TJX Companies (TJX) AI Stock Analysis

• Market Cap: $168.20B
• Dividend Yield: 1.1%
• Average Volume (3M): 5.43M
• Price to Earnings (P/E): 33.4
• Beta (1Y): 0.45
• 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: 1,112,938,700
• 10 Day Avg. Volume: 7,380,724
• 30 Day Avg. Volume: 5,429,346
• 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: 0.99
• Enterprise Value/Revenue: 2.82
• Enterprise Value/Gross Profit: 9.11
• Enterprise Value/Ebitda: 20.52
• 1Y Price Target: $165.00
• Price Target Upside: 9.96% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: $173.00 ▲(15.29% 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 demonstrates robust financial health with strong revenue growth, profitability, and cash flow generation. The company maintains a solid balance sheet with manageable leverage and high return on equity. While the debt levels are moderate, continued focus on reducing leverage could enhance financial stability further.

Income Statement

TJX Companies shows strong financial performance with consistent revenue growth and solid profitability margins. The TTM data indicates a gross profit margin of 30.57% and a net profit margin of 8.59%, which are healthy for the retail industry. Revenue growth is steady, with a 1.64% increase in the TTM period. EBIT and EBITDA margins are also robust at 11.47% and 14.02% respectively, indicating efficient operations.

Balance Sheet

The balance sheet reflects a moderate level of leverage with a debt-to-equity ratio of 1.48 in the TTM period, showing improvement from previous years. Return on equity is strong at 58.63%, indicating effective use of equity to generate profits. The equity ratio stands at 26.95%, suggesting a balanced capital structure but with room for improvement in reducing debt levels.

Cash Flow

Cash flow analysis reveals a positive trajectory with a 6.99% growth in free cash flow in the TTM period. The operating cash flow to net income ratio is 1.19, indicating strong cash generation relative to net income. The free cash flow to net income ratio is 0.68, reflecting efficient cash management and the ability to fund operations and investments.

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: 150.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 150.06 is above the 20-day moving average (MA) of 147.81, above the 50-day MA of 144.32, and above the 200-day MA of 131.05, indicating a bullish trend. The MACD of 2.24 indicates Negative momentum. The RSI at 58.90 is Neutral, neither overbought nor oversold. The STOCH value of 56.08 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
ROST	79 Outperform	$57.73B	27.75	37.43%	0.99%	3.71%	0.65%
TJX	79 Outperform	$168.20B	33.39	58.40%	1.10%	4.53%	6.52%
URBN	77 Outperform	$7.02B	14.79	19.34%	―	11.09%	51.51%
GAP	76 Outperform	$9.99B	12.03	25.10%	2.66%	0.29%	3.65%
AEO	72 Outperform	$3.60B	20.46	12.36%	2.09%	-1.15%	-0.98%
BURL	68 Neutral	$15.26B	27.84	41.92%	―	6.80%	20.46%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

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.