TJX COMPANIES INC (TJX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TJX - US8725401090 - Common Stock
151.43 USD
+3.36 (+2.27%)
151.144 USD
-0.29 (-0.19%)
Overall TJX gets a fundamental rating of 5 out of 10. We evaluated TJX against 123 industry peers in the Specialty Retail industry. While TJX has a great profitability rating, 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
TJX had positive earnings in the past year.
TJX had a positive operating cash flow in the past year.
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
TJX's Return On Assets of 14.55% is amongst the best of the industry. TJX outperforms 91.06% of its industry peers.
Looking at the Return On Equity, with a value of 54.70%, TJX belongs to the top of the industry, outperforming 97.56% of the companies in the same industry.
The Return On Invested Capital of TJX (23.62%) is better than 91.87% 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 11.69%.
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
TJX has a better Profit Margin (8.68%) than 86.18% of its industry peers.
In the last couple of years the Profit Margin of TJX has grown nicely.
With an excellent Operating Margin value of 11.31%, TJX belongs to the best of the industry, outperforming 85.37% 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 30.85%, TJX is not doing good in the industry: 63.41% of the companies in the same industry are doing better.
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
TJX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
TJX has less shares outstanding than it did 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
TJX has a debt to FCF ratio of 0.65. This is a very positive value and a sign of high solvency as it would only need 0.65 years to pay back of all of its debts.
The Debt to FCF ratio of TJX (0.65) is better than 83.74% of its industry peers.
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 63.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 0.65 | ||
| Altman-Z | N/A |
ROIC/WACC2.6
WACC9.1%
2.3 Liquidity
A Current Ratio of 1.09 indicates that TJX should not have too much problems paying its short term obligations.
TJX has a worse Current ratio (1.09) than 66.67% of its industry peers.
A Quick Ratio of 0.43 indicates that TJX may have some problems paying its short term obligations.
TJX has a Quick ratio of 0.43. This is comparable to the rest of the industry: TJX outperforms 43.09% 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.
Looking at the last year, TJX shows a small growth in Revenue. The Revenue has grown by 4.53% in the last 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
Based on estimates for the next years, TJX will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.09% on average per year.
TJX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.48% yearly.
EPS Next Y9.06%
EPS Next 2Y9.68%
EPS Next 3Y9.59%
EPS Next 5Y10.09%
Revenue Next Year6.09%
Revenue Next 2Y5.93%
Revenue Next 3Y5.97%
Revenue Next 5Y5.48%
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 33.43 indicates a quite expensive valuation of TJX.
TJX's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 25.45, TJX is valued a bit more expensive.
Based on the Price/Forward Earnings ratio of 29.55, the valuation of TJX can be described as expensive.
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 34.46. TJX is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.43 | ||
| Fwd PE | 29.55 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TJX indicates a slightly more expensive valuation: TJX is more expensive than 60.16% of the companies listed 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 | 38.15 | ||
| EV/EBITDA | 21.11 |
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)3.69
PEG (5Y)3.44
EPS Next 2Y9.68%
EPS Next 3Y9.59%
5. Dividend
5.1 Amount
TJX has a Yearly Dividend Yield of 1.15%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.07, TJX pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.15, TJX pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
5.2 History
On average, the dividend of TJX grows each year by 10.53%, 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)10.53%
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 2Y9.68%
EPS Next 3Y9.59%
151.43
+3.36 (+2.27%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners93.12%
Inst Owner Change-1.13%
Ins Owners0.09%
Ins Owner Change-1.32%
Market Cap168.53B
Revenue(TTM)58.98B
Net Income(TTM)5.12B
Analysts84.62
Price Target156.3 (3.22%)
Short Float %1.2%
Short Ratio2.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
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)2.19%
PT rev (3m)2.8%
EPS NQ rev (1m)0.41%
EPS NQ rev (3m)1.82%
EPS NY rev (1m)0.09%
EPS NY rev (3m)0.76%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)0.91%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.43 | ||
| Fwd PE | 29.55 | ||
| P/S | 2.86 | ||
| P/FCF | 38.15 | ||
| P/OCF | 26.25 | ||
| P/B | 18.01 | ||
| P/tB | 18.19 | ||
| EV/EBITDA | 21.11 |
EPS(TTM)4.53
EY2.99%
EPS(NY)5.12
Fwd EY3.38%
FCF(TTM)3.97
FCFY2.62%
OCF(TTM)5.77
OCFY3.81%
SpS52.99
BVpS8.41
TBVpS8.32
PEG (NY)3.69
PEG (5Y)3.44
Graham Number29.28
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
WACC9.1%
ROIC/WACC2.6
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 Y9.06%
EPS Next 2Y9.68%
EPS Next 3Y9.59%
EPS Next 5Y10.09%
Revenue 1Y (TTM)4.53%
Revenue growth 3Y5.1%
Revenue growth 5Y6.2%
Sales Q2Q%7.49%
Revenue Next Year6.09%
Revenue Next 2Y5.93%
Revenue Next 3Y5.97%
Revenue Next 5Y5.48%
EBIT growth 1Y6.84%
EBIT growth 3Y9.84%
EBIT growth 5Y7.32%
EBIT Next Year28.17%
EBIT Next 3Y14.87%
EBIT Next 5Y10.86%
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 9.06% 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%.