TJX COMPANIES INC (TJX.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:TJX - US8725401090 - Common Stock
131.28 EUR
-1.8 (-1.35%)
Taking everything into account, TJX scores 5 out of 10 in our fundamental rating. TJX was compared to 61 industry peers in the Specialty Retail industry. TJX has an excellent profitability rating, but there are some minor concerns on its financial health. TJX is quite expensive at the moment. 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
- TJX has a Return On Assets of 14.55%. This is amongst the best in the industry. TJX outperforms 93.44% of its industry peers.
- TJX has a better Return On Equity (54.70%) than 96.72% of its industry peers.
- TJX has a Return On Invested Capital of 23.62%. This is amongst the best in the industry. TJX outperforms 93.44% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for TJX is significantly above the industry average of 10.05%.
- The last Return On Invested Capital (23.62%) for TJX is above the 3 year average (21.84%), which is a sign of increasing profitability.
| 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 Profit Margin of 8.68%. This is amongst the best in the industry. TJX outperforms 86.89% of its industry peers.
- TJX's Profit Margin has improved in the last couple of years.
- TJX has a Operating Margin of 11.31%. This is amongst the best in the industry. TJX outperforms 86.89% 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 perfoms like the industry average, outperforming 47.54% of the companies in the same industry.
- 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 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.
- TJX has a better debt/assets ratio than last year.
2.2 Solvency
- TJX has a debt to FCF ratio of 0.65. This is a very positive value and a sign of high solvency as it would only need 0.65 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 0.65, TJX belongs to the top of the industry, outperforming 96.72% of the companies in the same industry.
- TJX has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
- Looking at the Debt to Equity ratio, with a value of 0.20, TJX belongs to the top of the industry, outperforming 86.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 0.65 | ||
| Altman-Z | N/A |
ROIC/WACC2.43
WACC9.7%
2.3 Liquidity
- A Current Ratio of 1.09 indicates that TJX should not have too much problems paying its short term obligations.
- The Current ratio of TJX (1.09) is worse than 60.66% 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.
- TJX has a worse Quick ratio (0.43) than 70.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
- TJX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.59%.
- TJX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.71% yearly.
- Looking at the last year, TJX shows a small growth in Revenue. The Revenue has grown by 4.53% in the last year.
- The Revenue has been growing slightly by 6.20% on average over the past years.
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
- Based on estimates for the next years, TJX will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.34% on average per year.
- Based on estimates for the next years, TJX will show a small growth in Revenue. The Revenue will grow by 5.64% on average per year.
EPS Next Y10.83%
EPS Next 2Y10.62%
EPS Next 3Y10.84%
EPS Next 5Y10.34%
Revenue Next Year6.63%
Revenue Next 2Y6.07%
Revenue Next 3Y6.19%
Revenue Next 5Y5.64%
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
- The Price/Earnings ratio is 33.92, which means the current valuation is very expensive for TJX.
- TJX's Price/Earnings ratio is in line with the industry average.
- When comparing the Price/Earnings ratio of TJX to the average of the S&P500 Index (27.32), we can say TJX is valued slightly more expensively.
- TJX is valuated quite expensively with a Price/Forward Earnings ratio of 29.48.
- The rest of the industry has a similar Price/Forward Earnings ratio as TJX.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.32, TJX is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.92 | ||
| Fwd PE | 29.48 |
4.2 Price Multiples
- TJX's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. TJX is more expensive than 62.30% of the companies in the same industry.
- 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 | 38.63 | ||
| EV/EBITDA | 21.38 |
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)3.13
PEG (5Y)3.49
EPS Next 2Y10.62%
EPS Next 3Y10.84%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.09%, TJX has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 1.26, TJX pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.83, TJX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
5.2 History
- On average, the dividend of TJX grows each year by 10.53%, which is quite nice.
Dividend Growth(5Y)10.53%
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.
- The dividend of TJX is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP35.03%
EPS Next 2Y10.62%
EPS Next 3Y10.84%
TJX COMPANIES INC / TJX.DE FAQ
Can you provide the ChartMill fundamental rating for TJX COMPANIES INC?
ChartMill assigns a fundamental rating of 5 / 10 to TJX.DE.
What is the valuation status of TJX COMPANIES INC (TJX.DE) stock?
ChartMill assigns a valuation rating of 2 / 10 to TJX COMPANIES INC (TJX.DE). This can be considered as Overvalued.
What is the profitability of TJX stock?
TJX COMPANIES INC (TJX.DE) has a profitability rating of 9 / 10.
Can you provide the PE and PB ratios for TJX stock?
The Price/Earnings (PE) ratio for TJX COMPANIES INC (TJX.DE) is 33.92 and the Price/Book (PB) ratio is 18.23.
What is the expected EPS growth for TJX COMPANIES INC (TJX.DE) stock?
The Earnings per Share (EPS) of TJX COMPANIES INC (TJX.DE) is expected to grow by 10.83% in the next year.