TJX COMPANIES INC (TJX.DE) Stock Fundamental Analysis
Europe - FRA:TJX - US8725401090 - Common Stock
119.06 EUR
+0.02 (+0.02%)
We assign a fundamental rating of 6 out of 10 to TJX. TJX was compared to 53 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 quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year TJX was profitable.
TJX had a positive operating cash flow in the past year.
In the past 5 years TJX has always been profitable.
In the past 5 years TJX always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of TJX (15.16%) is better than 98.11% of its industry peers.
The Return On Equity of TJX (56.80%) is better than 98.11% of its industry peers.
The Return On Invested Capital of TJX (22.39%) is better than 96.23% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TJX is significantly above the industry average of 8.43%.
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
With an excellent Profit Margin value of 8.47%, TJX belongs to the best of the industry, outperforming 92.45% of the companies in the same industry.
TJX's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 11.02%, TJX belongs to the top of the industry, outperforming 88.68% of the companies in the same industry.
In the last couple of years the Operating Margin of TJX has remained more or less at the same level.
The Gross Margin of TJX (30.48%) is comparable to the rest of the 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.
Compared to 1 year ago, TJX has an improved debt to assets ratio.
2.2 Solvency
TJX has an Altman-Z score of 6.84. This indicates that TJX is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 6.84, TJX belongs to the best of the industry, outperforming 98.11% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 0.76, TJX belongs to the top of the industry, outperforming 98.11% 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.
TJX has a better Debt to Equity ratio (0.34) than 75.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 0.76 | ||
| Altman-Z | 6.84 |
ROIC/WACC2.34
WACC9.58%
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.
TJX has a Quick ratio (0.51) which is comparable to the rest of the 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 6.04%.
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.
TJX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.20% yearly.
EPS 1Y (TTM)6.04%
EPS 3Y14.34%
EPS 5Y9.71%
EPS Q2Q%14.58%
Revenue 1Y (TTM)3.95%
Revenue growth 3Y5.1%
Revenue growth 5Y6.2%
Sales Q2Q%6.93%
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 9.66% on average per year.
The Revenue is expected to grow by 5.75% on average over the next years.
EPS Next Y8.23%
EPS Next 2Y9.29%
EPS Next 3Y9.47%
EPS Next 5Y9.66%
Revenue Next Year6.09%
Revenue Next 2Y5.93%
Revenue Next 3Y5.91%
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.
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
The Price/Earnings ratio is 31.75, which means the current valuation is very expensive for TJX.
TJX's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.27, TJX is valued at the same level.
A Price/Forward Earnings ratio of 27.42 indicates a quite expensive valuation of TJX.
TJX's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.77, TJX is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.75 | ||
| Fwd PE | 27.42 |
4.2 Price Multiples
TJX's Enterprise Value to EBITDA ratio is in line with 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 | 41.11 | ||
| EV/EBITDA | 20.75 |
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)3.86
PEG (5Y)3.27
EPS Next 2Y9.29%
EPS Next 3Y9.47%
5. Dividend
5.1 Amount
TJX has a Yearly Dividend Yield of 1.21%. Purely for dividend investing, there may be better candidates out there.
TJX's Dividend Yield is a higher than the industry average which is at 3.39.
With a Dividend Yield of 1.21, TJX pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
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 2Y9.29%
EPS Next 3Y9.47%
FRA:TJX (9/15/2025, 7:00:00 PM)
119.06
+0.02 (+0.02%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners92.38%
Inst Owner ChangeN/A
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap132.51B
Analysts84
Price Target129.29 (8.59%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
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)4.73%
PT rev (3m)2.16%
EPS NQ rev (1m)0.33%
EPS NQ rev (3m)1%
EPS NY rev (1m)1.49%
EPS NY rev (3m)1.76%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.16%
Revenue NY rev (1m)0.52%
Revenue NY rev (3m)0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.75 | ||
| Fwd PE | 27.42 | ||
| P/S | 2.72 | ||
| P/FCF | 41.11 | ||
| P/OCF | 26.9 | ||
| P/B | 18.26 | ||
| P/tB | 18.47 | ||
| EV/EBITDA | 20.75 |
EPS(TTM)3.75
EY3.15%
EPS(NY)4.34
Fwd EY3.65%
FCF(TTM)2.9
FCFY2.43%
OCF(TTM)4.43
OCFY3.72%
SpS43.7
BVpS6.52
TBVpS6.45
PEG (NY)3.86
PEG (5Y)3.27
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 | 6.84 |
F-Score6
WACC9.58%
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)6.04%
EPS 3Y14.34%
EPS 5Y9.71%
EPS Q2Q%14.58%
EPS Next Y8.23%
EPS Next 2Y9.29%
EPS Next 3Y9.47%
EPS Next 5Y9.66%
Revenue 1Y (TTM)3.95%
Revenue growth 3Y5.1%
Revenue growth 5Y6.2%
Sales Q2Q%6.93%
Revenue Next Year6.09%
Revenue Next 2Y5.93%
Revenue Next 3Y5.91%
Revenue Next 5Y5.75%
EBIT growth 1Y5.23%
EBIT growth 3Y9.84%
EBIT growth 5Y7.32%
EBIT Next Year26.04%
EBIT Next 3Y14.8%
EBIT Next 5Y10.86%
FCF growth 1Y-4.62%
FCF growth 3Y27.77%
FCF growth 5Y8.1%
OCF growth 1Y5.67%
OCF growth 3Y26%
OCF growth 5Y8.5%