TJX COMPANIES INC (TJX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TJX - US8725401090 - Common Stock
153.28 USD
+2.98 (+1.98%)
153.826 USD
+0.55 (+0.36%)
TJX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 122 industry peers in the Specialty Retail industry. While TJX has a great profitability rating, 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.
In the past 5 years TJX has always been profitable.
Each year in the past 5 years TJX had a positive operating cash flow.
1.2 Ratios
TJX's Return On Assets of 14.55% is amongst the best of the industry. TJX outperforms 91.80% of its industry peers.
With an excellent Return On Equity value of 54.70%, TJX belongs to the best of the industry, outperforming 97.54% of the companies in the same industry.
TJX has a Return On Invested Capital of 23.62%. This is amongst the best in the industry. TJX outperforms 91.80% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TJX is significantly above the industry average of 11.71%.
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
TJX has a better Profit Margin (8.68%) than 86.07% of its industry peers.
TJX's Profit Margin has improved in the last couple of years.
TJX's Operating Margin of 11.31% is amongst the best of the industry. TJX outperforms 85.25% of its industry peers.
TJX's Operating Margin has been stable in the last couple of years.
TJX has a Gross Margin of 30.85%. This is in the lower half of the industry: TJX underperforms 63.11% 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
TJX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, TJX has less shares outstanding
TJX has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, TJX has an improved debt to assets ratio.
2.2 Solvency
TJX has a debt to FCF ratio of 0.65. This is a very positive value and a sign of high solvency as it would only need 0.65 years to pay back of all of its debts.
The Debt to FCF ratio of TJX (0.65) is better than 84.43% 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 63.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 0.65 | ||
| Altman-Z | N/A |
ROIC/WACC2.54
WACC9.3%
2.3 Liquidity
A Current Ratio of 1.09 indicates that TJX should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.09, TJX is doing worse than 66.39% of the companies in the same industry.
A Quick Ratio of 0.43 indicates that TJX may have some problems paying its short term obligations.
TJX has a Quick ratio (0.43) which is comparable to the rest of the industry.
| 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.
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 10.14% yearly.
TJX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.77% yearly.
EPS Next Y9.06%
EPS Next 2Y9.68%
EPS Next 3Y10.65%
EPS Next 5Y10.14%
Revenue Next Year6.09%
Revenue Next 2Y5.93%
Revenue Next 3Y6.02%
Revenue Next 5Y5.77%
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.
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
The Price/Earnings ratio is 33.84, which means the current valuation is very expensive for TJX.
TJX's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.46. TJX is valued slightly more expensive when compared to this.
The Price/Forward Earnings ratio is 29.91, which means the current valuation is very expensive for TJX.
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 (36.10), we can say TJX is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.84 | ||
| Fwd PE | 29.91 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as TJX.
The rest of the industry has a similar Price/Free Cash Flow ratio as TJX.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.61 | ||
| EV/EBITDA | 20.95 |
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)3.74
PEG (5Y)3.48
EPS Next 2Y9.68%
EPS Next 3Y10.65%
5. Dividend
5.1 Amount
TJX has a Yearly Dividend Yield of 1.11%.
TJX's Dividend Yield is a higher than the industry average which is at 5.64.
With a Dividend Yield of 1.11, TJX pays less dividend than the S&P500 average, which is at 2.32.
| 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.
