Tjx Companies Inc /De/ (NYSE: TJX)

Sector: Consumer Cyclical Industry: Apparel Retail CIK: 0000109198
Market Cap 258.23 Bn
P/B 86.84
P/E 187.23
P/S 12.14
ROIC (Qtr) 22.54
Div Yield % 0.36
Rev 1y % (Qtr) 7.49
Total Debt (Qtr) 13.19 Bn
Debt/Equity (Qtr) 1.41

About

Price action

Investment thesis

Bull case

  • Strong operating cash flow of 6.42B provides robust 0.49x coverage of total debt 13.19B, indicating excellent debt servicing capability and financial flexibility.
  • Strong tangible asset base of 35.09B provides 2.66x coverage of total debt 13.19B, indicating robust asset backing and low credit risk.
  • Operating cash flow of 6.42B provides strong 35.09x coverage of stock compensation 183M, indicating sustainable incentive practices.
  • Robust free cash flow of 4.42B exceeds capital expenditure of 2B by 2.21x, indicating strong organic growth funding capability.
  • Robust tangible asset base of 35.09B provides 26.73x coverage of working capital 1.31B, indicating strong operational backing.

Bear case

  • Operating cash flow of 6.42B barely covers its investment activities of (2.38B), with a coverage ratio of -2.70, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 6.42B provides thin coverage of dividend payments of (1.79B) with a -3.58 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Retained earnings of 8.72B provide limited buffer against comprehensive income items of (471M), which is -18.51x, indicating elevated exposure to market risks.
  • Operating cash flow of 6.42B is outpaced by equity issuance of (2.28B) (-2.81 ratio), indicating concerning reliance on equity markets for funding operations.
  • Cash position of 4.64B provides only -36.54x coverage of interest expenses of (127M), indicating potential refinancing risks in a rising rate environment.

Peer comparison

Companies in the Apparel Retail
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 TJX Tjx Companies Inc /De/ 258.23 Bn 187.23 12.14 13.19 Bn
2 ROST Ross Stores, Inc. 72.84 Bn 60.07 5.37 5.19 Bn
3 LULU lululemon athletica inc. 20.56 Bn 11.81 1.86 1.76 Bn
4 BURL Burlington Stores, Inc. 19.19 Bn 34.23 1.71 5.94 Bn
5 GAP Gap Inc 11.39 Bn 14.10 0.73 5.52 Bn
6 URBN Urban Outfitters Inc 6.47 Bn 13.23 1.08 1.18 Bn
7 BOOT Boot Barn Holdings, Inc. 5.75 Bn 26.25 2.65 0.70 Bn
8 ANF Abercrombie & Fitch Co /De/ 4.83 Bn 9.24 0.93 1.13 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 7.31 1.40
EV to Cash from Ops. EV/CFO 115.17 10.76
EV to Debt EV to Debt 19.49 4.34
EV to EBIT EV/EBIT 113.00 -65.50
EV to EBITDA EV/EBITDA 94.24 7.78
EV to Free Cash Flow [EV/FCF] EV/FCF 156.76 15.40
EV to Market Cap EV to Market Cap 1.00 2.07
EV to Revenue EV/Rev 12.09 1.41
Price to Book Value [P/B] P/B 86.84 6.30
Price to Earnings [P/E] P/E 187.23 240.04
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 2.85 0.87
Dividend Payout Ratio % Div Payout % (Qtr) 35.00 12.36
Dividend per Basic Share Div per Share (Qtr) 1.66 0.36
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 41.66 14.72
Interest Coverage Int. cover (Qtr) -52.53 9.50
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -8.50 2.00
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -1.65 97.51
Dividend Growth (1y) % Div 1y % (Qtr) 13.51 4.12
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 6.36 -5.24
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 8.35 -28.04
EBIT Growth (1y) % EBIT 1y % (Qtr) 6.84 -4.11
EBT Growth (1y) % EBT 1y % (Qtr) 5.61 -9.48
EPS Growth (1y) % EPS 1y % (Qtr) 6.76 -7.53
FCF Growth (1y) % FCF 1y % (Qtr) 1.19 -177.06
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 6.09 -2.43
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.68 1.42
Cash Payout Ratio Cash Payout (Qtr) 0.21 0.06
Cash Ratio Cash Ratio (Qtr) 0.33 0.44
Current Ratio Curr Ratio (Qtr) 1.09 1.64
Debt to Equity Ratio Debt/Equity (Qtr) 1.41 1.24
Interest Cover Ratio Int Coverage (Qtr) -52.53 9.50
Times Interest Earned Times Interest Earned (Qtr) -52.53 9.50
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 13.40 1.59
EBIT Margin % EBIT Margin % (Qtr) 11.31 -10.83
EBT Margin % EBT Margin % (Qtr) 11.53 -4.08
Gross Margin % Gross Margin % (Qtr) 30.90 41.09
Net Profit Margin % Net Margin % (Qtr) 8.70 -5.43