TJX COMPANIES INC (TJX) Stock Fundamental Analysis
USA - NYSE:TJX - US8725401090 - Common Stock
145.18 USD
-0.9 (-0.62%)
145.18 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. 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
TJX had positive earnings in the past year.
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 has a better Return On Assets (15.13%) than 91.80% of its industry peers.
With an excellent Return On Equity value of 56.10%, TJX belongs to the best of the industry, outperforming 97.54% of the companies in the same industry.
With an excellent Return On Invested Capital value of 22.51%, TJX belongs to the best of the industry, outperforming 90.16% 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 11.81%.
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
Looking at the Profit Margin, with a value of 8.59%, TJX belongs to the top of the industry, outperforming 86.07% of the companies in the same industry.
TJX's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 11.18%, TJX belongs to the best of the industry, outperforming 85.25% of the companies in the same industry.
TJX's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 30.57%, TJX is not doing good in the industry: 63.93% of the companies in the same industry are doing better.
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.
TJX has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, TJX has less shares outstanding
TJX has a better debt/assets ratio than last year.
2.2 Solvency
TJX has an Altman-Z score of 6.87. This indicates that TJX is financially healthy and has little risk of bankruptcy at the moment.
TJX's Altman-Z score of 6.87 is amongst the best of the industry. TJX outperforms 95.90% 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.
The Debt to FCF ratio of TJX (0.71) is better than 82.79% 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 | 6.87 |
ROIC/WACC2.44
WACC9.23%
2.3 Liquidity
A Current Ratio of 1.17 indicates that TJX should not have too much problems paying its short term obligations.
TJX has a worse Current ratio (1.17) than 61.48% of its industry peers.
A Quick Ratio of 0.52 indicates that TJX may have some problems paying its short term obligations.
TJX has a Quick ratio (0.52) which is comparable to the rest of the industry.
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 | 1.17 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
TJX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.04%.
The Earnings Per Share has been growing by 9.71% on average over the past years. This is quite good.
TJX shows a small growth in Revenue. In the last year, the Revenue has grown by 4.14%.
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
The Earnings Per Share is expected to grow by 10.09% on average over the next years. This is quite good.
Based on estimates for the next years, TJX will show a small growth in Revenue. The Revenue will grow by 5.48% on average per year.
EPS Next Y9.06%
EPS Next 2Y9.68%
EPS Next 3Y9.59%
EPS Next 5Y10.09%
Revenue Next Year6.09%
Revenue Next 2Y5.93%
Revenue Next 3Y5.97%
Revenue Next 5Y5.48%
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 33.07, which means the current valuation is very expensive for TJX.
Compared to the rest of the industry, the Price/Earnings ratio of TJX is on the same level as its industry peers.
TJX is valuated rather expensively when we compare the Price/Earnings ratio to 25.56, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 28.33, 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 (34.62), we can say TJX is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.07 | ||
| Fwd PE | 28.33 |
4.2 Price Multiples
60.66% of the companies in the same industry are cheaper than TJX, based on the Enterprise Value to EBITDA ratio.
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 | 39.98 | ||
| EV/EBITDA | 20.88 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
TJX has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.65
PEG (5Y)3.41
EPS Next 2Y9.68%
EPS Next 3Y9.59%
5. Dividend
5.1 Amount
TJX has a Yearly Dividend Yield of 1.16%.
Compared to an average industry Dividend Yield of 5.49, TJX pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, TJX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
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
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 2Y9.68%
EPS Next 3Y9.59%
145.18
-0.9 (-0.62%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners93.12%
Inst Owner Change-1.15%
Ins Owners0.09%
Ins Owner Change-0.21%
Market Cap161.58B
Revenue(TTM)57.92B
Net Income(TTM)4.97B
Analysts84.62
Price Target154.89 (6.69%)
Short Float %1.2%
Short Ratio2.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
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)1.26%
PT rev (3m)7.31%
EPS NQ rev (1m)0.35%
EPS NQ rev (3m)-0.07%
EPS NY rev (1m)0.12%
EPS NY rev (3m)2.26%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)0.85%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.07 | ||
| Fwd PE | 28.33 | ||
| P/S | 2.79 | ||
| P/FCF | 39.98 | ||
| P/OCF | 27.22 | ||
| P/B | 18.22 | ||
| P/tB | 18.42 | ||
| EV/EBITDA | 20.88 |
EPS(TTM)4.39
EY3.02%
EPS(NY)5.12
Fwd EY3.53%
FCF(TTM)3.63
FCFY2.5%
OCF(TTM)5.33
OCFY3.67%
SpS52.05
BVpS7.97
TBVpS7.88
PEG (NY)3.65
PEG (5Y)3.41
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 | 6.87 |
F-Score6
WACC9.23%
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)6.04%
EPS 3Y14.34%
EPS 5Y9.71%
EPS Q2Q%14.58%
EPS Next Y9.06%
EPS Next 2Y9.68%
EPS Next 3Y9.59%
EPS Next 5Y10.09%
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 3Y5.97%
Revenue Next 5Y5.48%
EBIT growth 1Y6.18%
EBIT growth 3Y9.84%
EBIT growth 5Y7.32%
EBIT Next Year28.17%
EBIT Next 3Y14.87%
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%
TJX COMPANIES INC / TJX FAQ
Can you provide the ChartMill fundamental rating for TJX COMPANIES INC?
ChartMill assigns a fundamental rating of 6 / 10 to TJX.
Can you provide the valuation status for TJX COMPANIES INC?
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.
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 9.06% in the next year.
Can you provide the dividend sustainability for TJX stock?
The dividend rating of TJX COMPANIES INC (TJX) is 5 / 10 and the dividend payout ratio is 35.04%.