TJX COMPANIES INC (TJX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TJX - US8725401090 - Common Stock
158.25 USD
+4.21 (+2.73%)
158.58 USD
+0.33 (+0.21%)
Overall TJX gets a fundamental rating of 5 out of 10. We evaluated TJX against 122 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.
TJX had positive earnings in each of the past 5 years.
In the past 5 years TJX always reported a positive cash flow from operatings.
1.2 Ratios
TJX has a better Return On Assets (14.55%) than 92.62% of its industry peers.
TJX has a better Return On Equity (54.70%) than 95.90% of its industry peers.
TJX has a better Return On Invested Capital (23.62%) than 91.80% 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 12.14%.
The last Return On Invested Capital (23.62%) for TJX is above the 3 year average (21.84%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.55% | ||
| ROE | 54.7% | ||
| ROIC | 23.62% |
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 (8.68%) than 86.07% of its industry peers.
TJX's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 11.31%, TJX belongs to the top of the industry, outperforming 85.25% 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.
TJX has a Gross Margin of 30.85%. This is in the lower half of the industry: TJX underperforms 64.75% of its industry peers.
In the last couple of years the Gross Margin of TJX has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.31% | ||
| PM (TTM) | 8.68% | ||
| GM | 30.85% |
OM growth 3Y4.52%
OM growth 5Y1.05%
PM growth 3Y8.47%
PM growth 5Y1.93%
GM growth 3Y1.68%
GM growth 5Y0.82%
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.
Compared to 1 year ago, TJX has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of TJX is 0.65, which is an excellent value as it means it would take TJX, only 0.65 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of TJX (0.65) is better than 82.79% of its industry peers.
TJX has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.20, TJX is doing good in the industry, outperforming 63.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 0.65 | ||
| Altman-Z | N/A |
ROIC/WACC2.44
WACC9.67%
2.3 Liquidity
A Current Ratio of 1.09 indicates that TJX should not have too much problems paying its short term obligations.
TJX has a Current ratio of 1.09. This is in the lower half of the industry: TJX underperforms 67.21% of its industry peers.
TJX has a Quick Ratio of 1.09. 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 0.43, TJX is in line with its industry, outperforming 43.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
TJX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.59%.
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 4.53% 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)6.59%
EPS 3Y14.34%
EPS 5Y9.71%
EPS Q2Q%12.28%
Revenue 1Y (TTM)4.53%
Revenue growth 3Y5.1%
Revenue growth 5Y6.2%
Sales Q2Q%7.49%
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 10.14% on average per year.
The Revenue is expected to grow by 5.77% on average over the next years.
EPS Next Y10.83%
EPS Next 2Y10.62%
EPS Next 3Y10.84%
EPS Next 5Y10.14%
Revenue Next Year6.57%
Revenue Next 2Y6%
Revenue Next 3Y6.11%
Revenue Next 5Y5.77%
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 34.93.
TJX's Price/Earnings is on the same level as the industry average.
TJX's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.00.
Based on the Price/Forward Earnings ratio of 30.36, the valuation of TJX can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TJX is on the same level as its industry peers.
TJX is valuated rather expensively when we compare the Price/Forward Earnings ratio to 23.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.93 | ||
| Fwd PE | 30.36 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TJX is on the same level as its industry peers.
TJX's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.78 | ||
| EV/EBITDA | 22.02 |
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)3.22
PEG (5Y)3.6
EPS Next 2Y10.62%
EPS Next 3Y10.84%
5. Dividend
5.1 Amount
TJX has a Yearly Dividend Yield of 1.11%.
TJX's Dividend Yield is a higher than the industry average which is at 2.20.
With a Dividend Yield of 1.11, TJX pays less dividend than the S&P500 average, which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
5.2 History
The dividend of TJX is nicely growing with an annual growth rate of 10.53%!
