TJX Companies (TJX)
NYSE:TJX
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TJX Companies
(NYSE:TJX)
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Rating:80Outperform
Price Target:
$183.00
▲(13.89% Upside)
Action:Reiterated
Date:05/21/26
The score is driven primarily by strong financial performance and a very positive earnings update with raised guidance and increased buybacks. Technicals are supportive but not uniformly strong due to a negative MACD, while valuation is reasonable yet not especially discounted given the ~23.8 P/E and modest dividend yield.
Positive Factors
Free cash flow generation
TJX converts earnings into cash at a high rate (TTM FCF ≈81% of net income). Durable cash generation funds buybacks, dividends and reinvestment in stores/omnichannel, supports opportunistic inventory purchases and cushions earnings through retail cycles over the next several quarters.
Negative Factors
Historically elevated leverage
Total debt (~$12.5B–$14.2B) and a history of higher leverage mean the company has less structural cushion in downturns. Although TTM leverage improved, the persistence of lower leverage is unproven; sustained debt levels could limit strategic flexibility and increase funding risk if margins reverse.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow generation
TJX converts earnings into cash at a high rate (TTM FCF ≈81% of net income). Durable cash generation funds buybacks, dividends and reinvestment in stores/omnichannel, supports opportunistic inventory purchases and cushions earnings through retail cycles over the next several quarters.
Read all positive factors
TJX Companies Key Performance Indicators (KPIs)
Any
Revenue by Segment
Shows revenue generated from each business segment, revealing which areas are key revenue drivers and potential growth opportunities.
Shows revenue generated from each business segment, revealing which areas are key revenue drivers and potential growth opportunities.
Data provided by:
The Fly
The FlyTJX Companies (TJX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$171.28B
Dividend Yield1.07%
Average Volume (3M)5.62M
Price to Earnings (P/E)29.9
Beta (1Y)0.37
Revenue Growth8.06%
EPS Growth21.36%
CountryUS
Employees364,000
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Retail
Share Statistics
EPS (TTM)5.15
Shares Outstanding1,106,810,700
10 Day Avg. Volume7,481,713
30 Day Avg. Volume5,621,649
Financial Highlights & Ratios
PEG Ratio2.28
Price to Book (P/B)16.54
Price to Sales (P/S)2.79
P/FCF Ratio34.28
Enterprise Value/Market Cap1.05
Enterprise Value/Revenue2.92
Enterprise Value/Gross Profit9.29
Enterprise Value/Ebitda21.65
Forecast
1Y Price Target
$180.83Price Target Upside12.54% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering14
EPS Forecast (FY)5.23
Revenue Forecast (FY)$64.09B
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, inclu...
How the Company Makes Money
TJX primarily makes money by buying merchandise from a large network of manufacturers, brands, and other vendors and reselling it at off-price retail through its stores and e-commerce sites. The core revenue stream is net sales from retail transac...
TJX Companies Earnings Call Summary
Earnings Call Date:May 20, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Aug 19, 2026
Earnings Call Sentiment Positive
The call was decisively positive: the company delivered a materially stronger-than-expected quarter with double-digit EPS growth, notable margin expansion, multi-division comp strength (Marmaxx +6%, HomeGoods +9%, Canada +7%, International +4%), raised full-year top-line and EPS guidance, increased buyback authorization, and emphasized strong inventory availability and expansion opportunities. Headwinds cited were limited in scale relative to the results — modest SG&A pressure from wages, exposure to fuel-price volatility (hedge assumptions), higher inventory levels, and geopolitical/ tariff uncertainties that management is monitoring but did not characterize as damaging to the overall outlook. On balance, highlights significantly outweigh the lowlights.Positive Updates
Strong Consolidated Q1 Results
Consolidated comparable sales +6% in Q1; diluted EPS $1.19, up 29% YoY; pretax profit margin 12.0%, up 170 basis points vs prior year; gross margin 31.3%, up 180 basis points.
Negative Updates
SG&A Deleverage
SG&A was 19.5% in Q1, unfavorable by about 10 basis points YoY; Q2 SG&A guidance 19.6% (10 bps unfavorable YoY) due to incremental store wage and payroll costs.
Read all updates
Q1-2027 Updates
Positive
Negative
Strong Consolidated Q1 Results
Consolidated comparable sales +6% in Q1; diluted EPS $1.19, up 29% YoY; pretax profit margin 12.0%, up 170 basis points vs prior year; gross margin 31.3%, up 180 basis points.
