TJX COMPANIES INC (TJX) Stock Fundamental Analysis
USA - NYSE:TJX - US8725401090 - Common Stock
141.91 USD
-0.49 (-0.34%)
141.91 USD
0 (0%)
Overall TJX gets a fundamental rating of 6 out of 10. We evaluated TJX against 119 industry peers in the Specialty Retail industry. TJX has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. TJX is valied quite expensively at the moment, while 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.
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
TJX's Return On Assets of 15.13% is amongst the best of the industry. TJX outperforms 91.60% of its industry peers.
The Return On Equity of TJX (56.10%) is better than 97.48% of its industry peers.
TJX's Return On Invested Capital of 22.51% is amongst the best of the industry. TJX outperforms 89.92% of its industry peers.
TJX had an Average Return On Invested Capital over the past 3 years of 21.84%. This is significantly above the industry average of 11.94%.
The 3 year average ROIC (21.84%) for TJX is below the current ROIC(22.51%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.13% | ||
| ROE | 56.1% | ||
| ROIC | 22.51% |
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 has a Profit Margin of 8.59%. This is amongst the best in the industry. TJX outperforms 85.71% 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 11.18%, TJX belongs to the best of the industry, outperforming 85.71% 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.
Looking at the Gross Margin, with a value of 30.57%, TJX is doing worse than 63.87% of the companies in the same industry.
In the last couple of years the Gross Margin of TJX has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.18% | ||
| PM (TTM) | 8.59% | ||
| GM | 30.57% |
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
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.
The debt/assets ratio for TJX has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.79 indicates that TJX is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.79, TJX belongs to the top of the industry, outperforming 94.12% of the companies in the same industry.
TJX has a debt to FCF ratio of 0.71. This is a very positive value and a sign of high solvency as it would only need 0.71 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.71, TJX belongs to the top of the industry, outperforming 83.19% of the companies in the same industry.
A Debt/Equity ratio of 0.32 indicates that TJX is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.32, TJX is in line with its industry, outperforming 57.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 0.71 | ||
| Altman-Z | 6.79 |
ROIC/WACC2.39
WACC9.42%
2.3 Liquidity
TJX has a Current Ratio of 1.17. 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 1.17. This is in the lower half of the industry: TJX underperforms 62.18% of its industry peers.
TJX has a Quick Ratio of 1.17. This is a bad value and indicates that TJX is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of TJX (0.52) is comparable to the rest of the industry.
TJX does not score too well on the current and quick ratio evaluation. However, as it has 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 | 1.17 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.04% 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.
The Revenue has been growing slightly by 4.14% in the past year.
The Revenue has been growing slightly by 6.20% on average over the past years.
EPS 1Y (TTM)6.04%
EPS 3Y14.34%
EPS 5Y9.71%
EPS Q2Q%14.58%
Revenue 1Y (TTM)4.14%
Revenue growth 3Y5.1%
Revenue growth 5Y6.2%
Sales Q2Q%6.93%
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 9.66% on average per year.
Based on estimates for the next years, TJX will show a small growth in Revenue. The Revenue will grow by 5.75% on average per year.
EPS Next Y8.92%
EPS Next 2Y9.52%
EPS Next 3Y9.47%
EPS Next 5Y9.66%
Revenue Next Year6.09%
Revenue Next 2Y5.93%
Revenue Next 3Y5.93%
Revenue Next 5Y5.75%
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 32.33, TJX can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of TJX is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.91, TJX is valued a bit more expensive.
The Price/Forward Earnings ratio is 27.77, which means the current valuation is very expensive for TJX.
The rest of the industry has a similar Price/Forward Earnings ratio as TJX.
When comparing the Price/Forward Earnings ratio of TJX to the average of the S&P500 Index (22.92), we can say TJX is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.33 | ||
| Fwd PE | 27.77 |
4.2 Price Multiples
60.50% of the companies in the same industry are cheaper than TJX, based on the Enterprise Value to EBITDA ratio.
TJX's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.08 | ||
| EV/EBITDA | 20.47 |
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)3.62
PEG (5Y)3.33
EPS Next 2Y9.52%
EPS Next 3Y9.47%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.19%, TJX has a reasonable but not impressive dividend return.
