TJX COMPANIES INC (TJX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TJX - US8725401090 - Common Stock
151.8 USD
-1.44 (-0.94%)
Overall TJX gets a fundamental rating of 5 out of 10. We evaluated TJX against 122 industry peers in the Specialty Retail industry. TJX scores excellent on profitability, but 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.
- TJX had a positive operating cash flow in the past year.
- 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
- The Return On Assets of TJX (14.55%) is better than 92.62% of its industry peers.
- With an excellent Return On Equity value of 54.70%, TJX belongs to the best of the industry, outperforming 95.90% of the companies in the same industry.
- TJX's Return On Invested Capital of 23.62% is amongst the best of the industry. TJX outperforms 91.80% 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 12.24%.
- 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
- With an excellent Profit Margin value of 8.68%, TJX belongs to the best of the industry, outperforming 86.07% of the companies in the same industry.
- TJX's Profit Margin has improved in the last couple of years.
- TJX has a Operating Margin of 11.31%. This is amongst the best in the industry. TJX outperforms 85.25% of its industry peers.
- TJX's Operating Margin has been stable in the last couple of years.
- With a Gross Margin value of 30.85%, TJX is not doing good in the industry: 64.75% of the companies in the same industry are doing better.
- 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.
- The number of shares outstanding for TJX has been reduced compared to 1 year ago.
- 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
- 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.
- With an excellent Debt to FCF ratio value of 0.65, TJX belongs to the best of the industry, outperforming 82.79% of the companies in the same industry.
- TJX has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
- TJX has a Debt to Equity ratio of 0.20. This is in the better half of the industry: TJX outperforms 63.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 0.65 | ||
| Altman-Z | N/A |
ROIC/WACC2.45
WACC9.64%
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.
- 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
- The Earnings Per Share is expected to grow by 10.34% on average over the next years. This is quite good.
- Based on estimates for the next years, TJX will show a small growth in Revenue. The Revenue will grow by 5.64% on average per year.
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
- 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
- A Price/Earnings ratio of 33.51 indicates a quite expensive valuation of TJX.
- TJX's Price/Earnings is on the same level as the industry average.
- 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.
- With a Price/Forward Earnings ratio of 29.07, TJX can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of TJX is on the same level as its industry peers.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, TJX is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.51 | ||
| Fwd PE | 29.07 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as TJX.
- TJX's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.16 | ||
| EV/EBITDA | 21.32 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- TJX has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.08
PEG (5Y)3.45
EPS Next 2Y10.71%
EPS Next 3Y10.95%
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 2.15.
- 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
- The dividend of TJX is nicely growing with an annual growth rate of 10.53%!
- 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
- 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 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 33.51 and the Price/Book (PB) ratio is 18.01.
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.