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TJX

TJX Companies NYSE:TJX Stock Report

Last Price

US$61.27

Market Cap

US$71.1b

7D

-5.2%

1Y

-13.8%

Updated

24 Sep, 2022

Data

Company Financials +
TJX fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance4/6
Financial Health5/6
Dividends3/6

TJX Stock Overview

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

The TJX Companies, Inc. Competitors

Price History & Performance

Summary of all time highs, changes and price drops for TJX Companies
Historical stock prices
Current Share PriceUS$61.27
52 Week HighUS$77.35
52 Week LowUS$53.69
Beta0.90
1 Month Change-5.87%
3 Month Change1.71%
1 Year Change-13.83%
3 Year Change11.75%
5 Year Change66.20%
Change since IPO12,549.29%

Recent News & Updates

Sep 19

TJX declares $0.295 dividend

TJX (NYSE:TJX) declares $0.295/share quarterly dividend, in line with previous. Forward yield 1.81% Payable Dec. 1; for shareholders of record Nov. 10; ex-div Nov. 9. See TJX Dividend Scorecard, Yield Chart, & Dividend Growth. Grades compared to peers:

Aug 31

TJX Companies: Off-Price Retailer With An Off-Price Stock

Summary TJX commands a premium valuation over department stores, and many other retailers, due to its strong competitive advantages that allow it to earn higher returns. Its most important competitive advantages are its world-class buying organization, and its global supply chain and distribution network. At current prices, shares look moderately undervalued, with an EV/EBITDA ~10% below its ten year average. We'll be adding the shares to our watch list. There is a quote, often used in real estate, that says 'Money is made when you buy, not when you sell'. That applies to the TJX Companies (TJX), whose business model is to source product at extremely attractive prices to then sell it at deep discounts to customers. Offering great value to customers has worked very well for the company, as its differentiated shopping experience attracts a wide range of customers, and has allowed the company to operate with excellent margins and returns on capital. Its rapidly changing mix of merchandise keeps customers coming back, and it creates a treasure hunt experience. The company also benefits from having very well located stores. Company Overview TJX operates TJ Maxx in the US and TK Maxx in Australia and Europe, along with Marshalls, HomeGoods, HomeSense, Sierra in the United States, and HomeSense, Marshalls, Winners in Canada. There are over 4,689 discount stores in the TJX portfolio located in nine countries. TJX Investor Presentation TJX is an expert in off-price retail, but what exactly is off-price retailing? Brand-name merchandise at great values. Opportunistic buying that creates a "Treasure Hunt" experience. Prices generally 20% to 60% below full-price retailers’ (including department, specialty, and major online retailers) regular prices on comparable merchandise. Rapidly changing assortments. Disciplined inventory and expense management. Second Quarter Results And Guidance For the Q2 2023 TJX delivered GAAP EPS of $0.69 and revenue of $11.84B. Both the pretax profit margin of 9.2% and the earnings per share were at the high end of the company's plan. This is despite inflation impacting consumer discretionary spending. The company executed its off-price fundamentals extremely well, with its merchants doing an excellent job buying the right merchandise in the right categories. For the full year, the company is guiding for total TJX sales in the range of $49.6 billion to $49.9 billion. The lower sales guidance includes lower-than-planned second quarter sales and an updated reduced sales expectation for the second half of the year. Despite the reduction in the sales plan, the company raised its guidance for the full year adjusted pretax margin to a range of between 9.7% and 9.9%. For the full year adjusted earnings per share, the company is guiding to a range of $3.05 to $3.13, which is up 7% to 10% over last year’s adjusted $2.85. Competitive Advantages TJX commands a premium valuation over department stores, and many other retailers, due to its strong competitive advantages that allow it to earn higher returns. Among these competitive advantages, the most important are its world-class buying organization and its global supply chain and distribution network, both of which make sure the company gets the right products, in the right markets, at the right time, and at very low prices. The company is also designed to be incredibly flexible, to adjust quickly to changing customer preferences and product availability. The company has more than 1,200 associates in its buying organization, with expertise developed over many decades, and it sources products from a universe of approximately 21,000 vendors. The company's competitive advantage is therefore the result of extreme efforts in getting the right product, at the right stores, at the right time. Financials Looking at the company's profit margins, it is remarkable how stable they have been over the years, with the exception of the Covid crisis. In particular, the operating margin of ~9% is extremely good for a retailer, and reflects the company's high efficiency and scale. TJX Gross Profit Margin (Quarterly) data by YCharts Despite operating in a highly competitive industry, the company has been able to use its competitive advantages to generate attractive returns on its capital. This can be seen in its impressive ROCE and ROIC. TJX Return on Capital Employed data by YCharts Growth The company is growing again after the Covid crisis, posting record trailing twelve months revenue of ~$49 billion. The company believes it still has significant growth ahead, projecting a potential for ~6,275 global stores, from the current ~4,689. TJX Revenue (TTM) data by YCharts Historically the company has grown revenue about 10% per year. Covid disrupted the company's growth, but we believe the company can continue to grow at a healthy pace in the coming years. TJX Revenue (Quarterly YoY Growth) data by YCharts Balance Sheet During the second quarter, the company generated $641 million in operating cash flow and ended the quarter with $3.5 billion in cash and short-term investments. It has a little more cash and short-term investments than long-term debt, making its balance sheet extremely solid. TJX Cash and Short Term Investments (Quarterly) data by YCharts Valuation The company is currently trading at a discount to its ten year EV/EBITDA average of ~14.6x. We believe this ~10% discount to its historical valuation makes shares attractive, especially given the excellent track record the company has in creating shareholder value.

Shareholder Returns

TJXUS Specialty RetailUS Market
7D-5.2%-6.3%-5.2%
1Y-13.8%-38.0%-23.0%

Return vs Industry: TJX exceeded the US Specialty Retail industry which returned -38.1% over the past year.

Return vs Market: TJX exceeded the US Market which returned -23.1% over the past year.

Price Volatility

Is TJX's price volatile compared to industry and market?
TJX volatility
TJX Average Weekly Movement4.1%
Specialty Retail Industry Average Movement7.9%
Market Average Movement6.9%
10% most volatile stocks in US Market15.8%
10% least volatile stocks in US Market2.8%

Stable Share Price: TJX is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: TJX's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1962340,000Ernie Herrmanhttps://www.tjx.com

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 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; and other merchandise.

The TJX Companies, Inc. Fundamentals Summary

How do TJX Companies's earnings and revenue compare to its market cap?
TJX fundamental statistics
Market CapUS$71.14b
Earnings (TTM)US$3.36b
Revenue (TTM)US$49.64b

21.2x

P/E Ratio

1.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TJX income statement (TTM)
RevenueUS$49.64b
Cost of RevenueUS$32.46b
Gross ProfitUS$17.18b
Other ExpensesUS$13.82b
EarningsUS$3.36b

Last Reported Earnings

Jul 30, 2022

Next Earnings Date

Nov 16, 2022

Earnings per share (EPS)2.89
Gross Margin34.60%
Net Profit Margin6.77%
Debt/Equity Ratio62.2%

How did TJX perform over the long term?

See historical performance and comparison

Dividends

1.9%

Current Dividend Yield

39%

Payout Ratio

Does TJX pay a reliable dividends?

See TJX dividend history and benchmarks
When do you need to buy TJX by to receive an upcoming dividend?
TJX Companies dividend dates
Ex Dividend DateNov 09 2022
Dividend Pay DateDec 01 2022
Days until Ex dividend44 days
Days until Dividend pay date66 days

Does TJX pay a reliable dividends?

See TJX dividend history and benchmarks