, TJX scores 6 out of 10 in our fundamental rating. TJX was compared to 120 industry peers in the Specialty Retail industry. TJX has an excellent profitability rating, but there are some minor concerns on its financial health. 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.
In the past 5 years TJX always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of TJX (15.01%) is better than 90.60% of its industry peers.
Looking at the Return On Equity, with a value of 59.57%, TJX belongs to the top of the industry, outperforming 95.73% of the companies in the same industry.
With an excellent Return On Invested Capital value of 23.00%, TJX belongs to the best of the industry, outperforming 89.74% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TJX is significantly above the industry average of 12.30%.
The last Return On Invested Capital (23.00%) for TJX is above the 3 year average (20.91%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.01% | ||
| ROE | 59.57% | ||
| ROIC | 23% |
ROA(3y)12.97%
ROA(5y)10.55%
ROE(3y)56.98%
ROE(5y)45.5%
ROIC(3y)20.91%
ROIC(5y)16.9%
1.3 Margins
TJX has a better Profit Margin (8.63%) than 88.03% of its industry peers.
TJX's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 11.07%, TJX belongs to the top of the industry, outperforming 86.32% 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.
The Gross Margin of TJX (30.40%) is worse than 63.25% of its industry peers.
TJX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.07% | ||
| PM (TTM) | 8.63% | ||
| GM | 30.4% |
OM growth 3Y80.74%
OM growth 5Y-0.61%
PM growth 3Y208.87%
PM growth 5Y1%
GM growth 3Y3.44%
GM growth 5Y4.87%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), TJX is creating value.
Compared to 1 year ago, TJX has less shares outstanding
Compared to 5 years ago, TJX has less shares outstanding
The debt/assets ratio for TJX has been reduced compared to a year ago.
2.2 Solvency
TJX has a debt to FCF ratio of 0.66. This is a very positive value and a sign of high solvency as it would only need 0.66 years to pay back of all of its debts.
TJX has a better Debt to FCF ratio (0.66) than 81.20% of its industry peers.
TJX has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.
TJX has a Debt to Equity ratio of 0.35. This is comparable to the rest of the industry: TJX outperforms 52.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 0.66 | ||
| Altman-Z | N/A |
ROIC/WACC2.26
WACC10.18%
2.3 Liquidity
TJX has a Current Ratio of 1.19. 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 (1.19) than 63.25% of its industry peers.
A Quick Ratio of 0.50 indicates that TJX may have some problems paying its short term obligations.
TJX has a Quick ratio (0.50) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.5 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.40% over the past year.
The Earnings Per Share has been growing by 10.20% on average over the past years. This is quite good.
The Revenue has been growing slightly by 7.83% in the past year.
Measured over the past years, TJX shows a small growth in Revenue. The Revenue has been growing by 6.83% on average per year.
EPS 1Y (TTM)20.4%
EPS 3Y136.99%
EPS 5Y10.2%
EPS Q2Q%10.68%
Revenue 1Y (TTM)7.83%
Revenue growth 3Y19.04%
Revenue growth 5Y6.83%
Sales Q2Q%6.02%
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 11.08% yearly.
The Revenue is expected to grow by 5.75% on average over the next years.
EPS Next Y9.63%
EPS Next 2Y9.71%
EPS Next 3Y10.3%
EPS Next 5Y11.08%
Revenue Next Year4.14%
Revenue Next 2Y4.92%
Revenue Next 3Y5.32%
Revenue Next 5Y5.75%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
Based on the Price/Earnings ratio of 28.50, the valuation of TJX can be described as expensive.
TJX's Price/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/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 26.07, TJX can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as TJX.
When comparing the Price/Forward Earnings ratio of TJX to the average of the S&P500 Index (22.68), we can say TJX is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.5 | ||
| Fwd PE | 26.07 |
4.2 Price Multiples
TJX's Enterprise Value to EBITDA is on the same level as the industry average.
60.68% of the companies in the same industry are more expensive than TJX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.18 | ||
| EV/EBITDA | 18.71 |
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)2.96
PEG (5Y)2.79
EPS Next 2Y9.71%
EPS Next 3Y10.3%
5. Dividend
5.1 Amount
TJX has a Yearly Dividend Yield of 1.22%. Purely for dividend investing, there may be better candidates out there.
TJX's Dividend Yield is a higher than the industry average which is at 4.01.
With a Dividend Yield of 1.22, TJX pays less dividend than the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
5.2 History
The dividend of TJX is nicely growing with an annual growth rate of 11.69%!
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)11.69%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
32.96% 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.
