NYSE:TJX

Stock Analysis Report

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Executive Summary

The TJX Companies, Inc., together with its subsidiaries, operates as an off-price apparel and home fashions retailer. More Details


Snowflake Analysis

High growth potential 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

-2.5%

US Specialty Retail

-1.1%

US Market


1 Year Return

-4.4%

TJX

19.0%

US Specialty Retail

15.6%

US Market

Return vs Industry: TJX underperformed the US Specialty Retail industry which returned 19% over the past year.

Return vs Market: TJX underperformed the US Market which returned 15.6% over the past year.


Shareholder returns

TJXIndustryMarket
7 Day0.1%-2.5%-1.1%
30 Day3.4%4.8%4.2%
90 Day4.6%11.0%6.3%
1 Year-3.6%-4.4%20.2%19.0%18.2%15.6%
3 Year64.2%57.6%83.6%75.5%39.6%30.4%
5 Year58.8%48.2%61.9%49.4%79.5%59.2%

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?

92.86x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TJX ($55) is trading above our estimate of fair value ($32.67)

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 (92.9x) compared to the US Specialty Retail industry average (20.6x).

PE vs Market: TJX is poor value based on its PE Ratio (92.9x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: TJX is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: TJX is overvalued based on its PB Ratio (14.2x) compared to the US Specialty Retail industry average (1.9x).


Next Steps

Future Growth

How is TJX Companies forecast to perform in the next 1 to 3 years based on estimates from 25 analysts?

42.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TJX's forecast earnings growth (42.3% per year) is above the savings rate (2.2%).

Earnings vs Market: TJX's earnings (42.3% per year) are forecast to grow faster than the US market (22.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: TJX's revenue (12.1% per year) is forecast to grow faster than the US market (10% per year).

High Growth Revenue: TJX's revenue (12.1% 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 (59.8%).


Next Steps

Past Performance

How has TJX Companies performed over the past 5 years?

1.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TJX has high quality earnings.

Growing Profit Margin: TJX's current net profit margins (2.1%) are lower than last year (7.7%).


Past Earnings Growth Analysis

Earnings Trend: TJX's earnings have grown by 1.7% per year over the past 5 years.

Accelerating Growth: TJX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TJX had negative earnings growth (-76.8%) over the past year, making it difficult to compare to the Specialty Retail industry average (3%).


Return on Equity

High ROE: TJX's Return on Equity (15.3%) is considered low.


Next Steps

Financial Health

How is TJX Companies's financial position?


Financial Position Analysis

Short Term Liabilities: TJX's short term assets ($11.5B) exceed its short term liabilities ($7.6B).

Long Term Liabilities: TJX's short term assets ($11.5B) do not cover its long term liabilities ($14.3B).


Debt to Equity History and Analysis

Debt Level: TJX's debt to equity ratio (132.9%) is considered high.

Reducing Debt: TJX's debt to equity ratio has increased from 36.3% to 132.9% over the past 5 years.

Debt Coverage: TJX's debt is well covered by operating cash flow (54.3%).

Interest Coverage: TJX's interest payments on its debt are well covered by EBIT (12.6x coverage).


Balance Sheet


Next Steps

Dividend

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

1.66%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate TJX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate TJX's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if TJX's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if TJX's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: TJX is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TJX's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

6.1yrs

Average management tenure


CEO

Ernie Herrman (59 yo)

4.75yrs

Tenure

US$19,083,676

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 ($USD19.08M) is above average for companies of similar size in the US market ($USD11.18M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Carol Meyrowitz
Executive Chairman5.33yrsUS$10.50m0.029%
$ 19.1m
Ernie Herrman
CEO, President & Director4.75yrsUS$19.08m0.049%
$ 32.1m
Scott Goldenberg
Senior EVP & CFO8.75yrsUS$6.67m0.0071%
$ 4.7m
Richard Sherr
Senior EVP & Group President8.75yrsUS$7.60m0.0076%
$ 5.0m
Kenneth Canestrari
Senior EVP & Group President6.08yrsUS$5.60m0.010%
$ 6.7m
Bernard Cammarata
Founder & Executive Advisorno dataUS$847.97kno data
Alicia Kelly
Executive VPno datano datano data
Debra McConnell
Senior Vice President of Global Communicationsno datano datano data
Douglas Mizzi
Senior EVP & Group President2.67yrsno data0.012%
$ 7.9m
Erica Farrell
Senior Vice President of Treasuryno datano datano data
Mary Reynolds
Senior VP & Treasurerno datano datano data

6.1yrs

Average Tenure

63yo

Average Age

Experienced Management: TJX's management team is seasoned and experienced (6.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Carol Meyrowitz
Executive Chairman5.33yrsUS$10.50m0.029%
$ 19.1m
Ernie Herrman
CEO, President & Director4.75yrsUS$19.08m0.049%
$ 32.1m
Tai Ching
Independent Director13.33yrsUS$299.00k0.0014%
$ 923.3k
Jackwyn Nemerov
Independent Director3.92yrsUS$268.00k0.00017%
$ 112.1k
John O'Brien
Independent Director24.75yrsUS$278.80k0.011%
$ 7.0m
Willow Shire
Independent Director25.75yrsUS$278.00k0.0034%
$ 2.3m
Alan Bennett
Lead Independent Director1.75yrsUS$322.41k0.00080%
$ 527.6k
Amy Lane
Independent Director15yrsUS$283.00k0.0025%
$ 1.7m
Rosemary Berkery
Independent Director2.08yrsUS$275.00k0.00051%
$ 336.3k
Michael Hines
Independent Director13.33yrsUS$286.00k0.0018%
$ 1.2m
Jose Alvarez
Director0.083yrUS$93.82k0.00014%
$ 92.3k
Zein Abdalla
Independent Director8.75yrsUS$266.00k0.0023%
$ 1.5m

7.0yrs

Average Tenure

67yo

Average Age

Experienced Board: TJX's board of directors are considered experienced (7 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:
  • Industry: Apparel Retail
  • Sector: Retail
  • Market Cap: US$65.948b
  • 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
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., together with its subsidiaries, operates as an off-price apparel and home fashions retailer. It operates through four segments: Marmaxx, HomeGoods, TJX Canada, and TJX Internationa ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/27 00:33
End of Day Share Price2020/10/26 00:00
Earnings2020/08/01
Annual Earnings2020/02/01


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.