TJX's Dividend Yield is a higher than the industry average which is at 5.52.
With a Dividend Yield of 1.19, TJX pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
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
35.04% 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.
DP35.04%
EPS Next 2Y9.52%
EPS Next 3Y9.47%
141.91
-0.49 (-0.34%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners93.12%
Inst Owner Change0.02%
Ins Owners0.09%
Ins Owner Change-0.09%
Market Cap157.94B
Revenue(TTM)57.92B
Net Income(TTM)4.97B
Analysts84
Price Target152.96 (7.79%)
Short Float %1.41%
Short Ratio3.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
Yearly Dividend1.46
Dividend Growth(5Y)10.48%
DP35.04%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.04%
Min EPS beat(2)0.61%
Max EPS beat(2)7.47%
EPS beat(4)4
Avg EPS beat(4)4.03%
Min EPS beat(4)0.61%
Max EPS beat(4)7.47%
EPS beat(8)8
Avg EPS beat(8)4.5%
EPS beat(12)11
Avg EPS beat(12)4.74%
EPS beat(16)14
Avg EPS beat(16)3.74%
Revenue beat(2)1
Avg Revenue beat(2)0.34%
Min Revenue beat(2)-0.25%
Max Revenue beat(2)0.94%
Revenue beat(4)1
Avg Revenue beat(4)0.11%
Min Revenue beat(4)-0.25%
Max Revenue beat(4)0.94%
Revenue beat(8)4
Avg Revenue beat(8)0.03%
Revenue beat(12)6
Avg Revenue beat(12)0.05%
Revenue beat(16)7
Avg Revenue beat(16)-0.44%
PT rev (1m)0%
PT rev (3m)5.86%
EPS NQ rev (1m)0.17%
EPS NQ rev (3m)-0.52%
EPS NY rev (1m)0.64%
EPS NY rev (3m)2.14%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)0.85%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.33 | ||
| Fwd PE | 27.77 | ||
| P/S | 2.73 | ||
| P/FCF | 39.08 | ||
| P/OCF | 26.61 | ||
| P/B | 17.81 | ||
| P/tB | 18.01 | ||
| EV/EBITDA | 20.47 |
EPS(TTM)4.39
EY3.09%
EPS(NY)5.11
Fwd EY3.6%
FCF(TTM)3.63
FCFY2.56%
OCF(TTM)5.33
OCFY3.76%
SpS52.05
BVpS7.97
TBVpS7.88
PEG (NY)3.62
PEG (5Y)3.33
Graham Number28.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.13% | ||
| ROE | 56.1% | ||
| ROCE | 30.01% | ||
| ROIC | 22.51% | ||
| ROICexc | 28.68% | ||
| ROICexgc | 28.84% | ||
| OM | 11.18% | ||
| PM (TTM) | 8.59% | ||
| GM | 30.57% | ||
| FCFM | 6.98% |
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 3Y-4.63%
GM growth 5Y-2.98%
F-Score6
Asset Turnover1.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 0.71 | ||
| Debt/EBITDA | 0.37 | ||
| Cap/Depr | 160.65% | ||
| Cap/Sales | 3.27% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.53% | ||
| Profit Quality | 81.24% | ||
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | 6.79 |
F-Score6
WACC9.42%
ROIC/WACC2.39
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)6.04%
EPS 3Y14.34%
EPS 5Y9.71%
EPS Q2Q%14.58%
EPS Next Y8.92%
EPS Next 2Y9.52%
EPS Next 3Y9.47%
EPS Next 5Y9.66%
Revenue 1Y (TTM)4.14%
Revenue growth 3Y5.1%
Revenue growth 5Y6.2%
Sales Q2Q%6.93%
Revenue Next Year6.09%
Revenue Next 2Y5.93%
Revenue Next 3Y5.93%
Revenue Next 5Y5.75%
EBIT growth 1Y6.18%
EBIT growth 3Y9.84%
EBIT growth 5Y7.32%
EBIT Next Year28.17%
EBIT Next 3Y14.8%
EBIT Next 5Y10.86%
FCF growth 1Y-11.77%
FCF growth 3Y27.77%
FCF growth 5Y8.1%
OCF growth 1Y-3.71%
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 6 / 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 8.92% 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 35.04%.