DP32.96%
EPS Next 2Y9.71%
EPS Next 3Y10.3%
121.11
-1.87 (-1.52%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners92.57%
Inst Owner Change0.77%
Ins Owners0.06%
Ins Owner Change-2.12%
Market Cap136.15B
Analysts82.07
Price Target136.06 (12.34%)
Short Float %1.12%
Short Ratio2.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
Yearly Dividend1.3
Dividend Growth(5Y)11.69%
DP32.96%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.23%
Min EPS beat(2)3.21%
Max EPS beat(2)3.24%
EPS beat(4)4
Avg EPS beat(4)5.02%
Min EPS beat(4)3.21%
Max EPS beat(4)7.81%
EPS beat(8)7
Avg EPS beat(8)4.68%
EPS beat(12)10
Avg EPS beat(12)3.64%
EPS beat(16)13
Avg EPS beat(16)6.62%
Revenue beat(2)1
Avg Revenue beat(2)-0.01%
Min Revenue beat(2)-0.18%
Max Revenue beat(2)0.16%
Revenue beat(4)2
Avg Revenue beat(4)-0.16%
Min Revenue beat(4)-0.87%
Max Revenue beat(4)0.23%
Revenue beat(8)5
Avg Revenue beat(8)0.25%
Revenue beat(12)5
Avg Revenue beat(12)-0.73%
Revenue beat(16)8
Avg Revenue beat(16)0.69%
PT rev (1m)1.12%
PT rev (3m)3.77%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.25%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)0.44%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-1.02%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.5 | ||
| Fwd PE | 26.07 | ||
| P/S | 2.41 | ||
| P/FCF | 31.18 | ||
| P/OCF | 21.92 | ||
| P/B | 16.66 | ||
| P/tB | 16.85 | ||
| EV/EBITDA | 18.71 |
EPS(TTM)4.25
EY3.51%
EPS(NY)4.65
Fwd EY3.84%
FCF(TTM)3.88
FCFY3.21%
OCF(TTM)5.53
OCFY4.56%
SpS50.19
BVpS7.27
TBVpS7.19
PEG (NY)2.96
PEG (5Y)2.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.01% | ||
| ROE | 59.57% | ||
| ROCE | 30.58% | ||
| ROIC | 23% | ||
| ROICexc | 29.91% | ||
| ROICexgc | 30.09% | ||
| OM | 11.07% | ||
| PM (TTM) | 8.63% | ||
| GM | 30.4% | ||
| FCFM | 7.74% |
ROA(3y)12.97%
ROA(5y)10.55%
ROE(3y)56.98%
ROE(5y)45.5%
ROIC(3y)20.91%
ROIC(5y)16.9%
ROICexc(3y)30.44%
ROICexc(5y)24.01%
ROICexgc(3y)30.67%
ROICexgc(5y)24.2%
ROCE(3y)27.8%
ROCE(5y)22.47%
ROICexcg growth 3Y90.51%
ROICexcg growth 5Y-10.88%
ROICexc growth 3Y90.73%
ROICexc growth 5Y-10.7%
OM growth 3Y80.74%
OM growth 5Y-0.61%
PM growth 3Y208.87%
PM growth 5Y1%
GM growth 3Y3.44%
GM growth 5Y4.87%
F-Score9
Asset Turnover1.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 0.66 | ||
| Debt/EBITDA | 0.39 | ||
| Cap/Depr | 176.31% | ||
| Cap/Sales | 3.27% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 85.2% | ||
| Profit Quality | 89.67% | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.5 | ||
| Altman-Z | N/A |
F-Score9
WACC10.18%
ROIC/WACC2.26
Cap/Depr(3y)154.42%
Cap/Depr(5y)133.9%
Cap/Sales(3y)2.75%
Cap/Sales(5y)2.59%
Profit Quality(3y)77.77%
Profit Quality(5y)951.57%
High Growth Momentum
Growth
EPS 1Y (TTM)20.4%
EPS 3Y136.99%
EPS 5Y10.2%
EPS Q2Q%10.68%
EPS Next Y9.63%
EPS Next 2Y9.71%
EPS Next 3Y10.3%
EPS Next 5Y11.08%
Revenue 1Y (TTM)7.83%
Revenue growth 3Y19.04%
Revenue growth 5Y6.83%
Sales Q2Q%6.02%
Revenue Next Year4.14%
Revenue Next 2Y4.92%
Revenue Next 3Y5.32%
Revenue Next 5Y5.75%
EBIT growth 1Y17.28%
EBIT growth 3Y115.16%
EBIT growth 5Y6.17%
EBIT Next Year27.43%
EBIT Next 3Y14.92%
EBIT Next 5Y13.33%
FCF growth 1Y489.36%
FCF growth 3Y2.77%
FCF growth 5Y7.9%
OCF growth 1Y186.29%
OCF growth 3Y9.91%
OCF growth 5Y8.18%