NYSE:TJX

Stock Analysis Report

Executive Summary

The TJX Companies, Inc. operates as an off-price apparel and home fashions retailer.


Snowflake Analysis

Established dividend payer with mediocre balance sheet.


Similar Companies

Share Price & News

How has TJX Companies's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TJX has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.1%

TJX

0.9%

US Specialty Retail

-1.1%

US Market


1 Year Return

25.7%

TJX

17.7%

US Specialty Retail

17.9%

US Market

Return vs Industry: TJX exceeded the US Specialty Retail industry which returned 17.7% over the past year.

Return vs Market: TJX exceeded the US Market which returned 17.9% over the past year.


Shareholder returns

TJXIndustryMarket
7 Day-0.1%0.9%-1.1%
30 Day3.5%2.7%1.4%
90 Day6.7%5.1%6.9%
1 Year27.8%25.7%19.5%17.7%20.3%17.9%
3 Year70.0%61.8%44.9%37.9%47.8%38.3%
5 Year98.9%84.5%48.1%36.1%71.9%53.0%

Price Volatility Vs. Market

How volatile is TJX Companies's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is TJX Companies undervalued compared to its fair value and its price relative to the market?

24.58x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TJX ($63.31) is trading above our estimate of fair value ($43.57)

Significantly Below Fair Value: TJX is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: TJX is poor value based on its PE Ratio (24.6x) compared to the Specialty Retail industry average (16.9x).

PE vs Market: TJX is poor value based on its PE Ratio (24.6x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: TJX is poor value based on its PEG Ratio (3.6x)


Price to Book Ratio

PB vs Industry: TJX is overvalued based on its PB Ratio (13.7x) compared to the US Specialty Retail industry average (1.5x).


Next Steps

Future Growth

How is TJX Companies forecast to perform in the next 1 to 3 years based on estimates from 28 analysts?

6.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TJX's forecast earnings growth (6.8% per year) is above the savings rate (1.7%).

Earnings vs Market: TJX's earnings (6.8% per year) are forecast to grow slower than the US market (14.1% per year).

High Growth Earnings: TJX's earnings are forecast to grow, but not significantly.

Revenue vs Market: TJX's revenue (6.1% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: TJX's revenue (6.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TJX's Return on Equity is forecast to be very high in 3 years time (60.7%).


Next Steps

Past Performance

How has TJX Companies performed over the past 5 years?

8.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TJX has high quality earnings.

Growing Profit Margin: TJX's current net profit margins (7.7%) are lower than last year (8%).


Past Earnings Growth Analysis

Earnings Trend: TJX's earnings have grown by 8.4% per year over the past 5 years.

Accelerating Growth: TJX's earnings growth over the past year (1.1%) is below its 5-year average (8.4% per year).

Earnings vs Industry: TJX earnings growth over the past year (1.1%) underperformed the Specialty Retail industry 7.9%.


Return on Equity

High ROE: TJX's Return on Equity (56.5%) is considered outstanding.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is TJX Companies's financial position?


Financial Position Analysis

Short Term Liabilities: TJX's short term assets ($9.4B) exceed its short term liabilities ($7.7B).

Long Term Liabilities: TJX's short term assets ($9.4B) do not cover its long term liabilities ($11.1B).


Debt to Equity History and Analysis

Debt Level: TJX's debt to equity ratio (40.3%) is considered high.

Reducing Debt: TJX's debt to equity ratio has increased from 37.2% to 40.3% over the past 5 years.

Debt Coverage: TJX's debt is well covered by operating cash flow (155.8%).

Interest Coverage: TJX's interest payments on its debt are well covered by EBIT (779.8x coverage).


Balance Sheet

Inventory Level: TJX has a high level of physical assets or inventory.

Debt Coverage by Assets: TJX's debt is covered by short term assets (assets are 4.2x debt).


Next Steps

Dividend

What is TJX Companies's current dividend yield, its reliability and sustainability?

1.45%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TJX's dividend (1.45%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: TJX's dividend (1.45%) is low compared to the top 25% of dividend payers in the US market (3.73%).


Stability and Growth of Payments

Stable Dividend: TJX's dividends per share have been stable in the past 10 years.

Growing Dividend: TJX's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (34.4%), TJX's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TJX's dividends in 3 years are forecast to be well covered by earnings (36.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.4yrs

Average management tenure


CEO

Ernie Herrman (58yo)

4.1yrs

Tenure

US$18,822,770

Compensation

Mr. Ernie L. Herrman has been the President of The TJX Companies, Inc. since January 2011 and has been its Chief Executive Officer since January 31, 2016 and Director since October 7, 2015. Mr. Herrman ser ...


