TJX COMPANIES INC (TJX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TJX - US8725401090 - Common Stock
154.6 USD
-0.28 (-0.18%)
154.99 USD
+0.39 (+0.25%)
Taking everything into account, TJX scores 5 out of 10 in our fundamental rating. TJX was compared to 123 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.
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
Looking at the Return On Assets, with a value of 14.55%, TJX belongs to the top of the industry, outperforming 92.74% of the companies in the same industry.
TJX's Return On Equity of 54.70% is amongst the best of the industry. TJX outperforms 95.97% of its industry peers.
TJX's Return On Invested Capital of 23.62% is amongst the best of the industry. TJX outperforms 91.13% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TJX is significantly above the industry average of 12.16%.
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
The Profit Margin of TJX (8.68%) is better than 86.29% of its industry peers.
In the last couple of years the Profit Margin of TJX has grown nicely.
TJX has a Operating Margin of 11.31%. This is amongst the best in the industry. TJX outperforms 85.48% of its industry peers.
TJX's Operating Margin has been stable in the last couple of years.
TJX's Gross Margin of 30.85% is on the low side compared to the rest of the industry. TJX is outperformed by 64.52% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so TJX 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's Debt to FCF ratio of 0.65 is amongst the best of the industry. TJX outperforms 83.06% of its industry peers.
A Debt/Equity ratio of 0.20 indicates that TJX is not too dependend on debt financing.
TJX's Debt to Equity ratio of 0.20 is fine compared to the rest of the industry. TJX outperforms 62.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 0.65 | ||
| Altman-Z | N/A |
ROIC/WACC2.48
WACC9.54%
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 67.74% 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 in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.59% over the past year.
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.
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
Based on estimates for the next years, TJX will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.14% on average per year.
Based on estimates for the next years, TJX will show a small growth in Revenue. The Revenue will grow by 5.77% on average per year.
EPS Next Y10.83%
EPS Next 2Y10.61%
EPS Next 3Y10.86%
EPS Next 5Y10.14%
Revenue Next Year6.58%
Revenue Next 2Y5.99%
Revenue Next 3Y6.08%
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
A Price/Earnings ratio of 34.13 indicates a quite expensive valuation of TJX.
TJX's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of TJX to the average of the S&P500 Index (26.38), we can say TJX is valued slightly more expensively.
TJX is valuated quite expensively with a Price/Forward Earnings ratio of 29.66.
TJX's Price/Forward Earnings is on the same level as the industry average.
TJX's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 23.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.13 | ||
| Fwd PE | 29.66 |
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 | 38.86 | ||
| EV/EBITDA | 21.51 |
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)3.15
PEG (5Y)3.51
EPS Next 2Y10.61%
EPS Next 3Y10.86%
5. Dividend
5.1 Amount
TJX has a Yearly Dividend Yield of 1.10%. Purely for dividend investing, there may be better candidates out there.
TJX's Dividend Yield is a higher than the industry average which is at 1.98.
Compared to an average S&P500 Dividend Yield of 1.87, TJX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
5.2 History
On average, the dividend of TJX grows each year by 10.53%, which is quite nice.
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 2Y10.61%
EPS Next 3Y10.86%
154.6
-0.28 (-0.18%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners92.04%
Inst Owner Change-1.11%
Ins Owners0.08%
Ins Owner Change-1.48%
Market Cap171.68B
Revenue(TTM)58.98B
Net Income(TTM)5.12B
Analysts84
Price Target163.58 (5.81%)
Short Float %1.25%
Short Ratio2.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
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)4.65%
PT rev (3m)6.94%
EPS NQ rev (1m)0.76%
EPS NQ rev (3m)1.15%
EPS NY rev (1m)1.63%
EPS NY rev (3m)2.41%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)-0.06%
Revenue NY rev (1m)0.46%
Revenue NY rev (3m)0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.13 | ||
| Fwd PE | 29.66 | ||
| P/S | 2.91 | ||
| P/FCF | 38.86 | ||
| P/OCF | 26.74 | ||
| P/B | 18.34 | ||
| P/tB | 18.53 | ||
| EV/EBITDA | 21.51 |
EPS(TTM)4.53
EY2.93%
EPS(NY)5.21
Fwd EY3.37%
FCF(TTM)3.98
FCFY2.57%
OCF(TTM)5.78
OCFY3.74%
SpS53.11
BVpS8.43
TBVpS8.34
PEG (NY)3.15
PEG (5Y)3.51
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
WACC9.54%
ROIC/WACC2.48
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 2Y10.61%
EPS Next 3Y10.86%
EPS Next 5Y10.14%
Revenue 1Y (TTM)4.53%
Revenue growth 3Y5.1%
Revenue growth 5Y6.2%
Sales Q2Q%7.49%
Revenue Next Year6.58%
Revenue Next 2Y5.99%
Revenue Next 3Y6.08%
Revenue Next 5Y5.77%
EBIT growth 1Y6.84%
EBIT growth 3Y9.84%
EBIT growth 5Y7.32%
EBIT Next Year30.53%
EBIT Next 3Y15.49%
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 10.83% 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%.