TJX COMPANIES INC (TJX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TJX - US8725401090 - Common Stock
156.71 USD
+0.57 (+0.37%)
156.69 USD
-0.02 (-0.01%)
Taking everything into account, TJX scores 5 out of 10 in our fundamental rating. TJX was compared to 122 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 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.
TJX had positive earnings in each of the past 5 years.
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 92.62% of the companies in the same industry.
TJX has a better Return On Equity (54.70%) than 96.72% of its industry peers.
TJX has a better Return On Invested Capital (23.62%) than 90.98% 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 12.14%.
The 3 year average ROIC (21.84%) for TJX is below the current ROIC(23.62%), indicating increased profibility in the last year.
| 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 86.07% of its industry peers.
In the last couple of years the Profit Margin of TJX has grown nicely.
TJX has a better Operating Margin (11.31%) than 85.25% of its industry peers.
TJX's Operating Margin has been stable in the last couple of years.
The Gross Margin of TJX (30.85%) is worse than 63.93% of its industry peers.
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.
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
The Debt to FCF ratio of TJX is 0.65, which is an excellent value as it means it would take TJX, only 0.65 years of fcf income to pay off 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 83.61% 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 in the better half of the industry: TJX outperforms 63.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 0.65 | ||
| Altman-Z | N/A |
ROIC/WACC2.46
WACC9.59%
2.3 Liquidity
TJX has a Current Ratio of 1.09. 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 1.09 is on the low side compared to the rest of the industry. TJX is outperformed by 68.03% of its industry peers.
A Quick Ratio of 0.43 indicates that TJX may have some problems paying its short term obligations.
TJX's Quick ratio of 0.43 is in line compared to the rest of the industry. TJX outperforms 42.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
TJX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.59%.
TJX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.71% yearly.
The Revenue has been growing slightly by 4.53% in the past 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)6.59%
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
TJX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.14% yearly.
Based on estimates for the next years, TJX will show a small growth in Revenue. The Revenue will grow by 5.77% on average per year.
EPS Next Y10.83%
EPS Next 2Y10.61%
EPS Next 3Y10.86%
EPS Next 5Y10.14%
Revenue Next Year6.58%
Revenue Next 2Y5.99%
Revenue Next 3Y6.08%
Revenue Next 5Y5.77%
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
A Price/Earnings ratio of 34.59 indicates a quite expensive valuation of TJX.
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 (26.55), we can say TJX is valued slightly more expensively.
The Price/Forward Earnings ratio is 30.07, which means the current valuation is very expensive for TJX.
TJX's Price/Forward Earnings ratio is in line with the industry average.
TJX is valuated rather expensively when we compare the Price/Forward Earnings ratio to 23.78, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.59 | ||
| Fwd PE | 30.07 |
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 | 39.39 | ||
| EV/EBITDA | 21.72 |
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.
TJX has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.19
PEG (5Y)3.56
EPS Next 2Y10.61%
EPS Next 3Y10.86%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.09%, TJX has a reasonable but not impressive dividend return.
TJX's Dividend Yield is a higher than the industry average which is at 1.84.
With a Dividend Yield of 1.09, TJX pays less dividend than the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
5.2 History
On average, the dividend of TJX grows each year by 10.53%, which is quite nice.
TJX has been paying a dividend for at least 10 years, so it has a reliable track record.
TJX has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)10.53%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
35.03% of the earnings are spent on dividend by TJX. This is a low number and sustainable payout ratio.
