TJX COMPANIES INC (TJX) Stock Fundamental Analysis
NYSE:TJX - New York Stock Exchange, Inc. - US8725401090 - Common Stock - Currency: USD
Taking everything into account, TJX scores 5 out of 10 in our fundamental rating. TJX was compared to 121 industry peers in the Specialty Retail industry. TJX scores excellent on profitability, 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.
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
With an excellent Return On Assets value of 15.32%, TJX belongs to the best of the industry, outperforming 90.08% of the companies in the same industry.
TJX has a Return On Equity of 57.95%. This is amongst the best in the industry. TJX outperforms 95.87% of its industry peers.
With an excellent Return On Invested Capital value of 22.79%, TJX belongs to the best of the industry, outperforming 89.26% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TJX is significantly above the industry average of 12.74%.
The 3 year average ROIC (21.84%) for TJX is below the current ROIC(22.79%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.32% | ||
| ROE | 57.95% | ||
| ROIC | 22.79% |
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
Looking at the Profit Margin, with a value of 8.63%, TJX belongs to the top of the industry, outperforming 85.95% of the companies in the same industry.
In the last couple of years the Profit Margin of TJX has grown nicely.
The Operating Margin of TJX (11.18%) is better than 85.12% of its industry peers.
TJX's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 30.60%, TJX is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of TJX has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.18% | ||
| PM (TTM) | 8.63% | ||
| GM | 30.6% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), TJX is creating value.
TJX has less shares outstanding than it did 1 year ago.
TJX has less shares outstanding than it did 5 years ago.
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 0.68, which is an excellent value as it means it would take TJX, only 0.68 years of fcf income to pay off all of its debts.
TJX's Debt to FCF ratio of 0.68 is fine compared to the rest of the industry. TJX outperforms 79.34% of its industry peers.
A Debt/Equity ratio of 0.34 indicates that TJX is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.34, TJX perfoms like the industry average, outperforming 52.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 0.68 | ||
| Altman-Z | N/A |
ROIC/WACC2.33
WACC9.77%
2.3 Liquidity
TJX has a Current Ratio of 1.18. This is a normal value and indicates that TJX is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of TJX (1.18) is worse than 64.46% of its industry peers.
TJX has a Quick Ratio of 1.18. This is a bad value and indicates that TJX is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.60, TJX perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.36% over the past year.
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.
TJX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.20% yearly.
EPS 1Y (TTM)10.36%
EPS 3Y14.34%
EPS 5Y9.71%
EPS Q2Q%0.82%
Revenue 1Y (TTM)3.95%
Revenue growth 3Y5.1%
Revenue growth 5Y6.2%
Sales Q2Q%-0.37%
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 9.90% on average per year.
Based on estimates for the next years, TJX will show a small growth in Revenue. The Revenue will grow by 5.59% on average per year.
EPS Next Y6.36%
EPS Next 2Y8.49%
EPS Next 3Y9.47%
EPS Next 5Y9.9%
Revenue Next Year4.77%
Revenue Next 2Y5.23%
Revenue Next 3Y5.6%
Revenue Next 5Y5.59%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 31.67, which means the current valuation is very expensive for TJX.
TJX's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.60. TJX is around the same levels.
TJX is valuated quite expensively with a Price/Forward Earnings ratio of 29.78.
The rest of the industry has a similar Price/Forward Earnings ratio as TJX.
TJX's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.67 | ||
| Fwd PE | 29.78 |
4.2 Price Multiples
TJX's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. TJX is more expensive than 61.98% of the companies in the same industry.
TJX's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.91 | ||
| EV/EBITDA | 20.03 |
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)4.98
PEG (5Y)3.26
EPS Next 2Y8.49%
EPS Next 3Y9.47%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.28%, TJX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.10, TJX pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, TJX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
5.2 History
On average, the dividend of TJX grows each year by 10.48%, 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)10.48%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
33.88% of the earnings are spent on dividend by TJX. This is a low number and sustainable payout ratio.
