TJX COMPANIES INC (TJX) Stock Fundamental Analysis
NYSE:TJX - New York Stock Exchange, Inc. - US8725401090 - Common Stock - Currency: USD
TJX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 122 industry peers in the Specialty Retail industry. Both the health and profitability get an excellent rating, making TJX a very profitable company, without any liquidiy or solvency issues. TJX has a correct valuation and a medium 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 better Return On Assets (15.16%) than 90.98% of its industry peers.
TJX's Return On Equity of 56.80% is amongst the best of the industry. TJX outperforms 95.90% of its industry peers.
TJX's Return On Invested Capital of 22.39% is amongst the best of the industry. TJX outperforms 89.34% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TJX is significantly above the industry average of 12.95%.
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
TJX's Profit Margin of 8.47% is amongst the best of the industry. TJX outperforms 86.07% 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 11.02%, TJX belongs to the top of the industry, outperforming 85.25% 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 30.48%, TJX is doing worse than 64.75% of the companies in the same industry.
TJX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.02% | ||
| 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
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.
TJX has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, TJX has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.40 indicates that TJX is not in any danger for bankruptcy at the moment.
TJX has a Altman-Z score of 6.40. This is amongst the best in the industry. TJX outperforms 92.62% of its industry peers.
The Debt to FCF ratio of TJX is 0.76, which is an excellent value as it means it would take TJX, only 0.76 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.76, TJX belongs to the best of the industry, outperforming 82.79% of the companies in the same industry.
A Debt/Equity ratio of 0.34 indicates that TJX is not too dependend on debt financing.
TJX has a Debt to Equity ratio (0.34) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 0.76 | ||
| Altman-Z | 6.4 |
ROIC/WACC2.35
WACC9.52%
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's Current ratio of 1.16 is on the low side compared to the rest of the industry. TJX is outperformed by 63.11% of its industry peers.
TJX has a Quick Ratio of 1.16. 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's Quick ratio of 0.51 is in line compared to the rest of the industry. TJX outperforms 52.46% of its industry peers.
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 5.46%.
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 3.79% in the past year.
The Revenue has been growing slightly by 6.20% on average over the past years.
EPS 1Y (TTM)5.46%
EPS 3Y14.34%
EPS 5Y9.71%
EPS Q2Q%-1.08%
Revenue 1Y (TTM)3.79%
Revenue growth 3Y5.1%
Revenue growth 5Y6.2%
Sales Q2Q%5.06%
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 9.22% on average per year.
The Revenue is expected to grow by 5.58% on average over the next years.
EPS Next Y6.65%
EPS Next 2Y8.61%
EPS Next 3Y9.18%
EPS Next 5Y9.22%
Revenue Next Year5.54%
Revenue Next 2Y5.42%
Revenue Next 3Y5.56%
Revenue Next 5Y5.58%
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
A Price/Earnings ratio of 29.07 indicates a quite expensive valuation of TJX.
TJX's Price/Earnings ratio is in line with the industry average.
TJX's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.52.
TJX is valuated rather expensively with a Price/Forward Earnings ratio of 24.59.
TJX's Price/Forward Earnings is on the same level as the industry average.
TJX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 35.58, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.07 | ||
| Fwd PE | 24.59 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as TJX.
Based on the Price/Free Cash Flow ratio, TJX is valued a bit cheaper than the industry average as 60.66% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.5 | ||
| EV/EBITDA | 18.43 |
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)4.37
PEG (5Y)2.99
EPS Next 2Y8.61%
EPS Next 3Y9.18%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.37%, TJX has a reasonable but not impressive dividend return.
TJX's Dividend Yield is a higher than the industry average which is at 4.90.
Compared to an average S&P500 Dividend Yield of 2.35, TJX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
5.2 History
The dividend of TJX is nicely growing with an annual growth rate of 10.48%!
TJX has paid a dividend for at least 10 years, which is a reliable track record.
TJX has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)10.48%
Div Incr Years4
Div Non Decr Years4
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 2Y8.61%
EPS Next 3Y9.18%
123.56
-0.15 (-0.12%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners92.55%
Inst Owner Change0%
Ins Owners0.09%
Ins Owner Change3.83%
Market Cap137.85B
Analysts84
Price Target144.67 (17.08%)
Short Float %1.24%
Short Ratio2.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
Yearly Dividend1.46
Dividend Growth(5Y)10.48%
DP35.03%
Div Incr Years4
Div Non Decr Years4
Ex-Date
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)0.51%
PT rev (3m)3.52%
EPS NQ rev (1m)0.23%
EPS NQ rev (3m)-2.39%
EPS NY rev (1m)0.27%
EPS NY rev (3m)-0.06%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)0.3%
Revenue NY rev (1m)0.4%
Revenue NY rev (3m)0.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.07 | ||
| Fwd PE | 24.59 | ||
| P/S | 2.42 | ||
| P/FCF | 36.5 | ||
| P/OCF | 23.88 | ||
| P/B | 16.21 | ||
| P/tB | 16.39 | ||
| EV/EBITDA | 18.43 |
EPS(TTM)4.25
EY3.44%
EPS(NY)5.03
Fwd EY4.07%
FCF(TTM)3.39
FCFY2.74%
OCF(TTM)5.17
OCFY4.19%
SpS51.09
BVpS7.62
TBVpS7.54
PEG (NY)4.37
PEG (5Y)2.99
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 | 6.4 |
F-Score6
WACC9.52%
ROIC/WACC2.35
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)5.46%
EPS 3Y14.34%
EPS 5Y9.71%
EPS Q2Q%-1.08%
EPS Next Y6.65%
EPS Next 2Y8.61%
EPS Next 3Y9.18%
EPS Next 5Y9.22%
Revenue 1Y (TTM)3.79%
Revenue growth 3Y5.1%
Revenue growth 5Y6.2%
Sales Q2Q%5.06%
Revenue Next Year5.54%
Revenue Next 2Y5.42%
Revenue Next 3Y5.56%
Revenue Next 5Y5.58%
EBIT growth 1Y5.23%
EBIT growth 3Y9.84%
EBIT growth 5Y7.32%
EBIT Next Year26.31%
EBIT Next 3Y14.46%
EBIT Next 5Y10.79%
FCF growth 1Y-4.62%
FCF growth 3Y27.77%
FCF growth 5Y8.1%
OCF growth 1Y5.67%
OCF growth 3Y26%
OCF growth 5Y8.5%