TJX COMPANIES INC (TJX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TJX - US8725401090 - Common Stock
153.24 USD
-0.18 (-0.12%)
153.11 USD
-0.13 (-0.08%)
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.
- TJX had a positive operating cash flow in the past year.
- 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
- TJX has a Return On Assets of 14.55%. This is amongst the best in the industry. TJX outperforms 92.56% of its industry peers.
- TJX has a Return On Equity of 54.70%. This is amongst the best in the industry. TJX outperforms 95.87% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 23.62%, TJX belongs to the top of the industry, outperforming 91.74% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for TJX is significantly above the industry average of 12.37%.
- 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
- The Profit Margin of TJX (8.68%) is better than 85.95% 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 85.12% of the companies in the same industry.
- TJX's Operating Margin has been stable in the last couple of years.
- The Gross Margin of TJX (30.85%) is worse than 64.46% of its industry peers.
- TJX's Gross Margin has been stable in the last couple of years.
| 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.
- TJX has less shares outstanding than it did 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
- 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.
- TJX has a better Debt to FCF ratio (0.65) than 83.47% of its industry peers.
- A Debt/Equity ratio of 0.20 indicates that TJX is not too dependend on debt financing.
- With a decent Debt to Equity ratio value of 0.20, TJX is doing good in the industry, outperforming 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 0.65 | ||
| Altman-Z | N/A |
ROIC/WACC2.44
WACC9.69%
2.3 Liquidity
- A Current Ratio of 1.09 indicates that TJX should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.09, TJX is not doing good in the industry: 66.94% of the companies in the same industry are doing better.
- 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 has a Quick ratio (0.43) which is in line with 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%.
- Measured over the past years, TJX shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.71% on average per year.
- 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
- 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.
- The Revenue is expected to grow by 5.64% on average over the next years.
EPS Next Y10.83%
EPS Next 2Y10.62%
EPS Next 3Y10.84%
EPS Next 5Y10.34%
Revenue Next Year6.63%
Revenue Next 2Y6.07%
Revenue Next 3Y6.19%
Revenue Next 5Y5.64%
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 33.83, which means the current valuation is very expensive for TJX.
- Compared to the rest of the industry, the Price/Earnings ratio of TJX indicates a somewhat cheap valuation: TJX is cheaper than 60.33% of the companies listed in the same industry.
- TJX is valuated rather expensively when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 29.40, which means the current valuation is very expensive for TJX.
- TJX's Price/Forward Earnings ratio is in line with the industry average.
- When comparing the Price/Forward Earnings ratio of TJX to the average of the S&P500 Index (24.26), we can say TJX is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.83 | ||
| Fwd PE | 29.4 |
4.2 Price Multiples
- TJX's Enterprise Value to EBITDA is on the same level as the industry average.
- TJX's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.52 | ||
| EV/EBITDA | 21.34 |
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)3.12
PEG (5Y)3.48
EPS Next 2Y10.62%
EPS Next 3Y10.84%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.11%, TJX has a reasonable but not impressive dividend return.
- TJX's Dividend Yield is a higher than the industry average which is at 2.13.
- TJX's Dividend Yield is slightly below the S&P500 average, which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
5.2 History
- On average, the dividend of TJX grows each year by 10.53%, which is quite nice.
- 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)10.53%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
- 35.03% 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.
DP35.03%
EPS Next 2Y10.62%
EPS Next 3Y10.84%
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 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.
Can you provide the PE and PB ratios for TJX stock?
The Price/Earnings (PE) ratio for TJX COMPANIES INC (TJX) is 33.83 and the Price/Book (PB) ratio is 18.18.
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 10.83% in the next year.