TJX COMPANIES INC (TJX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TJX - US8725401090 - Common Stock
150.08 USD
-3.16 (-2.06%)
150.01 USD
-0.07 (-0.05%)
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. While showing a medium growth rate, TJX is valued expensive at the moment.
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 better Return On Assets (14.55%) than 92.62% of its industry peers.
- TJX has a better Return On Equity (54.70%) than 95.90% of its industry peers.
- TJX's Return On Invested Capital of 23.62% is amongst the best of 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 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
- TJX's Profit Margin of 8.68% is amongst the best of the industry. TJX outperforms 86.07% of its industry peers.
- In the last couple of years the Profit Margin of TJX has grown nicely.
- With an excellent Operating Margin value of 11.31%, TJX belongs to the best 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.
- Looking at the Gross Margin, with a value of 30.85%, TJX is doing worse than 64.75% of the companies in the same industry.
- 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.
- TJX has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, TJX has less shares outstanding
- 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.
- TJX's Debt to FCF ratio of 0.65 is amongst the best of 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.
- Looking at the Debt to Equity ratio, with a value of 0.20, TJX is in the better half of the industry, outperforming 63.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 0.65 | ||
| Altman-Z | N/A |
ROIC/WACC2.45
WACC9.64%
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.
- TJX has a Current ratio of 1.09. This is in the lower half of the industry: TJX underperforms 67.21% of its industry peers.
- A Quick Ratio of 0.43 indicates that TJX may have some problems paying 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%.
- 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.
- 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 10.34% 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
- 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
- A Price/Earnings ratio of 33.13 indicates a quite expensive valuation of TJX.
- Compared to the rest of the industry, the Price/Earnings ratio of TJX is on the same level as its industry peers.
- The average S&P500 Price/Earnings ratio is at 27.25. TJX is valued slightly more expensive when compared to this.
- TJX is valuated quite expensively with a Price/Forward Earnings ratio of 28.74.
- TJX's Price/Forward Earnings ratio is in line with the industry average.
- 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 | 33.13 | ||
| Fwd PE | 28.74 |
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 | 37.72 | ||
| EV/EBITDA | 20.87 |
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.
- TJX has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.04
PEG (5Y)3.41
EPS Next 2Y10.71%
EPS Next 3Y10.95%
5. Dividend
5.1 Amount
- TJX has a Yearly Dividend Yield of 1.11%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 2.15, TJX pays a bit more dividend than its industry peers.
- TJX's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
| 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.
- 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 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 33.13 and the Price/Book (PB) ratio is 17.81.
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.