TJX COMPANIES INC /DE/ (TJX) Stock Analysis
TJX COMPANIES INC /DE/ (TJX) Stock Analysis
Analysis from 10-Q filed 2025-12-02. Data as of Q1 2026.
Overall Grade: F (Concerning)
TJX COMPANIES INC /DE/ faces challenges in financial performance that warrant careful analysis.
| Metric | Value | Context |
|---|---|---|
| ROIC | 31.1% | Above industry average |
| FCF Margin | 8.1% | Healthy cash flow |
| Debt/Equity | 0.3x | Conservative leverage |
Investment Thesis: Strong return on invested capital of 31.1% suggests durable competitive advantages and efficient capital allocation.
Explore TJX COMPANIES INC /DE/: Earnings History | Filing Intelligence | ROIC Analysis
Profitability: TJX COMPANIES INC /DE/ earns 31.1% ROIC, Top 5% in Consumer Discretionary
TJX COMPANIES INC /DE/'s trailing-twelve-month ROIC of 31.1% ranks Top 5% in Consumer Discretionary companies (sector median: 8.4%), driven by NOPAT margin of 10.1% combined with asset turnover of 1.8x. Source: 10-Q filed 2025-12-02. Gross margin of 31.0% with operating margin at 13.4% reflects a competitive pricing environment.
| Metric | TJX | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 31.1% | Excellent | Above sector median of 8.4% |
| Return on Equity (ROE) | 61.0% | Excellent | Efficient use of shareholder equity |
| Gross Margin | 31.0% | Good | Competitive pricing environment |
| Operating Margin | 13.4% | Good | Moderate operational efficiency |
Cash Flow: TJX COMPANIES INC /DE/ generates $4.9B FCF at 8.1% margin, positive NaN/8 quarters
TJX COMPANIES INC /DE/ generated $4.9B in free cash flow (TTM), a 8.1% FCF margin, a margin that ranks Top 25% in Consumer Discretionary. Operating cash flow exceeds net income by 1.3x, indicating high earnings quality. FCF was positive in N/A of the last 8 quarters. Source: 10-Q filed 2025-12-02.
| Metric | TJX | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 8.1% | Adequate | Healthy cash generation |
| Free Cash Flow (TTM) | $4.9B | Good | Positive cash generation |
| OCF/Net Income | 1.3x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: TJX COMPANIES INC /DE/ at 0.3x leverage
TJX COMPANIES INC /DE/'s debt-to-equity ratio of 0.3x reflects conservative leverage. Net cash position of $3.4B provides financial flexibility. Source: 10-Q filed 2025-12-02.
| Metric | TJX | Rating | Context |
|---|---|---|---|
| Debt to Equity | 0.3x | Excellent | Conservative capital structure |
| Net Cash Position | $3.4B | Excellent | Net cash positive |
Valuation: TJX COMPANIES INC /DE/ trades at 30.4x earnings
TJX COMPANIES INC /DE/ trades at a P/E of 30.4x. Free cash flow yield of 2.9% reflects market expectations for growth.
| Metric | TJX | Rating | Context |
|---|---|---|---|
| P/E Ratio | 30.4x | Adequate | Premium valuation |
| EV/Sales | 2.7x | Good | Attractive revenue multiple |
| FCF Yield | 2.9% | Adequate | Lower cash yield |
| Dividend Yield | 1.1% | Adequate | Growth focus over income |
Capital Allocation: TJX COMPANIES INC /DE/ returns 2.6% shareholder yield
TJX COMPANIES INC /DE/'s total shareholder yield is 2.6% (dividends 1.1% + buybacks 1.5%). Source: 10-Q filed 2025-12-02.
| Metric | TJX | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 2.6% | Adequate | Dividend + buyback yield combined |
| Buyback Yield | 1.5% | Adequate | Minimal buyback activity |
| Total Capital Returned (TTM) | $4.4B | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 31.1% | Top 5% | 3.7x above |
| Free Cash Flow Margin | 8.1% | Top 25% | 3.5x above |
| Gross Margin | 31.0% | Bottom 50% | 0.8x below |
| Operating Margin | 13.4% | Top 25% | 3.0x above |
| Return on Equity (ROE) | 61.0% | Top 5% | 6.0x above |
| P/E Ratio | 30.4x | N/A | - |
Financial Scorecard
| Metric | TJX | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 31.1% | Excellent | Top 5% of sector (median: 8.4%) |
| Free Cash Flow Margin | 8.1% | Adequate | Top 25% of sector (median: 2.3%) |
| Gross Margin | 31.0% | Good | Bottom 50% of sector (median: 39.0%) |
| Debt to Equity Ratio | 28.2% | Excellent | Conservative capital structure |
| P/E Ratio (Price-to-Earnings) | 30.4x | Adequate | Growth premium |
| Free Cash Flow Yield | 2.9% | Warning | Growth-focused valuation |
Frequently Asked Questions
Q: What is TJX COMPANIES INC /DE/'s Return on Invested Capital (ROIC)?
TJX COMPANIES INC /DE/ (TJX) has a trailing twelve-month Return on Invested Capital (ROIC) of 31.1%. This compares above the sector median of 8.4%. An ROIC above 20% indicates exceptional capital efficiency and strong competitive advantages.
Q: What is TJX COMPANIES INC /DE/'s Free Cash Flow Margin?
TJX COMPANIES INC /DE/ (TJX) has a free cash flow margin of 8.1%, generating $4.9 billion in free cash flow over the trailing twelve months. A FCF margin between 5-10% is typical for capital-intensive businesses.
Q: Is TJX COMPANIES INC /DE/ stock overvalued or undervalued?
TJX COMPANIES INC /DE/ (TJX) trades at a P/E ratio of 30.4x, which is above the sector median of N/A. The EV/Sales multiple is 2.7x. Free cash flow yield is 2.9%, reflecting growth expectations priced into the stock.
Q: Does TJX COMPANIES INC /DE/ pay a dividend?
TJX COMPANIES INC /DE/ (TJX) currently pays a dividend yield of 1.1%. Including share buybacks, the total shareholder yield is 2.6%. The relatively low yield suggests the company prioritizes growth reinvestment over income distribution.
Q: What is TJX COMPANIES INC /DE/'s revenue and earnings growth?
TJX COMPANIES INC /DE/ (TJX) grew revenue by 7.1% year-over-year. Earnings per share increased by 14.3% compared to the prior year. Modest growth indicates a mature business with stable demand.
Q: Is TJX COMPANIES INC /DE/ buying back stock?
TJX COMPANIES INC /DE/ (TJX) repurchased $2.5 billion of stock over the trailing twelve months. This represents a buyback yield of 1.5%.
Q: How does TJX COMPANIES INC /DE/ compare to competitors in Consumer Discretionary?
Compared to other companies in Consumer Discretionary, TJX COMPANIES INC /DE/ (TJX) shows: ROIC of 31.1% is above the sector median of 8.4% (Top 1%). FCF margin of 8.1% exceeds the sector median of 2.3% (Top 19% of sector). Gross margin at 31.0% is 8 percentage points lower than sector peers. These rankings are based on MetricDuck's analysis of all Consumer Discretionary companies with available SEC filings.
Q: What warning signs should I watch for with TJX COMPANIES INC /DE/?
TJX COMPANIES INC /DE/ (TJX) shows no major financial warning signs based on current metrics. However, investors should always monitor: 1) Margin compression trends, 2) Cash flow consistency, 3) Debt levels relative to cash generation, and 4) Changes in competitive positioning.
Data Source: Data sourced from 10-Q filed 2025-12-02. TTM metrics as of Q1 2026.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.