TJX COMPANIES INC (TJX) Stock Fundamental Analysis
NYSE:TJX - New York Stock Exchange, Inc. - US8725401090 - Common Stock - Currency: USD
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 gets an excellent profitability rating and is at the same time showing great financial health properties. While showing a medium growth rate, TJX is valued expensive at the moment.
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 (15.16%) is better than 91.06% of its industry peers.
TJX's Return On Equity of 56.80% is amongst the best of the industry. TJX outperforms 95.94% of its industry peers.
With an excellent Return On Invested Capital value of 22.39%, TJX belongs to the best of the industry, outperforming 89.43% 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 12.08%.
The last Return On Invested Capital (22.39%) for TJX is above the 3 year average (21.84%), which is a sign of increasing profitability.
| 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 has a better Profit Margin (8.47%) than 86.18% of its industry peers.
TJX's Profit Margin has improved in the last couple of years.
TJX's Operating Margin of 11.02% is amongst the best of the industry. TJX outperforms 85.37% of its industry peers.
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: 63.41% 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 | 11.02% | ||
| 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.
The number of shares outstanding for TJX has been reduced compared to 1 year ago.
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
TJX has an Altman-Z score of 6.54. This indicates that TJX is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of TJX (6.54) is better than 93.50% of its industry peers.
The Debt to FCF ratio of TJX is 0.76, which is an excellent value as it means it would take TJX, only 0.76 years of fcf income to pay off all of its debts.
TJX's Debt to FCF ratio of 0.76 is amongst the best of the industry. TJX outperforms 83.74% 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 56.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 0.76 | ||
| Altman-Z | 6.54 |
ROIC/WACC2.55
WACC8.77%
2.3 Liquidity
A Current Ratio of 1.16 indicates that TJX should not have too much problems paying its short term obligations.
TJX has a worse Current ratio (1.16) than 62.60% of its industry peers.
TJX has a Quick Ratio of 1.16. 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 has a Quick ratio (0.51) which is in line with its industry peers.
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
The Earnings Per Share has been growing slightly by 5.46% over the past year.
Measured over the past years, TJX shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.71% on average per year.
The Revenue has been growing slightly by 3.79% 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)5.46%
EPS 3Y14.34%
EPS 5Y9.71%
EPS Q2Q%-1.08%
Revenue 1Y (TTM)3.79%
Revenue growth 3Y5.1%
Revenue growth 5Y6.2%
Sales Q2Q%5.06%
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 9.22% yearly.
Based on estimates for the next years, TJX will show a small growth in Revenue. The Revenue will grow by 5.58% on average per year.
EPS Next Y6.65%
EPS Next 2Y8.61%
EPS Next 3Y9.18%
EPS Next 5Y9.22%
Revenue Next Year5.54%
Revenue Next 2Y5.43%
Revenue Next 3Y5.52%
Revenue Next 5Y5.58%
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
Based on the Price/Earnings ratio of 30.90, the valuation of TJX can be described as expensive.
TJX's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of TJX to the average of the S&P500 Index (27.03), we can say TJX is valued inline with the index average.
The Price/Forward Earnings ratio is 26.14, which means the current valuation is very expensive for TJX.
The rest of the industry has a similar Price/Forward Earnings ratio as TJX.
When comparing the Price/Forward Earnings ratio of TJX to the average of the S&P500 Index (36.28), we can say TJX is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.9 | ||
| Fwd PE | 26.14 |
4.2 Price Multiples
TJX's Enterprise Value to EBITDA is on the same level as the industry average.
TJX's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.8 | ||
| EV/EBITDA | 19.19 |
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)4.65
PEG (5Y)3.18
EPS Next 2Y8.61%
EPS Next 3Y9.18%
5. Dividend
5.1 Amount
TJX has a Yearly Dividend Yield of 1.37%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.04, TJX pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, TJX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
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
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 2Y8.61%
EPS Next 3Y9.18%
NYSE:TJX (8/6/2025, 2:40:01 PM)
131.345
+2.57 (+2%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners92.55%
Inst Owner Change-0.54%
Ins Owners0.09%
Ins Owner Change3.83%
Market Cap146.53B
Analysts84
Price Target144.49 (10.01%)
Short Float %1.11%
Short Ratio2.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
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)-0.12%
PT rev (3m)3.02%
EPS NQ rev (1m)0.17%
EPS NQ rev (3m)-2.23%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)-0.11%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)0.33%
Revenue NY rev (1m)0.35%
Revenue NY rev (3m)0.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.9 | ||
| Fwd PE | 26.14 | ||
| P/S | 2.57 | ||
| P/FCF | 38.8 | ||
| P/OCF | 25.38 | ||
| P/B | 17.23 | ||
| P/tB | 17.43 | ||
| EV/EBITDA | 19.19 |
EPS(TTM)4.25
EY3.24%
EPS(NY)5.03
Fwd EY3.83%
FCF(TTM)3.39
FCFY2.58%
OCF(TTM)5.17
OCFY3.94%
SpS51.09
BVpS7.62
TBVpS7.54
PEG (NY)4.65
PEG (5Y)3.18
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 | 6.54 |
F-Score6
WACC8.77%
ROIC/WACC2.55
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)5.46%
EPS 3Y14.34%
EPS 5Y9.71%
EPS Q2Q%-1.08%
EPS Next Y6.65%
EPS Next 2Y8.61%
EPS Next 3Y9.18%
EPS Next 5Y9.22%
Revenue 1Y (TTM)3.79%
Revenue growth 3Y5.1%
Revenue growth 5Y6.2%
Sales Q2Q%5.06%
Revenue Next Year5.54%
Revenue Next 2Y5.43%
Revenue Next 3Y5.52%
Revenue Next 5Y5.58%
EBIT growth 1Y5.23%
EBIT growth 3Y9.84%
EBIT growth 5Y7.32%
EBIT Next Year26.31%
EBIT Next 3Y14.46%
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%