TJX COMPANIES INC (TJX) Stock Fundamental Analysis
USA - NYSE:TJX - US8725401090 - Common Stock
144.61 USD
+0.84 (+0.58%)
144.63 USD
+0.02 (+0.01%)
Taking everything into account, TJX scores 6 out of 10 in our fundamental rating. TJX was compared to 122 industry peers in the Specialty Retail industry. TJX gets an excellent profitability rating and is at the same time showing great financial health properties. 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.
TJX had a positive operating cash flow in the past year.
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 has a Return On Assets of 15.13%. This is amongst the best in the industry. TJX outperforms 91.80% of its industry peers.
With an excellent Return On Equity value of 56.10%, TJX belongs to the best of the industry, outperforming 97.54% of the companies in the same industry.
TJX's Return On Invested Capital of 22.51% is amongst the best of the industry. TJX outperforms 90.16% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TJX is significantly above the industry average of 11.67%.
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
Looking at the Profit Margin, with a value of 8.59%, TJX belongs to the top of the industry, outperforming 86.07% of the companies in the same industry.
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 85.25% of the companies in the same industry.
TJX's Operating Margin has been stable in the last couple of years.
TJX has a worse Gross Margin (30.57%) than 63.93% of its industry peers.
TJX's Gross Margin has declined in the last couple of years.
| 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
TJX has an Altman-Z score of 6.85. This indicates that TJX is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.85, TJX belongs to the top of the industry, outperforming 95.08% of the companies in the same industry.
The Debt to FCF ratio of TJX is 0.71, which is an excellent value as it means it would take TJX, only 0.71 years of fcf income to pay off 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 82.79% of the companies in the same industry.
TJX has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
TJX's Debt to Equity ratio of 0.32 is in line compared to the rest of the industry. TJX outperforms 58.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 0.71 | ||
| Altman-Z | 6.85 |
ROIC/WACC2.44
WACC9.22%
2.3 Liquidity
A Current Ratio of 1.17 indicates that TJX should not have too much problems paying its short term obligations.
With a Current ratio value of 1.17, TJX is not doing good in the industry: 62.30% of the companies in the same industry are doing better.
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.
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 | 1.17 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
TJX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.04%.
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 4.14% in the last 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
The Earnings Per Share is expected to grow by 10.09% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.48% on average over the next years.
EPS Next Y9.06%
EPS Next 2Y9.68%
EPS Next 3Y9.59%
EPS Next 5Y10.09%
Revenue Next Year6.09%
Revenue Next 2Y5.93%
Revenue Next 3Y5.97%
Revenue Next 5Y5.48%
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
TJX is valuated quite expensively with a Price/Earnings ratio of 32.94.
The rest of the industry has a similar Price/Earnings ratio as TJX.
TJX's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.06.
With a Price/Forward Earnings ratio of 28.22, TJX can be considered very expensive at the moment.
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 (32.73), we can say TJX is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.94 | ||
| Fwd PE | 28.22 |
4.2 Price Multiples
TJX's Enterprise Value to EBITDA ratio is in line with the industry average.
TJX's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.83 | ||
| EV/EBITDA | 20.79 |
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.
TJX has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.64
PEG (5Y)3.39
EPS Next 2Y9.68%
EPS Next 3Y9.59%
5. Dividend
5.1 Amount
TJX has a Yearly Dividend Yield of 1.18%.
Compared to an average industry Dividend Yield of 5.42, TJX pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.37, TJX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
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 2Y9.68%
EPS Next 3Y9.59%
144.61
+0.84 (+0.58%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners93.12%
Inst Owner Change-1.26%
Ins Owners0.09%
Ins Owner Change-0.09%
Market Cap160.94B
Revenue(TTM)57.92B
Net Income(TTM)4.97B
Analysts84.62
Price Target154.89 (7.11%)
Short Float %1.36%
Short Ratio3.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
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)1.26%
PT rev (3m)7.31%
EPS NQ rev (1m)0.51%
EPS NQ rev (3m)-0.07%
EPS NY rev (1m)0.12%
EPS NY rev (3m)2.26%
Revenue NQ rev (1m)0.11%
Revenue NQ rev (3m)0.96%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.94 | ||
| Fwd PE | 28.22 | ||
| P/S | 2.78 | ||
| P/FCF | 39.83 | ||
| P/OCF | 27.12 | ||
| P/B | 18.15 | ||
| P/tB | 18.35 | ||
| EV/EBITDA | 20.79 |
EPS(TTM)4.39
EY3.04%
EPS(NY)5.12
Fwd EY3.54%
FCF(TTM)3.63
FCFY2.51%
OCF(TTM)5.33
OCFY3.69%
SpS52.05
BVpS7.97
TBVpS7.88
PEG (NY)3.64
PEG (5Y)3.39
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 | 6.85 |
F-Score6
WACC9.22%
ROIC/WACC2.44
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 Y9.06%
EPS Next 2Y9.68%
EPS Next 3Y9.59%
EPS Next 5Y10.09%
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 3Y5.97%
Revenue Next 5Y5.48%
EBIT growth 1Y6.18%
EBIT growth 3Y9.84%
EBIT growth 5Y7.32%
EBIT Next Year28.17%
EBIT Next 3Y14.87%
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 9.06% 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%.