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 50 industry peers in the Specialty Retail industry. While TJX has a great profitability rating, 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.
TJX had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 15.32%, TJX belongs to the top of the industry, outperforming 94.00% of the companies in the same industry.
With an excellent Return On Equity value of 57.95%, TJX belongs to the best of the industry, outperforming 98.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 22.79%, TJX belongs to the top of the industry, outperforming 94.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TJX is significantly above the industry average of 9.50%.
The last Return On Invested Capital (22.79%) for TJX is above the 3 year average (21.84%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.32% | ||
| ROE | 57.95% | ||
| ROIC | 22.79% |
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 8.63%. This is amongst the best in the industry. TJX outperforms 92.00% of its industry peers.
TJX's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 11.18%, TJX belongs to the best of the industry, outperforming 88.00% of the companies in the same industry.
TJX's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 30.60%, TJX is in line with its industry, outperforming 46.00% 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 | 11.18% | ||
| PM (TTM) | 8.63% | ||
| GM | 30.6% |
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.
Compared to 1 year ago, TJX has less shares outstanding
TJX has less shares outstanding than it did 5 years ago.
TJX has a better debt/assets ratio than last year.
2.2 Solvency
TJX has a debt to FCF ratio of 0.68. This is a very positive value and a sign of high solvency as it would only need 0.68 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.68, TJX belongs to the best of the industry, outperforming 96.00% of the companies in the same industry.
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 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 0.68 | ||
| Altman-Z | N/A |
ROIC/WACC2.33
WACC9.77%
2.3 Liquidity
A Current Ratio of 1.18 indicates that TJX should not have too much problems paying its short term obligations.
The Current ratio of TJX (1.18) is comparable to the rest of the industry.
TJX has a Quick Ratio of 1.18. 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 Quick ratio (0.60) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.36% over the past year.
Measured over the past years, TJX shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.71% on average per year.
Looking at the last year, TJX shows a small growth in Revenue. The Revenue has grown by 3.95% in the last year.
Measured over the past years, TJX shows a small growth in Revenue. The Revenue has been growing by 6.20% on average per year.
EPS 1Y (TTM)10.36%
EPS 3Y14.34%
EPS 5Y9.71%
EPS Q2Q%0.82%
Revenue 1Y (TTM)3.95%
Revenue growth 3Y5.1%
Revenue growth 5Y6.2%
Sales Q2Q%-0.37%
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 9.90% on average per year.
Based on estimates for the next years, TJX will show a small growth in Revenue. The Revenue will grow by 5.59% on average per year.
EPS Next Y6.36%
EPS Next 2Y8.49%
EPS Next 3Y9.47%
EPS Next 5Y9.9%
Revenue Next Year4.77%
Revenue Next 2Y5.23%
Revenue Next 3Y5.6%
Revenue Next 5Y5.59%
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.
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
Based on the Price/Earnings ratio of 29.56, the valuation of TJX can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as TJX.
When comparing the Price/Earnings ratio of TJX to the average of the S&P500 Index (25.82), we can say TJX is valued inline with the index average.
The Price/Forward Earnings ratio is 27.82, which means the current valuation is very expensive for TJX.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TJX is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of TJX to the average of the S&P500 Index (21.76), we can say TJX is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.56 | ||
| Fwd PE | 27.82 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TJX is valued a bit more expensive than 60.00% 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 | 33.54 | ||
| EV/EBITDA | 19.35 |
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)4.65
PEG (5Y)3.04
EPS Next 2Y8.49%
EPS Next 3Y9.47%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.30%, TJX has a reasonable but not impressive dividend return.
TJX's Dividend Yield is a higher than the industry average which is at 4.81.
Compared to an average S&P500 Dividend Yield of 2.36, TJX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
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
33.88% 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.
