TJX COMPANIES INC (TJX)
US8725401090 - Common Stock
Taking everything into account, TJX scores 6 out of 10 in our fundamental rating. TJX was compared to 123 industry peers in the Specialty Retail industry. TJX scores excellent points on both the profitability and health parts. This is a solid base for a good stock. TJX is valied quite expensively at the moment, while it does show a decent growth rate. This makes TJX very considerable for quality investing!
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.
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 15.59% is amongst the best of the industry. TJX outperforms 93.39% of its industry peers.
TJX's Return On Equity of 61.21% is amongst the best of the industry. TJX outperforms 95.87% of its industry peers.
The Return On Invested Capital of TJX (23.01%) is better than 90.08% 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 12.26%.
The 3 year average ROIC (20.91%) for TJX is below the current ROIC(23.01%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.59% | ||
| ROE | 61.21% | ||
| ROIC | 23.01% |
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 8.56%, TJX belongs to the top of the industry, outperforming 89.26% 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 has a better Operating Margin (10.96%) than 86.78% of its industry peers.
TJX's Operating Margin has been stable in the last couple of years.
TJX has a Gross Margin of 30.27%. This is in the lower half of the industry: TJX underperforms 62.81% of its industry peers.
In the last couple of years the Gross Margin of TJX has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.96% | ||
| PM (TTM) | 8.56% | ||
| GM | 30.27% |
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.
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
TJX has an Altman-Z score of 6.46. This indicates that TJX is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.46, TJX belongs to the top of the industry, outperforming 93.39% of the companies in the same industry.
TJX has a debt to FCF ratio of 0.64. This is a very positive value and a sign of high solvency as it would only need 0.64 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.64, TJX belongs to the top of the industry, outperforming 83.47% of the companies in the same industry.
TJX has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
TJX has a Debt to Equity ratio of 0.37. This is comparable to the rest of the industry: TJX outperforms 52.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 0.64 | ||
| Altman-Z | 6.46 |
ROIC/WACC2.43
WACC9.46%
2.3 Liquidity
TJX has a Current Ratio of 1.21. This is a normal value and indicates that TJX is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of TJX (1.21) is worse than 60.33% of its industry peers.
TJX has a Quick Ratio of 1.21. 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 (0.60) which is comparable to the rest of the industry.
TJX does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.40% 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 10.20% yearly.
The Revenue has grown by 8.57% in the past year. This is quite good.
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)8.57%
Revenue growth 3Y19.04%
Revenue growth 5Y6.83%
Sales Q2Q%6.02%
3.2 Future
The Earnings Per Share is expected to grow by 10.09% on average over the next years. This is quite good.
TJX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.49% yearly.
EPS Next Y9.15%
EPS Next 2Y9.67%
EPS Next 3Y10.64%
EPS Next 5Y10.09%
Revenue Next Year4.14%
Revenue Next 2Y4.97%
Revenue Next 3Y5.5%
Revenue Next 5Y5.49%
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
TJX is valuated quite expensively with a Price/Earnings ratio of 28.18.
Compared to the rest of the industry, the Price/Earnings ratio of TJX is on the same level as its industry peers.
When comparing the Price/Earnings ratio of TJX to the average of the S&P500 Index (28.96), we can say TJX is valued inline with the index average.
The Price/Forward Earnings ratio is 25.80, which means the current valuation is very expensive for TJX.
TJX's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.82, TJX is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.18 | ||
| Fwd PE | 25.8 |
4.2 Price Multiples
TJX's Enterprise Value to EBITDA ratio is in line with the industry average.
61.16% 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 | 30.34 | ||
| EV/EBITDA | 18.62 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of TJX may justify a higher PE ratio.
PEG (NY)3.08
PEG (5Y)2.76
EPS Next 2Y9.67%
EPS Next 3Y10.64%
5. Dividend
5.1 Amount
TJX has a Yearly Dividend Yield of 1.25%.
TJX's Dividend Yield is a higher than the industry average which is at 3.09.
Compared to an average S&P500 Dividend Yield of 2.23, TJX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
5.2 History
On average, the dividend of TJX grows each year by 11.69%, 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)11.69%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
32.79% 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.
DP32.79%
EPS Next 2Y9.67%
EPS Next 3Y10.64%
TJX COMPANIES INC
NYSE:TJX (11/21/2024, 8:04:00 PM)
After market: 120.01 +0.24 (+0.2%)119.77
+0.03 (+0.03%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap135.08B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.18 | ||
| Fwd PE | 25.8 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.08
PEG (5Y)2.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.59% | ||
| ROE | 61.21% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.96% | ||
| PM (TTM) | 8.56% | ||
| GM | 30.27% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.6 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)20.4%
EPS 3Y136.99%
EPS 5Y
EPS Q2Q%
EPS Next Y9.15%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.57%
Revenue growth 3Y19.04%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y