TJX COMPANIES INC (TJX)
US8725401090 - Common Stock
Overall TJX gets a fundamental rating of 6 out of 10. We evaluated TJX against 121 industry peers in the Specialty Retail industry. While TJX has a great profitability rating, there are some minor concerns on its financial health. 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.
TJX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TJX has a better Return On Assets (15.01%) than 90.83% of its industry peers.
TJX's Return On Equity of 59.57% is amongst the best of the industry. TJX outperforms 95.83% of its industry peers.
TJX's Return On Invested Capital of 23.00% is amongst the best of the industry. TJX outperforms 90.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TJX is significantly above the industry average of 12.29%.
The 3 year average ROIC (20.91%) for TJX is below the current ROIC(23.00%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.01% | ||
| ROE | 59.57% | ||
| ROIC | 23% |
ROA(3y)12.97%
ROA(5y)10.55%
ROE(3y)56.98%
ROE(5y)45.5%
ROIC(3y)20.91%
ROIC(5y)16.9%
1.3 Margins
TJX's Profit Margin of 8.63% is amongst the best of the industry. TJX outperforms 88.33% of its industry peers.
In the last couple of years the Profit Margin of TJX has remained more or less at the same level.
TJX has a better Operating Margin (11.07%) than 86.67% of its industry peers.
In the last couple of years the Operating Margin of TJX has remained more or less at the same level.
The Gross Margin of TJX (30.40%) is worse than 63.33% of its industry peers.
TJX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.07% | ||
| PM (TTM) | 8.63% | ||
| GM | 30.4% |
OM growth 3Y80.74%
OM growth 5Y-0.61%
PM growth 3Y208.87%
PM growth 5Y1%
GM growth 3Y3.44%
GM growth 5Y4.87%
2. Health
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
TJX has a better debt/assets ratio than last year.
2.2 Solvency
TJX has a debt to FCF ratio of 0.66. This is a very positive value and a sign of high solvency as it would only need 0.66 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.66, TJX belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
A Debt/Equity ratio of 0.35 indicates that TJX is not too dependend on debt financing.
The Debt to Equity ratio of TJX (0.35) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 0.66 | ||
| Altman-Z | N/A |
ROIC/WACC2.29
WACC10.03%
2.3 Liquidity
A Current Ratio of 1.19 indicates that TJX should not have too much problems paying its short term obligations.
TJX's Current ratio of 1.19 is on the low side compared to the rest of the industry. TJX is outperformed by 61.67% of its industry peers.
A Quick Ratio of 0.50 indicates that TJX may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.50, TJX is in line with its industry, outperforming 49.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.5 |
3. Growth
3.1 Past
TJX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.40%, which is quite impressive.
TJX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.20% yearly.
TJX shows a small growth in Revenue. In the last year, the Revenue has grown by 7.83%.
The Revenue has been growing slightly by 6.83% on average over the past years.
EPS 1Y (TTM)20.4%
EPS 3Y136.99%
EPS 5Y10.2%
EPS Q2Q%10.68%
Revenue 1Y (TTM)7.83%
Revenue growth 3Y19.04%
Revenue growth 5Y6.83%
Sales Q2Q%6.02%
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 11.08% yearly.
TJX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.75% yearly.
EPS Next Y9.66%
EPS Next 2Y9.61%
EPS Next 3Y10.18%
EPS Next 5Y11.08%
Revenue Next Year4.16%
Revenue Next 2Y4.93%
Revenue Next 3Y5.29%
Revenue Next 5Y5.75%
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
Based on the Price/Earnings ratio of 28.71, the valuation of TJX can be described as expensive.
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 27.20, TJX is valued at the same level.
With a Price/Forward Earnings ratio of 26.31, TJX can be considered very expensive at the moment.
TJX's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.73. TJX is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.71 | ||
| Fwd PE | 26.31 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as TJX.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TJX indicates a somewhat cheap valuation: TJX is cheaper than 62.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.41 | ||
| EV/EBITDA | 18.56 |
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)2.97
PEG (5Y)2.81
EPS Next 2Y9.61%
EPS Next 3Y10.18%
5. Dividend
5.1 Amount
TJX has a Yearly Dividend Yield of 1.24%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.46, TJX pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.24, TJX pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
5.2 History
The dividend of TJX is nicely growing with an annual growth rate of 11.69%!
TJX has been paying a dividend for at least 10 years, so it has a reliable track record.
TJX has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)11.69%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
32.96% 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.
