TJX Companies (TJX) AI Stock Analysis

• Market Cap: $142.10B
• Dividend Yield: 1.22%
• Average Volume (3M): 5.38M
• Price to Earnings (P/E): 30.0
• Beta (1Y): 0.53
• Revenue Growth: 3.79%
• EPS Growth: 5.23%
• Country: US
• Employees: 364,000
• Sector: Consumer Cyclical
• Sector Strength: 68
• Industry: Apparel - Retail
• EPS (TTM): 0.92
• Shares Outstanding: 1,115,615,600
• 10 Day Avg. Volume: 5,664,058
• 30 Day Avg. Volume: 5,383,285
• PEG Ratio: -64.38
• Price to Book (P/B): 17.05
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 33.43
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 0.67
• Enterprise Value/Gross Profit: 8.73
• Enterprise Value/Ebitda: 5.45
• 1Y Price Target: $144.65
• Price Target Upside: 12.61% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 18

• Rating: 72 Outperform
• Price Target: $144.00 ▲(12.11%Upside)

TJX Companies' overall stock score is driven by strong financial performance, supported by effective cash flow management and solid profit growth. However, the high valuation and moderate technical analysis results slightly offset these positives. The company's proactive steps in amending credit facilities and a generally positive earnings call sentiment further contribute to the score. While facing some margin pressures, TJX's strategic expansions and strong international sales growth position it well for future success.

Positive Factors

Consumer Demand

Transactions led overall gains, and home goods outperformed apparel, indicating strong consumer interest.

Earnings and Market Position

Analyst raises the price target for TJX to $145, reflecting confidence in the company's future earnings and market position.

Global Market Share

There is confidence in continued global market share gains, driven by competitive pricing and a strong network of buyers and vendors.

Negative Factors

Comps and Margins

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

Quarterly Performance

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.

Tariff Impact

TJX did not beat comp plan and had some softness on gross margins, both in the first quarter and second quarter guidance.

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 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 Companies demonstrates robust financial health with strong revenue and profit growth, efficient operations, and effective cash flow management. While leverage is moderate, the company maintains a solid return on equity. However, increasing the equity base could further strengthen the 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
	EBIT
6.28B	6.30B	5.80B	5.08B	4.75B	582.23M
	EBITDA
5.86B	7.66B	7.01B	5.96B	5.62B	1.15B
	Net Income Common Stockholders
4.83B	4.86B	4.47B	3.50B	3.28B	90.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.33B	5.33B	5.60B	5.48B	6.23B	10.47B
	Total Assets
31.75B	31.75B	29.75B	28.35B	28.46B	30.81B
	Total Debt
12.78B	12.78B	12.54B	12.74B	12.51B	15.50B
	Net Debt
7.44B	7.44B	6.94B	7.27B	6.28B	5.03B
	Total Liabilities
23.36B	23.36B	22.45B	21.98B	22.46B	24.98B
	Stockholders Equity
8.39B	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: Positive
• Last Price: 128.45
• 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 128.45 is below the 20-day moving average (MA) of 129.56, above the 50-day MA of 127.03, and above the 200-day MA of 121.06, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 50.73 is Neutral, neither overbought nor oversold. The STOCH value of 62.82 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	81 Outperform	$6.32B	14.60	19.55%	―	8.38%	52.18%
ROST	75 Outperform	$46.77B	22.48	39.57%	1.06%	2.49%	6.60%
TJX	72 Outperform	$142.10B	30.03	60.36%	1.22%	3.79%	5.23%
GAP	72 Outperform	$7.85B	9.40	29.16%	2.85%	1.07%	28.03%
BURL	69 Neutral	$15.33B	30.20	44.13%	―	8.29%	38.09%
AEO	64 Neutral	$1.78B	10.38	12.19%	4.93%	-0.95%	-10.51%
Sector *	62 Neutral	$6.83B	11.28	2.95%	3.88%	2.70%	-24.56%

TJX Companies Corporate Events

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.