10Y annualized return is
very good
at 14.8% per year
TJX has met or exceeded earnings expectations in
all
recent quarters (2/2)
Moderate Price to Earnings Ratio
Strong Return on Equity
Robust Gross and Operating Margins
Low Debt Levels
Strong Interest Coverage
🏆 Strong Performance Across Divisions
🔑 Competitive Advantage in Off-Price Retail
📉 Improved Profit Margins
🚀 Growth Opportunities
🌍 International Expansion
💼 Strong E-Commerce Integration
High Price to Cash Flow Ratio
Low Net Profit Margin
Liquidity Concerns
⚠️ Potential Margin Pressure
Overall, TJX Companies, Inc. demonstrates a robust business model with strong competitive advantages and growth strategies. The company's ability to adapt to market demands and its plans for expansion position it well for future success, although some margin pressures are anticipated.
Analysis Date: February 26, 2025
Last Updated: March 12, 2025
Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
The TJX Companies, Inc. operates a chain of stores that sell clothing, home goods, and other items at lower prices. They have popular brands like T.J. Maxx and Marshalls, where you can find clothes, shoes, and accessories for the whole family, as well as furniture, kitchenware, and decorations for your home. They aim to offer great deals on a variety of products, making shopping affordable and fun. With many stores across the U.S., Canada, Europe, and Australia, they are a go-to place for bargain hunters.
Streams of revenue
Geographic Distribution
Core Products
Business Type
Business to Consumer
Competitive Advantages
Key Business Risks
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Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$53.43
Current Market Price: $119.92
IV/P Ratio: 0.45x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
-124.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for TJX
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (28.58)
P/B ratio ≤ 1.5 (4.38)
Current ratio ≥ 2.0 (1.18x)
Long-term debt < Net current assets (5.62x)
Margin of safety (-124.0%)
TJX does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
35.24%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-30)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
50.78%
Higher values indicate better efficiency in production
TTM (as of 2025-04-30)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
8.63%
Higher values indicate better overall profitability
TTM (as of 2025-04-30)
A Return on Equity (ROE) of 35.24% demonstrates effective management and profitability, indicating that the company generates significant earnings relative to shareholders' equity.
Gross Profit Margin of 50.78% and Operating Profit Margin of 31.36% reflect the company's ability to maintain profitability at various levels of operation.
The Net Profit Margin of 8.63% suggests that while the company is profitable, a significant portion of revenue is consumed by expenses, limiting overall profitability.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
0.40x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2025
Current Ratio
Current assets divided by current liabilities
1.18x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2025
A Debt to Equity ratio of 0.40 indicates a conservative approach to leverage, suggesting that the company is not heavily reliant on debt for financing.
With an Interest Coverage ratio of 1039.59, the company demonstrates excellent ability to meet interest obligations, indicating strong financial stability.
The Quick Ratio of 0.60 suggests potential liquidity issues, indicating that the company may struggle to meet short-term obligations without selling inventory.
Meeting Expectations
Higher values indicate better execution and credibility
Recent Results
EPS
TJX's comp sales growth of 5% in the fourth quarter was driven by strong customer transactions across all divisions, highlighting the effectiveness of their value proposition and merchandising strategies. The company achieved significant annual sales growth, surpassing $56 billion.
TJX operates a flexible business model that allows them to adapt to changing market conditions, which is crucial in the off-price retail sector. The company's strong vendor relationships and wide demographic appeal enable it to attract a diverse customer base.
The company reported an increase in pretax profit margin to 11.5%, driven by lower shrink and expense leverage, indicating strong operational efficiency.
TJX plans to open approximately 130 new stores and expand its footprint in existing markets, highlighting its confidence in future growth. The potential to increase store count to 7,000 indicates a strong long-term growth strategy.
The company is optimistic about its international divisions, particularly in Canada and Europe, where comp sales are growing. Plans to enter new markets like Spain further underscore its commitment to global expansion.
The integration of e-commerce sales into comp store sales starting in fiscal 2026 reflects the company's adaptability to changing consumer shopping behaviors.
The guidance for a slight decrease in pretax profit margin due to unfavorable foreign exchange rates and other factors might pressure profitability in the near term.