TJX Companies (TJX)
Consumer · NYSE · US
Fundamentals
Valuation and ratings
TJX Companies trades at $154.79, which is 28% below the $198.28 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 63 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 29.4 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About TJX Companies
The TJX Companies, Inc., together with its subsidiaries, operates as an off-price apparel and home fashions retailer worldwide. It operates through four segments: Marmaxx, HomeGoods, TJX Canada, and TJX International. The company provides family apparel comprising footwear; accessories, such as beauty and jewelry; home fashion products, including home basics, decorative accessories and giftware, as well as furniture, rugs, lighting, soft home, decorative accessories, tabletop, and cookware; pet and gourmet food; and other merchandise. It also offers home decor, furniture, and seasonal home merchandise. The company sells its products through stores and e-commerce sites. The TJX Companies, Inc. was incorporated in 1962 and is headquartered in Framingham, Massachusetts.
TJX passes 2 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Smart money ownership
16 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- Arrowstreet Capital, ARROWSTREET CAPITAL, LIMITED PARTNERSHIP$1.15B · 0.6% of book
- Cliff Asness, AQR CAPITAL MANAGEMENT LLC$951.80M · 0.4% of book
- Capital Research Global, Capital Research Global Investors$941.29M · 0.1% of book
- Two Sigma, TWO SIGMA INVESTMENTS, LP$837.35M · 0.7% of book
- D. E. Shaw, D. E. Shaw & Co., Inc.$168.47M · 0.1% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is TJX Companies (TJX) undervalued?
Against our discounted cash flow estimate of $198.28, TJX at $154.79 is 28% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own TJX?
16 of the institutions we track reported a position in TJX in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is TJX's P/E ratio?
TJX trades at 29.4 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.