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)10.53%
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 2Y10.62%
EPS Next 3Y10.84%
158.25
+4.21 (+2.73%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners92.35%
Inst Owner Change0%
Ins Owners0.08%
Ins Owner Change-1.48%
Market Cap175.73B
Revenue(TTM)58.98B
Net Income(TTM)5.12B
Analysts84
Price Target164.58 (4%)
Short Float %1.22%
Short Ratio2.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
Yearly Dividend1.46
Dividend Growth(5Y)10.53%
DP35.03%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.59%
Min EPS beat(2)3.7%
Max EPS beat(2)7.47%
EPS beat(4)4
Avg EPS beat(4)4.14%
Min EPS beat(4)0.61%
Max EPS beat(4)7.47%
EPS beat(8)8
Avg EPS beat(8)4.58%
EPS beat(12)11
Avg EPS beat(12)4.5%
EPS beat(16)14
Avg EPS beat(16)3.77%
Revenue beat(2)2
Avg Revenue beat(2)0.85%
Min Revenue beat(2)0.77%
Max Revenue beat(2)0.94%
Revenue beat(4)2
Avg Revenue beat(4)0.35%
Min Revenue beat(4)-0.25%
Max Revenue beat(4)0.94%
Revenue beat(8)4
Avg Revenue beat(8)0.09%
Revenue beat(12)7
Avg Revenue beat(12)0.28%
Revenue beat(16)7
Avg Revenue beat(16)-0.46%
PT rev (1m)5.29%
PT rev (3m)7.6%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)1.15%
EPS NY rev (1m)0%
EPS NY rev (3m)1.75%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)-0.06%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.93 | ||
| Fwd PE | 30.36 | ||
| P/S | 2.98 | ||
| P/FCF | 39.78 | ||
| P/OCF | 27.37 | ||
| P/B | 18.78 | ||
| P/tB | 18.97 | ||
| EV/EBITDA | 22.02 |
EPS(TTM)4.53
EY2.86%
EPS(NY)5.21
Fwd EY3.29%
FCF(TTM)3.98
FCFY2.51%
OCF(TTM)5.78
OCFY3.65%
SpS53.11
BVpS8.43
TBVpS8.34
PEG (NY)3.22
PEG (5Y)3.6
Graham Number29.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.55% | ||
| ROE | 54.7% | ||
| ROCE | 31.49% | ||
| ROIC | 23.62% | ||
| ROICexc | 30.24% | ||
| ROICexgc | 30.41% | ||
| OM | 11.31% | ||
| PM (TTM) | 8.68% | ||
| GM | 30.85% | ||
| FCFM | 7.49% |
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 3Y1.68%
GM growth 5Y0.82%
F-Score6
Asset Turnover1.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 0.65 | ||
| Debt/EBITDA | 0.24 | ||
| Cap/Depr | 162.98% | ||
| Cap/Sales | 3.4% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.28% | ||
| Profit Quality | 86.31% | ||
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.43 | ||
| Altman-Z | N/A |
F-Score6
WACC9.67%
ROIC/WACC2.44
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)6.59%
EPS 3Y14.34%
EPS 5Y9.71%
EPS Q2Q%12.28%
EPS Next Y10.83%
EPS Next 2Y10.62%
EPS Next 3Y10.84%
EPS Next 5Y10.14%
Revenue 1Y (TTM)4.53%
Revenue growth 3Y5.1%
Revenue growth 5Y6.2%
Sales Q2Q%7.49%
Revenue Next Year6.57%
Revenue Next 2Y6%
Revenue Next 3Y6.11%
Revenue Next 5Y5.77%
EBIT growth 1Y6.84%
EBIT growth 3Y9.84%
EBIT growth 5Y7.32%
EBIT Next Year30.29%
EBIT Next 3Y15.49%
EBIT Next 5Y11.27%
FCF growth 1Y-4.88%
FCF growth 3Y27.77%
FCF growth 5Y8.1%
OCF growth 1Y2.22%
OCF growth 3Y26%
OCF growth 5Y8.5%
TJX COMPANIES INC / TJX FAQ
Can you provide the ChartMill fundamental rating for TJX COMPANIES INC?
ChartMill assigns a fundamental rating of 5 / 10 to TJX.
What is the valuation status of TJX COMPANIES INC (TJX) stock?
ChartMill assigns a valuation rating of 2 / 10 to TJX COMPANIES INC (TJX). This can be considered as Overvalued.
What is the profitability of TJX stock?
TJX COMPANIES INC (TJX) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for TJX stock?
The Price/Earnings (PE) ratio for TJX COMPANIES INC (TJX) is 34.93 and the Price/Book (PB) ratio is 18.78.
What is the expected EPS growth for TJX COMPANIES INC (TJX) stock?
The Earnings per Share (EPS) of TJX COMPANIES INC (TJX) is expected to grow by 10.83% in the next year.