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TJX Companies Inc TJX

Morningstar Rating
$110.26 +0.04 (0.04%)
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Company Report

TJX's Unique Procurement and Merchandising Strategy Poised to Yield Growth as Shoppers Seek Bargains

While already boasting a leading position in the domestic off-price retail industry via its T.J. Maxx and Marshalls banners, we believe TJX Companies is well positioned to continue leveraging its procurement scale and existing footprint to drive growth. The company’s go-to-market strategy is difficult to replicate, in our view, as its network of over 21,000 global vendors and decades of procurement expertise serve as barriers to entry. Unlike traditional retailers that obtain inventory via defined purchase orders and replenishment deals, TJX opportunistically procures excess inventory made available from manufacturing overruns and retail closeout sales at prices 20%-60% lower than conventional outlets. With an ever-changing assortment of brand-name merchandise and minimal depth per stock-keeping unit, the retailer’s stores embody a treasure-hunt shopping experience for consumers searching for bargains. As such, we view TJX’s brick-and-mortar model as well insulated from digital competition.

Price vs Fair Value

TJX is trading at a 353% premium.
Price
$110.26
Fair Value
$21.00
Uncertainty
Medium
1-Star Price
$434.20
5-Star Price
$71.20
Economic Moat
Ngnv
Capital Allocation
Vdxypbdy

Bulls Say, Bears Say

Bulls

TJX’s wide assortment of branded merchandise at bargain prices positions the firm to perform well during periods of tighter economic conditions.

Bears

TJX may face top-line and margin pressure as branded apparel manufacturers seek to limit their off-price channel exposure.

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News

Trading Information

Previous Close Price
$110.22
Day Range
$109.73110.71
52-Week Range
$80.16110.71
Bid/Ask
$108.60 / $110.45
Market Cap
$124.61 Bil
Volume/Avg
4.9 Mil / 5.9 Mil

Key Statistics

Price/Earnings (Normalized)
27.36
Price/Sales
2.32
Dividend Yield (Trailing)
1.24%
Dividend Yield (Forward)
1.36%
Total Yield
2.97%

Company Profile

TJX Companies is the leading off-price retailer of apparel, accessories, and home merchandise in the United States. The firm leverages its more than 21,000 global vendor relationships to procure and sell brand-name merchandise at prices 20%-60% cheaper than conventional retail channels. TJX opportunistically purchases excess inventory that stems from manufacturing overruns and retail closeout sales. The off-price retailer disperses its vast and disparate merchandise across its nearly 5,000 global stores, creating a treasure-hunt shopping experience for consumers. Over three quarters of TJX’s sales are derived from the United States, primarily via the T.J. Maxx, Marshalls, and HomeGoods banners. About 10% of sales are from Canada and 12% from Europe and Australia.
Sector
Consumer Cyclical
Industry
Apparel Retail
Stock Style Box
Large Core
Total Number of Employees
349,000

Competitors

Valuation

Metric
TJX
ROST
JWN
Price/Earnings (Normalized)
27.3625.0715.77
Price/Book Value
16.6410.084.25
Price/Sales
2.322.410.24
Price/Cash Flow
22.0019.573.39
Price/Earnings
TJX
ROST
JWN

Financial Strength

Metric
TJX
ROST
JWN
Quick Ratio
0.560.990.25
Current Ratio
1.231.541.03
Interest Coverage
78.5033.963.60
Quick Ratio
TJX
ROST
JWN

Profitability

Metric
TJX
ROST
JWN
Return on Assets (Normalized)
16.36%14.91%3.71%
Return on Equity (Normalized)
69.55%45.48%44.39%
Return on Invested Capital (Normalized)
23.95%18.94%7.80%
Return on Assets
TJX
ROST
JWN
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Apparel Retail Industry Comparables

1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
Industria De Diseno Textil SA ADR
IDEXY
Czjl$156.7 Bil
Industria De Diseno Textil SA Share From Split
IDEXF
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Fast Retailing Co Ltd ADR
FRCOY
Vkvh$77.5 Bil
Fast Retailing Co Ltd
FRCOF
Brg$77.5 Bil
Ross Stores Inc
ROST
YkzqqpyltChxl$49.7 Bil
Lululemon Athletica Inc
LULU
JtzfxrrcFmmfsmm$39.2 Bil
Burlington Stores Inc
BURL
BslgjhjxvBnzkmn$14.9 Bil
Gap Inc
GPS
QcwthdxdQbs$9.7 Bil
Urban Outfitters Inc
URBN
CgvlnnphxKkmzm$4.2 Bil

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