TJX COMPANIES INC (TJX) Stock Fundamental Analysis
NYSE:TJX - New York Stock Exchange, Inc. - US8725401090 - Common Stock - Currency: USD
Taking everything into account, TJX scores 5 out of 10 in our fundamental rating. TJX was compared to 121 industry peers in the Specialty Retail industry. TJX scores excellent on profitability, 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.
In the past year TJX had a positive cash flow from operations.
TJX had positive earnings in each of the past 5 years.
TJX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TJX has a Return On Assets of 15.32%. This is amongst the best in the industry. TJX outperforms 90.08% of its industry peers.
With an excellent Return On Equity value of 57.95%, TJX belongs to the best of the industry, outperforming 95.87% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 22.79%, TJX belongs to the top of the industry, outperforming 88.43% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TJX is significantly above the industry average of 14.45%.
The 3 year average ROIC (21.84%) for TJX is below the current ROIC(22.79%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.32% | ||
| ROE | 57.95% | ||
| ROIC | 22.79% |
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 8.63% is amongst the best of the industry. TJX outperforms 86.78% of its industry peers.
TJX's Profit Margin has improved in the last couple of years.
TJX's Operating Margin of 11.18% is amongst the best of the industry. TJX outperforms 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.
With a Gross Margin value of 30.60%, TJX is not doing good in the industry: 61.98% of the companies in the same industry are doing better.
TJX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.18% | ||
| PM (TTM) | 8.63% | ||
| GM | 30.6% |
OM growth 3Y4.52%
OM growth 5Y1.05%
PM growth 3Y8.47%
PM growth 5Y1.93%
GM growth 3Y-4.63%
GM growth 5Y-2.98%
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.
The debt/assets ratio for TJX has been reduced compared to a year ago.
2.2 Solvency
TJX has a debt to FCF ratio of 0.68. This is a very positive value and a sign of high solvency as it would only need 0.68 years to pay back of all of its debts.
TJX has a better Debt to FCF ratio (0.68) than 80.17% of its industry peers.
TJX has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.34, TJX perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 0.68 | ||
| Altman-Z | N/A |
ROIC/WACC2.52
WACC9.04%
2.3 Liquidity
TJX has a Current Ratio of 1.18. 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 1.18, TJX is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
TJX has a Quick Ratio of 1.18. This is a bad value and indicates that TJX is not financially healthy enough and could expect problems in meeting its short term obligations.
TJX has a Quick ratio (0.60) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
TJX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.36%, which is quite good.
Measured over the past years, TJX shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.71% on average per year.
Looking at the last year, TJX shows a small growth in Revenue. The Revenue has grown by 3.95% in the last year.
The Revenue has been growing slightly by 6.20% on average over the past years.
EPS 1Y (TTM)10.36%
EPS 3Y14.34%
EPS 5Y9.71%
EPS Q2Q%0.82%
Revenue 1Y (TTM)3.95%
Revenue growth 3Y5.1%
Revenue growth 5Y6.2%
Sales Q2Q%-0.37%
3.2 Future
The Earnings Per Share is expected to grow by 9.90% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.59% on average over the next years.
EPS Next Y6.71%
EPS Next 2Y8.79%
EPS Next 3Y9.45%
EPS Next 5Y9.9%
Revenue Next Year4.77%
Revenue Next 2Y5.23%
Revenue Next 3Y5.63%
Revenue Next 5Y5.59%
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.
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
With a Price/Earnings ratio of 29.96, TJX can be considered very expensive at the moment.
TJX's Price/Earnings is on the same level as the industry average.
TJX's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.29.
TJX is valuated quite expensively with a Price/Forward Earnings ratio of 28.07.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TJX is on the same level as its industry peers.
TJX is valuated rather expensively when we compare the Price/Forward Earnings ratio to 21.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.96 | ||
| Fwd PE | 28.07 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TJX indicates a slightly more expensive valuation: TJX is more expensive than 60.33% of the companies listed in the same industry.
TJX's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.96 | ||
| EV/EBITDA | 18.92 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of TJX may justify a higher PE ratio.
PEG (NY)4.46
PEG (5Y)3.08
EPS Next 2Y8.79%
EPS Next 3Y9.45%
5. Dividend
5.1 Amount
TJX has a Yearly Dividend Yield of 1.33%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.44, TJX pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.33, TJX pays less dividend than the S&P500 average, which is at 2.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
5.2 History
The dividend of TJX is nicely growing with an annual growth rate of 10.48%!