DP33.88%
EPS Next 2Y8.49%
EPS Next 3Y9.47%
FRA:TJX (5/23/2025, 7:00:00 PM)
111.44
-3.94 (-3.41%)
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 Cap124.42B
Analysts82.86
Price Target123.79 (11.08%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
Yearly Dividend1.29
Dividend Growth(5Y)10.48%
DP33.88%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.01%
Min EPS beat(2)3.24%
Max EPS beat(2)4.79%
EPS beat(4)4
Avg EPS beat(4)4.26%
Min EPS beat(4)3.21%
Max EPS beat(4)5.8%
EPS beat(8)8
Avg EPS beat(8)5.4%
EPS beat(12)11
Avg EPS beat(12)5.3%
EPS beat(16)14
Avg EPS beat(16)8.17%
Revenue beat(2)0
Avg Revenue beat(2)-0.13%
Min Revenue beat(2)-0.18%
Max Revenue beat(2)-0.07%
Revenue beat(4)1
Avg Revenue beat(4)-0.24%
Min Revenue beat(4)-0.87%
Max Revenue beat(4)0.16%
Revenue beat(8)4
Avg Revenue beat(8)-0.03%
Revenue beat(12)5
Avg Revenue beat(12)-0.44%
Revenue beat(16)8
Avg Revenue beat(16)1.04%
PT rev (1m)-3.03%
PT rev (3m)-3.79%
EPS NQ rev (1m)-0.07%
EPS NQ rev (3m)-9.1%
EPS NY rev (1m)-0.38%
EPS NY rev (3m)-2.49%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-1.42%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.56 | ||
| Fwd PE | 27.82 | ||
| P/S | 2.5 | ||
| P/FCF | 33.54 | ||
| P/OCF | 23.02 | ||
| P/B | 16.77 | ||
| P/tB | 16.96 | ||
| EV/EBITDA | 19.35 |
EPS(TTM)3.77
EY3.38%
EPS(NY)4.01
Fwd EY3.6%
FCF(TTM)3.32
FCFY2.98%
OCF(TTM)4.84
OCFY4.34%
SpS44.61
BVpS6.64
TBVpS6.57
PEG (NY)4.65
PEG (5Y)3.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.32% | ||
| ROE | 57.95% | ||
| ROCE | 30.38% | ||
| ROIC | 22.79% | ||
| ROICexc | 30.68% | ||
| ROICexgc | 30.87% | ||
| OM | 11.18% | ||
| PM (TTM) | 8.63% | ||
| GM | 30.6% | ||
| FCFM | 7.45% |
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-Score7
Asset Turnover1.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 0.68 | ||
| Debt/EBITDA | 0.39 | ||
| Cap/Depr | 173.73% | ||
| Cap/Sales | 3.4% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 82.58% | ||
| Profit Quality | 86.31% | ||
| Current Ratio | 1.18 | ||
| Quick Ratio | 0.6 | ||
| Altman-Z | N/A |
F-Score7
WACC9.77%
ROIC/WACC2.33
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)10.36%
EPS 3Y14.34%
EPS 5Y9.71%
EPS Q2Q%0.82%
EPS Next Y6.36%
EPS Next 2Y8.49%
EPS Next 3Y9.47%
EPS Next 5Y9.9%
Revenue 1Y (TTM)3.95%
Revenue growth 3Y5.1%
Revenue growth 5Y6.2%
Sales Q2Q%-0.37%
Revenue Next Year4.77%
Revenue Next 2Y5.23%
Revenue Next 3Y5.6%
Revenue Next 5Y5.59%
EBIT growth 1Y8.71%
EBIT growth 3Y9.84%
EBIT growth 5Y7.32%
EBIT Next Year26.12%
EBIT Next 3Y14.35%
EBIT Next 5Y12.41%
FCF growth 1Y-3.16%
FCF growth 3Y27.77%
FCF growth 5Y8.1%
OCF growth 1Y0.97%
OCF growth 3Y26%
OCF growth 5Y8.5%