The dividend of TJX is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP35.03%
EPS Next 2Y10.61%
EPS Next 3Y10.86%
156.71
+0.57 (+0.37%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners92.04%
Inst Owner Change-1.11%
Ins Owners0.08%
Ins Owner Change-1.48%
Market Cap174.02B
Revenue(TTM)58.98B
Net Income(TTM)5.12B
Analysts84
Price Target163.58 (4.38%)
Short Float %1.26%
Short Ratio2.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
Yearly Dividend1.46
Dividend Growth(5Y)10.53%
DP35.03%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.59%
Min EPS beat(2)3.7%
Max EPS beat(2)7.47%
EPS beat(4)4
Avg EPS beat(4)4.14%
Min EPS beat(4)0.61%
Max EPS beat(4)7.47%
EPS beat(8)8
Avg EPS beat(8)4.58%
EPS beat(12)11
Avg EPS beat(12)4.5%
EPS beat(16)14
Avg EPS beat(16)3.77%
Revenue beat(2)2
Avg Revenue beat(2)0.85%
Min Revenue beat(2)0.77%
Max Revenue beat(2)0.94%
Revenue beat(4)2
Avg Revenue beat(4)0.35%
Min Revenue beat(4)-0.25%
Max Revenue beat(4)0.94%
Revenue beat(8)4
Avg Revenue beat(8)0.09%
Revenue beat(12)7
Avg Revenue beat(12)0.28%
Revenue beat(16)7
Avg Revenue beat(16)-0.46%
PT rev (1m)5.61%
PT rev (3m)6.94%
EPS NQ rev (1m)0.87%
EPS NQ rev (3m)1.11%
EPS NY rev (1m)1.63%
EPS NY rev (3m)2.41%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-0.07%
Revenue NY rev (1m)0.46%
Revenue NY rev (3m)0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.59 | ||
| Fwd PE | 30.07 | ||
| P/S | 2.95 | ||
| P/FCF | 39.39 | ||
| P/OCF | 27.1 | ||
| P/B | 18.59 | ||
| P/tB | 18.78 | ||
| EV/EBITDA | 21.72 |
EPS(TTM)4.53
EY2.89%
EPS(NY)5.21
Fwd EY3.33%
FCF(TTM)3.98
FCFY2.54%
OCF(TTM)5.78
OCFY3.69%
SpS53.11
BVpS8.43
TBVpS8.34
PEG (NY)3.19
PEG (5Y)3.56
Graham Number29.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.55% | ||
| ROE | 54.7% | ||
| ROCE | 31.49% | ||
| ROIC | 23.62% | ||
| ROICexc | 30.24% | ||
| ROICexgc | 30.41% | ||
| OM | 11.31% | ||
| PM (TTM) | 8.68% | ||
| GM | 30.85% | ||
| FCFM | 7.49% |
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%
ROICexgc growth 3Y0.34%
ROICexgc 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 3Y1.68%
GM growth 5Y0.82%
F-Score6
Asset Turnover1.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 0.65 | ||
| Debt/EBITDA | 0.24 | ||
| Cap/Depr | 162.98% | ||
| Cap/Sales | 3.4% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.28% | ||
| Profit Quality | 86.31% | ||
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.43 | ||
| Altman-Z | N/A |
F-Score6
WACC9.59%
ROIC/WACC2.46
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)6.59%
EPS 3Y14.34%
EPS 5Y9.71%
EPS Q2Q%12.28%
EPS Next Y10.83%
EPS Next 2Y10.61%
EPS Next 3Y10.86%
EPS Next 5Y10.14%
Revenue 1Y (TTM)4.53%
Revenue growth 3Y5.1%
Revenue growth 5Y6.2%
Sales Q2Q%7.49%
Revenue Next Year6.58%
Revenue Next 2Y5.99%
Revenue Next 3Y6.08%
Revenue Next 5Y5.77%
EBIT growth 1Y6.84%
EBIT growth 3Y9.84%
EBIT growth 5Y7.32%
EBIT Next Year30.53%
EBIT Next 3Y15.49%
EBIT Next 5Y11.27%
FCF growth 1Y-4.88%
FCF growth 3Y27.77%
FCF growth 5Y8.1%
OCF growth 1Y2.22%
OCF growth 3Y26%
OCF growth 5Y8.5%
TJX COMPANIES INC / TJX FAQ
Can you provide the ChartMill fundamental rating for TJX COMPANIES INC?
ChartMill assigns a fundamental rating of 5 / 10 to TJX.
Can you provide the valuation status for TJX COMPANIES INC?
ChartMill assigns a valuation rating of 2 / 10 to TJX COMPANIES INC (TJX). This can be considered as Overvalued.
What is the profitability of TJX stock?
TJX COMPANIES INC (TJX) has a profitability rating of 8 / 10.
What is the expected EPS growth for TJX COMPANIES INC (TJX) stock?
The Earnings per Share (EPS) of TJX COMPANIES INC (TJX) is expected to grow by 10.83% in the next year.
Can you provide the dividend sustainability for TJX stock?
The dividend rating of TJX COMPANIES INC (TJX) is 5 / 10 and the dividend payout ratio is 35.03%.