TJX COMPANIES INC (TJX) Stock Fundamental Analysis
USA - NYSE:TJX - US8725401090 - Common Stock
143.06 USD
-0.85 (-0.59%)
143 USD
-0.06 (-0.04%)
TJX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 119 industry peers in the Specialty Retail industry. TJX scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 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.
Each year in the past 5 years TJX had a positive operating cash flow.
1.2 Ratios
The Return On Assets of TJX (15.13%) is better than 91.60% of its industry peers.
TJX has a Return On Equity of 56.10%. This is amongst the best in the industry. TJX outperforms 97.48% of its industry peers.
Looking at the Return On Invested Capital, with a value of 22.51%, TJX belongs to the top of the industry, outperforming 89.92% of the companies in the same industry.
TJX had an Average Return On Invested Capital over the past 3 years of 21.84%. This is significantly above the industry average of 12.29%.
The last Return On Invested Capital (22.51%) for TJX is above the 3 year average (21.84%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.13% | ||
| ROE | 56.1% | ||
| ROIC | 22.51% |
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
The Profit Margin of TJX (8.59%) is better than 85.71% of its industry peers.
TJX's Profit Margin has improved in the last couple of years.
TJX has a Operating Margin of 11.18%. This is amongst the best in the industry. TJX outperforms 85.71% of its industry peers.
In the last couple of years the Operating Margin of TJX has remained more or less at the same level.
Looking at the Gross Margin, with a value of 30.57%, TJX is doing worse than 63.87% of the companies in the same industry.
TJX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.18% | ||
| PM (TTM) | 8.59% | ||
| GM | 30.57% |
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.
Compared to 1 year ago, TJX has less shares outstanding
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
TJX has an Altman-Z score of 6.81. This indicates that TJX is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.81, TJX belongs to the top of the industry, outperforming 94.12% of the companies in the same industry.
The Debt to FCF ratio of TJX is 0.71, which is an excellent value as it means it would take TJX, only 0.71 years of fcf income to pay off all of its debts.
TJX's Debt to FCF ratio of 0.71 is amongst the best of the industry. TJX outperforms 83.19% of its industry peers.
TJX has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of TJX (0.32) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 0.71 | ||
| Altman-Z | 6.81 |
ROIC/WACC2.39
WACC9.4%
2.3 Liquidity
TJX has a Current Ratio of 1.17. This is a normal value and indicates that TJX is financially healthy and should not expect problems in meeting its short term obligations.
TJX has a Current ratio of 1.17. This is in the lower half of the industry: TJX underperforms 62.18% of its industry peers.
TJX has a Quick Ratio of 1.17. 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 of 0.52. This is comparable to the rest of the industry: TJX outperforms 51.26% of 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 | 1.17 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.04% over the past year.
TJX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.71% yearly.
The Revenue has been growing slightly by 4.14% in the past year.
The Revenue has been growing slightly by 6.20% on average over the past years.
EPS 1Y (TTM)6.04%
EPS 3Y14.34%
EPS 5Y9.71%
EPS Q2Q%14.58%
Revenue 1Y (TTM)4.14%
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.
TJX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.75% yearly.
EPS Next Y8.92%
EPS Next 2Y9.52%
EPS Next 3Y9.47%
EPS Next 5Y9.66%
Revenue Next Year6.09%
Revenue Next 2Y5.93%
Revenue Next 3Y5.93%
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
The Price/Earnings ratio is 32.59, which means the current valuation is very expensive for TJX.
The rest of the industry has a similar Price/Earnings ratio as TJX.
TJX is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.57, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 28.00, TJX can be considered very expensive at the moment.
TJX's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.09. TJX is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.59 | ||
| Fwd PE | 28 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TJX is valued a bit more expensive than the industry average as 60.50% of the companies are valued more cheaply.
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 | 39.4 | ||
| EV/EBITDA | 20.57 |
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)3.65
PEG (5Y)3.36
EPS Next 2Y9.52%
EPS Next 3Y9.47%
5. Dividend
5.1 Amount
TJX has a Yearly Dividend Yield of 1.19%.
TJX's Dividend Yield is a higher than the industry average which is at 5.51.
