TJX COMPANIES INC (TJX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TJX - US8725401090 - Common Stock
157.81 USD
-0.44 (-0.28%)
157.81 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to TJX. TJX was compared to 122 industry peers in the Specialty Retail industry. TJX has an excellent profitability rating, 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
TJX had positive earnings in the past year.
TJX had a positive operating cash flow in the past year.
Each year in the past 5 years TJX has been profitable.
TJX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of TJX (14.55%) is better than 92.62% of its industry peers.
The Return On Equity of TJX (54.70%) is better than 95.90% of its industry peers.
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.
Measured over the past 3 years, the Average Return On Invested Capital for TJX 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
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.
Looking at the Operating Margin, with a value of 11.31%, TJX belongs to the top of the industry, outperforming 85.25% of the companies in the same industry.
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.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 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
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 82.79% 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's Debt to Equity ratio of 0.20 is fine compared to the rest 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/WACC2.44
WACC9.68%
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: 67.21% 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.
Looking at the Quick ratio, with a value of 0.43, TJX is in line with its industry, outperforming 43.44% of the companies in the same 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%.
The Earnings Per Share has been growing by 9.71% on average over the past years. This is quite good.
TJX shows a small growth in Revenue. In the last year, the Revenue has grown by 4.53%.
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.
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 Y10.83%
EPS Next 2Y10.62%
EPS Next 3Y10.84%
EPS Next 5Y10.34%
Revenue Next Year6.57%
Revenue Next 2Y6%
Revenue Next 3Y6.11%
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
TJX is valuated quite expensively with a Price/Earnings ratio of 34.84.
Compared to the rest of the industry, the Price/Earnings ratio of TJX is on the same level as its industry peers.
TJX's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.19.
Based on the Price/Forward Earnings ratio of 30.28, the valuation of TJX can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as TJX.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.92, TJX is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.84 | ||
| Fwd PE | 30.28 |
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 | 39.67 | ||
| EV/EBITDA | 21.96 |
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.
The excellent profitability rating of TJX may justify a higher PE ratio.
PEG (NY)3.22
PEG (5Y)3.59
EPS Next 2Y10.62%
EPS Next 3Y10.84%
5. Dividend
5.1 Amount
TJX has a Yearly Dividend Yield of 1.07%.
Compared to an average industry Dividend Yield of 2.13, TJX pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.92, TJX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.07% |
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
TJX pays out 35.03% of its income as dividend. This is a 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 2Y10.62%
EPS Next 3Y10.84%
157.81
-0.44 (-0.28%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners92.35%
Inst Owner Change0.37%
Ins Owners0.08%
Ins Owner Change-1.48%
Market Cap175.24B
Revenue(TTM)58.98B
Net Income(TTM)5.12B
Analysts85
Price Target164.58 (4.29%)
Short Float %1.22%
Short Ratio2.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.07% |
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)0.61%
PT rev (3m)7.6%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)1.15%
EPS NY rev (1m)0%
EPS NY rev (3m)1.75%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)-0.06%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.84 | ||
| Fwd PE | 30.28 | ||
| P/S | 2.97 | ||
| P/FCF | 39.67 | ||
| P/OCF | 27.29 | ||
| P/B | 18.72 | ||
| P/tB | 18.92 | ||
| EV/EBITDA | 21.96 |
EPS(TTM)4.53
EY2.87%
EPS(NY)5.21
Fwd EY3.3%
FCF(TTM)3.98
FCFY2.52%
OCF(TTM)5.78
OCFY3.66%
SpS53.11
BVpS8.43
TBVpS8.34
PEG (NY)3.22
PEG (5Y)3.59
Graham Number29.31
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
WACC9.68%
ROIC/WACC2.44
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 Y10.83%
EPS Next 2Y10.62%
EPS Next 3Y10.84%
EPS Next 5Y10.34%
Revenue 1Y (TTM)4.53%
Revenue growth 3Y5.1%
Revenue growth 5Y6.2%
Sales Q2Q%7.49%
Revenue Next Year6.57%
Revenue Next 2Y6%
Revenue Next 3Y6.11%
Revenue Next 5Y5.64%
EBIT growth 1Y6.84%
EBIT growth 3Y9.84%
EBIT growth 5Y7.32%
EBIT Next Year30.29%
EBIT Next 3Y15.49%
EBIT Next 5Y11.02%
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.
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 34.84 and the Price/Book (PB) ratio is 18.72.
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.