Read all positive updates
Company Guidance
Management raised its outlook after a strong Q1 and provided Q2 and full‑year guidance: Q2 comps +2% to +3%; consolidated sales $15.0–15.1B (+4%–5% YoY); pretax profit margin 11.4%–11.5% (flat to +10 bps vs last year’s 11.4%); gross margin 30.9%–31.0% (+20–30 bps vs last year’s 30.7%); SG&A 19.6% (10 bps unfavorable); net interest income assumed $28M (neutral to pretax); tax rate 24.9%; weighted average shares ≈1.12B; diluted EPS $1.15–$1.17 (+5%–6% vs $1.10). Full‑year: comps +3% to +4%; consolidated sales $63.2–63.7B (+5%–6%); pretax margin 11.9%–12.0% (+20–30 bps vs adjusted 11.7%); gross margin 31.2%–31.3% (+20–30 bps vs adjusted 31.0%); SG&A 19.5% (flat); net interest income ≈$122M (neutral); tax rate 24.7%; shares ≈1.12B; diluted EPS $5.08–$5.15 (+7%–9% vs adjusted $4.73). The company also increased FY‑2027 share buyback guidance to $2.75–3.0B after returning $1.1B to shareholders in Q1.TJX Companies Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
72
Positive
Cash Flow
83
Very Positive
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 61.58B | 60.37B | 56.36B | 54.22B | 49.94B | 48.55B |
| Gross Profit | 19.36B | 18.69B | 17.25B | 16.27B | 13.79B | 13.84B |
| EBITDA | 8.31B | 8.55B | 7.66B | 7.01B | 5.61B | 5.38B |
| Net Income | 5.79B | 5.49B | 4.86B | 4.47B | 3.50B | 3.28B |
Balance Sheet | ||||||
| Total Assets | 36.16B | 35.77B | 31.75B | 29.75B | 28.35B | 28.46B |
| Cash, Cash Equivalents and Short-Term Investments | 5.58B | 6.23B | 5.33B | 5.60B | 5.48B | 6.23B |
| Total Debt | 14.18B | 13.49B | 12.78B | 12.54B | 12.74B | 12.51B |
| Total Liabilities | 25.75B | 25.58B | 23.36B | 22.45B | 21.98B | 22.46B |
| Stockholders Equity | 10.40B | 10.19B | 8.39B | 7.30B | 6.36B | 6.00B |
Cash Flow | ||||||
| Free Cash Flow | 5.48B | 4.92B | 4.20B | 4.33B | 2.63B | 2.01B |
| Operating Cash Flow | 7.60B | 6.87B | 6.12B | 6.06B | 4.08B | 3.06B |
| Investing Cash Flow | -2.15B | -1.98B | -2.48B | -1.72B | -1.47B | -1.05B |
| Financing Cash Flow | -4.15B | -4.12B | -3.84B | -4.21B | -3.31B | -6.20B |
TJX Companies Technical Analysis
Neutral
160.68
Price Trends
156.28
Negative
155.56
Negative
149.65
Positive
Market Momentum
0.09
Negative
49.75
Neutral
60.94
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 160.68 is above the 20-day moving average (MA) of 153.38, above the 50-day MA of 156.28, and above the 200-day MA of 149.65, indicating a neutral trend. The MACD of 0.09 indicates Negative momentum. The RSI at 49.75 is Neutral, neither overbought nor oversold. The STOCH value of 60.94 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 29 risk factors in its most recent earnings report. TJX Companies reported the most risks in the "Macro & Political" 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $74.65B | 31.92 | 38.42% | 0.90% | 11.86% | 13.46% | |
80 Outperform | $171.28B | 29.93 | 59.66% | 1.07% | 8.06% | 21.36% | |
79 Outperform | $6.22B | 13.46 | 17.64% | ― | 11.23% | 8.96% | |
68 Neutral | $20.38B | 33.28 | 29.06% | ― | 10.60% | 19.47% | |
67 Neutral | $7.73B | 8.08 | 26.47% | 2.45% | 1.58% | 11.13% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
57 Neutral | $2.65B | 9.46 | 17.24% | 2.09% | 6.22% | 65.05% |
* Consumer Cyclical Sector Average
TJX
TJX Companies
154.75
27.87
21.97%
AEO
American Eagle
15.80
5.71
56.58%
GAP
Gap Inc
21.15
-0.65
-2.99%
ROST
Ross Stores
231.73
90.72
64.33%
URBN
Urban Outfitters
72.65
0.03
0.04%
BURL
Burlington Stores
323.83
90.97
39.07%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.