An analysis of TJX

1. TJX (TJX)
8-Aug-2019

2. Company overview:
the leading off-price apparel and home fashions retailer in the U.S. and worldwide, is ranked 85 among Fortune
500 companies.
➢ Key Metrics:
• Net Sales
• Diluted EPS
• Pre-tax Margin
• COGS
• SG&A
• Share Repurchase
• Consolidated Comp Store Sales
➢ Strength:
• Global supply chain and distribution network
• Flexible retail business model
• Leader in the industry
➢ Risk factors:
• Interest rate (+)
• Distribution cost (+)
• Seasonality (-)
• Inventory forecasting (-)
• Loss in niche market (-)
• Competitive industry environment
(-)

3. Financials:
Key points:
• Total shareholder return: dividends +
share repurchase → above 4% in the
past 7 years according to the historical
stock price
• Higher return (+): ROE Above 50% in
the past 7 years
• Consolidated comparable store sales:
an above 5% of comp store sales was
reaffirmed in the FY2020 Q1 report.
• Cash and Cash Equivalent to Asset –
above 18% for the last five years.
• ROE continue to increase as a joint
result of share repurchase and growth
driver.

4. Outstanding performance in guidance
forecast

5. Scenario Analysis

6. Valuation:
• DCF value Model: 115 based on 10 years of hyper growth
• Current price: 55.09 USD
• Suggestion: Short-term (1W) – sell; Long-term - buy

7. Technical Analysis: Stoch RSI oversell; MACD below 0