TJX COMPANIES INC (TJX.DE) Stock Fundamental Analysis
FRA:TJX - Deutsche Boerse Ag - US8725401090 - Common Stock - Currency: EUR
Overall TJX gets a fundamental rating of 6 out of 10. We evaluated TJX against 56 industry peers in the Specialty Retail industry. TJX scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 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.
Each year in the past 5 years TJX has been profitable.
In the past 5 years TJX always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 15.16%, TJX belongs to the best of the industry, outperforming 98.21% of the companies in the same industry.
TJX has a better Return On Equity (56.80%) than 98.21% of its industry peers.
TJX's Return On Invested Capital of 22.39% is amongst the best of the industry. TJX outperforms 96.43% 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 8.99%.
The 3 year average ROIC (21.84%) for TJX is below the current ROIC(22.39%), indicating increased profibility in the last year.
| 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 has a better Profit Margin (8.47%) than 92.86% 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 87.50% of its industry peers.
TJX's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 30.48%, TJX perfoms like the industry average, outperforming 48.21% 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
TJX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for TJX has been reduced compared to 1 year ago.
TJX has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, TJX has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.41 indicates that TJX is not in any danger for bankruptcy at the moment.
TJX's Altman-Z score of 6.41 is amongst the best of the industry. TJX outperforms 94.64% of its industry peers.
TJX has a debt to FCF ratio of 0.76. This is a very positive value and a sign of high solvency as it would only need 0.76 years to pay back of all of its debts.
TJX has a better Debt to FCF ratio (0.76) than 96.43% of its industry peers.
TJX has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.34, TJX is doing good in the industry, outperforming 73.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 0.76 | ||
| Altman-Z | 6.41 |
ROIC/WACC2.34
WACC9.56%
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.
The Current ratio of TJX (1.16) 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.
TJX has a Quick ratio of 0.51. This is comparable to the rest of the industry: TJX outperforms 50.00% of its industry peers.
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 | 1.16 | ||
| 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%.
The Earnings Per Share has been growing by 9.71% on average over the past years. This is quite good.
Looking at the last year, TJX shows a small growth in Revenue. The Revenue has grown by 3.79% in the last 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 9.74% on average per year.
TJX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.69% yearly.
EPS Next Y6.36%
EPS Next 2Y8.49%
EPS Next 3Y9.26%
EPS Next 5Y9.74%
Revenue Next Year5.12%
Revenue Next 2Y5.4%
Revenue Next 3Y5.65%
Revenue Next 5Y5.69%
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 29.19 indicates a quite expensive valuation of TJX.
TJX's Price/Earnings ratio is a bit cheaper when compared to the industry. TJX is cheaper than 60.71% of the companies in the same industry.
TJX is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.32, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 24.73, which indicates a rather expensive current valuation of TJX.
TJX's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.13. TJX is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.19 | ||
| Fwd PE | 24.73 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as TJX.
TJX's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.66 | ||
| EV/EBITDA | 18.49 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
TJX has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.59
PEG (5Y)3.01
EPS Next 2Y8.49%
EPS Next 3Y9.26%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.37%, TJX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.89, TJX pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.37, TJX pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
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
TJX pays out 35.03% of its income as dividend. This is a sustainable payout ratio.
TJX's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP35.03%
EPS Next 2Y8.49%
EPS Next 3Y9.26%
FRA:TJX (6/12/2025, 7:00:00 PM)
107.72
-1.52 (-1.39%)
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 Cap120.27B
Analysts83.7
Price Target126.56 (17.49%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
Yearly Dividend1.27
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)2.24%
PT rev (3m)-4.28%
EPS NQ rev (1m)-2.61%
EPS NQ rev (3m)-2.6%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.41%
Revenue NQ rev (1m)0.29%
Revenue NQ rev (3m)0.32%
Revenue NY rev (1m)0.33%
Revenue NY rev (3m)0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.19 | ||
| Fwd PE | 24.73 | ||
| P/S | 2.43 | ||
| P/FCF | 36.66 | ||
| P/OCF | 23.98 | ||
| P/B | 16.28 | ||
| P/tB | 16.47 | ||
| EV/EBITDA | 18.49 |
EPS(TTM)3.69
EY3.43%
EPS(NY)4.36
Fwd EY4.04%
FCF(TTM)2.94
FCFY2.73%
OCF(TTM)4.49
OCFY4.17%
SpS44.34
BVpS6.62
TBVpS6.54
PEG (NY)4.59
PEG (5Y)3.01
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 | 6.41 |
F-Score6
WACC9.56%
ROIC/WACC2.34
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 Y6.36%
EPS Next 2Y8.49%
EPS Next 3Y9.26%
EPS Next 5Y9.74%
Revenue 1Y (TTM)3.79%
Revenue growth 3Y5.1%
Revenue growth 5Y6.2%
Sales Q2Q%5.06%
Revenue Next Year5.12%
Revenue Next 2Y5.4%
Revenue Next 3Y5.65%
Revenue Next 5Y5.69%
EBIT growth 1Y5.23%
EBIT growth 3Y9.84%
EBIT growth 5Y7.32%
EBIT Next Year26.31%
EBIT Next 3Y14.46%
EBIT Next 5Y12.5%
FCF growth 1Y-4.62%
FCF growth 3Y27.77%
FCF growth 5Y8.1%
OCF growth 1Y5.67%
OCF growth 3Y26%
OCF growth 5Y8.5%