NYSE:TJX

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

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


Market Performance


7 Day Return

0.7%

TJX

0.5%

US Specialty Retail

0.4%

US Market


1 Year Return

12.4%

TJX

8.4%

US Specialty Retail

11.4%

US Market

Return vs Industry: TJX exceeded the US Specialty Retail industry which returned 8.4% over the past year.

Return vs Market: TJX exceeded the US Market which returned 11.4% over the past year.


Shareholder returns

TJXIndustryMarket
7 Day0.7%0.5%0.4%
30 Day8.1%4.0%0.3%
90 Day8.4%3.6%-1.2%
1 Year14.2%12.4%10.3%8.4%13.9%11.4%
3 Year69.2%61.1%44.7%37.1%47.2%37.6%
5 Year104.7%90.3%55.6%42.3%62.4%44.6%

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?

23.82x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TJX ($59.68) is trading above our estimate of fair value ($50.44)

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 (23.8x) compared to the Specialty Retail industry average (15.7x).

PE vs Market: TJX is poor value based on its PE Ratio (23.8x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: TJX is poor value based on its PEG Ratio (3.5x)


Price to Book Ratio

PB vs Industry: TJX is overvalued based on its PB Ratio (13.6x) 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 24 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 (2.7%).

Earnings vs Market: TJX's earnings (6.8% per year) are forecast to grow slower than the US market (14.3% per year).

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

Revenue vs Market: TJX's revenue (6.3% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: TJX's revenue (6.3% 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 (59.6%).


Next Steps

Past Performance

How has TJX Companies performed over the past 5 years?

7.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: TJX's earnings have grown by 7.9% per year over the past 5 years.

Accelerating Growth: TJX's earnings growth over the past year (3%) is below its 5-year average (7.9% per year).

Earnings vs Industry: TJX earnings growth over the past year (3%) underperformed the Specialty Retail industry 6.8%.


Return on Equity

High ROE: TJX's Return on Equity (57.8%) is considered outstanding.


Return on Assets

ROA vs Industry: TJX has a higher Return on Assets than the Specialty Retail industry average last year.


Return on Capital Employed

ROCE Improving: TJX's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is TJX Companies's financial position?


Financial Position Analysis

Short Term Liabilities: TJX's short term assets ($8.3B) exceeds its short term liabilities ($6.6B)

Long Term Liabilities: TJX's short term assets (8.3B) do not cover its long term liabilities (11.0B)


Debt to Equity History and Analysis

Debt Level: TJX's debt to equity ratio (42.2%) is considered high

Reducing Debt: TJX's debt to equity ratio has increased from 38% to 42.2% over the past 5 years.

Debt Coverage: TJX's debt is well covered by operating cash flow (153.3%).

Interest Coverage: TJX's interest payments on its debt are well covered by EBIT (782.7x 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 3.7x debt).


Next Steps

Dividend

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

1.54%

Current Dividend Yield


Upcoming Dividend Payment

Purchase TJX Companies before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company1.5%marketbottom25%1.4%markettop25%3.7%industryaverage2.0%forecastin3Years1.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: TJX's dividend (1.54%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: TJX's dividend (1.54%) is low compared to the top 25% of dividend payers in the US market (3.68%).

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 (33.9%), 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 (37.5% payout ratio).


Next Steps

Management

What is the CEO of TJX Companies's salary, the management and board of directors tenure and is there insider trading?

5.1yrs

Average management tenure


CEO

Ernie Herrman (58yo)

3.8yrs

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 ($USD18.82M) is about average for companies of similar size in the US market ($USD11.17M).

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


Management Age and Tenure

5.1yrs

Average Tenure

62yo

Average Age

Experienced Management: TJX's management team is seasoned and experienced (5.1 years average tenure).


Board Age and Tenure

10.0yrs

Average Tenure

66yo

Average Age

Experienced Board: TJX's board of directors are seasoned and experienced ( 10 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$1,043,97012 Jun 19
Tai Ching
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares20,000
Max PriceUS$52.20
SellUS$41,54012 Jun 19
Amy Lane
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares800
Max PriceUS$51.93
SellUS$76,00423 May 19
Richard Sherr
EntityIndividual
Role
Senior Key Executive
Senior EVP & Group President
Shares1,480
Max PriceUS$51.35
SellUS$51,79004 Mar 19
Amy Lane
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$51.79

Ownership Breakdown


Management Team

  • Bernard Cammarata (79yo)

    Founder & Executive Advisor

    • Tenure: 0yrs
    • Compensation: US$4.94m
  • Carol Meyrowitz (65yo)

    Executive Chairman

    • Tenure: 4.3yrs
    • Compensation: US$11.26m
  • Ernie Herrman (58yo)

    CEO, President & Director

    • Tenure: 3.8yrs
    • Compensation: US$18.82m
  • Richard Sherr (62yo)

    Senior EVP & Group President

    • Tenure: 7.8yrs
    • Compensation: US$6.75m
  • Scott Goldenberg (65yo)

    Senior EVP & CFO

    • Tenure: 7.8yrs
    • Compensation: US$6.43m
  • Ken Canestrari (57yo)

    Senior EVP & Group President

    • Tenure: 5.1yrs
    • Compensation: US$5.14m
  • Mary Reynolds

    Senior VP & Treasurer

    • Tenure: 0yrs
  • Alicia Kelly

    Executive VP

    • Tenure: 0yrs
  • Doug Mizzi (59yo)

    Senior EVP & Group President

    • Tenure: 1.7yrs
  • Debra McConnell

    Senior Vice President of Global Communications

    • Tenure: 0yrs

Board Members

  • David Ching (66yo)

    Independent Director

    • Tenure: 12.3yrs
    • Compensation: US$337.20k
  • Carol Meyrowitz (65yo)

    Executive Chairman

    • Tenure: 4.3yrs
    • Compensation: US$11.26m
  • Jacki Nemerov (67yo)

    Independent Director

    • Tenure: 2.9yrs
    • Compensation: US$269.60k
  • John O'Brien (75yo)

    Independent Director

    • Tenure: 23.8yrs
    • Compensation: US$395.55k
  • Willow Shire (71yo)

    Independent Director

    • Tenure: 24.8yrs
    • Compensation: US$357.47k
  • Alan Bennett (69yo)

    Lead Director

    • Tenure: 0.8yrs
    • Compensation: US$340.97k
  • Amy Lane (66yo)

    Independent Director

    • Tenure: 14yrs
    • Compensation: US$334.84k
  • Mike Hines (63yo)

    Independent Director

    • Tenure: 12.3yrs
    • Compensation: US$349.02k
  • Ernie Herrman (58yo)

    CEO, President & Director

    • Tenure: 3.8yrs
    • Compensation: US$18.82m
  • Zein Abdalla (60yo)

    Independent Director

    • Tenure: 7.8yrs
    • Compensation: US$278.59k

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$72.149b
  • Shares outstanding: 1.21b
  • 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
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 appar ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 23:48
End of Day Share Price2019/10/23 00:00
Earnings2019/08/03
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.