TJX Companies Inc
Find Ratings Reports
-0.14 |
-0.2%
TJX COMPANIES INC's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased.
At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 2.00% from the same quarter last year.
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| Income Statement | Q2 FY17 | Q2 FY16 |
|---|---|---|
| Net Sales ($mil) | 8357.7 | 7882.05 |
| EBITDA ($mil) | 1076.99 | 1093.6 |
| EBIT ($mil) | 901.38 | 925.84 |
| Net Income ($mil) | 552.96 | 562.17 |
| Balance Sheet | Q2 FY17 | Q2 FY16 |
|---|---|---|
| Cash & Equiv. ($mil) | 2952.1 | 2224.8 |
| Total Assets ($mil) | 12935.6 | 11670.65 |
| Total Debt ($mil) | 2229.1 | 1615.95 |
| Equity ($mil) | 4540.8 | 4451.36 |
| Profitability | Q2 FY17 | Q2 FY16 |
|---|---|---|
| Gross Profit Margin | 30.64 | 31.55 |
| EBITDA Margin | 12.88 | 13.87 |
| Operating Margin | 10.78 | 11.75 |
| Sales Turnover | 2.62 | 2.75 |
| Return on Assets | 17.91 | 19.91 |
| Return on Equity | 51.02 | 52.21 |
| Debt | Q2 FY17 | Q2 FY16 |
|---|---|---|
| Current Ratio | 1.63 | 1.58 |
| Debt/Capital | 0.33 | 0.27 |
| Interest Expense | 0.0 | 16.95 |
| Interest Coverage | 0.0 | 54.63 |
| Share Data | Q2 FY17 | Q2 FY16 |
|---|---|---|
| Shares outstanding (mil) | 643.28 | 656.65 |
| Div / share | 0.31 | 0.26 |
| EPS | 0.85 | 0.84 |
| Book value / share | 7.06 | 6.78 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 4621937.0 | 4119407.0 |
BUY. This stock's P/E ratio indicates a discount compared to an average of 20.31 for the Specialty Retail industry and a discount compared to the S&P 500 average of 24.23. To use another comparison, its price-to-book ratio of 9.95 indicates a significant premium versus the S&P 500 average of 3.02 and a significant discount versus the industry average of 22.92. The current price-to-sales ratio is well below the S&P 500 average and is also below the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, TJX COMPANIES INC proves to trade at a discount to investment alternatives within the industry.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| TJX 19.90 | Peers 20.31 | TJX 12.72 | Peers 12.98 | |||||||||||||||||||||
|
Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation. TJX is trading at a valuation on par with its peers. |
Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. TJX is trading at a valuation on par to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| TJX 16.61 | Peers 17.97 | TJX 1.47 | Peers 1.48 | |||||||||||||||||||||
|
Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations. TJX is trading at a valuation on par with its peers. |
Average. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. TJX trades at a valuation on par to its peers. |
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| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| TJX 9.95 | Peers 22.92 | TJX 2.31 | Peers 11.22 | |||||||||||||||||||||
|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. TJX is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, TJX is expected to significantly trail its peers on the basis of its earnings growth rate. |
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| Price/Sales |
|
Sales Growth |
|
|||||||||||||||||||||
| TJX 1.33 | Peers 1.37 | TJX 5.47 | Peers 5.72 | |||||||||||||||||||||
|
Average. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. TJX is trading at a valuation on par with its industry on this measurement. |
Average. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share. TJX is keeping pace with its peers on the basis of sales growth. |
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