TJX's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP33.88%
EPS Next 2Y8.49%
EPS Next 3Y9.47%
134.93
-0.1 (-0.07%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners92.57%
Inst Owner Change0.55%
Ins Owners0.06%
Ins Owner Change3.1%
Market Cap150.73B
Analysts82.86
Price Target139.59 (3.45%)
Short Float %1.32%
Short Ratio2.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
Yearly Dividend1.46
Dividend Growth(5Y)10.48%
DP33.88%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.01%
Min EPS beat(2)3.24%
Max EPS beat(2)4.79%
EPS beat(4)4
Avg EPS beat(4)4.26%
Min EPS beat(4)3.21%
Max EPS beat(4)5.8%
EPS beat(8)8
Avg EPS beat(8)5.4%
EPS beat(12)11
Avg EPS beat(12)5.3%
EPS beat(16)14
Avg EPS beat(16)8.17%
Revenue beat(2)0
Avg Revenue beat(2)-0.13%
Min Revenue beat(2)-0.18%
Max Revenue beat(2)-0.07%
Revenue beat(4)1
Avg Revenue beat(4)-0.24%
Min Revenue beat(4)-0.87%
Max Revenue beat(4)0.16%
Revenue beat(8)4
Avg Revenue beat(8)-0.03%
Revenue beat(12)5
Avg Revenue beat(12)-0.44%
Revenue beat(16)8
Avg Revenue beat(16)1.04%
PT rev (1m)-0.11%
PT rev (3m)2.78%
EPS NQ rev (1m)-0.07%
EPS NQ rev (3m)-9.1%
EPS NY rev (1m)-0.38%
EPS NY rev (3m)-2.49%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-1.42%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.67 | ||
| Fwd PE | 29.78 | ||
| P/S | 2.67 | ||
| P/FCF | 35.91 | ||
| P/OCF | 24.65 | ||
| P/B | 17.96 | ||
| P/tB | 18.16 | ||
| EV/EBITDA | 20.03 |
EPS(TTM)4.26
EY3.16%
EPS(NY)4.53
Fwd EY3.36%
FCF(TTM)3.76
FCFY2.79%
OCF(TTM)5.47
OCFY4.06%
SpS50.45
BVpS7.51
TBVpS7.43
PEG (NY)4.98
PEG (5Y)3.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.32% | ||
| ROE | 57.95% | ||
| ROCE | 30.38% | ||
| ROIC | 22.79% | ||
| ROICexc | 30.68% | ||
| ROICexgc | 30.87% | ||
| OM | 11.18% | ||
| PM (TTM) | 8.63% | ||
| GM | 30.6% | ||
| FCFM | 7.45% |
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-Score7
Asset Turnover1.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 0.68 | ||
| Debt/EBITDA | 0.39 | ||
| Cap/Depr | 173.73% | ||
| Cap/Sales | 3.4% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 82.58% | ||
| Profit Quality | 86.31% | ||
| Current Ratio | 1.18 | ||
| Quick Ratio | 0.6 | ||
| Altman-Z | N/A |
F-Score7
WACC9.77%
ROIC/WACC2.33
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)10.36%
EPS 3Y14.34%
EPS 5Y9.71%
EPS Q2Q%0.82%
EPS Next Y6.36%
EPS Next 2Y8.49%
EPS Next 3Y9.47%
EPS Next 5Y9.9%
Revenue 1Y (TTM)3.95%
Revenue growth 3Y5.1%
Revenue growth 5Y6.2%
Sales Q2Q%-0.37%
Revenue Next Year4.77%
Revenue Next 2Y5.23%
Revenue Next 3Y5.6%
Revenue Next 5Y5.59%
EBIT growth 1Y8.71%
EBIT growth 3Y9.84%
EBIT growth 5Y7.32%
EBIT Next Year26.12%
EBIT Next 3Y14.35%
EBIT Next 5Y12.41%
FCF growth 1Y-3.16%
FCF growth 3Y27.77%
FCF growth 5Y8.1%
OCF growth 1Y0.97%
OCF growth 3Y26%
OCF growth 5Y8.5%