NYSE:TJX

Stock Analysis Report

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Market Cap

US$82.0b

Last Updated

2021/08/03 00:33 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Adequate balance sheet average dividend payer.


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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: TJX's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-1.1%

TJX

-1.6%

US Specialty Retail

-0.4%

US Market


1 Year Return

31.0%

TJX

64.0%

US Specialty Retail

34.4%

US Market

Return vs Industry: TJX underperformed the US Specialty Retail industry which returned 65.8% over the past year.

Return vs Market: TJX underperformed the US Market which returned 35.9% over the past year.


Shareholder returns

TJXIndustryMarket
7 Day-1.1%-1.6%-0.4%
30 Day-0.4%-2.1%-0.4%
90 Day-4.1%-0.9%4.0%
1 Year31.9%31.0%65.2%64.0%36.5%34.4%
3 Year43.3%38.3%90.1%83.4%62.0%51.9%
5 Year78.1%66.6%107.3%93.5%121.8%97.2%

Long-Term 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?

54.01x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TJX ($67.95) is trading above our estimate of fair value ($66.19)

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 (54x) compared to the US Specialty Retail industry average (13.4x).

PE vs Market: TJX is poor value based on its PE Ratio (54x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: TJX is poor value based on its PEG Ratio (3.9x)


Price to Book Ratio

PB vs Industry: TJX is overvalued based on its PB Ratio (13.4x) compared to the US Specialty Retail industry average (3.3x).


Future Growth

How is TJX Companies forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?

13.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TJX's forecast earnings growth (13.8% per year) is above the savings rate (2%).

Earnings vs Market: TJX's earnings (13.8% per year) are forecast to grow slower than the US market (15% per year).

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

Revenue vs Market: TJX's revenue (7% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: TJX's revenue (7% 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 (54.8%).


Past Performance

How has TJX Companies performed over the past 5 years?

-10.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TJX has high quality earnings.

Growing Profit Margin: TJX's current net profit margins (4%) are lower than last year (4.6%).


Past Earnings Growth Analysis

Earnings Trend: TJX's earnings have declined by 10.3% 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 (-11.2%) over the past year, making it difficult to compare to the Specialty Retail industry average (156.7%).


Return on Equity

High ROE: TJX's Return on Equity (24.6%) is considered high.


Financial Health

How is TJX Companies's financial position?


Financial Position Analysis

Short Term Liabilities: TJX's short term assets ($15.0B) exceed its short term liabilities ($9.9B).

Long Term Liabilities: TJX's short term assets ($15.0B) exceed its long term liabilities ($14.3B).


Debt to Equity History and Analysis

Debt Level: TJX's debt to equity ratio (86.9%) is considered high.

Reducing Debt: TJX's debt to equity ratio has increased from 33.2% to 86.9% over the past 5 years.

Debt Coverage: TJX's debt is well covered by operating cash flow (136.6%).

Interest Coverage: TJX's interest payments on its debt are well covered by EBIT (10.7x coverage).


Balance Sheet


Dividend

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

1.53%

Current Dividend Yield


Upcoming Dividend Payment

TodayAug 03 2021Ex Dividend DateAug 11 2021Dividend Pay DateSep 02 202122 days from Ex DividendBuy in the next 7 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: TJX's dividend (1.53%) is higher than the bottom 25% of dividend payers in the US market (1.32%).

High Dividend: TJX's dividend (1.53%) is low compared to the top 25% of dividend payers in the US market (3.55%).


Stability and Growth of Payments

Stable Dividend: TJX's dividend payments have been volatile 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 (41.3%), 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 (37.4% payout ratio).


Next Steps

Management

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

6.9yrs

Average management tenure


CEO

Ernie Herrman (60 yo)

5.58yrs

Tenure

US$14,541,737

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 ($USD14.54M) is about average for companies of similar size in the US market ($USD11.19M).

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


Leadership Team

Experienced Management: TJX's management team is seasoned and experienced (6.9 years average tenure).


Board Members

Experienced Board: TJX's board of directors are considered experienced (6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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: NaN
  • Industry: Apparel Retail
  • Sector: Retail
  • Market Cap: US$81.981b
  • 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


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 Analysis2021/08/03 00:33
End of Day Share Price2021/08/02 00:00
Earnings2021/05/01
Annual Earnings2021/01/30


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.