DP32.96%
EPS Next 2Y9.61%
EPS Next 3Y10.18%
TJX COMPANIES INC
NYSE:TJX (12/20/2024, 8:04:00 PM)
After market: 124.49 +2.49 (+2.04%)122
+0.8 (+0.66%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners93.36%
Inst Owner Change-0.41%
Ins Owners0.05%
Ins Owner Change-2.2%
Market Cap137.15B
Analysts82.07
Price Target132.12 (8.3%)
Short Float %1.29%
Short Ratio2.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
Dividend Growth(5Y)11.69%
DP32.96%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.23%
Min EPS beat(2)3.21%
Max EPS beat(2)3.24%
EPS beat(4)4
Avg EPS beat(4)5.02%
Min EPS beat(4)3.21%
Max EPS beat(4)7.81%
EPS beat(8)7
Avg EPS beat(8)4.68%
EPS beat(12)10
Avg EPS beat(12)3.64%
EPS beat(16)13
Avg EPS beat(16)6.62%
Revenue beat(2)1
Avg Revenue beat(2)-0.01%
Min Revenue beat(2)-0.18%
Max Revenue beat(2)0.16%
Revenue beat(4)2
Avg Revenue beat(4)-0.16%
Min Revenue beat(4)-0.87%
Max Revenue beat(4)0.23%
Revenue beat(8)5
Avg Revenue beat(8)0.25%
Revenue beat(12)5
Avg Revenue beat(12)-0.73%
Revenue beat(16)8
Avg Revenue beat(16)0.69%
PT rev (1m)0.72%
PT rev (3m)-0.39%
EPS NQ rev (1m)-0.04%
EPS NQ rev (3m)-2.25%
EPS NY rev (1m)0.47%
EPS NY rev (3m)0.51%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-0.99%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.71 | ||
| Fwd PE | 26.31 | ||
| P/S | 2.43 | ||
| P/FCF | 31.41 | ||
| P/OCF | 22.08 | ||
| P/B | 16.78 | ||
| P/tB | 16.98 | ||
| EV/EBITDA | 18.56 |
EPS(TTM)4.25
EY3.48%
EPS(NY)4.64
Fwd EY3.8%
FCF(TTM)3.88
FCFY3.18%
OCF(TTM)5.53
OCFY4.53%
SpS50.19
BVpS7.27
TBVpS7.19
PEG (NY)2.97
PEG (5Y)2.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.01% | ||
| ROE | 59.57% | ||
| ROCE | 30.58% | ||
| ROIC | 23% | ||
| ROICexc | 29.91% | ||
| ROICexgc | 30.09% | ||
| OM | 11.07% | ||
| PM (TTM) | 8.63% | ||
| GM | 30.4% | ||
| FCFM | 7.74% |
ROA(3y)12.97%
ROA(5y)10.55%
ROE(3y)56.98%
ROE(5y)45.5%
ROIC(3y)20.91%
ROIC(5y)16.9%
ROICexc(3y)30.44%
ROICexc(5y)24.01%
ROICexgc(3y)30.67%
ROICexgc(5y)24.2%
ROCE(3y)27.8%
ROCE(5y)22.47%
ROICexcg growth 3Y90.51%
ROICexcg growth 5Y-10.88%
ROICexc growth 3Y90.73%
ROICexc growth 5Y-10.7%
OM growth 3Y80.74%
OM growth 5Y-0.61%
PM growth 3Y208.87%
PM growth 5Y1%
GM growth 3Y3.44%
GM growth 5Y4.87%
F-Score9
Asset Turnover1.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 0.66 | ||
| Debt/EBITDA | 0.39 | ||
| Cap/Depr | 176.31% | ||
| Cap/Sales | 3.27% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 85.2% | ||
| Profit Quality | 89.67% | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.5 | ||
| Altman-Z | N/A |
F-Score9
WACC10.03%
ROIC/WACC2.29
Cap/Depr(3y)154.42%
Cap/Depr(5y)133.9%
Cap/Sales(3y)2.75%
Cap/Sales(5y)2.59%
Profit Quality(3y)77.77%
Profit Quality(5y)951.57%
High Growth Momentum
Growth
EPS 1Y (TTM)20.4%
EPS 3Y136.99%
EPS 5Y10.2%
EPS Q2Q%10.68%
EPS Next Y9.66%
EPS Next 2Y9.61%
EPS Next 3Y10.18%
EPS Next 5Y11.08%
Revenue 1Y (TTM)7.83%
Revenue growth 3Y19.04%
Revenue growth 5Y6.83%
Sales Q2Q%6.02%
Revenue Next Year4.16%
Revenue Next 2Y4.93%
Revenue Next 3Y5.29%
Revenue Next 5Y5.75%
EBIT growth 1Y17.28%
EBIT growth 3Y115.16%
EBIT growth 5Y6.17%
EBIT Next Year27.2%
EBIT Next 3Y14.86%
EBIT Next 5Y13.33%
FCF growth 1Y489.36%
FCF growth 3Y2.77%
FCF growth 5Y7.9%
OCF growth 1Y186.29%
OCF growth 3Y9.91%
OCF growth 5Y8.18%