TJX COMPANIES INC (TJX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TJX - US8725401090 - Common Stock
151.43 USD
+3.36 (+2.27%)
151.144 USD
-0.29 (-0.19%)
We assign a fundamental rating of 5 out of 10 to TJX. TJX was compared to 122 industry peers in the Specialty Retail industry. TJX has an excellent profitability rating, 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
In the past year TJX was profitable.
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
The Return On Assets of TJX (14.55%) is better than 90.98% of its industry peers.
With an excellent Return On Equity value of 54.70%, TJX belongs to the best of the industry, outperforming 97.54% of the companies in the same industry.
The Return On Invested Capital of TJX (23.62%) is better than 91.80% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TJX is significantly above the industry average of 11.69%.
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
TJX has a better Profit Margin (8.68%) than 86.07% of its industry peers.
TJX's Profit Margin has improved in the last couple of years.
TJX's Operating Margin of 11.31% is amongst the best of the industry. TJX outperforms 85.25% of its industry peers.
TJX's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 30.85%, TJX is not doing good in the industry: 63.93% 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. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), TJX 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
The Debt to FCF ratio of TJX is 0.65, which is an excellent value as it means it would take TJX, only 0.65 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of TJX (0.65) is better than 83.61% 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.
TJX has a better Debt to Equity ratio (0.20) than 63.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 0.65 | ||
| Altman-Z | N/A |
ROIC/WACC2.58
WACC9.14%
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 67.21% 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.
Looking at the Quick ratio, with a value of 0.43, TJX is in line with its industry, outperforming 42.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.59% over the past year.
The Earnings Per Share has been growing by 9.71% on average over the past years. This is quite good.
TJX shows a small growth in Revenue. In the last year, the Revenue has grown by 4.53%.
TJX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.20% yearly.
EPS 1Y (TTM)6.59%
EPS 3Y14.34%
EPS 5Y9.71%
EPS Q2Q%12.28%
Revenue 1Y (TTM)4.53%
Revenue growth 3Y5.1%
Revenue growth 5Y6.2%
Sales Q2Q%7.49%
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 10.09% yearly.
Based on estimates for the next years, TJX will show a small growth in Revenue. The Revenue will grow by 5.48% on average per year.
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
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
A Price/Earnings ratio of 33.43 indicates a quite expensive valuation of TJX.
TJX's Price/Earnings is on the same level as the industry average.
TJX's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 25.45.
TJX is valuated quite expensively with a Price/Forward Earnings ratio of 29.55.
TJX's Price/Forward Earnings ratio is in line with the industry average.
TJX's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 34.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.43 | ||
| Fwd PE | 29.55 |
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 60.66% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as TJX.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.15 | ||
| EV/EBITDA | 20.64 |
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)3.69
PEG (5Y)3.44
EPS Next 2Y9.68%
EPS Next 3Y9.59%
5. Dividend
5.1 Amount
TJX has a Yearly Dividend Yield of 1.15%.
TJX's Dividend Yield is a higher than the industry average which is at 5.60.
Compared to an average S&P500 Dividend Yield of 2.45, TJX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
5.2 History
On average, the dividend of TJX grows each year by 10.53%, which is quite nice.
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)10.53%
Div Incr Years4
Div Non Decr Years4
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 2Y9.68%
EPS Next 3Y9.59%
151.43
+3.36 (+2.27%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners93.12%
Inst Owner Change-1.15%
Ins Owners0.09%
Ins Owner Change-0.21%
Market Cap168.53B
Revenue(TTM)58.98B
Net Income(TTM)5.12B
Analysts84.62
Price Target156.3 (3.22%)
Short Float %1.2%
Short Ratio2.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
Yearly Dividend1.46
Dividend Growth(5Y)10.53%
DP35.03%
Div Incr Years4
Div Non Decr Years4
Ex-Date
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)1.26%
PT rev (3m)7.31%
EPS NQ rev (1m)0.35%
EPS NQ rev (3m)-0.07%
EPS NY rev (1m)0.12%
EPS NY rev (3m)2.26%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)0.85%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.43 | ||
| Fwd PE | 29.55 | ||
| P/S | 2.86 | ||
| P/FCF | 38.15 | ||
| P/OCF | 26.25 | ||
| P/B | 18.01 | ||
| P/tB | 18.19 | ||
| EV/EBITDA | 20.64 |
EPS(TTM)4.53
EY2.99%
EPS(NY)5.12
Fwd EY3.38%
FCF(TTM)3.97
FCFY2.62%
OCF(TTM)5.77
OCFY3.81%
SpS52.99
BVpS8.41
TBVpS8.32
PEG (NY)3.69
PEG (5Y)3.44
Graham Number29.28
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 | N/A |
F-Score6
WACC9.14%
ROIC/WACC2.58
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)6.59%
EPS 3Y14.34%
EPS 5Y9.71%
EPS Q2Q%12.28%
EPS Next Y9.06%
EPS Next 2Y9.68%
EPS Next 3Y9.59%
EPS Next 5Y10.09%
Revenue 1Y (TTM)4.53%
Revenue growth 3Y5.1%
Revenue growth 5Y6.2%
Sales Q2Q%7.49%
Revenue Next Year6.09%
Revenue Next 2Y5.93%
Revenue Next 3Y5.97%
Revenue Next 5Y5.48%
EBIT growth 1Y6.84%
EBIT growth 3Y9.84%
EBIT growth 5Y7.32%
EBIT Next Year28.17%
EBIT Next 3Y14.87%
EBIT Next 5Y10.86%
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 FAQ
Can you provide the ChartMill fundamental rating for TJX COMPANIES INC?
ChartMill assigns a fundamental rating of 5 / 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 35.03%.