TJX COMPANIES INC (TJX) Stock Fundamental Analysis
NYSE:TJX - New York Stock Exchange, Inc. - US8725401090 - Common Stock
We assign a fundamental rating of 6 out of 10 to TJX. TJX was compared to 119 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 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.
In the past 5 years TJX has always been profitable.
TJX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TJX has a Return On Assets of 15.01%. This is amongst the best in the industry. TJX outperforms 90.52% 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 95.69% of the companies in the same industry.
The Return On Invested Capital of TJX (23.00%) is better than 89.66% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TJX is significantly above the industry average of 12.38%.
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
Looking at the Profit Margin, with a value of 8.63%, TJX belongs to the top of the industry, outperforming 87.93% of the companies in the same industry.
In the last couple of years the Profit Margin of TJX has remained more or less at the same level.
TJX's Operating Margin of 11.07% is amongst the best of the industry. TJX outperforms 86.21% of its industry peers.
TJX's Operating Margin has been stable in the last couple of years.
The Gross Margin of TJX (30.40%) is worse than 62.93% 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
TJX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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.
Compared to 1 year ago, TJX has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of TJX is 0.66, which is an excellent value as it means it would take TJX, only 0.66 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.66, TJX belongs to the best of the industry, outperforming 83.62% of the companies in the same industry.
A Debt/Equity ratio of 0.35 indicates that TJX is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.35, TJX is in line with its industry, outperforming 53.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 0.66 | ||
| Altman-Z | N/A |
ROIC/WACC2.28
WACC10.1%
2.3 Liquidity
A Current Ratio of 1.19 indicates that TJX should not have too much problems paying its short term obligations.
TJX has a Current ratio of 1.19. This is in the lower half of the industry: TJX underperforms 62.93% of its industry peers.
TJX has a Quick Ratio of 1.19. 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 (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
TJX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.40%, which is quite impressive.
The Earnings Per Share has been growing by 10.20% on average over the past years. This is quite good.
Looking at the last year, TJX shows a small growth in Revenue. The Revenue has grown by 7.83% in the last year.
TJX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.83% yearly.
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
Based on estimates for the next years, TJX will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.08% on average per year.
TJX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.75% yearly.
EPS Next Y9.66%
EPS Next 2Y9.61%
EPS Next 3Y10.18%
EPS Next 5Y11.08%
Revenue Next Year4.16%
Revenue Next 2Y4.93%
Revenue Next 3Y5.3%
Revenue Next 5Y5.75%
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
With a Price/Earnings ratio of 28.84, TJX can be considered very expensive at the moment.
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 28.29, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 26.43 indicates a quite expensive valuation of TJX.
The rest of the industry has a similar Price/Forward Earnings ratio as TJX.
The average S&P500 Price/Forward Earnings ratio is at 24.44. TJX is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.84 | ||
| Fwd PE | 26.43 |
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.
Based on the Price/Free Cash Flow ratio, TJX is valued a bit cheaper than 61.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.56 | ||
| EV/EBITDA | 18.76 |
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)2.99
PEG (5Y)2.83
EPS Next 2Y9.61%
EPS Next 3Y10.18%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.24%, TJX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.27, TJX pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.24, TJX pays less dividend than the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
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.
The dividend of TJX is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP32.96%
EPS Next 2Y9.61%
EPS Next 3Y10.18%
TJX COMPANIES INC
NYSE:TJX (1/22/2025, 5:05:00 PM)
After market: 122.57 0 (0%)122.57
-0.73 (-0.59%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners93.36%
Inst Owner Change0.14%
Ins Owners0.05%
Ins Owner Change-2.2%
Market Cap137.79B
Analysts82.07
Price Target134.31 (9.58%)
Short Float %1.04%
Short Ratio2.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
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)1.65%
PT rev (3m)2.58%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.25%
EPS NY rev (1m)0%
EPS NY rev (3m)0.51%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.99%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.84 | ||
| Fwd PE | 26.43 | ||
| P/S | 2.44 | ||
| P/FCF | 31.56 | ||
| P/OCF | 22.18 | ||
| P/B | 16.86 | ||
| P/tB | 17.06 | ||
| EV/EBITDA | 18.76 |
EPS(TTM)4.25
EY3.47%
EPS(NY)4.64
Fwd EY3.78%
FCF(TTM)3.88
FCFY3.17%
OCF(TTM)5.53
OCFY4.51%
SpS50.19
BVpS7.27
TBVpS7.19
PEG (NY)2.99
PEG (5Y)2.83
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
WACC10.1%
ROIC/WACC2.28
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 Y9.66%
EPS Next 2Y9.61%
EPS Next 3Y10.18%
EPS Next 5Y11.08%
Revenue 1Y (TTM)7.83%
Revenue growth 3Y19.04%
Revenue growth 5Y6.83%
Sales Q2Q%6.02%
Revenue Next Year4.16%
Revenue Next 2Y4.93%
Revenue Next 3Y5.3%
Revenue Next 5Y5.75%
EBIT growth 1Y17.28%
EBIT growth 3Y115.16%
EBIT growth 5Y6.17%
EBIT Next Year27.43%
EBIT Next 3Y14.85%
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%