TJX COMPANIES INC (TJX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TJX - US8725401090 - Common Stock
156.58 USD
+1.98 (+1.28%)
156.95 USD
+0.37 (+0.24%)
Overall TJX gets a fundamental rating of 5 out of 10. We evaluated TJX against 123 industry peers in the Specialty Retail industry. TJX has an excellent profitability rating, but 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.
TJX had a positive operating cash flow in the past year.
In the past 5 years TJX has always been profitable.
TJX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TJX has a better Return On Assets (14.55%) than 92.68% of its industry peers.
TJX has a better Return On Equity (54.70%) than 95.94% of its industry peers.
TJX has a better Return On Invested Capital (23.62%) than 91.06% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TJX is significantly above the industry average of 12.17%.
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 86.18% of the companies in the same industry.
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 85.37% 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 65.04% 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
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
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.
TJX's Debt to FCF ratio of 0.65 is amongst the best of the industry. TJX outperforms 82.93% of its industry peers.
A Debt/Equity ratio of 0.20 indicates that TJX is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.20, TJX is doing good in the industry, outperforming 62.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 0.65 | ||
| Altman-Z | N/A |
ROIC/WACC2.48
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.
With a Current ratio value of 1.09, TJX is not doing good in the industry: 68.29% of the companies in the same industry are doing better.
A Quick Ratio of 0.43 indicates that TJX may have some problems paying 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
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.
TJX shows a small growth in Revenue. In the last year, the Revenue has grown by 4.53%.
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
TJX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.14% yearly.
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.
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
The Price/Earnings ratio is 34.57, which means the current valuation is very expensive for TJX.
TJX's Price/Earnings ratio is in line with the industry average.
TJX's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.61.
Based on the Price/Forward Earnings ratio of 30.04, the valuation of TJX can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as TJX.
The average S&P500 Price/Forward Earnings ratio is at 24.01. TJX is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.57 | ||
| Fwd PE | 30.04 |
4.2 Price Multiples
TJX's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TJX is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.36 | ||
| EV/EBITDA | 21.79 |
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)3.19
PEG (5Y)3.56
EPS Next 2Y10.61%
EPS Next 3Y10.86%
5. Dividend
5.1 Amount
TJX has a Yearly Dividend Yield of 1.10%.
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
The dividend of TJX is nicely growing with an annual growth rate of 10.53%!
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
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%
156.58
+1.98 (+1.28%)
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 Cap173.88B
Revenue(TTM)58.98B
Net Income(TTM)5.12B
Analysts84
Price Target163.58 (4.47%)
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 | 34.57 | ||
| Fwd PE | 30.04 | ||
| P/S | 2.95 | ||
| P/FCF | 39.36 | ||
| P/OCF | 27.08 | ||
| P/B | 18.58 | ||
| P/tB | 18.77 | ||
| EV/EBITDA | 21.79 |
EPS(TTM)4.53
EY2.89%
EPS(NY)5.21
Fwd EY3.33%
FCF(TTM)3.98
FCFY2.54%
OCF(TTM)5.78
OCFY3.69%
SpS53.11
BVpS8.43
TBVpS8.34
PEG (NY)3.19
PEG (5Y)3.56
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%.