TJX COMPANIES INC (TJX)
US8725401090 - Common Stock
Overall TJX gets a fundamental rating of 6 out of 10. We evaluated TJX against 126 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.
TJX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of TJX (15.04%) is better than 91.27% of its industry peers.
The Return On Equity of TJX (61.27%) is better than 95.24% of its industry peers.
The Return On Invested Capital of TJX (22.60%) is better than 91.27% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TJX is significantly above the industry average of 13.85%.
The 3 year average ROIC (20.91%) for TJX is below the current ROIC(22.60%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.04% | ||
| ROE | 61.27% | ||
| ROIC | 22.6% |
ROA(3y)12.97%
ROA(5y)10.55%
ROE(3y)56.98%
ROE(5y)45.5%
ROIC(3y)20.91%
ROIC(5y)16.9%
1.3 Margins
Looking at the Profit Margin, with a value of 8.25%, TJX belongs to the top of the industry, outperforming 86.51% of the companies in the same industry.
TJX's Profit Margin has been stable in the last couple of years.
TJX has a Operating Margin of 10.69%. This is amongst the best in the industry. TJX outperforms 84.13% of its industry peers.
TJX's Operating Margin has been stable in the last couple of years.
The Gross Margin of TJX (30.00%) is worse than 65.08% of its industry peers.
TJX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.69% | ||
| PM (TTM) | 8.25% | ||
| GM | 30% |
OM growth 3Y80.74%
OM growth 5Y-0.61%
PM growth 3Y208.87%
PM growth 5Y1%
GM growth 3Y-3.07%
GM growth 5Y0.86%
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.
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
The Debt to FCF ratio of TJX is 0.66, which is an excellent value as it means it would take TJX, only 0.66 years of fcf income to pay off all of its debts.
TJX has a better Debt to FCF ratio (0.66) than 82.54% of its industry peers.
A Debt/Equity ratio of 0.39 indicates that TJX is not too dependend on debt financing.
TJX has a Debt to Equity ratio (0.39) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 0.66 | ||
| Altman-Z | N/A |
ROIC/WACC2.46
WACC9.19%
2.3 Liquidity
A Current Ratio of 1.21 indicates that TJX should not have too much problems paying its short term obligations.
TJX's Current ratio of 1.21 is on the low side compared to the rest of the industry. TJX is outperformed by 68.25% of its industry peers.
TJX has a Quick Ratio of 1.21. 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 0.64 is in line compared to the rest of the industry. TJX outperforms 50.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
TJX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.72%, which is quite impressive.
TJX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.20% yearly.
TJX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.58%.
TJX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.83% yearly.
EPS 1Y (TTM)23.72%
EPS 3Y136.99%
EPS 5Y10.2%
EPS growth Q2Q37.08%
Revenue 1Y (TTM)8.58%
Revenue growth 3Y19.04%
Revenue growth 5Y6.83%
Revenue growth Q2Q13.02%
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 10.12% on average per year.
TJX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.31% yearly.
EPS Next Y6.9%
EPS Next 2Y8.67%
EPS Next 3Y8.85%
EPS Next 5Y10.12%
Revenue Next Year4.14%
Revenue Next 2Y4.86%
Revenue Next 3Y5.09%
Revenue Next 5Y5.31%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 24.96 indicates a rather expensive valuation of TJX.
Compared to the rest of the industry, the Price/Earnings ratio of TJX is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 24.92, TJX is valued at the same level.
Based on the Price/Forward Earnings ratio of 23.35, the valuation of TJX can be described as rather expensive.
TJX's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of TJX to the average of the S&P500 Index (21.49), we can say TJX is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.96 | ||
| Fwd PE | 23.35 |
4.2 Price Multiples
TJX's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as TJX.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.18 | ||
| EV/EBITDA | 15.75 |
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)3.62
PEG (5Y)2.45
EPS Next 2Y8.67%
EPS Next 3Y8.85%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.56%, TJX has a reasonable but not impressive dividend return.
TJX's Dividend Yield is a higher than the industry average which is at 3.49.
TJX's Dividend Yield is slightly below the S&P500 average, which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
5.2 History
The dividend of TJX is nicely growing with an annual growth rate of 11.69%!
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)11.69%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
TJX pays out 33.17% 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.
DP33.17%
EPS Next 2Y8.67%
EPS Next 3Y8.85%
TJX COMPANIES INC
NYSE:TJX (4/26/2024, 7:19:45 PM)
After market: 96.36 0 (0%)96.36
-0.06 (-0.06%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap109.17B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.96 | ||
| Fwd PE | 23.35 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.62
PEG (5Y)2.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.04% | ||
| ROE | 61.27% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.69% | ||
| PM (TTM) | 8.25% | ||
| GM | 30% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)23.72%
EPS 3Y136.99%
EPS 5Y
EPS growth Q2Q
EPS Next Y6.9%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.58%
Revenue growth 3Y19.04%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y