TJX COMPANIES INC (TJX) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:TJX • US8725401090
149.81 USD
+2.34 (+1.59%)
At close: Jan 30, 2026
149.81 USD
0 (0%)
After Hours: 1/30/2026, 8:21:20 PM
We assign a fundamental rating of 5 out of 10 to TJX. TJX was compared to 121 industry peers in the Specialty Retail industry. While TJX belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. TJX is valied quite expensively at the moment, while 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
- TJX's Return On Assets of 14.55% is amongst the best of the industry. TJX outperforms 92.62% of its industry peers.
- The Return On Equity of TJX (54.70%) is better than 95.90% of its industry peers.
- TJX has a better Return On Invested Capital (23.62%) than 92.62% 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 12.28%.
- The last Return On Invested Capital (23.62%) for TJX is above the 3 year average (21.84%), which is a sign of increasing profitability.
| 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.
- In the last couple of years the Profit Margin of TJX has grown nicely.
- 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 64.75% 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
- 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
- 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 82.79% of the companies in the same industry.
- A Debt/Equity ratio of 0.20 indicates that TJX is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.20, TJX is in the better half of the industry, outperforming 63.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 0.65 | ||
| Altman-Z | N/A |
ROIC/WACC2.43
WACC9.7%
2.3 Liquidity
- A Current Ratio of 1.09 indicates that TJX should not have too much problems paying its short term obligations.
- TJX has a worse Current ratio (1.09) than 67.21% 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.
- TJX's Quick ratio of 0.43 is in line compared to the rest of the industry. TJX outperforms 43.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
- TJX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.59%.
- TJX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.71% yearly.
- The Revenue has been growing slightly by 4.53% in the past year.
- Measured over the past years, TJX shows a small growth in Revenue. The Revenue has been growing by 6.20% on average per year.
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
- TJX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.34% yearly.
- TJX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.64% yearly.
EPS Next Y10.89%
EPS Next 2Y10.71%
EPS Next 3Y10.95%
EPS Next 5Y10.34%
Revenue Next Year6.63%
Revenue Next 2Y6.09%
Revenue Next 3Y6.19%
Revenue Next 5Y5.64%
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.
- 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
- TJX is valuated quite expensively with a Price/Earnings ratio of 33.07.
- The rest of the industry has a similar Price/Earnings ratio as TJX.
- TJX's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.32.
- The Price/Forward Earnings ratio is 28.69, which means the current valuation is very expensive for TJX.
- The rest of the industry has a similar Price/Forward Earnings ratio as TJX.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, TJX is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.07 | ||
| Fwd PE | 28.69 |
4.2 Price Multiples
- TJX's Enterprise Value to EBITDA ratio is in line with the industry average.
- TJX's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.65 | ||
| EV/EBITDA | 20.83 |
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)3.04
PEG (5Y)3.41
EPS Next 2Y10.71%
EPS Next 3Y10.95%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.15%, TJX has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 2.20, TJX pays a bit more dividend than its industry peers.
- TJX's Dividend Yield is slightly below the S&P500 average, which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
5.2 History
- On average, the dividend of TJX grows each year by 10.53%, which is quite nice.
- 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.
- TJX's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP35.03%
EPS Next 2Y10.71%
EPS Next 3Y10.95%
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.
What is the valuation status of TJX COMPANIES INC (TJX) stock?
ChartMill assigns a valuation rating of 3 / 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.
Can you provide the PE and PB ratios for TJX stock?
The Price/Earnings (PE) ratio for TJX COMPANIES INC (TJX) is 33.07 and the Price/Book (PB) ratio is 17.78.
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 10.89% in the next year.