Wide-moat TJX Companies posted strong fiscal 2025 first-quarter results that outpaced our expectations, and we plan to raise our $74 fair value estimate by a low- to- mid-single-digit percentage as we maintain a favorable outlook for the off-price industry.
TJX’s wide assortment of branded merchandise at bargain prices positions the firm to perform well during periods of tighter economic conditions.
TJX may face top-line and margin pressure as branded apparel manufacturers seek to limit their off-price channel exposure.
|
Metric
|
TJX
|
M
|
JWN
|
|---|---|---|---|
Price/Earnings (Normalized) | 25.31 | 5.84 | 12.74 |
Price/Book Value | 15.25 | 1.32 | 4.12 |
Price/Sales | 2.09 | 0.24 | 0.24 |
Price/Cash Flow | 20.18 | 2.99 | 3.31 |
|
Metric
|
TJX
|
M
|
JWN
|
|---|---|---|---|
Quick Ratio | 0.59 | 0.30 | 0.31 |
Current Ratio | 1.21 | 1.37 | 1.02 |
Interest Coverage | 73.38 | 1.63 | 1.83 |
|
Metric
|
TJX
|
M
|
JWN
|
|---|---|---|---|
Return on Assets (Normalized) | 15.88% | 5.76% | 5.34% |
Return on Equity (Normalized) | 69.19% | 23.45% | 66.16% |
Return on Invested Capital (Normalized) | 23.32% | 11.22% | 10.78% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
IDEXY
| Industria De Diseno Textil SA ADR | — | Gxff | $151.1 Bil | |
IDEXF
| Industria De Diseno Textil SA Share From Split | — | Wwpp | $149.1 Bil | |
FRCOY
| Fast Retailing Co Ltd ADR | — | Kwly | $79.8 Bil | |
FRCOF
| Fast Retailing Co Ltd | — | Rwx | $79.8 Bil | |
ROST
| Ross Stores Inc | Bxxdpcrk | Kmd | $47.7 Bil | |
LULU
| Lululemon Athletica Inc | Ybzgbcwzk | Sjjwm | $38.2 Bil | |
NXGPF
| Next PLC | — | Gytjg | $14.9 Bil | |
GPS
| Gap Inc | Tslbqqml | Zhgx | $7.8 Bil | |
URBN
| Urban Outfitters Inc | Kjwnhsskk | Zxnxb | $3.9 Bil |
