TJX COMPANIES INC (TJX.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:TJX - US8725401090 - Common Stock
122.66 EUR
-1.16 (-0.94%)
Taking everything into account, TJX scores 6 out of 10 in our fundamental rating. TJX was compared to 56 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 valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year TJX was profitable.
- In the past year TJX had a positive cash flow from operations.
- 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
- With an excellent Return On Assets value of 14.55%, TJX belongs to the best of the industry, outperforming 96.43% of the companies in the same industry.
- TJX has a better Return On Equity (54.70%) than 94.64% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 23.62%, TJX belongs to the top of the industry, outperforming 94.64% 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 10.20%.
- 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
- The Profit Margin of TJX (8.68%) is better than 87.50% of its industry peers.
- In the last couple of years the Profit Margin of TJX has grown nicely.
- The Operating Margin of TJX (11.31%) is better than 85.71% of its industry peers.
- In the last couple of years the Operating Margin of TJX has remained more or less at the same level.
- TJX has a Gross Margin (30.85%) which is comparable to the rest of the 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
- 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 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 98.21% of the companies in the same industry.
- A Debt/Equity ratio of 0.20 indicates that TJX is not too dependend on debt financing.
- TJX has a Debt to Equity ratio of 0.20. This is amongst the best in the industry. TJX outperforms 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 0.65 | ||
| Altman-Z | N/A |
ROIC/WACC2.45
WACC9.63%
2.3 Liquidity
- A Current Ratio of 1.09 indicates that TJX should not have too much problems paying its short term obligations.
- TJX has a Current ratio (1.09) which is comparable to the rest of the industry.
- A Quick Ratio of 0.43 indicates that TJX may have some problems paying its short term obligations.
- The Quick ratio of TJX (0.43) is worse than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 6.59% over the past year.
- The Earnings Per Share has been growing by 9.71% on average over the past years. This is quite good.
- The Revenue has been growing slightly by 4.53% in the past 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
- The Earnings Per Share is expected to grow by 10.34% on average over the next years. This is quite good.
- TJX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.64% yearly.
EPS Next Y10.89%
EPS Next 2Y10.71%
EPS Next 3Y10.95%
EPS Next 5Y10.34%
Revenue Next Year6.63%
Revenue Next 2Y6.09%
Revenue Next 3Y6.19%
Revenue Next 5Y5.64%
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
- TJX is valuated quite expensively with a Price/Earnings ratio of 32.45.
- TJX's Price/Earnings ratio is in line with the industry average.
- TJX is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
- TJX is valuated quite expensively with a Price/Forward Earnings ratio of 28.13.
- 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 (25.83), we can say TJX is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.45 | ||
| Fwd PE | 28.13 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, TJX is valued a bit more expensive than the industry average as 66.07% of the companies are valued more cheaply.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of TJX indicates a slightly more expensive valuation: TJX is more expensive than 62.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.92 | ||
| EV/EBITDA | 20.62 |
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)2.98
PEG (5Y)3.34
EPS Next 2Y10.71%
EPS Next 3Y10.95%
5. Dividend
5.1 Amount
- TJX has a Yearly Dividend Yield of 1.11%. 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 1.47.
- Compared to the average S&P500 Dividend Yield of 1.82, TJX is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
5.2 History
- The dividend of TJX is nicely growing with an annual growth rate of 10.53%!
Dividend Growth(5Y)10.53%
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.
- TJX's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP35.03%
EPS Next 2Y10.71%
EPS Next 3Y10.95%
TJX COMPANIES INC / TJX.DE FAQ
Can you provide the ChartMill fundamental rating for TJX COMPANIES INC?
ChartMill assigns a fundamental rating of 6 / 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 32.45 and the Price/Book (PB) ratio is 17.43.
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 10.89% in the next year.