TJX Companies Inc

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TJX : NYSE : Services
$78.69 -0.41 | -0.52%
Today's Range: 78.68 - 79.45
Avg. Daily Volume: 3,214,100
08/23/16 - 4:02 PM ET

Financial Analysis


TJX COMPANIES INC's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 4.10% from the same quarter last year.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)7882.057363.73
EBITDA ($mil)1093.631046.92
EBIT ($mil)925.84897.0
Net Income ($mil)562.17549.34


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)2224.82238.28
Total Assets ($mil)11670.711341.04
Total Debt ($mil)1615.91623.96
Equity ($mil)4451.44276.07


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin31.5531.16
EBITDA Margin13.8714.21
Operating Margin11.7512.18
Sales Turnover2.752.64
Return on Assets19.9119.99
Return on Equity52.2153.01
Debt Q2 FY16 Q2 FY15
Current Ratio1.581.63
Debt/Capital0.270.28
Interest Expense0.017.23
Interest Coverage0.052.07


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)661.08674.37
Div / share0.260.21
EPS0.840.8
Book value / share6.736.34
Institutional Own % n/a n/a
Avg Daily Volume3168911.03446659.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 22.82 for the Specialty Retail industry and a discount compared to the S&P 500 average of 25.30. To use another comparison, its price-to-book ratio of 11.56 indicates a significant premium versus the S&P 500 average of 2.83 and a significant discount versus the industry average of 13.18. The current price-to-sales ratio is below the S&P 500 average, but above the industry average. 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
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
TJX 22.55 Peers 22.82   TJX 16.20 Peers 15.50

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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
TJX 20.42 Peers 20.47   TJX 5.37 Peers 2.14

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.

 

Premium. 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 significant premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
TJX 11.56 Peers 13.18   TJX 5.50 Peers -14.14

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 discount to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

TJX is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
TJX 1.60 Peers 1.57   TJX 7.49 Peers 8.17

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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