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 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.
- TJX had positive earnings in each of the past 5 years.
- Each year in the past 5 years TJX had a positive operating cash flow.
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.
- The Return On Invested Capital of TJX (23.62%) is better than 91.74% 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 12.24%.
- 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
- With an excellent Profit Margin value of 8.68%, TJX belongs to the best of the industry, outperforming 85.95% of the companies in the same industry.
- TJX's Profit Margin has improved in the last couple of years.
- TJX has a better Operating Margin (11.31%) than 85.12% of its industry peers.
- In the last couple of years the Operating Margin of TJX has remained more or less at the same level.
- TJX has a Gross Margin of 30.85%. This is in the lower half of the industry: TJX underperforms 64.46% 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
- 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 Debt to FCF ratio of 0.65. This is amongst the best in the industry. TJX outperforms 83.47% of its industry peers.
- 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 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 0.65 | ||
| Altman-Z | N/A |
ROIC/WACC2.44
WACC9.69%
2.3 Liquidity
- TJX has a Current Ratio of 1.09. This is a normal value and indicates that TJX is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 1.09, TJX is doing worse than 66.94% of the companies in the same industry.
- 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.
- The Quick ratio of TJX (0.43) 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%.
- TJX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.71% yearly.
- Looking at the last year, TJX shows a small growth in Revenue. The Revenue has grown by 4.53% in the last year.
- The Revenue has been growing slightly by 6.20% on average over the past years.
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.
- TJX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.64% yearly.
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
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- 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
- With a Price/Earnings ratio of 33.83, TJX can be considered very expensive at the moment.
- Based on the Price/Earnings ratio, TJX is valued a bit cheaper than the industry average as 60.33% of the companies are valued more expensively.
- TJX's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.21.
- With a Price/Forward Earnings ratio of 29.35, 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 | 33.83 | ||
| Fwd PE | 29.35 |
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.
- TJX's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.52 | ||
| 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)3.11
PEG (5Y)3.48
EPS Next 2Y10.71%
EPS Next 3Y10.95%
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 2.15.
- Compared to the average S&P500 Dividend Yield of 1.81, TJX is paying slightly less dividend.
| 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
- TJX pays out 35.03% of its income as dividend. This is a sustainable payout ratio.
- TJX's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP35.03%
EPS Next 2Y10.71%
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 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 10.89% in the next year.