TJX Companies Inc
Find Ratings Reports
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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 has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry. TJX COMPANIES INC has weak liquidity. Currently, the Quick Ratio is 0.59 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 4.09% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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| Income Statement | Q2 FY16 | Q2 FY15 |
|---|---|---|
| Net Sales ($mil) | 7882.05 | 7363.73 |
| EBITDA ($mil) | 1093.6 | 1046.92 |
| EBIT ($mil) | 925.84 | 897.0 |
| Net Income ($mil) | 562.17 | 549.34 |
| Balance Sheet | Q2 FY16 | Q2 FY15 |
|---|---|---|
| Cash & Equiv. ($mil) | 2224.8 | 2238.28 |
| Total Assets ($mil) | 11670.65 | 11341.04 |
| Total Debt ($mil) | 1615.95 | 1623.96 |
| Equity ($mil) | 4451.36 | 4276.07 |
| Profitability | Q2 FY16 | Q2 FY15 |
|---|---|---|
| Gross Profit Margin | 31.55 | 31.16 |
| EBITDA Margin | 13.87 | 14.21 |
| Operating Margin | 11.75 | 12.18 |
| Sales Turnover | 2.75 | 2.64 |
| Return on Assets | 19.91 | 19.99 |
| Return on Equity | 52.21 | 53.01 |
| Debt | Q2 FY16 | Q2 FY15 |
|---|---|---|
| Current Ratio | 1.58 | 1.63 |
| Debt/Capital | 0.27 | 0.28 |
| Interest Expense | 16.95 | 17.23 |
| Interest Coverage | 54.63 | 52.07 |
| Share Data | Q2 FY16 | Q2 FY15 |
|---|---|---|
| Shares outstanding (mil) | 656.65 | 674.37 |
| Div / share | 0.26 | 0.21 |
| EPS | 0.84 | 0.8 |
| Book value / share | 6.78 | 6.34 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 3481210.0 | 3188246.0 |
BUY. This stock's P/E ratio indicates a premium compared to an average of 21.96 for the Specialty Retail industry and a discount compared to the S&P 500 average of 25.19. For additional comparison, its price-to-book ratio of 11.29 indicates a significant premium versus the S&P 500 average of 2.82 and a discount versus the industry average of 12.35. The current price-to-sales ratio is below the S&P 500 average, but above the industry average. The valuation analysis reveals that, TJX COMPANIES INC seems to be trading at a premium to investment alternatives within the industry.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| TJX 22.17 | Peers 21.96 | TJX 15.89 | Peers 14.09 | |||||||||||||||||||||
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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. |
Premium. 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 premium to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| TJX 20.11 | Peers 19.56 | TJX 5.10 | Peers 1.91 | |||||||||||||||||||||
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Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. TJX is trading at a premium to 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. |
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| Price/Book |
|
Earnings Growth |
|
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| TJX 11.29 | Peers 12.35 | TJX 5.50 | Peers 0.78 | |||||||||||||||||||||
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Average. 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 valuation on par with 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. |
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| Price/Sales |
|
Sales Growth |
|
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| TJX 1.56 | Peers 1.48 | TJX 7.49 | Peers 7.28 | |||||||||||||||||||||
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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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