The Tjx (TJX) Fundamental Analysis: Revenue, Earnings & Valuation

7.03 / 10

Outperform

TJX's fundamental strength is promising, scoring 7.0/10. Key positives include a low operating cycle (60.45 days, group 1) and high total assets turnover (1.83, group 4), both historically linked to modest monthly returns (4.94% and 4.44% respectively). Asset-liability ratio at 73.56% (group 3) and equity multiplier around 3.9 (group 3) indicate manageable leverage. However, net cash flow from operations per share fell YoY by 26.73%, placing it in the lowest quartile and tempering enthusiasm. Overall, the balance sheet looks solid but cash-generation needs improvement.

Analysis Checks(7/10)

Net cash flow from operating activities per share (YoY growth rate %)

Value-26.73

Score2/3

Weight4.87%

1M Return1.78%

Asset-liability ratio (%)

Value73.56

Score3/3

Weight14.90%

1M Return4.96%

Shareholders’ equity attributable to parent company / Total liabilities (%)

Value0.36

Score3/3

Weight16.76%

1M Return5.48%

Operating cycle

Value60.45

Score3/3

Weight14.19%

1M Return4.94%

Equity multiplier

Value3.78

Score3/3

Weight14.70%

1M Return4.89%

Profit-MV

Value0.36

Score1/3

Weight6.17%

1M Return2.11%

Fixed assets turnover ratio

Value8.10

Score0/3

Weight-2.36%

1M Return-0.99%

Total assets turnover ratio

Value1.83

Score3/3

Weight12.96%

1M Return4.44%

Equity multiplier (DuPont analysis %)

Value3.92

Score3/3

Weight13.87%

1M Return4.85%

Cash-MV

Value0.41

Score0/3

Weight3.94%

1M Return1.37%

Is TJX undervalued or overvalued?

TJX scores 7.03/10 on fundamentals and holds a Discounted valuation at present. Backed by its 41.92% ROE, 8.68% net margin, 33.81 P/E ratio, 18.49 P/B ratio, and 6.76% earnings growth, these metrics solidify its Outperform investment rating.