The dividend of TJX is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP35.03%
EPS Next 2Y9.68%
EPS Next 3Y10.65%
153.28
+2.98 (+1.98%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners93.12%
Inst Owner Change-1.13%
Ins Owners0.09%
Ins Owner Change-1.32%
Market Cap170.59B
Revenue(TTM)58.98B
Net Income(TTM)5.12B
Analysts84.62
Price Target156.3 (1.97%)
Short Float %1.26%
Short Ratio2.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
Yearly Dividend1.46
Dividend Growth(5Y)10.53%
DP35.03%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.59%
Min EPS beat(2)3.7%
Max EPS beat(2)7.47%
EPS beat(4)4
Avg EPS beat(4)4.14%
Min EPS beat(4)0.61%
Max EPS beat(4)7.47%
EPS beat(8)8
Avg EPS beat(8)4.58%
EPS beat(12)11
Avg EPS beat(12)4.5%
EPS beat(16)14
Avg EPS beat(16)3.77%
Revenue beat(2)2
Avg Revenue beat(2)0.85%
Min Revenue beat(2)0.77%
Max Revenue beat(2)0.94%
Revenue beat(4)2
Avg Revenue beat(4)0.35%
Min Revenue beat(4)-0.25%
Max Revenue beat(4)0.94%
Revenue beat(8)4
Avg Revenue beat(8)0.09%
Revenue beat(12)7
Avg Revenue beat(12)0.28%
Revenue beat(16)7
Avg Revenue beat(16)-0.46%
PT rev (1m)2.19%
PT rev (3m)2.8%
EPS NQ rev (1m)0.95%
EPS NQ rev (3m)1.05%
EPS NY rev (1m)0.09%
EPS NY rev (3m)0.76%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-0.09%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.84 | ||
| Fwd PE | 29.91 | ||
| P/S | 2.89 | ||
| P/FCF | 38.61 | ||
| P/OCF | 26.57 | ||
| P/B | 18.23 | ||
| P/tB | 18.41 | ||
| EV/EBITDA | 20.95 |
EPS(TTM)4.53
EY2.96%
EPS(NY)5.12
Fwd EY3.34%
FCF(TTM)3.97
FCFY2.59%
OCF(TTM)5.77
OCFY3.76%
SpS52.99
BVpS8.41
TBVpS8.32
PEG (NY)3.74
PEG (5Y)3.48
Graham Number29.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.55% | ||
| ROE | 54.7% | ||
| ROCE | 31.49% | ||
| ROIC | 23.62% | ||
| ROICexc | 30.24% | ||
| ROICexgc | 30.41% | ||
| OM | 11.31% | ||
| PM (TTM) | 8.68% | ||
| GM | 30.85% | ||
| FCFM | 7.49% |
ROA(3y)14.23%
ROA(5y)10.91%
ROE(3y)58.06%
ROE(5y)46.09%
ROIC(3y)21.84%
ROIC(5y)17.51%
ROICexc(3y)30.48%
ROICexc(5y)25.26%
ROICexgc(3y)30.69%
ROICexgc(5y)25.45%
ROCE(3y)29.12%
ROCE(5y)23.34%
ROICexgc growth 3Y0.34%
ROICexgc growth 5Y4.93%
ROICexc growth 3Y0.41%
ROICexc growth 5Y4.95%
OM growth 3Y4.52%
OM growth 5Y1.05%
PM growth 3Y8.47%
PM growth 5Y1.93%
GM growth 3Y1.68%
GM growth 5Y0.82%
F-Score6
Asset Turnover1.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 0.65 | ||
| Debt/EBITDA | 0.24 | ||
| Cap/Depr | 162.98% | ||
| Cap/Sales | 3.4% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.28% | ||
| Profit Quality | 86.31% | ||
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.43 | ||
| Altman-Z | N/A |
F-Score6
WACC9.3%
ROIC/WACC2.54
Cap/Depr(3y)172.21%
Cap/Depr(5y)140.45%
Cap/Sales(3y)3.17%
Cap/Sales(5y)2.68%
Profit Quality(3y)86.1%
Profit Quality(5y)946.84%
High Growth Momentum
Growth
EPS 1Y (TTM)6.59%
EPS 3Y14.34%
EPS 5Y9.71%
EPS Q2Q%12.28%
EPS Next Y9.06%
EPS Next 2Y9.68%
EPS Next 3Y10.65%
EPS Next 5Y10.14%
Revenue 1Y (TTM)4.53%
Revenue growth 3Y5.1%
Revenue growth 5Y6.2%
Sales Q2Q%7.49%
Revenue Next Year6.09%
Revenue Next 2Y5.93%
Revenue Next 3Y6.02%
Revenue Next 5Y5.77%
EBIT growth 1Y6.84%
EBIT growth 3Y9.84%
EBIT growth 5Y7.32%
EBIT Next Year28.17%
EBIT Next 3Y15.52%
EBIT Next 5Y11.27%
FCF growth 1Y-4.88%
FCF growth 3Y27.77%
FCF growth 5Y8.1%
OCF growth 1Y2.22%
OCF growth 3Y26%
OCF growth 5Y8.5%
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.
Can you provide the valuation status for TJX COMPANIES INC?
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.
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 9.06% in the next year.
Can you provide the dividend sustainability for TJX stock?
The dividend rating of TJX COMPANIES INC (TJX) is 5 / 10 and the dividend payout ratio is 35.03%.