Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
NEW YORK (
) has been reiterated by TheStreet Ratings as a buy with a ratings score of A . The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, revenue growth, notable return on equity and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.
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Highlights from the ratings report include:
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 37.09% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, TJX should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- TJX COMPANIES INC has improved earnings per share by 17.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, TJX COMPANIES INC increased its bottom line by earning $1.94 versus $1.65 in the prior year. This year, the market expects an improvement in earnings ($2.49 versus $1.94).
- TJX's revenue growth trails the industry average of 21.8%. Since the same quarter one year prior, revenues rose by 10.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Specialty Retail industry and the overall market, TJX COMPANIES INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- Net operating cash flow has significantly increased by 52.88% to $772.22 million when compared to the same quarter last year. In addition, TJX COMPANIES INC has also vastly surpassed the industry average cash flow growth rate of -3.78%.
The TJX Companies, Inc. operates as an off-price apparel and home fashions retailer in the United States and internationally. TJX Companies has a market cap of $31.81 billion and is part of the services sector and retail industry. The company has a P/E ratio of 18.6, above the S&P 500 P/E ratio of 17.7. Shares are up 35.2% year to date as of the close of trading on Tuesday.
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--Written by a member of TheStreet Ratings Staff.
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