TJX Companies (TJX) AI Stock Analysis

• Market Cap: $174.77B
• Dividend Yield: 1.07%
• Average Volume (3M): 4.31M
• Price to Earnings (P/E): 34.8
• Beta (1Y): 0.44
• Revenue Growth: 4.53%
• EPS Growth: 6.52%
• Country: US
• Employees: 364,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): 1.28
• Shares Outstanding: 1,110,467,000
• 10 Day Avg. Volume: 4,965,153
• 30 Day Avg. Volume: 4,308,178
• PEG Ratio: 2.75
• Price to Book (P/B): 16.77
• Price to Sales (P/S): 2.50
• P/FCF Ratio: 33.53
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 2.82
• Enterprise Value/Gross Profit: 9.11
• Enterprise Value/Ebitda: 20.52
• 1Y Price Target: $171.06
• Price Target Upside: 8.69% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 18
• EPS Forecast (FY): 4.68
• Revenue Forecast (FY): $59.98B

• Rating: 79 Outperform
• Price Target: $173.00 ▲(9.93% Upside)

TJX Companies' overall stock score of 79 reflects its strong financial performance and positive earnings call, which highlight robust sales growth and improved profitability. The technical analysis supports a bullish outlook, although the valuation suggests the stock may be slightly overvalued. The company's strategic expansions and raised guidance further bolster its growth prospects.

Positive Factors

Revenue Growth

Consistent comp sales growth indicates strong consumer demand and effective sales strategies, supporting long-term revenue expansion.

Market Expansion

Expanding into new markets like Spain enhances TJX's global footprint, providing opportunities for sustained growth and diversification.

Margin Improvement

Improved profit margins reflect effective cost management and operational efficiencies, contributing to long-term profitability.

Negative Factors

SG&A Expenses

Rising SG&A expenses can pressure profit margins, potentially affecting long-term financial performance if not controlled.

Foreign Exchange Impact

Foreign exchange impacts can erode profitability in international markets, posing a risk to consistent earnings growth.

Debt Reliance

High reliance on debt financing could limit financial flexibility and increase risk if market conditions change unfavorably.

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 generates revenue primarily through the sale of merchandise in its retail stores and online platforms. The company's revenue model is based on providing consumers with brand-name and designer products at lower prices than traditional retailers. Key revenue streams include sales from its various store formats, which benefit from a treasure-hunt shopping experience that encourages repeat visits. Additionally, TJX leverages its relationships with a vast network of suppliers to obtain excess inventory at favorable prices, allowing it to maintain low operating costs. The company's ability to offer a constantly changing assortment of products helps drive customer traffic and sales. Significant factors contributing to its earnings include effective inventory management, strong brand partnerships, and an established reputation for value retailing. Furthermore, the company's international expansion and online sales initiatives have been pivotal in enhancing its revenue growth.

TJX Companies Financial Statement Overview

Summary

TJX Companies exhibits strong financial health with consistent revenue growth, robust profitability, and efficient cash flow management. The company has shown improvements in debt management, maintaining a moderate level of leverage. Overall, the financial statements reflect a well-managed company with a solid growth trajectory and operational efficiency.

Income Statement

TJX Companies has demonstrated consistent revenue growth with a TTM revenue increase of 1.82% and strong profitability metrics. The gross profit margin of 30.95% and net profit margin of 8.68% indicate efficient cost management and profitability. EBIT and EBITDA margins are robust at 11.66% and 13.75%, respectively, showcasing operational efficiency. The company has maintained a positive revenue growth trajectory, enhancing its financial stability.

Balance Sheet

The balance sheet reflects a moderate level of leverage with a debt-to-equity ratio of 1.41, which is an improvement from previous periods. Return on equity is strong at 33.59%, indicating effective use of shareholder funds. However, the equity ratio of 26.60% suggests a reliance on debt financing, which could pose risks if not managed carefully.

Cash Flow

Cash flow analysis shows a healthy free cash flow growth rate of 9.33% TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio of 0.46 and free cash flow to net income ratio of 0.69 suggest efficient cash conversion from earnings. The company has improved its cash flow metrics, supporting its operational and financial flexibility.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	56.36B	54.22B	49.94B	48.55B	32.14B
Gross Profit	17.25B	16.27B	13.79B	13.84B	7.60B
EBITDA	7.66B	7.01B	5.61B	5.38B	1.15B
Net Income	4.86B	4.47B	3.50B	3.28B	90.00M
Balance Sheet
Total Assets	31.75B	29.75B	28.35B	28.46B	30.81B
Cash, Cash Equivalents and Short-Term Investments	5.33B	5.60B	5.48B	6.23B	10.47B
Total Debt	12.78B	12.54B	12.74B	12.51B	15.50B
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	4.20B	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: 157.38
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 157.38 is above the 20-day moving average (MA) of 155.89, above the 50-day MA of 152.40, and above the 200-day MA of 136.59, indicating a bullish trend. The MACD of 1.18 indicates Positive momentum. The RSI at 58.00 is Neutral, neither overbought nor oversold. The STOCH value of 55.90 is Neutral, 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	82 Outperform	$6.23B	13.14	19.34%	―	11.09%	51.51%
ROST	80 Outperform	$62.22B	30.06	37.43%	0.90%	3.71%	0.65%
TJX	79 Outperform	$174.77B	34.77	58.40%	1.07%	4.53%	6.52%
GAP	76 Outperform	$9.94B	11.97	25.10%	2.45%	0.29%	3.65%
AEO	74 Outperform	$4.31B	21.96	12.36%	2.09%	-1.15%	-0.98%
BURL	68 Neutral	$19.28B	35.18	41.92%	―	6.80%	20.46%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%