TJX COMPANIES INC (TJX) Stock Fundamental Analysis
USA - NYSE:TJX - US8725401090 - Common Stock
143.06 USD
-0.85 (-0.59%)
143.06 USD
0 (0%)
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. TJX is quite expensive at the moment. 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.
TJX had positive earnings in each of the past 5 years.
TJX had a positive operating cash flow in each of the past 5 years.
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.
With an excellent Return On Invested Capital value of 22.51%, TJX belongs to the best of the industry, outperforming 89.92% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TJX is significantly above the industry average of 12.29%.
The 3 year average ROIC (21.84%) for TJX is below the current ROIC(22.51%), indicating increased profibility in the last year.
| 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
TJX has a Profit Margin of 8.59%. This is amongst the best in the industry. TJX outperforms 85.71% 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 11.18%, TJX belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
In the last couple of years the Operating Margin of TJX has remained more or less at the same level.
The Gross Margin of TJX (30.57%) is worse than 63.87% of its industry peers.
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
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.
The number of shares outstanding for TJX has been reduced compared to 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 6.83. This indicates that TJX is financially healthy and has little risk of bankruptcy at the moment.
TJX's Altman-Z score of 6.83 is amongst the best of the industry. TJX outperforms 94.12% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 0.71, TJX belongs to the top of the industry, outperforming 83.19% of the companies in the same industry.
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 | 6.83 |
ROIC/WACC2.4
WACC9.39%
2.3 Liquidity
A Current Ratio of 1.17 indicates that TJX should not have too much problems paying its short term obligations.
TJX's Current ratio of 1.17 is on the low side compared to the rest of the industry. TJX is outperformed by 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.
Looking at the Quick ratio, with a value of 0.52, TJX is in line with its industry, outperforming 51.26% of the companies in the same industry.
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.
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 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.
The Revenue is expected to grow by 5.75% on average over the next years.
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
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
TJX is valuated quite expensively with a Price/Earnings ratio of 32.59.
The rest of the industry has a similar Price/Earnings ratio as TJX.
When comparing the Price/Earnings ratio of TJX to the average of the S&P500 Index (27.57), we can say TJX is valued inline with the index average.
The Price/Forward Earnings ratio is 28.00, 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 (23.09), we can say TJX is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.59 | ||
| Fwd PE | 28 |
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 60.50% of the companies listed in the same industry.
TJX's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.4 | ||
| EV/EBITDA | 20.69 |
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)3.65
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%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.51, TJX pays a bit more dividend than its industry peers.
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
The dividend of TJX is nicely growing with an annual growth rate of 10.48%!
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
35.04% 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.
DP35.04%
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 | 20.69 |
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 | 6.83 |
F-Score6
WACC9.39%
ROIC/WACC2.4
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%