TJX COMPANIES INC (TJX) Stock Fundamental Analysis
NYSE:TJX - US8725401090 - Common Stock
139.26 USD
-1.76 (-1.25%)
139.26 USD
0 (0%)
TJX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 123 industry peers in the Specialty Retail industry. TJX scores excellent points on both the profitability and health parts. This is a solid base for a good stock. While showing a medium growth rate, TJX is valued expensive at the moment.
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.
TJX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TJX's Return On Assets of 15.16% is amongst the best of the industry. TJX outperforms 91.87% of its industry peers.
With an excellent Return On Equity value of 56.80%, TJX belongs to the best of the industry, outperforming 96.75% of the companies in the same industry.
TJX's Return On Invested Capital of 22.39% is amongst the best of the industry. TJX outperforms 90.24% 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 12.10%.
The 3 year average ROIC (21.84%) for TJX is below the current ROIC(22.39%), indicating increased profibility in the last year.
| 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 86.18% of its industry peers.
TJX's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 11.02%, TJX belongs to the best of the industry, outperforming 86.18% 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 30.48%, TJX is not doing good in the industry: 62.60% of the companies in the same industry are doing better.
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
TJX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, TJX has less shares outstanding
Compared to 5 years ago, TJX has less shares outstanding
The debt/assets ratio for TJX has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.89 indicates that TJX is not in any danger for bankruptcy at the moment.
TJX has a better Altman-Z score (6.89) than 91.06% of its industry peers.
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 82.93% 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 comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 0.76 | ||
| Altman-Z | 6.89 |
ROIC/WACC2.4
WACC9.31%
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 worse Current ratio (1.16) than 63.41% of its industry peers.
A Quick Ratio of 0.51 indicates that TJX may have some problems paying its short term obligations.
With a Quick ratio value of 0.51, TJX perfoms like the industry average, outperforming 52.03% of the companies in the same 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%.
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 3.95% in the past year.
Measured over the past years, TJX shows a small growth in Revenue. The Revenue has been growing by 6.20% on average per year.
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
The Earnings Per Share is expected to grow by 9.35% on average over the next years. This is quite good.
Based on estimates for the next years, TJX will show a small growth in Revenue. The Revenue will grow by 5.71% on average per year.
EPS Next Y8.23%
EPS Next 2Y9.29%
EPS Next 3Y9.56%
EPS Next 5Y9.35%
Revenue Next Year5.87%
Revenue Next 2Y5.81%
Revenue Next 3Y5.69%
Revenue Next 5Y5.71%
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
The Price/Earnings ratio is 31.72, which means the current valuation is very expensive for 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 (27.06), we can say TJX is valued inline with the index average.
With a Price/Forward Earnings ratio of 27.37, TJX can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TJX is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 22.69. TJX is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.72 | ||
| Fwd PE | 27.37 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as TJX.
The rest of the industry has a similar Price/Free Cash Flow ratio as TJX.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.13 | ||
| EV/EBITDA | 21.03 |
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)3.85
PEG (5Y)3.27
EPS Next 2Y9.29%
EPS Next 3Y9.56%
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 5.40.
With a Dividend Yield of 1.21, TJX pays less dividend than the S&P500 average, which is at 2.32.
| 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.
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.
The dividend of TJX is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP35.03%
EPS Next 2Y9.29%
EPS Next 3Y9.56%
139.26
-1.76 (-1.25%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners92.38%
Inst Owner Change0.23%
Ins Owners0.09%
Ins Owner Change4.1%
Market Cap155.36B
Analysts84
Price Target152.82 (9.74%)
Short Float %1.14%
Short Ratio2.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
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)5.24%
PT rev (3m)8.92%
EPS NQ rev (1m)0.6%
EPS NQ rev (3m)1%
EPS NY rev (1m)1.49%
EPS NY rev (3m)1.76%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)0.16%
Revenue NY rev (1m)0.32%
Revenue NY rev (3m)1.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.72 | ||
| Fwd PE | 27.37 | ||
| P/S | 2.73 | ||
| P/FCF | 41.13 | ||
| P/OCF | 26.91 | ||
| P/B | 18.27 | ||
| P/tB | 18.48 | ||
| EV/EBITDA | 21.03 |
EPS(TTM)4.39
EY3.15%
EPS(NY)5.09
Fwd EY3.65%
FCF(TTM)3.39
FCFY2.43%
OCF(TTM)5.17
OCFY3.72%
SpS51.09
BVpS7.62
TBVpS7.54
PEG (NY)3.85
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 | 6.89 |
F-Score6
WACC9.31%
ROIC/WACC2.4
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 3Y9.56%
EPS Next 5Y9.35%
Revenue 1Y (TTM)3.95%
Revenue growth 3Y5.1%
Revenue growth 5Y6.2%
Sales Q2Q%6.93%
Revenue Next Year5.87%
Revenue Next 2Y5.81%
Revenue Next 3Y5.69%
Revenue Next 5Y5.71%
EBIT growth 1Y5.23%
EBIT growth 3Y9.84%
EBIT growth 5Y7.32%
EBIT Next Year26.04%
EBIT Next 3Y14.36%
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%