TJX COMPANIES INC (TJX.DE) Stock Fundamental Analysis
FRA:TJX - Deutsche Boerse Ag - US8725401090 - Common Stock - Currency: EUR
Taking everything into account, TJX scores 6 out of 10 in our fundamental rating. TJX was compared to 52 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.
TJX had positive earnings in each of the past 5 years.
Each year in the past 5 years TJX had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 15.16%, TJX belongs to the top of the industry, outperforming 96.15% of the companies in the same industry.
Looking at the Return On Equity, with a value of 56.80%, TJX belongs to the top of the industry, outperforming 98.08% of the companies in the same industry.
TJX has a Return On Invested Capital of 22.39%. This is amongst the best in the industry. TJX outperforms 94.23% 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 9.27%.
The last Return On Invested Capital (22.39%) for TJX is above the 3 year average (21.84%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.16% | ||
| ROE | 56.8% | ||
| ROIC | 22.39% |
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's Profit Margin of 8.47% is amongst the best of the industry. TJX outperforms 90.38% of its industry peers.
In the last couple of years the Profit Margin of TJX has grown nicely.
TJX's Operating Margin of 11.02% is amongst the best of the industry. TJX outperforms 84.62% of its industry peers.
In the last couple of years the Operating Margin of TJX has remained more or less at the same level.
With a Gross Margin value of 30.48%, TJX perfoms like the industry average, outperforming 40.38% 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 | 11.02% | ||
| PM (TTM) | 8.47% | ||
| GM | 30.48% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), TJX is creating value.
The number of shares outstanding for TJX has been reduced compared to 1 year ago.
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 6.35 indicates that TJX is not in any danger for bankruptcy at the moment.
TJX has a Altman-Z score of 6.35. This is amongst the best in the industry. TJX outperforms 98.08% of its industry peers.
The Debt to FCF ratio of TJX is 0.76, which is an excellent value as it means it would take TJX, only 0.76 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.76, TJX belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
A Debt/Equity ratio of 0.34 indicates that TJX is not too dependend on debt financing.
TJX has a better Debt to Equity ratio (0.34) than 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 0.76 | ||
| Altman-Z | 6.35 |
ROIC/WACC2.35
WACC9.54%
2.3 Liquidity
TJX has a Current Ratio of 1.16. 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 (1.16) which is comparable to the rest of the industry.
A Quick Ratio of 0.51 indicates that TJX may have some problems paying its short term obligations.
With a Quick ratio value of 0.51, TJX perfoms like the industry average, outperforming 48.08% of the companies in the same 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 | 1.16 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
TJX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.46%.
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 3.79% in the past year.
The Revenue has been growing slightly by 6.20% on average over the past years.
EPS 1Y (TTM)5.46%
EPS 3Y14.34%
EPS 5Y9.71%
EPS Q2Q%-1.08%
Revenue 1Y (TTM)3.79%
Revenue growth 3Y5.1%
Revenue growth 5Y6.2%
Sales Q2Q%5.06%
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 9.22% on average per year.
TJX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.58% yearly.
EPS Next Y6.65%
EPS Next 2Y8.61%
EPS Next 3Y9.18%
EPS Next 5Y9.22%
Revenue Next Year5.54%
Revenue Next 2Y5.42%
Revenue Next 3Y5.56%
Revenue Next 5Y5.58%
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
Based on the Price/Earnings ratio of 28.69, the valuation of TJX can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as TJX.
Compared to an average S&P500 Price/Earnings ratio of 27.50, TJX is valued at the same level.
TJX is valuated rather expensively with a Price/Forward Earnings ratio of 24.28.
TJX's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of TJX to the average of the S&P500 Index (36.44), we can say TJX is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.69 | ||
| Fwd PE | 24.28 |
4.2 Price Multiples
TJX's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TJX is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.04 | ||
| EV/EBITDA | 18.17 |
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 TJX may justify a higher PE ratio.
PEG (NY)4.32
PEG (5Y)2.95
EPS Next 2Y8.61%
EPS Next 3Y9.18%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.39%, TJX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.09, TJX pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.39, TJX pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
5.2 History
On average, the dividend of TJX grows each year by 10.48%, which is quite nice.
