TJX COMPANIES INC (1TJX.MI) Stock Fundamental Analysis
BIT:1TJX - Euronext Milan - US8725401090 - Common Stock - Currency: EUR
1TJX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 53 industry peers in the Specialty Retail industry. 1TJX scores excellent on profitability, but there are some minor concerns on its financial health. 1TJX is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year 1TJX was profitable.
1TJX had a positive operating cash flow in the past year.
1TJX had positive earnings in each of the past 5 years.
1TJX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 15.01%, 1TJX belongs to the best of the industry, outperforming 96.23% of the companies in the same industry.
The Return On Equity of 1TJX (59.57%) is better than 98.11% of its industry peers.
The Return On Invested Capital of 1TJX (23.00%) is better than 96.23% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1TJX is significantly above the industry average of 9.00%.
The last Return On Invested Capital (23.00%) for 1TJX is above the 3 year average (20.91%), which is a sign of increasing profitability.
| 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
With an excellent Profit Margin value of 8.63%, 1TJX belongs to the best of the industry, outperforming 92.45% of the companies in the same industry.
1TJX's Profit Margin has been stable in the last couple of years.
1TJX has a Operating Margin of 11.07%. This is amongst the best in the industry. 1TJX outperforms 88.68% of its industry peers.
1TJX's Operating Margin has been stable in the last couple of years.
1TJX has a Gross Margin of 30.40%. This is in the lower half of the industry: 1TJX underperforms 60.38% of its industry peers.
1TJX'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), 1TJX is creating value.
Compared to 1 year ago, 1TJX has less shares outstanding
Compared to 5 years ago, 1TJX has less shares outstanding
The debt/assets ratio for 1TJX has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of 1TJX is 0.66, which is an excellent value as it means it would take 1TJX, only 0.66 years of fcf income to pay off all of its debts.
1TJX has a Debt to FCF ratio of 0.66. This is amongst the best in the industry. 1TJX outperforms 96.23% of its industry peers.
A Debt/Equity ratio of 0.35 indicates that 1TJX is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.35, 1TJX is doing good in the industry, outperforming 69.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 0.66 | ||
| Altman-Z | N/A |
ROIC/WACC2.34
WACC9.82%
2.3 Liquidity
1TJX has a Current Ratio of 1.19. This is a normal value and indicates that 1TJX is financially healthy and should not expect problems in meeting its short term obligations.
1TJX has a Current ratio (1.19) which is in line with its industry peers.
A Quick Ratio of 0.50 indicates that 1TJX may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.50, 1TJX is in line with its industry, outperforming 49.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.5 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.40% over the past year.
The Earnings Per Share has been growing by 9.70% on average over the past years. This is quite good.
1TJX shows a small growth in Revenue. In the last year, the Revenue has grown by 7.83%.
Measured over the past years, 1TJX shows a small growth in Revenue. The Revenue has been growing by 6.83% on average per year.
EPS 1Y (TTM)20.4%
EPS 3Y280.63%
EPS 5Y9.7%
EPS Q2Q%10.68%
Revenue 1Y (TTM)7.83%
Revenue growth 3Y19.04%
Revenue growth 5Y6.83%
Sales Q2Q%6.02%
3.2 Future
Based on estimates for the next years, 1TJX will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.43% on average per year.
1TJX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.75% yearly.
EPS Next Y11.41%
EPS Next 2Y10.48%
EPS Next 3Y10.76%
EPS Next 5Y11.43%
Revenue Next Year4.16%
Revenue Next 2Y4.93%
Revenue Next 3Y5.29%
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
1TJX is valuated quite expensively with a Price/Earnings ratio of 30.36.
1TJX's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of 1TJX to the average of the S&P500 Index (26.52), we can say 1TJX is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 27.82, the valuation of 1TJX can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as 1TJX.
When comparing the Price/Forward Earnings ratio of 1TJX to the average of the S&P500 Index (22.25), we can say 1TJX is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.36 | ||
| Fwd PE | 27.82 |
4.2 Price Multiples
1TJX'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 1TJX.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.22 | ||
| EV/EBITDA | 19.64 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of 1TJX may justify a higher PE ratio.
PEG (NY)2.66
PEG (5Y)3.13
EPS Next 2Y10.48%
EPS Next 3Y10.76%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.33%, 1TJX has a reasonable but not impressive dividend return.
1TJX's Dividend Yield is a higher than the industry average which is at 4.67.
With a Dividend Yield of 1.33, 1TJX pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
5.2 History
The dividend of 1TJX is nicely growing with an annual growth rate of 10.48%!
Dividend Growth(5Y)10.48%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
1TJX pays out 32.96% of its income as dividend. This is a sustainable payout ratio.
1TJX's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP32.96%
EPS Next 2Y10.48%
EPS Next 3Y10.76%
BIT:1TJX (5/27/2025, 7:00:00 PM)
112.94
-6.34 (-5.32%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners92.57%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap126.10B
Analysts83.7
Price Target126.63 (12.12%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
Yearly Dividend1.28
Dividend Growth(5Y)10.48%
DP32.96%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
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)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
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)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.36 | ||
| Fwd PE | 27.82 | ||
| P/S | 2.57 | ||
| P/FCF | 33.22 | ||
| P/OCF | 23.35 | ||
| P/B | 17.74 | ||
| P/tB | 17.95 | ||
| EV/EBITDA | 19.64 |
EPS(TTM)3.72
EY3.29%
EPS(NY)4.06
Fwd EY3.59%
FCF(TTM)3.4
FCFY3.01%
OCF(TTM)4.84
OCFY4.28%
SpS43.94
BVpS6.36
TBVpS6.29
PEG (NY)2.66
PEG (5Y)3.13
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
WACC9.82%
ROIC/WACC2.34
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 3Y280.63%
EPS 5Y9.7%
EPS Q2Q%10.68%
EPS Next Y11.41%
EPS Next 2Y10.48%
EPS Next 3Y10.76%
EPS Next 5Y11.43%
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%