TJX COMPANIES INC (TJX) Stock Fundamental Analysis
USA - NYSE:TJX - US8725401090 - Common Stock
143.09 USD
+1.63 (+1.15%)
143.09 USD
0 (0%)
TJX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 122 industry peers in the Specialty Retail industry. Both the health and profitability get an excellent rating, making TJX a very profitable company, without any liquidiy or solvency issues. 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.
TJX had a positive operating cash flow in the past year.
Each year in the past 5 years TJX has 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 15.16% is amongst the best of the industry. TJX outperforms 91.80% of its industry peers.
TJX's Return On Equity of 56.80% is amongst the best of the industry. TJX outperforms 97.54% of its industry peers.
TJX has a better Return On Invested Capital (22.39%) than 90.16% 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 12.02%.
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 85.25% of its industry peers.
In the last couple of years the Profit Margin of TJX has grown nicely.
TJX has a better Operating Margin (11.02%) than 86.89% of its industry peers.
TJX's Operating Margin has been stable in the last couple of years.
The Gross Margin of TJX (30.48%) is worse than 63.11% of its industry peers.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so TJX is creating value.
The number of shares outstanding for TJX has been reduced compared to 1 year ago.
TJX has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, TJX has an improved debt to assets ratio.
2.2 Solvency
TJX has an Altman-Z score of 6.90. This indicates that TJX is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 6.90, TJX belongs to the best of the industry, outperforming 90.98% of the companies in the same industry.
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.
With an excellent Debt to FCF ratio value of 0.76, TJX belongs to the best of the industry, outperforming 82.79% of the companies in the same industry.
TJX has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
TJX has a Debt to Equity ratio (0.34) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 0.76 | ||
| Altman-Z | 6.9 |
ROIC/WACC2.33
WACC9.61%
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.
Looking at the Current ratio, with a value of 1.16, TJX is doing worse than 63.93% of the companies in the same industry.
A Quick Ratio of 0.51 indicates that TJX may have some problems paying its short term obligations.
TJX's Quick ratio of 0.51 is in line compared to the rest of the industry. TJX outperforms 50.82% of its industry peers.
The current and quick ratio evaluation for TJX is rather negative, while it does have 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 6.04% 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.
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
TJX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.66% yearly.
The Revenue is expected to grow by 5.75% on average over the next years.
EPS Next Y8.23%
EPS Next 2Y9.29%
EPS Next 3Y9.47%
EPS Next 5Y9.66%
Revenue Next Year6.09%
Revenue Next 2Y5.93%
Revenue Next 3Y5.91%
Revenue Next 5Y5.75%
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 32.59 indicates a quite expensive valuation of TJX.
TJX's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.32. TJX is around the same levels.
The Price/Forward Earnings ratio is 28.12, which means the current valuation is very expensive for TJX.
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 22.89. TJX is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.59 | ||
| Fwd PE | 28.12 |
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 | 42.16 | ||
| EV/EBITDA | 21.05 |
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.
TJX has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.96
PEG (5Y)3.36
EPS Next 2Y9.29%
EPS Next 3Y9.47%
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 5.22.
Compared to an average S&P500 Dividend Yield of 2.38, TJX's dividend is way lower than the S&P500 average.
| 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
35.03% 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.
DP35.03%
EPS Next 2Y9.29%
EPS Next 3Y9.47%
143.09
+1.63 (+1.15%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners93.12%
Inst Owner Change0.23%
Ins Owners0.09%
Ins Owner Change5.02%
Market Cap159.25B
Analysts84
Price Target152.96 (6.9%)
Short Float %1.32%
Short Ratio2.91
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)5.97%
PT rev (3m)5.73%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1%
EPS NY rev (1m)0%
EPS NY rev (3m)1.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.16%
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)0.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.59 | ||
| Fwd PE | 28.12 | ||
| P/S | 2.79 | ||
| P/FCF | 42.16 | ||
| P/OCF | 27.59 | ||
| P/B | 18.73 | ||
| P/tB | 18.94 | ||
| EV/EBITDA | 21.05 |
EPS(TTM)4.39
EY3.07%
EPS(NY)5.09
Fwd EY3.56%
FCF(TTM)3.39
FCFY2.37%
OCF(TTM)5.19
OCFY3.63%
SpS51.21
BVpS7.64
TBVpS7.55
PEG (NY)3.96
PEG (5Y)3.36
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 | 6.9 |
F-Score6
WACC9.61%
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)6.04%
EPS 3Y14.34%
EPS 5Y9.71%
EPS Q2Q%14.58%
EPS Next Y8.23%
EPS Next 2Y9.29%
EPS Next 3Y9.47%
EPS Next 5Y9.66%
Revenue 1Y (TTM)3.95%
Revenue growth 3Y5.1%
Revenue growth 5Y6.2%
Sales Q2Q%6.93%
Revenue Next Year6.09%
Revenue Next 2Y5.93%
Revenue Next 3Y5.91%
Revenue Next 5Y5.75%
EBIT growth 1Y5.23%
EBIT growth 3Y9.84%
EBIT growth 5Y7.32%
EBIT Next Year26.04%
EBIT Next 3Y14.8%
EBIT Next 5Y10.86%
FCF growth 1Y-4.62%
FCF growth 3Y27.77%
FCF growth 5Y8.1%
OCF growth 1Y5.67%
OCF growth 3Y26%
OCF growth 5Y8.5%