TJX COMPANIES INC (TJX) Fundamental Analysis & Valuation
NYSE:TJX • US8725401090
Current stock price
161.6 USD
-3.4 (-2.06%)
At close:
161.8 USD
+0.2 (+0.12%)
After Hours:
This TJX fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. TJX Profitability Analysis
1.1 Basic Checks
- TJX had positive earnings in the past year.
- In the past year TJX had a positive cash flow from operations.
- In the past 5 years TJX has always been profitable.
- In the past 5 years TJX always reported a positive cash flow from operatings.
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 97.58% of its industry peers.
- With an excellent Return On Invested Capital value of 23.62%, TJX belongs to the best of the industry, outperforming 92.74% 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 13.35%.
- 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
- Looking at the Profit Margin, with a value of 8.68%, TJX belongs to the top of the industry, outperforming 87.90% of the companies in the same industry.
- TJX's Profit Margin has improved in the last couple of years.
- With an excellent Operating Margin value of 11.31%, TJX belongs to the best of the industry, outperforming 86.29% of the companies in the same industry.
- 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 30.85%, TJX is not doing good in the industry: 62.90% 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. TJX Health Analysis
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
- The debt/assets ratio for TJX has been reduced compared to a year ago.
2.2 Solvency
- TJX has an Altman-Z score of 6.95. This indicates that TJX is financially healthy and has little risk of bankruptcy at the moment.
- TJX has a Altman-Z score of 6.95. This is amongst the best in the industry. TJX outperforms 92.74% of its industry peers.
- 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.
- The Debt to FCF ratio of TJX (0.65) is better than 83.87% 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.
- The Debt to Equity ratio of TJX (0.20) is better than 62.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 0.65 | ||
| Altman-Z | 6.95 |
ROIC/WACC2.67
WACC8.84%
2.3 Liquidity
- A Current Ratio of 1.09 indicates that TJX should not have too much problems paying its short term obligations.
- TJX has a worse Current ratio (1.09) than 63.71% of its industry peers.
- 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.
- TJX has a Quick ratio of 0.43. This is in the lower half of the industry: TJX underperforms 60.48% of its industry peers.
- The current and quick ratio evaluation for TJX is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.43 |
3. TJX Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an nice 11.03% over the past year.
- Measured over the past years, TJX shows a very strong growth in Earnings Per Share. The EPS has been growing by 74.78% on average per year.
EPS 1Y (TTM)11.03%
EPS 3Y14.88%
EPS 5Y74.78%
EPS Q2Q%16.26%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%8.52%
3.2 Future
- The Earnings Per Share is expected to grow by 9.22% on average over the next years. This is quite good.
- TJX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.19% yearly.
EPS Next Y9.21%
EPS Next 2Y10.1%
EPS Next 3Y9.74%
EPS Next 5Y9.22%
Revenue Next Year6.35%
Revenue Next 2Y6.08%
Revenue Next 3Y6.34%
Revenue Next 5Y6.19%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
4. TJX Valuation Analysis
4.1 Price/Earnings Ratio
- TJX is valuated quite expensively with a Price/Earnings ratio of 34.16.
- The rest of the industry has a similar Price/Earnings ratio as TJX.
- TJX is valuated rather expensively when we compare the Price/Earnings ratio to 26.78, which is the current average of the S&P500 Index.
- TJX is valuated quite expensively with a Price/Forward Earnings ratio of 31.28.
- The rest of the industry has a similar Price/Forward Earnings ratio as TJX.
- TJX's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 23.54.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.16 | ||
| Fwd PE | 31.28 |
4.2 Price Multiples
- TJX's Enterprise Value to EBITDA is on the same level as the industry average.
- The rest of the industry has a similar Price/Free Cash Flow ratio as TJX.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.62 | ||
| EV/EBITDA | 22.97 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- TJX has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.71
PEG (5Y)0.46
EPS Next 2Y10.1%
EPS Next 3Y9.74%
5. TJX Dividend Analysis
5.1 Amount
- TJX has a Yearly Dividend Yield of 1.16%.
- Compared to an average industry Dividend Yield of 3.07, TJX pays a bit more dividend than its industry peers.
- TJX's Dividend Yield is slightly below the S&P500 average, which is at 1.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
5.2 History
- On average, the dividend of TJX grows each year by 48.20%, which is quite nice.
- TJX has been paying a dividend for at least 10 years, so it has a reliable track record.
- As TJX did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)48.2%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
- 35.03% of the earnings are spent on dividend by TJX. This is a low number and sustainable payout ratio.
- TJX's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP35.03%
EPS Next 2Y10.1%
EPS Next 3Y9.74%
TJX Fundamentals: All Metrics, Ratios and Statistics
161.6
-3.4 (-2.06%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)02-25 2026-02-25/bmo
Earnings (Next)05-20 2026-05-20
Inst Owners93.33%
Inst Owner Change0%
Ins Owners0.11%
Ins Owner Change4.47%
Market Cap178.86B
Revenue(TTM)N/A
Net Income(TTM)5.12B
Analysts84.8
Price Target174.75 (8.14%)
Short Float %1.13%
Short Ratio2.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
Yearly Dividend1.65
Dividend Growth(5Y)48.2%
DP35.03%
Div Incr Years5
Div Non Decr Years5
Ex-Date05-14 2026-05-14 (0.48)
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)2.82%
PT rev (3m)6.18%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.46%
EPS NY rev (1m)0%
EPS NY rev (3m)0.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.26%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.16 | ||
| Fwd PE | 31.28 | ||
| P/S | 3.04 | ||
| P/FCF | 40.62 | ||
| P/OCF | 27.95 | ||
| P/B | 19.17 | ||
| P/tB | 19.37 | ||
| EV/EBITDA | 22.97 |
EPS(TTM)4.73
EY2.93%
EPS(NY)5.17
Fwd EY3.2%
FCF(TTM)3.98
FCFY2.46%
OCF(TTM)5.78
OCFY3.58%
SpS53.11
BVpS8.43
TBVpS8.34
PEG (NY)3.71
PEG (5Y)0.46
Graham Number29.95
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 | 6.95 |
F-Score6
WACC8.84%
ROIC/WACC2.67
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)11.03%
EPS 3Y14.88%
EPS 5Y74.78%
EPS Q2Q%16.26%
EPS Next Y9.21%
EPS Next 2Y10.1%
EPS Next 3Y9.74%
EPS Next 5Y9.22%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%8.52%
Revenue Next Year6.35%
Revenue Next 2Y6.08%
Revenue Next 3Y6.34%
Revenue Next 5Y6.19%
EBIT growth 1Y6.84%
EBIT growth 3Y9.84%
EBIT growth 5Y7.32%
EBIT Next Year30.68%
EBIT Next 3Y15.8%
EBIT Next 5Y11.64%
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 Fundamental Analysis FAQ
Can you provide the ChartMill fundamental rating for TJX COMPANIES INC?
ChartMill assigns a fundamental rating of 6 / 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.
How profitable is TJX COMPANIES INC (TJX) stock?
TJX COMPANIES INC (TJX) has a profitability rating of 8 / 10.
What are the PE and PB ratios of TJX COMPANIES INC (TJX) stock?
The Price/Earnings (PE) ratio for TJX COMPANIES INC (TJX) is 34.16 and the Price/Book (PB) ratio is 19.17.
Is the dividend of TJX COMPANIES INC sustainable?
The dividend rating of TJX COMPANIES INC (TJX) is 5 / 10 and the dividend payout ratio is 35.03%.