With a Dividend Yield of 1.19, TJX pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
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
TJX pays out 35.04% of its income as dividend. This is a sustainable payout ratio.
TJX's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP35.04%
EPS Next 2Y9.52%
EPS Next 3Y9.47%
143.06
-0.85 (-0.59%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners93.12%
Inst Owner Change0.02%
Ins Owners0.09%
Ins Owner Change-0.09%
Market Cap159.22B
Revenue(TTM)57.92B
Net Income(TTM)4.97B
Analysts84
Price Target152.96 (6.92%)
Short Float %1.41%
Short Ratio3.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
Yearly Dividend1.46
Dividend Growth(5Y)10.48%
DP35.04%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.04%
Min EPS beat(2)0.61%
Max EPS beat(2)7.47%
EPS beat(4)4
Avg EPS beat(4)4.03%
Min EPS beat(4)0.61%
Max EPS beat(4)7.47%
EPS beat(8)8
Avg EPS beat(8)4.5%
EPS beat(12)11
Avg EPS beat(12)4.74%
EPS beat(16)14
Avg EPS beat(16)3.74%
Revenue beat(2)1
Avg Revenue beat(2)0.34%
Min Revenue beat(2)-0.25%
Max Revenue beat(2)0.94%
Revenue beat(4)1
Avg Revenue beat(4)0.11%
Min Revenue beat(4)-0.25%
Max Revenue beat(4)0.94%
Revenue beat(8)4
Avg Revenue beat(8)0.03%
Revenue beat(12)6
Avg Revenue beat(12)0.05%
Revenue beat(16)7
Avg Revenue beat(16)-0.44%
PT rev (1m)0%
PT rev (3m)5.86%
EPS NQ rev (1m)0.17%
EPS NQ rev (3m)-0.52%
EPS NY rev (1m)0.64%
EPS NY rev (3m)2.14%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)0.85%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.59 | ||
| Fwd PE | 28 | ||
| P/S | 2.75 | ||
| P/FCF | 39.4 | ||
| P/OCF | 26.83 | ||
| P/B | 17.96 | ||
| P/tB | 18.15 | ||
| EV/EBITDA | 20.57 |
EPS(TTM)4.39
EY3.07%
EPS(NY)5.11
Fwd EY3.57%
FCF(TTM)3.63
FCFY2.54%
OCF(TTM)5.33
OCFY3.73%
SpS52.05
BVpS7.97
TBVpS7.88
PEG (NY)3.65
PEG (5Y)3.36
Graham Number28.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.13% | ||
| ROE | 56.1% | ||
| ROCE | 30.01% | ||
| ROIC | 22.51% | ||
| ROICexc | 28.68% | ||
| ROICexgc | 28.84% | ||
| OM | 11.18% | ||
| PM (TTM) | 8.59% | ||
| GM | 30.57% | ||
| FCFM | 6.98% |
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 3Y-4.63%
GM growth 5Y-2.98%
F-Score6
Asset Turnover1.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 0.71 | ||
| Debt/EBITDA | 0.37 | ||
| Cap/Depr | 160.65% | ||
| Cap/Sales | 3.27% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.53% | ||
| Profit Quality | 81.24% | ||
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | 6.81 |
F-Score6
WACC9.4%
ROIC/WACC2.39
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 Y8.92%
EPS Next 2Y9.52%
EPS Next 3Y9.47%
EPS Next 5Y9.66%
Revenue 1Y (TTM)4.14%
Revenue growth 3Y5.1%
Revenue growth 5Y6.2%
Sales Q2Q%6.93%
Revenue Next Year6.09%
Revenue Next 2Y5.93%
Revenue Next 3Y5.93%
Revenue Next 5Y5.75%
EBIT growth 1Y6.18%
EBIT growth 3Y9.84%
EBIT growth 5Y7.32%
EBIT Next Year28.17%
EBIT Next 3Y14.8%
EBIT Next 5Y10.86%
FCF growth 1Y-11.77%
FCF growth 3Y27.77%
FCF growth 5Y8.1%
OCF growth 1Y-3.71%
OCF growth 3Y26%
OCF growth 5Y8.5%