TJX Companies Inc
Exchange: NYSESector: Consumer CyclicalIndustry: Apparel Retail
The TJX Companies, Inc. (TJX) is the off-price apparel and home fashions retailer in the United States and worldwide. As of January 28, 2012, the Company operated in four business segments. It has two segments in the United States, Marmaxx (T.J. Maxx and Marshalls) and HomeGoods; one in Canada, TJX Canada (Winners, Marshalls and HomeSense) and one in Europe, TJX Europe (T.K. Maxx and HomeSense). As a result of the consolidation of the A.J. Wright chain, all A.J. Wright stores ceased operations by the end of February 2011. It completed the consolidation of A.J. Wright, converting 90 of the A.J. Wright stores to T.J. Maxx, Marshalls or HomeGoods banners and closed the remaining 72 stores, two distribution centers and home office. In December 2012, the Company acquired Sierra Trading Post, an off-price Internet retailer.
Did you know?
Earnings per share grew at a 9.0% CAGR.
Current Price
$158.35
-0.08%GoodMoat Value
$91.88
42.0% overvaluedProfile
Valuation (TTM)
Market Cap$175.84B
P/E32.01
EV$182.73B
P/B17.26
Shares Out1.11B
P/Sales2.91
Revenue$60.37B
EV/EBITDA21.73
TJX Companies Inc (TJX) Stock Analysis
GoodMoat Analysis
TJX Companies is a dominant off-price apparel and home fashions retailer with a powerful supply chain and scale advantage. However, its valuation appears stretched, trading at a significant premium to the GoodMoat target price, making the current price unfavourable for value investors.
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TJX Companies operates a large portfolio of off-price retail chains, including T.J. Maxx, Marshalls, and HomeGoods. Its primary competitive advantage, or moat, lies in its scale and supply chain efficiency (Section 1, Criteria 8 & 12). Its massive global buying power and sophisticated logistics network allow it to source branded merchandise opportunistically at deep discounts, a model difficult for smaller competitors to replicate. This likely earns it a solid Moat Score, allowing it to pass the first gate of the Decision Framework. The business also demonstrates high quality with an exceptional ROE of 61.0% and consistent revenue growth of 8.5% YoY. However, the valuation assessment presents a major hurdle. The stock trades at a P/E of 34.7x, which is high for its growth rate, and has a modest FCF yield of 2.4%. Most critically, the current price of $159.74 is nearly double the GoodMoat target of $80.69. According to Section 6, this suggests a negative or minimal margin of safety, placing the stock in the 'Unfavourable' or 'With Caution' category for valuation. While the underlying business is strong, the price does not offer the margin of safety a value investor typically requires, making further investigation primarily an exercise in understanding why the market premium exists.
Market Cap$175.84B
Current Price$158.35
P/E Ratio32.01
Forward P/E—
PEG Ratio1.13
EPS$4.87
Book Value$9.18
P/B Ratio17.26
TJX Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 9.6% FCF growth (CAGR)
Cash vs Debt
Net Debt: 7.3B
Revenue
41.7B
FY20
32.1B
FY21
48.5B
FY22
49.9B
FY23
54.2B
FY24
56.4B
FY25
60.4B
FY26
Net Income
3.3B
FY20
90M
FY21
3.3B
FY22
3.5B
FY23
4.5B
FY24
4.9B
FY25
5.5B
FY26
TJX 52-Week Range
$120.28
$165.00
50-Day MA: $158.19200-Day MA: $146.50
Did you know?
Earnings per share grew at a 9.0% CAGR.
TJX Companies Inc (TJX) Financial Summary
TJX Companies Inc (TJX) is a Consumer Cyclical company in the Apparel Retail industry, listed on NYSE. The stock currently trades at $158.35 with a market capitalization of $175.84B.
Key valuation metrics include a P/E ratio of 32.01, price-to-book ratio of 17.26, and EPS of $4.87. The company reports a profit margin of 9.1% and return on equity of 53.9%.
TJX Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $175.84B |
| P/E Ratio | 32.01 |
| EPS | $4.87 |
| P/B Ratio | 17.26 |
| P/S Ratio | 2.91 |
| EV/EBITDA | 21.73 |
| Dividend Yield | 1.05% |
| Profit Margin | 9.1% |
| Return on Equity | 53.9% |
| Debt/Equity | 1.32 |
TJX Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY20 | $41.72B | $3.27B |
| FY21 | $32.14B | $90.00M |
| FY22 | $48.55B | $3.28B |
| FY23 | $49.94B | $3.50B |
| FY24 | $54.22B | $4.47B |
| FY25 | $56.36B | $4.86B |
| FY26 | $60.37B | $5.49B |
TJX Companies Inc (TJX) Valuation
Based on GoodMoat's DCF model, TJX Companies Inc has a fair value estimate of $91.88. At the current price of $158.35, the stock appears 72.3% overvalued relative to our intrinsic value estimate.
TJX Quality Indicators
TJX Companies Inc maintains a profit margin of 9.1% and an operating margin of 11.9%. Return on equity stands at 53.9%. The current ratio is 1.14. Debt-to-equity ratio is 1.32.
About TJX Companies Inc
The TJX Companies, Inc. (TJX) is the off-price apparel and home fashions retailer in the United States and worldwide. As of January 28, 2012, the Company operated in four business segments. It has two segments in the United States, Marmaxx (T.J. Maxx and Marshalls) and HomeGoods; one in Canada, TJX Canada (Winners, Marshalls and HomeSense) and one in Europe, TJX Europe (T.K. Maxx and HomeSense). As a result of the consolidation of the A.J. Wright chain, all A.J. Wright stores ceased operations by the end of February 2011. It completed the consolidation of A.J. Wright, converting 90 of the A.J. Wright stores to T.J. Maxx, Marshalls or HomeGoods banners and closed the remaining 72 stores, two distribution centers and home office. In December 2012, the Company acquired Sierra Trading Post, an off-price Internet retailer.
TJX Free Cash Flow
TJX Companies Inc generated $4.92B in trailing twelve-month free cash flow, representing an FCF yield of 2.80%. This moderate FCF yield indicates reasonable cash generation.
TJX Shares Outstanding
TJX Companies Inc has 1.11 billion shares outstanding at a share price of $158.35, giving it a market capitalization of $175.84B.
TJX Recent Insider Trades
Recent insider transactions at TJX Companies Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Herrman Ernie (CEO & President) | SELL | 30,000 | $4.83M |
| LANE AMY B (Director) | BUY | 22.45 | $1456.00 |