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Tjx Companies (TJX)
NYSE:TJX
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TJX Companies
(NYSE:TJX)78Outperform
Positive Factors
Financial Performance
TJX delivered a broad-based beat driven by strong transaction-led comparable sales growth and healthy gross margin delivery.
Shareholder Value
Strong Cash Flow Driving Increased Shareholder Value with a regular quarterly dividend increase of 13% and a new stock repurchase program.
Negative Factors
Guidance
1Q Guidance Below Expectations with management expecting comp growth of 2.0-3.0%, pre-tax profit margin of 10.0-10.1%, and EPS to be in the range of $0.87-$0.89.
TJX Companies (TJX) vs. S&P 500 (SPY)
Market Cap
$136.85B
Dividend Yield1.21%
Average Volume (3M)4.62M
Price to Earnings (P/E)28.6
Beta (1Y)0.71
Revenue Growth3.95%
EPS GrowthN/A
CountryUS
Employees349,000
SectorConsumer Cyclical
Sector Strength53
IndustryRetail - Discretionary
Share Statistics
EPS (TTM)4.26
Shares Outstanding1,124,158,100
10 Day Avg. Volume5,562,637
30 Day Avg. Volume4,615,060
Financial Highlights & Ratios
PEG Ratio1.39
Price to Book (P/B)N/A
Price to Sales (P/S)2.46
Price to Cash Flow (P/CF)33.20
P/FCF Ratio55.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$140.71Price Target Upside15.58% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering19
TJX Companies Business Overview & Revenue Model
Company DescriptionThe TJX Companies, Inc. is a leading off-price retailer of apparel and home fashion products. It operates T.J. Maxx and Marshalls (Marmaxx), HomeGoods, Sierra, and Homesense, as well as tjmaxx.com, marshalls.com, and sierra.com, in the U.S.; Winners, HomeSense, and Marshalls (TJX Canada) in Canada; and T.K. Maxx in the U.K., Ireland, Germany, Poland, Austria, the Netherlands, and Australia, as well as Homesense in the U.K. and Ireland, and tkmaxx.com in the U.K. (TJX International).
How the Company Makes MoneyTJX 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 displays strong financial health, with robust profitability indicators such as a net profit margin of 8.6% and healthy EBIT and EBITDA margins. The balance sheet shows manageable leverage with a moderate debt-to-equity ratio, although there is room for improvement in free cash flow growth. Overall, the company's financial performance is solid, with effective leverage management and operational efficiency.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.85
Very Positive
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.75
Positive
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.80
Positive
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 56.42B | 54.22B | 49.94B | 48.55B | 32.14B | 41.72B | Gross Profit |
| 17.20B | 16.27B | 13.79B | 13.84B | 7.60B | 11.87B | EBIT |
| 6.30B | 5.80B | 5.08B | 4.75B | 582.23M | 4.42B | EBITDA |
| 7.34B | 7.01B | 5.96B | 5.62B | 1.15B | 5.28B | Net Income Common Stockholders |
| 4.87B | 4.47B | 3.50B | 3.28B | 90.00M | 3.27B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 5.60B | 5.60B | 5.48B | 6.23B | 10.47B | 3.22B | Total Assets |
| 29.75B | 29.75B | 28.35B | 28.46B | 30.81B | 24.15B | Total Debt |
| 12.54B | 12.54B | 12.74B | 12.51B | 15.50B | 11.46B | Net Debt |
| 6.94B | 6.94B | 7.27B | 6.28B | 5.03B | 8.25B | Total Liabilities |
| 22.45B | 22.45B | 21.98B | 22.46B | 24.98B | 18.20B | Stockholders Equity |
| 7.30B | 7.30B | 6.36B | 6.00B | 5.83B | 5.95B |
| Cash Flow | Free Cash Flow | ||||
| 4.37B | 4.33B | 2.63B | 2.01B | 3.99B | 2.84B | Operating Cash Flow |
| 6.22B | 6.06B | 4.08B | 3.06B | 4.56B | 4.07B | Investing Cash Flow |
| -2.04B | -1.72B | -1.47B | -1.05B | -578.60M | -1.46B | Financing Cash Flow |
| -3.78B | -4.21B | -3.31B | -6.20B | 3.23B | -2.41B |
TJX Companies Technical Analysis
Neutral
121.74
Price Trends
122.65
Negative
120.68
Positive
115.81
Positive
Market Momentum
>-0.01
Positive
44.35
Neutral
38.74
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TJX, the sentiment is Neutral. The current price of 121.74 is below the 20-day moving average (MA) of 123.85, below the 50-day MA of 122.65, and above the 200-day MA of 115.81, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 44.35 is Neutral, neither overbought nor oversold. The STOCH value of 38.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TJX.
