The TJX Cos. Inc.
Find Ratings Reports
-0.21 |
-0.22%
TJX COMPANIES INC's gross profit margin for the first quarter of its fiscal year 2018 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. TJX COMPANIES INC has weak liquidity. Currently, the Quick Ratio is 0.70 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
During the same period, stockholders' equity ("net worth") has increased by 15.56% 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 | Q1 FY18 | Q1 FY17 |
|---|---|---|
| Net Sales ($mil) | 8688.72 | 7784.02 |
| EBITDA ($mil) | 1152.0 | 1014.83 |
| EBIT ($mil) | 959.71 | 842.35 |
| Net Income ($mil) | 716.38 | 536.28 |
| Balance Sheet | Q1 FY18 | Q1 FY17 |
|---|---|---|
| Cash & Equiv. ($mil) | 3117.01 | 3126.59 |
| Total Assets ($mil) | 14007.12 | 12763.48 |
| Total Debt ($mil) | 2231.36 | 2228.35 |
| Equity ($mil) | 5262.41 | 4553.52 |
| Profitability | Q1 FY18 | Q1 FY17 |
|---|---|---|
| Gross Profit Margin | 31.11 | 31.17 |
| EBITDA Margin | 13.25 | 13.03 |
| Operating Margin | 11.05 | 10.82 |
| Sales Turnover | 2.63 | 2.62 |
| Return on Assets | 19.9 | 18.22 |
| Return on Equity | 52.98 | 51.08 |
| Debt | Q1 FY18 | Q1 FY17 |
|---|---|---|
| Current Ratio | 1.69 | 1.64 |
| Debt/Capital | 0.3 | 0.33 |
| Interest Expense | 17.37 | 17.25 |
| Interest Coverage | 55.27 | 48.82 |
| Share Data | Q1 FY18 | Q1 FY17 |
|---|---|---|
| Shares outstanding (mil) | 625.2 | 643.28 |
| Div / share | 0.31 | 0.26 |
| EPS | 1.13 | 0.82 |
| Book value / share | 8.42 | 7.08 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 3678050.0 | 4434950.0 |
BUY. This stock's P/E ratio indicates a discount compared to an average of 24.68 for the Specialty Retail industry and a discount compared to the S&P 500 average of 25.32. To use another comparison, its price-to-book ratio of 11.23 indicates a significant premium versus the S&P 500 average of 3.29 and a significant discount versus the industry average of 59.57. 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 21.74 | Peers 24.68 | TJX 17.91 | Peers 17.43 | |||||||||||||||||||||
|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. TJX is trading at a discount to 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 17.69 | Peers 19.62 | TJX 1.09 | Peers 0.99 | |||||||||||||||||||||
|
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 premium to its peers. |
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| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| TJX 11.23 | Peers 59.57 | TJX 23.57 | Peers 15.33 | |||||||||||||||||||||
|
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. |
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 1.61 | Peers 1.75 | TJX 10.00 | Peers 7.62 | |||||||||||||||||||||
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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. |
Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share. TJX has a sales growth rate that significantly exceeds its peers. |
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