TJX Companies (TJX) AI Stock Analysis

• Market Cap: $137.64B
• Dividend Yield: 1.38%
• Average Volume (3M): 5.65M
• Price to Earnings (P/E): 29.1
• Beta (1Y): 0.52
• Revenue Growth: 3.79%
• EPS Growth: 5.23%
• Country: US
• Employees: 364,000
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Apparel - Retail
• EPS (TTM): 0.92
• Shares Outstanding: 1,115,615,600
• 10 Day Avg. Volume: 5,605,669
• 30 Day Avg. Volume: 5,646,866
• PEG Ratio: -62.09
• Price to Book (P/B): 16.44
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 32.24
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 0.65
• Enterprise Value/Gross Profit: 8.44
• Enterprise Value/Ebitda: 5.26
• 1Y Price Target: $145.12
• Price Target Upside: 17.52% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 18

• Rating: 72 Outperform
• Price Target: $136.00 ▲(10.13%Upside)

TJX's strong financial performance and positive earnings outlook are significant strengths, contributing to a favorable stock score. The bearish technical indicators and moderate overvaluation pose risks, but the company's strategic initiatives and flexible model provide resilience against macroeconomic challenges.

Positive Factors

Inventory and Supply Management

Current inventory availability is very strong, making TJX a crucial partner for vendors, which helps counterbalance potential cost headwinds.

Value Proposition

Vietnam tariffs may potentially widen TJX's value gap against competitors, offering pricing opportunities during key shopping seasons.

Negative Factors

Earnings Performance

The first quarter results were relatively soft, with Marmaxx comps missing expectations and gross margins below the target.

Tariff and Margin Pressure

Q1 was a tricky quarter for the usually smooth-sailing TJX, with some comp softness, tariff pressure, and concerns around supply, which took the edge off the stock.

TJX Companies Business Overview & Revenue Model

Company Description

The TJX Companies, Inc. is a leading off-price apparel and home fashions retailer in the United States and worldwide. Operating through its various retail divisions, TJX offers a wide range of products including apparel, footwear, home decor, furniture, and accessories. The company runs notable chains such as T.J. Maxx, Marshalls, HomeGoods, Sierra, and Homesense, catering to value-conscious consumers seeking brand-name products at discounted prices.

How the Company Makes Money

TJX Companies makes money primarily through the sale of merchandise across its numerous retail stores and e-commerce platforms. The company's revenue model is centered on purchasing excess inventory from manufacturers and other retailers at reduced prices, allowing it to offer consumers significant discounts on brand-name products. Key revenue streams include sales from its various retail chains, with T.J. Maxx and Marshalls being major contributors. TJX's ability to rapidly turn over merchandise and frequently refresh inventory attracts repeat customers seeking new deals, further driving sales. The company's strong global sourcing network and efficient supply chain management are significant factors contributing to its earnings, enabling it to maintain competitive pricing and a diverse product offering.

TJX Companies Financial Statement Overview

Summary

TJX demonstrates robust financial health with strong revenue and profit growth, efficient operations, and effective cash flow management. The company's leverage is moderate, with a solid return on equity. However, a stronger equity base could enhance financial stability.

Income Statement

The income statement shows strong revenue growth with a healthy gross profit margin of 30.6% for 2025. The net profit margin stands at 8.6%, indicating effective cost management. The EBIT and EBITDA margins are robust at 11.2% and 13.1% respectively, showcasing operational efficiency. Revenue has grown consistently over the years, indicating positive business momentum.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio of 1.52, suggesting a balanced approach to leverage. The return on equity is strong at 57.9%, indicating effective use of shareholders' funds. The equity ratio is relatively low at 26.4%, which might suggest limited equity buffer. Overall, the financial position is solid but could be improved with a stronger equity base.

Cash Flow

The cash flow statement shows strong free cash flow generation with a growth rate of 41.1% from the previous year. The operating cash flow to net income ratio is 1.26, indicating good cash conversion from earnings. The free cash flow to net income ratio is 1.26, highlighting a strong ability to generate cash relative to profits. Overall, cash flow management is strong, supporting business operations and investments.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	56.99B	56.36B	54.22B	49.94B	48.55B	32.14B
Gross Profit	17.37B	17.25B	16.27B	13.79B	13.84B	7.60B
EBITDA	5.86B	7.66B	7.01B	5.96B	5.38B	1.15B
Net Income	4.83B	4.86B	4.47B	3.50B	3.28B	90.00M
Balance Sheet
Total Assets	31.86B	31.75B	29.75B	28.35B	28.46B	30.81B
Cash, Cash Equivalents and Short-Term Investments	4.25B	5.33B	5.60B	5.48B	6.23B	10.47B
Total Debt	13.06B	12.78B	12.54B	12.74B	12.51B	15.50B
Total Liabilities	23.36B	23.36B	22.45B	21.98B	22.46B	24.98B
Stockholders Equity	8.50B	8.39B	7.30B	6.36B	6.00B	5.83B
Cash Flow
Free Cash Flow	4.27B	4.20B	4.33B	2.63B	2.01B	3.99B
Operating Cash Flow	5.77B	6.12B	6.06B	4.08B	3.06B	4.56B
Investing Cash Flow	-2.55B	-2.48B	-1.72B	-1.47B	-1.05B	-578.60M
Financing Cash Flow	-4.05B	-3.84B	-4.21B	-3.31B	-6.20B	3.23B

TJX Companies Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 123.49
• 50DMA: Negative
• 100DMA: Negative
• 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 Neutral. The current price of 123.49 is below the 20-day moving average (MA) of 124.99, below the 50-day MA of 127.10, and above the 200-day MA of 121.59, indicating a neutral trend. The MACD of -1.25 indicates Positive momentum. The RSI at 43.08 is Neutral, neither overbought nor oversold. The STOCH value of 54.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$6.22B	15.20	19.55%	―	8.38%	52.18%
TJX	72 Outperform	$137.64B	29.09	60.36%	1.38%	3.79%	5.23%
GAP	72 Outperform	$8.17B	9.54	29.16%	3.01%	1.07%	28.03%
ROST	66 Neutral	$41.83B	20.23	39.57%	1.27%	2.49%	6.60%
Sector *	66 Neutral	€9.18B	14.52	5.85%	3.11%	3.86%	-31.71%
BURL	65 Neutral	$14.55B	28.55	44.13%	―	8.29%	38.09%
AEO	62 Neutral	$1.71B	10.11	12.19%	5.06%	-0.95%	-10.51%

TJX Companies Corporate Events

TJX Companies Holds Annual Shareholder Meeting

On June 10, 2025, TJX Companies held its annual shareholder meeting where all director nominees were elected to serve until the next meeting. Additionally, PricewaterhouseCoopers LLP was ratified as the independent registered public accounting firm for fiscal 2026, and the executive compensation package was approved.

The most recent analyst rating on (TJX) stock is a Buy with a $120.00 price target. To see the full list of analyst forecasts on TJX Companies stock, see the TJX Stock Forecast page.

TJX Companies Amends Credit Facilities for Financial Flexibility

On May 9, 2025, The TJX Companies, Inc. amended and restated its $500 million revolving credit facility to extend the maturity to May 9, 2029, and increased the aggregate principal amount commitment to $750 million. Additionally, the company amended its $1 billion revolving credit facility to extend the maturity to May 9, 2030, decrease the aggregate principal amount of commitments to $750 million, and reduce the interest rate margin. These changes maintain the company’s borrowing capacity at $1.5 billion, potentially enhancing its financial flexibility and operational stability.