TJX Companies Inc

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TJX : NYSE : Services
$71.46 -0.14 | -0.2%
Today's Range: 71.33 - 71.83
Avg. Daily Volume: 4611400.0
08/23/17 - 10:11 AM ET

Financial Analysis


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 ($mil)8357.77882.05
EBITDA ($mil)1076.991093.6
EBIT ($mil)901.38925.84
Net Income ($mil)552.96562.17


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)2952.12224.8
Total Assets ($mil)12935.611670.65
Total Debt ($mil)2229.11615.95
Equity ($mil)4540.84451.36


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin30.6431.55
EBITDA Margin12.8813.87
Operating Margin10.7811.75
Sales Turnover2.622.75
Return on Assets17.9119.91
Return on Equity51.0252.21
Debt Q2 FY17 Q2 FY16
Current Ratio1.631.58
Debt/Capital0.330.27
Interest Expense0.016.95
Interest Coverage0.054.63


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)643.28656.65
Div / share0.310.26
EPS0.850.84
Book value / share7.066.78
Institutional Own % n/a n/a
Avg Daily Volume4621937.04119407.0

Valuation


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
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
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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