Dividend Growth(5Y)10.48%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
35.03% of the earnings are spent on dividend by TJX. This is a low number and sustainable payout ratio.
The dividend of TJX is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP35.03%
EPS Next 2Y8.61%
EPS Next 3Y9.18%
FRA:TJX (7/18/2025, 1:31:40 PM)
104.72
-0.36 (-0.34%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners92.55%
Inst Owner ChangeN/A
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap116.83B
Analysts84
Price Target125.43 (19.78%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
Yearly Dividend1.25
Dividend Growth(5Y)10.48%
DP35.03%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.7%
Min EPS beat(2)0.61%
Max EPS beat(2)4.79%
EPS beat(4)4
Avg EPS beat(4)2.96%
Min EPS beat(4)0.61%
Max EPS beat(4)4.79%
EPS beat(8)8
Avg EPS beat(8)4.79%
EPS beat(12)11
Avg EPS beat(12)4.34%
EPS beat(16)14
Avg EPS beat(16)5.59%
Revenue beat(2)0
Avg Revenue beat(2)-0.16%
Min Revenue beat(2)-0.25%
Max Revenue beat(2)-0.07%
Revenue beat(4)1
Avg Revenue beat(4)-0.09%
Min Revenue beat(4)-0.25%
Max Revenue beat(4)0.16%
Revenue beat(8)4
Avg Revenue beat(8)0.1%
Revenue beat(12)5
Avg Revenue beat(12)-0.25%
Revenue beat(16)7
Avg Revenue beat(16)0.03%
PT rev (1m)-0.89%
PT rev (3m)-1.74%
EPS NQ rev (1m)0.23%
EPS NQ rev (3m)-2.39%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)-0.11%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)0.3%
Revenue NY rev (1m)0.36%
Revenue NY rev (3m)0.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.69 | ||
| Fwd PE | 24.28 | ||
| P/S | 2.39 | ||
| P/FCF | 36.04 | ||
| P/OCF | 23.58 | ||
| P/B | 16.01 | ||
| P/tB | 16.19 | ||
| EV/EBITDA | 18.17 |
EPS(TTM)3.65
EY3.49%
EPS(NY)4.31
Fwd EY4.12%
FCF(TTM)2.91
FCFY2.78%
OCF(TTM)4.44
OCFY4.24%
SpS43.85
BVpS6.54
TBVpS6.47
PEG (NY)4.32
PEG (5Y)2.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.16% | ||
| ROE | 56.8% | ||
| ROCE | 29.85% | ||
| ROIC | 22.39% | ||
| ROICexc | 28.07% | ||
| ROICexgc | 28.23% | ||
| OM | 11.02% | ||
| PM (TTM) | 8.47% | ||
| GM | 30.48% | ||
| FCFM | 6.63% |
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%
ROICexcg growth 3Y0.34%
ROICexcg 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 Turnover1.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 0.76 | ||
| Debt/EBITDA | 0.39 | ||
| Cap/Depr | 175.7% | ||
| Cap/Sales | 3.5% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.87% | ||
| Profit Quality | 78.2% | ||
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.51 | ||
| Altman-Z | 6.35 |
F-Score6
WACC9.54%
ROIC/WACC2.35
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)5.46%
EPS 3Y14.34%
EPS 5Y9.71%
EPS Q2Q%-1.08%
EPS Next Y6.65%
EPS Next 2Y8.61%
EPS Next 3Y9.18%
EPS Next 5Y9.22%
Revenue 1Y (TTM)3.79%
Revenue growth 3Y5.1%
Revenue growth 5Y6.2%
Sales Q2Q%5.06%
Revenue Next Year5.54%
Revenue Next 2Y5.42%
Revenue Next 3Y5.56%
Revenue Next 5Y5.58%
EBIT growth 1Y5.23%
EBIT growth 3Y9.84%
EBIT growth 5Y7.32%
EBIT Next Year26.31%
EBIT Next 3Y14.46%
EBIT Next 5Y10.79%
FCF growth 1Y-4.62%
FCF growth 3Y27.77%
FCF growth 5Y8.1%
OCF growth 1Y5.67%
OCF growth 3Y26%
OCF growth 5Y8.5%