The TJX Companies, Inc.
The TJX Companies, Inc. Fundamental Analysis
The TJX Companies, Inc. (TJX) shows moderate financial fundamentals with a PE ratio of 34.77, profit margin of 8.68%, and ROE of 58.30%. The company generates $58.3B in annual revenue with moderate year-over-year growth of 3.95%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 47.7/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze TJX's fundamental strength across five key dimensions:
Efficiency Score
ExcellentTJX demonstrates superior asset utilization.
Valuation Score
WeakTJX trades at a premium to fair value.
Growth Score
ModerateTJX shows steady but slowing expansion.
Financial Health Score
ModerateTJX shows balanced financial health with some risks.
Profitability Score
ModerateTJX maintains healthy but balanced margins.
Key Financial Metrics
Is TJX Expensive or Cheap?
P/E Ratio
TJX trades at 34.77 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, TJX's PEG of 11.80 indicates potential overvaluation.
Price to Book
The market values The TJX Companies, Inc. at 19.02 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 20.64 times EBITDA. This signals the market has high growth expectations.
How Well Does TJX Make Money?
Net Profit Margin
For every $100 in sales, The TJX Companies, Inc. keeps $8.68 as profit after all expenses.
Operating Margin
Core operations generate 11.45 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $58.30 in profit for every $100 of shareholder equity.
ROA
The TJX Companies, Inc. generates $14.55 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
The TJX Companies, Inc. produces operating cash flow of $6.35B, showing steady but balanced cash generation.
Free Cash Flow
The TJX Companies, Inc. produces free cash flow of $4.37B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $3.92 in free cash annually.
FCF Yield
TJX converts 2.51% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
34.77
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
11.80
vs 25 benchmark
P/B Ratio
Price to book value ratio
19.02
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.98
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.41
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.09
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.58
vs 25 benchmark
ROA
Return on assets percentage
0.15
vs 25 benchmark
ROCE
Return on capital employed
0.32
vs 25 benchmark
How TJX Stacks Against Its Sector Peers
| Metric | TJX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 34.77 | 25.25 | Worse (Expensive) |
| ROE | 58.30% | 1170.00% | Weak |
| Net Margin | 8.68% | 742.00% | Weak |
| Debt/Equity | 1.41 | 0.77 | Weak (High Leverage) |
| Current Ratio | 1.09 | 9.19 | Neutral |
| ROA | 14.55% | -6467.00% (disorted) | Strong |
TJX outperforms its industry in 1 out of 6 key metrics, particularly excelling in ROA, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews The TJX Companies, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
44.70%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
59.21%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
61.08%
Industry Style: Cyclical, Growth, Discretionary
High Growth