Company Overview
TJX Companies Inc is a US-based retailer operating through a network of off-price stores. Its shares trade on the New York Stock Exchange. The company’s market value is about USD 172 billion. It focuses on offering branded merchandise at discounted prices across its retail banners.
Analysis of recent data
FundamentalsFor the year ended February 1 2025, TJX reported USD figures with revenue of USD 56.36 billion and net income of USD 4.86 billion. Revenue grew 3.95% year over year, showing steady top-line expansion.
Gross margin of 30.85% and operating margin of 11.31% indicate consistent profitability. The net profit margin of 8.68% further supports the company’s efficiency in converting sales into earnings.
A return on equity of 58.3% highlights strong capital efficiency, while a beta of 0.74 suggests lower share volatility. Cash of USD 5.34 billion versus total debt of USD 4.50 billion provides balance sheet flexibility.
Depreciation and amortization totaled USD 1.10 billion, but EBIT and capital expenditure were not provided, limiting insight into free cash flow generation.
Valuation
DCF / MultiplesAt a share price of USD 155, the stock trades above the DCF range. Fair value estimates are Bear USD 66.78, Base USD 97.85, and Bull USD 133.85.
The current valuation corresponds to a P/E of 33.62 and EV/EBITDA of 21.56, implying investors are paying a premium for consistent margins and returns. The share price exceeding the bull case suggests limited margin for error if growth slows.
Conclusion
TakeawayTJX shows durable profitability and a strong balance sheet. The market appears confident in its steady earnings power. However, the current price already reflects high expectations. Investors may prefer to wait for a more attractive entry point.