TJX Companies Inc

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TJX : NYSE : Services
$75.19 up 0.01 | 0.01%
Today's Range: 74.94 - 75.52
Avg. Daily Volume: 3,469,300
09/27/16 - 2:26 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 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 ($mil)7882.057363.73
EBITDA ($mil)1093.61046.92
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)11670.6511341.04
Total Debt ($mil)1615.951623.96
Equity ($mil)4451.364276.07


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 Expense16.9517.23
Interest Coverage54.6352.07


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)656.65674.37
Div / share0.260.21
EPS0.840.8
Book value / share6.786.34
Institutional Own % n/a n/a
Avg Daily Volume3481210.03188246.0

Valuation


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
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
TJX 22.17 Peers 21.96   TJX 15.89 Peers 14.09

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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
TJX 20.11 Peers 19.56   TJX 5.10 Peers 1.91

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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
TJX 11.29 Peers 12.35   TJX 5.50 Peers 0.78

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
TJX 1.56 Peers 1.48   TJX 7.49 Peers 7.28

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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