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)10.48%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
TJX pays out 33.88% 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.
DP33.88%
EPS Next 2Y8.79%
EPS Next 3Y9.45%
127.62
+1.31 (+1.04%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners92.57%
Inst Owner Change0.02%
Ins Owners0.06%
Ins Owner Change4.76%
Market Cap142.56B
Analysts81.43
Price Target139.75 (9.5%)
Short Float %1.16%
Short Ratio2.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
Yearly Dividend1.46
Dividend Growth(5Y)10.48%
DP33.88%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.01%
Min EPS beat(2)3.24%
Max EPS beat(2)4.79%
EPS beat(4)4
Avg EPS beat(4)4.26%
Min EPS beat(4)3.21%
Max EPS beat(4)5.8%
EPS beat(8)8
Avg EPS beat(8)5.4%
EPS beat(12)11
Avg EPS beat(12)5.3%
EPS beat(16)14
Avg EPS beat(16)8.17%
Revenue beat(2)0
Avg Revenue beat(2)-0.13%
Min Revenue beat(2)-0.18%
Max Revenue beat(2)-0.07%
Revenue beat(4)1
Avg Revenue beat(4)-0.24%
Min Revenue beat(4)-0.87%
Max Revenue beat(4)0.16%
Revenue beat(8)4
Avg Revenue beat(8)-0.03%
Revenue beat(12)5
Avg Revenue beat(12)-0.44%
Revenue beat(16)8
Avg Revenue beat(16)1.04%
PT rev (1m)0.92%
PT rev (3m)4.05%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)-8.88%
EPS NY rev (1m)-2.08%
EPS NY rev (3m)-1.97%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-1.48%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.96 | ||
| Fwd PE | 28.07 | ||
| P/S | 2.53 | ||
| P/FCF | 33.96 | ||
| P/OCF | 23.31 | ||
| P/B | 16.99 | ||
| P/tB | 17.18 | ||
| EV/EBITDA | 18.92 |
EPS(TTM)4.26
EY3.34%
EPS(NY)4.55
Fwd EY3.56%
FCF(TTM)3.76
FCFY2.94%
OCF(TTM)5.47
OCFY4.29%
SpS50.45
BVpS7.51
TBVpS7.43
PEG (NY)4.46
PEG (5Y)3.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.32% | ||
| ROE | 57.95% | ||
| ROCE | 30.38% | ||
| ROIC | 22.79% | ||
| ROICexc | 30.68% | ||
| ROICexgc | 30.87% | ||
| OM | 11.18% | ||
| PM (TTM) | 8.63% | ||
| GM | 30.6% | ||
| FCFM | 7.45% |
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%
ROICexcg growth 3Y0.34%
ROICexcg 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 3Y-4.63%
GM growth 5Y-2.98%
F-Score7
Asset Turnover1.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 0.68 | ||
| Debt/EBITDA | 0.39 | ||
| Cap/Depr | 173.73% | ||
| Cap/Sales | 3.4% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 82.58% | ||
| Profit Quality | 86.31% | ||
| Current Ratio | 1.18 | ||
| Quick Ratio | 0.6 | ||
| Altman-Z | N/A |
F-Score7
WACC9.04%
ROIC/WACC2.52
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)10.36%
EPS 3Y14.34%
EPS 5Y9.71%
EPS Q2Q%0.82%
EPS Next Y6.71%
EPS Next 2Y8.79%
EPS Next 3Y9.45%
EPS Next 5Y9.9%
Revenue 1Y (TTM)3.95%
Revenue growth 3Y5.1%
Revenue growth 5Y6.2%
Sales Q2Q%-0.37%
Revenue Next Year4.77%
Revenue Next 2Y5.23%
Revenue Next 3Y5.63%
Revenue Next 5Y5.59%
EBIT growth 1Y8.71%
EBIT growth 3Y9.84%
EBIT growth 5Y7.32%
EBIT Next Year26.12%
EBIT Next 3Y14.35%
EBIT Next 5Y12.41%
FCF growth 1Y-3.16%
FCF growth 3Y27.77%
FCF growth 5Y8.1%
OCF growth 1Y0.97%
OCF growth 3Y26%
OCF growth 5Y8.5%