* Note: Prices are in Million (M) USD.
Description:
The TJX Companies, Inc. (abbreviated TJX) is an American multinational off-price department store corporation, headquartered in Framingham, Massachusetts.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $5,335 M
Debt : $12,778 M
EBITDA : $7,414 M
Net Debt (Debt - Cash): $7,443 M
Since Net Debt is covered by EBITDA within 2 years, 2 points assigned.
This criteria used industry in which company operates:
Sector: Consumer cyclical
Industry: Apparel stores
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 28.81
Since Forward PE Ratio is between 25 - 35, 1 point assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 20 overlapping fiscal years (max 20).Average Free Cash Flow: $2,127 M
Average Revenue: $32,004 M
Revenue Converted To Free Cash Flow (%): 6.6%
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2025-01-31): $56,360 M
Revenue 4 Years Ago (2021-01-31): $32,137 M
Last 5 Years Average Revenue Growth: 15%
Since Revenue Growth is between 15 - 20, 4 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2025-01-31): $1,142 M
Share Count 5 Years Ago (2021-01-31): $1,215 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $4.96
Trailing 12-Month Earnings Per Share (EPS): $4.56
Average Earnings Per Share (EPS): $4.76
Dividend Per Share (DPS): $2
Payout Ratio: 33%
Dividend Yield: 1%
Since company Payout Ratio is less than 50, 2 points assigned.
Since Dividend Yield is greater than 1, 1 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 20 valid ROE years (max 20).Average ROE: 46.7%
Since Average ROE is greater than 20, 5 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $137
52-Week Low: $110
Threshold Price (15% Above 52-Week Low): $126
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $147,954 M
Since Market Cap is between 100B - 500B, 3 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 4% exposure of Total Portfolio.
Value-Trade has assigned 25 points to above The TJX Companies Inc (TJX) stock.
Heads up: One or more P/E inputs look exaggerated and may skew the blend.
• Last 13 Years Avg PE
36.69 (>2× median)
• ROE Based PE
47.33 (>2× median)
Further research is recommended; please use your own due diligence.In such cases, multiplying earnings by the long-run average P/E typically gives a closer, more reliable fair value.
Rule of thumb: Last 13 Years Avg P/E (36.69)
× EPS ($4.76) = $174.64.
Last 13 Years Avg PE 36.69, Fair Value PE 15, Industry Based PE 15, Growth Based PE 15, RCFC Based PE 15.32, ROE Based PE 47.33, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 7 values, average assigned is 23.06. Value-Trades has assined P/E value 23.06. Since an average (Current Year EPS + Next Year EPS) earning per share is $4.76.
The fair value of The TJX Companies Inc (TJX) stock should be (23.06 x $4.76) = $109.77.