CEO Compensation Analysis

Compensation vs Market: Ernie's total compensation ($USD18.82M) is above average for companies of similar size in the US market ($USD10.81M).

Compensation vs Earnings: Ernie's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Carol Meyrowitz
Executive Chairman 4.7yrsUS$11.26m0.027% $20.9m
Ernie Herrman
CEO, President & Director4.1yrsUS$18.82m0.045% $34.6m
Scott Goldenberg
Senior EVP & CFO8.1yrsUS$6.43m0.0099% $7.5m
Richard Sherr
Senior EVP & Group President8.1yrsUS$6.75m0.0097% $7.4m
Kenneth Canestrari
Senior EVP & Group President5.4yrsUS$5.14m0.011% $8.5m
Bernard Cammarata
Founder & Executive Advisor0yrsUS$4.94mno data
Alicia Kelly
Executive VP0yrsno datano data
Debra McConnell
Senior Vice President of Global Communications0yrsno datano data
Douglas Mizzi
Senior EVP & Group President2yrsno data0.0099% $7.5m
Mary Reynolds
Senior VP & Treasurer0yrsno datano data

5.4yrs

Average Tenure

62yo

Average Age

Experienced Management: TJX's management team is seasoned and experienced (5.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Carol Meyrowitz
Executive Chairman 4.7yrsUS$11.26m0.027% $20.9m
Ernie Herrman
CEO, President & Director4.1yrsUS$18.82m0.045% $34.6m
Tai Ching
Independent Director12.7yrsUS$337.20k0.0013% $959.8k
Jackwyn Nemerov
Independent Director3.3yrsUS$269.60k0.00018% $137.1k
John O'Brien
Independent Director24.1yrsUS$395.55k0.011% $8.0m
Willow Shire
Independent Director25.1yrsUS$357.47k0.0033% $2.5m
Alan Bennett
Lead Independent Director1.1yrsUS$340.97k0.00081% $617.0k
Amy Lane
Independent Director14.3yrsUS$334.84k0.0024% $1.9m
Michael Hines
Independent Director12.7yrsUS$349.02k0.0018% $1.4m
Zein Abdalla
Independent Director8.1yrsUS$278.59k0.0022% $1.7m

10.4yrs

Average Tenure

66yo

Average Age

Experienced Board: TJX's board of directors are seasoned and experienced ( 10.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: TJX insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

The TJX Companies, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The TJX Companies, Inc.
  • Ticker: TJX
  • Exchange: NYSE
  • Founded: 1956
  • Industry: Apparel Retail
  • Sector: Retail
  • Market Cap: US$76.174b
  • Shares outstanding: 1.20b
  • Website: https://www.tjx.com

Number of Employees


Location

  • The TJX Companies, Inc.
  • 770 Cochituate Road
  • Framingham
  • Massachusetts
  • 1701
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TJXNYSE (New York Stock Exchange)YesCommon SharesUSUSDJan 1968
TJXDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1968
TJX *BMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNJan 1968
0LCELSE (London Stock Exchange)YesCommon SharesGBUSDJan 1968
TJXBRSE (Berne Stock Exchange)YesCommon SharesCHCHFJan 1968
TJXETLX (Eurotlx)YesCommon SharesITEURJan 1968
TJXCWBAG (Wiener Boerse AG)YesCommon SharesATEURJan 1968
TJXC34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REP 1 COM USD1BRBRLMay 2019

Biography

The TJX Companies, Inc. operates as an off-price apparel and home fashions retailer. It operates through four segments: Marmaxx, HomeGoods, TJX Canada, and TJX International. The company sells family apparel, including footwear and accessories; home fashions, such as home basics, furniture, rugs, lighting products, giftware, soft home products, decorative accessories, tabletop, and cookware, as well as expanded pet, kids, and gourmet food departments; jewelry and accessories; footwear; and other merchandise. It operates stores under the T.J. Maxx, Marshalls, HomeGoods, Winners, HomeSense, T.K. Maxx, and Sierra Trading Post names, as well as operates e-commerce sites tjmaxx.com, tkmaxx.com, and sierratradingpost.com. The company operates approximately 4,300 stores in the United States, Canada, the United Kingdom, Ireland, Germany, Poland, Austria, the Netherlands, and Australia. The TJX Companies, Inc. was founded in 1956 and is headquartered in Framingham, Massachusetts. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 01:06
End of Day Share Price2020/02/21 00:00
Earnings2019/11/02
Annual Earnings2019/02/02


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.