TJX Companies (TJX) AI Stock Analysis

• Market Cap: $140.81B
• Dividend Yield: 1.19%
• Average Volume (3M): 6.39M
• Price to Earnings (P/E): 29.6
• Beta (1Y): 0.49
• Revenue Growth: 3.95%
• EPS Growth: 10.34%
• Country: US
• Employees: 364,000
• Sector: Consumer Cyclical
• Sector Strength: 55
• Industry: Apparel - Retail
• EPS (TTM): 4.26
• Shares Outstanding: 1,117,100,500
• 10 Day Avg. Volume: 7,553,834
• 30 Day Avg. Volume: 6,390,266
• PEG Ratio: 2.86
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.31
• Price to Cash Flow (P/CF): 31.20
• P/FCF Ratio: 52.30
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $141.59
• Price Target Upside: 11.08% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 19

TJX Companies is in a strong financial position with robust revenue and profit growth, bolstered by effective cash flow management and sound operational efficiency. The positive earnings call further underpins the company's growth prospects, despite some concerns over profit margins and external challenges like foreign exchange rates. While the stock's valuation appears fair, the relatively high P/E ratio suggests it is priced for growth. The technical analysis supports a positive short-term trend, though the lack of momentum indicators warrants caution.

Positive Factors

Competitive Advantage

TJX is widening its moat through unique competitive advantages, likely supporting broadening outperformance and taking outsized market share.

International Expansion

Home and International expansion represents unique growth opportunities for TJX.

Inventory Advantage

TJX is best-positioned in Off-Price to benefit from a surplus of inventory in the marketplace.

Negative Factors

Consumer Environment

A potentially weakening consumer environment will mean more consumers are likely to trade down to the off-price channel in search of value.

International Profitability

International remains less profitable than North America due to higher costs.

TJX Companies Business Overview & Revenue Model

Company Description

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. As of February 23, 2022, it operated 1,284 T.J. Maxx, 1,148 Marshalls, 850 HomeGoods, 59 Sierra, and 39 Homesense stores, as well as tjmaxx.com, marshalls.com, and sierra.com in the United States; 293 Winners, 147 HomeSense, and 106 Marshalls stores in Canada; 618 T.K. Maxx and 77 Homesense stores, as well as tkmaxx.com in Europe; and 68 T.K. Maxx stores in Australia. The company was incorporated in 1962 and is headquartered in Framingham, Massachusetts.

How the Company Makes Money

TJX Companies makes money primarily through the sale of off-price apparel and home goods across its retail store brands. The company's revenue model is centered around purchasing excess inventory, closeouts, and overruns from manufacturers and other retailers at reduced prices, which it then sells in its stores at a lower price point than traditional retail outlets. Key revenue streams include sales from its physical stores and a growing e-commerce platform. Additionally, TJX benefits from strategic partnerships with suppliers and a flexible business model that allows it to quickly adapt to consumer demand and trends. The company's focus on cost management and efficient logistics also enhances its profitability by maintaining low operating expenses.

TJX Companies Financial Statement Overview

Summary

TJX Companies demonstrates strong financial health with robust profitability as indicated by high gross and net profit margins. The company effectively manages its leverage, as shown by a moderate debt-to-equity ratio and high return on equity. Cash flows are solid, with significant cash generation and efficient cash utilization. While leverage is moderate, the focus should remain on managing debt and enhancing free cash flow growth.

Income Statement

The income statement shows robust performance with a TTM gross profit margin of 30.5% and net profit margin of 8.6%, indicating strong profitability. Revenue growth is commendable, with a 4.1% increase from the previous year. EBIT and EBITDA margins are healthy at 11.2% and 13.0%, respectively, demonstrating efficient operational management. The company's revenue and profit growth trajectory is positive, reflecting well on its operational effectiveness.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 1.56, indicating manageable leverage levels. The return on equity (ROE) is strong at 59.6%, suggesting effective utilization of shareholder funds. The equity ratio is relatively low at 25.2%, which highlights a higher reliance on liabilities for asset financing. Despite the leverage, the company maintains stability and profitability, though it should monitor its debt levels closely.

Cash Flow

Cash flow analysis indicates a strong operating cash flow to net income ratio of 1.28, showing robust cash generation. The free cash flow growth rate is modest at 0.8%, suggesting stable cash reserves. The free cash flow to net income ratio is 0.90, reflecting efficient cash utilization. Overall, the company exhibits solid cash flow management with potential for improvement in free cash flow growth.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
56.36B	54.22B	49.94B	48.55B	32.14B
	Gross Profit
56.36B	16.27B	13.79B	13.84B	7.60B
	EBIT
6.30B	5.80B	5.08B	4.75B	582.23M
	EBITDA
7.41B	7.01B	5.96B	5.62B	1.15B
	Net Income Common Stockholders
4.86B	4.47B	3.50B	3.28B	90.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.33B	5.60B	5.48B	6.23B	10.47B
	Total Assets
31.75B	29.75B	28.35B	28.46B	30.81B
	Total Debt
12.78B	12.54B	12.74B	12.51B	15.50B
	Net Debt
7.44B	6.94B	7.27B	6.28B	5.03B
	Total Liabilities
23.36B	22.45B	21.98B	22.46B	24.98B
	Stockholders Equity
8.39B	7.30B	6.36B	6.00B	5.83B
Cash Flow		Free Cash Flow
6.12B	4.33B	2.63B	2.01B	3.99B
	Operating Cash Flow
6.12B	6.06B	4.08B	3.06B	4.56B
	Investing Cash Flow
-2.48B	-1.72B	-1.47B	-1.05B	-578.60M
	Financing Cash Flow
-3.84B	-4.21B	-3.31B	-6.20B	3.23B

TJX Companies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 127.47
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TJX, the sentiment is Positive. The current price of 127.47 is above the 20-day moving average (MA) of 120.05, above the 50-day MA of 121.54, and above the 200-day MA of 117.92, indicating a bullish trend. The MACD of -0.08 indicates Negative momentum. The RSI at 58.36 is Neutral, neither overbought nor oversold. The STOCH value of 83.80 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TJX.

TJX Companies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
URBN	79 Outperform	$4.67B	11.83	17.56%	―	7.71%	40.01%
TJX	77 Outperform	$140.81B	29.59	61.98%	1.19%	3.95%	10.34%
ROST	76 Outperform	$45.05B	21.69	40.28%	1.10%	3.69%	13.71%
GAP	73 Outperform	$7.61B	9.23	28.81%	3.40%	1.32%	65.83%
BURL	71 Outperform	$15.55B	31.67	42.55%	―	9.33%	50.05%
AEO	71 Outperform	$1.94B	6.72	18.80%	5.18%	1.27%	96.32%
Sector *	59 Neutral	$11.76B	10.11	-0.70%	3.92%	1.27%	-16.30%

TJX Companies Corporate Events

TJX Companies Extends Executive Employment Agreements

On January 31, 2025, TJX Companies, Inc. announced the extension of employment agreements with key executives, including CEO Ernie Herrman and Executive Chairman Carol Meyrowitz, to January 2028 and with Executive Advisor Scott Goldenberg to April 2026. The agreements maintain existing terms and conditions, with Meyrowitz’s contract including a minimum annual salary adjustment, underscoring TJX’s commitment to its leadership stability and strategic continuity.