TJX COMPANIES INC (TJX.DE) Stock Fundamental Analysis
FRA:TJX - Deutsche Boerse Ag - US8725401090 - Common Stock - Currency: EUR
TJX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 50 industry peers in the Specialty Retail industry. TJX scores excellent on profitability, 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
In the past year TJX was profitable.
In the past year TJX had a positive cash flow from operations.
Each year in the past 5 years TJX has been profitable.
TJX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of TJX (15.32%) is better than 92.00% of its industry peers.
TJX has a better Return On Equity (57.95%) than 96.00% of its industry peers.
The Return On Invested Capital of TJX (22.79%) is better than 92.00% of its industry peers.
TJX had an Average Return On Invested Capital over the past 3 years of 21.84%. This is significantly above the industry average of 10.42%.
The 3 year average ROIC (21.84%) for TJX is below the current ROIC(22.79%), indicating increased profibility in the last year.
| 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 better Profit Margin (8.63%) than 90.00% of its industry peers.
In the last couple of years the Profit Margin of TJX has grown nicely.
Looking at the Operating Margin, with a value of 11.18%, TJX belongs to the top of the industry, outperforming 86.00% of the companies in the same industry.
TJX's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 30.60%, TJX perfoms like the industry average, outperforming 44.00% of the companies in the same industry.
TJX's Gross Margin has declined in the last couple of years.
| 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
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
The Debt to FCF ratio of TJX is 0.68, which is an excellent value as it means it would take TJX, only 0.68 years of fcf income to pay off all of its debts.
TJX has a better Debt to FCF ratio (0.68) than 94.00% 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 72.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 0.68 | ||
| Altman-Z | N/A |
ROIC/WACC2.48
WACC9.2%
2.3 Liquidity
TJX has a Current Ratio of 1.18. This is a normal value and indicates that TJX is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.18, TJX is in line with its industry, outperforming 46.00% of the companies in the same industry.
A Quick Ratio of 0.60 indicates that TJX may have some problems paying its short term obligations.
TJX has a Quick ratio (0.60) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
TJX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.36%, which is quite good.
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 3.95% in the last year.
The Revenue has been growing slightly by 6.20% on average over the past years.
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 Y6.76%
EPS Next 2Y8.78%
EPS Next 3Y9.44%
EPS Next 5Y9.9%
Revenue Next Year4.77%
Revenue Next 2Y5.22%
Revenue Next 3Y5.59%
Revenue Next 5Y5.59%
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
Based on the Price/Earnings ratio of 30.36, the valuation of TJX can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of TJX indicates a somewhat cheap valuation: TJX is cheaper than 64.00% of the companies listed in the same industry.
TJX is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.22, which is the current average of the S&P500 Index.
TJX is valuated quite expensively with a Price/Forward Earnings ratio of 28.47.
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 (20.86), we can say TJX is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.36 | ||
| Fwd PE | 28.47 |
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 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 | 34.46 | ||
| EV/EBITDA | 18.95 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TJX does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of TJX may justify a higher PE ratio.
PEG (NY)4.49
PEG (5Y)3.13
EPS Next 2Y8.78%
EPS Next 3Y9.44%
5. Dividend
5.1 Amount
TJX has a Yearly Dividend Yield of 1.33%.
TJX's Dividend Yield is a higher than the industry average which is at 5.11.
Compared to an average S&P500 Dividend Yield of 2.44, TJX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
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 2Y8.78%
EPS Next 3Y9.44%
FRA:TJX (5/2/2025, 7:00:00 PM)
113.86
+1.48 (+1.32%)
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 Cap127.19B
Analysts82.86
Price Target122.26 (7.38%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
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)-7.53%
PT rev (3m)-5.9%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)-8.88%
EPS NY rev (1m)0.04%
EPS NY rev (3m)-1.93%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-1.48%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.36 | ||
| Fwd PE | 28.47 | ||
| P/S | 2.57 | ||
| P/FCF | 34.46 | ||
| P/OCF | 23.65 | ||
| P/B | 17.24 | ||
| P/tB | 17.43 | ||
| EV/EBITDA | 18.95 |
EPS(TTM)3.75
EY3.29%
EPS(NY)4
Fwd EY3.51%
FCF(TTM)3.3
FCFY2.9%
OCF(TTM)4.81
OCFY4.23%
SpS44.36
BVpS6.61
TBVpS6.53
PEG (NY)4.49
PEG (5Y)3.13
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
WACC9.2%
ROIC/WACC2.48
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 Y6.76%
EPS Next 2Y8.78%
EPS Next 3Y9.44%
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 2Y5.22%
Revenue Next 3Y5.59%
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%