TJX Companies Risk Analysis
TJX Companies disclosed 28 risk factors in its most recent earnings report. TJX Companies reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
TJX Companies Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $136.85B | 28.58 | 59.57% | 1.21% | 3.95% | ― | |
73 Outperform | $46.30B | 22.08 | 40.16% | 1.07% | 8.54% | 25.99% | |
72 Outperform | $14.62B | 31.54 | 47.10% | ― | 12.18% | 60.91% | |
72 Outperform | $6.34B | 30.85 | 12.84% | ― | 12.48% | 32.49% | |
63 Neutral | $3.71B | 22.47 | 4.08% | 4.96% | -2.68% | -75.81% | |
60 Neutral | $13.01B | 10.45 | 0.79% | 3.53% | 1.60% | -22.47% | |
56 Neutral | $14.34B | ― | -12.55% | ― | 5.19% | -190.36% |
* Consumer Cyclical Sector Average
Performance Comparison
TJX
TJX Companies
121.74
25.64
26.68%
DLTR
Dollar Tree
66.68
-82.40
-55.27%
M
Macy's
13.36
-6.12
-31.42%
ROST
Ross Stores
135.97
-11.74
-7.95%
BURL
Burlington Stores
230.27
18.16
8.56%
OLLI
Ollie's Bargain Outlet Holding
103.39
27.22
35.74%
TJX Companies Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: -0.78% | Next Earnings Date: May 21, 2025
Earnings Call Sentiment Positive
The earnings call highlighted a strong performance in the fourth quarter, marked by significant growth in international divisions, robust financial health, and successful store expansions. Despite some concerns about profit margin declines in the upcoming quarter and challenges with foreign exchange rates and tariffs, the company's overall trajectory appears positive with strategic initiatives and strong market positioning.Highlights
Outstanding Fourth Quarter Performance
Sales, profitability, and earnings per share were all well above expectations. Comp sales growth of 5% was driven by strong consistent increases of 4% or above at each division.
Record Store Openings
Opened the 5,000th store, with full-year sales surpassing $56 billion. The company plans to add about 130 net new stores in fiscal 2026.
International Success
International divisions showed strong performance, with TJX Canada's comp sales increasing 10% and TJX International's comp sales up 7%.
Strong Financial Health
Generated $6.1 billion in operating cash flow and ended the year with $5.3 billion in cash. Returned $4.1 billion to shareholders through buyback and dividend programs.
Segment Profit Margin Growth
Marmax's full-year segment profit margin increased to 14.1%, and HomeGoods' segment profits surpassed $1 billion with a margin return to double-digit levels at 10.9%.
Community Support Initiatives
Supported over 2,500 nonprofit organizations globally and provided relief efforts for natural disasters, including wildfires and hurricanes.
Lowlights
First Quarter 2026 Profit Margin Decline
Expecting first-quarter pretax profit margin to be down 100 to 110 basis points versus last year's 11.1% due to unfavorable inventory hedges and increased wage and payroll costs.
Impact of Foreign Exchange Rates
Unfavorable foreign exchange rates expected to have a 1% negative impact on consolidated sales growth for fiscal 2026.
China Tariff Concerns
Ongoing challenges with the current China tariff environment, expected to have a small impact on future merchandise purchases.
Company Guidance
During The TJX Companies, Inc. Fourth Quarter Fiscal 2025 Financial Results Conference Call, CEO Ernie Herrman highlighted the company's exceptional performance, surpassing expectations in sales, profitability, and earnings per share. The company reported a 5% increase in fourth-quarter consolidated comp sales, driven by strong customer transactions, and achieved an overall comp sales growth of 4% for the full year, with total sales exceeding $56 billion. Pretax profit margins rose to 11.6% in the quarter, up 70 basis points from the previous year's adjusted figure, while full-year diluted earnings per share increased by 13% to $4.26. The company's divisions, including TJX Canada and TJX International, saw robust growth, with comp sales increasing by 10% and 7% respectively in the fourth quarter. Looking forward, TJX projects full-year fiscal 2026 consolidated sales to range between $58.1 billion and $58.6 billion, with comp store sales growth of 2% to 3%, despite accounting for a 1% negative impact from unfavorable foreign exchange rates. The company plans to open approximately 130 net new stores and remodel about 500 locations, highlighting a continued focus on expansion and market share growth.TJX Companies Corporate Events
Executive/Board Changes
TJX Companies Extends Executive Employment Agreements
Neutral
Feb 3, 2025
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.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.