Download PDF

1. Company Snapshot

1.a. Company Description

The TJX Companies, Inc., together with its subsidiaries, operates as an off-price apparel and home fashions retailer.It operates through four segments: Marmaxx, HomeGoods, TJX Canada, and TJX International.The company sells family apparel, including footwear and accessories; home fashions, such as home basics, furniture, rugs, lighting products, giftware, soft home products, decorative accessories, tabletop, and cookware, as well as expanded pet, kids, and gourmet food departments; jewelry and accessories; and other merchandise.


As of February 23, 2022, it operated 1,284 T.J. Maxx, 1,148 Marshalls, 850 HomeGoods, 59 Sierra, and 39 Homesense stores, as well as tjmaxx.com, marshalls.com, and sierra.com in the United States; 293 Winners, 147 HomeSense, and 106 Marshalls stores in Canada; 618 T.K. Maxx and 77 Homesense stores, as well as tkmaxx.com in Europe; and 68 T.K. Maxx stores in Australia.The company was incorporated in 1962 and is headquartered in Framingham, Massachusetts.

Show Full description

1.b. Last Insights on TJX

The TJX Companies' recent performance was driven by strong quarterly results, with sales growth across all segments and raised full-year revenue guidance. Low consumer confidence fueled demand for off-price apparel and home goods. Profitability improved through margin expansion and a shareholder-focused strategy, including consistent dividends and buybacks. A 5% comp sales growth, driven by higher average basket and customer transactions, and a pretax profit margin of 12.7% also contributed to the positive outlook. A recent 13.3% dividend increase and sustainable payout ratio further support shareholder value.

1.c. Company Highlights

2. TJX Companies' Strong Q3 Earnings Beat Expectations

The TJX Companies, Inc. reported its third-quarter fiscal 2026 financial results, with consolidated comp sales growth of 5%, driven by strong performance across its divisions. The company's pre-tax profit margin was 12.7%, up 40 basis points versus last year, and diluted earnings per share increased 12% to $1.28, beating analyst estimates of $1.23. Marmaxx comp sales grew 6%, HomeGoods comp sales increased 5%, TJX Canada's comp sales rose 8%, and TJX International's comp sales grew 3%. The company raised its full-year guidance for sales and profitability, expecting overall comp sales to increase by 4%, consolidated sales in the range of $59.7 billion to $59.9 billion, and pre-tax profit margin of 11.6%.

Publication Date: Nov -20

📋 Highlights
  • Strong Comp Sales Growth:: Consolidated comp sales rose 5%, with Marmaxx (+6%), HomeGoods (+5%), TJX Canada (+8%), and TJX International (+3%) driving performance.
  • Margin Expansion:: Pre-tax profit margin improved to 12.7%, up 40 bps year-over-year, with Q4 guidance at 11.7–11.8% and full-year 11.6%.
  • Earnings Growth:: Diluted EPS increased 12% to $1.28, with full-year guidance raised to $4.63–$4.66 (up 9% vs. 2023’s $4.26).
  • Shareholder Returns:: $1.1 billion returned via buybacks and dividends in Q3, maintaining a long-term store target of 7,000 stores.

Strong Sales Momentum Across Divisions

The company's executives discussed their recent performance, citing a positive experience with shopping, contributing to their confident comp momentum. John Klinger noted that transactions and basket were up, with basket driving more of the comp, and within basket, ticket was the driver. Ernie Herrman added that their merchants focus on keeping a gap between their retail prices and those of competitors, ensuring their prices are below promotional retails.

Pricing Strategy and Value Perception

Regarding pricing, Ernie Herrman stated that they selectively increased prices, but also emphasized providing value, with value perception scores remaining strong. He noted that lower-income demographics drove the comp in most geographies, but all income demographics performed well. The company's value perception scores have improved from a couple of years ago, driven by a better shopping environment and merchandise.

Valuation Metrics

With a P/E Ratio of 32.07 and an ROE of 33.59%, the company's valuation appears to be reflecting its strong profitability. The P/S Ratio of 2.75 suggests that the market is pricing in a moderate growth rate. Analysts estimate next year's revenue growth at 6.4%, which is slightly higher than the current P/S Ratio implies.

Tariff Environment and Gross Margin

The company assumes that the current level of tariffs on imports into the US will stay in place for the remainder of the year and plans to continue to offset the tariff pressure on its business in the fourth quarter. John Klinger mentioned that the company had a strong quarter with a beat in gross margin, driven by favorable ocean rates and efficiencies in merchandise movement. The benefit from freight is expected to roll off in the fourth quarter.

Segment Performance

Paul Lejuez noted that the delta between HomeGoods and Marmaxx has narrowed, driven by strong performance in both divisions. The company is pleased with the performance of both segments. The improved merchandise margins likely had a positive impact on operating income. The company has focused on creating new merchandise vendor content, which has helped with merchandise margins, a key factor in operating income.

3. NewsRoom

Card image cap

TJX seen extending sales momentum as pricing power boosts margins – BofA

Dec -04

Source: proactiveinvestors.com

Card image cap

TJ Maxx Hits the Road with the First-Ever "Maxxinista Express" Holiday Tour Inspired by its Iconic Superfans

Dec -04

Source: prnewswire.com

Card image cap

TJX seen extending sales momentum as pricing power boosts margins – BofA

Dec -04

Source: proactiveinvestors.com

Card image cap

Aftermath Silver boosts resource at Berenguela deposit in Peru

Dec -04

Source: proactiveinvestors.com

Card image cap

Will TJX Q3 Sales Momentum Continue as Marmaxx and HomeGoods Shine?

Dec -03

Source: zacks.com

Card image cap

I Name CEO Starbucks CEO Brian Niccol "Worst CEO of 2025"

Dec -02

Source: 247wallst.com

Card image cap

Brentview Investment Management LLC Sells 614 Shares of The TJX Companies, Inc. $TJX

Dec -01

Source: defenseworld.net

Card image cap

Boston Family Office LLC Has $6.34 Million Stock Holdings in The TJX Companies, Inc. $TJX

Dec -01

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.40%)

6. Segments

United States - Marmaxx

Expected Growth: 6.4%

The TJX Companies' off-price department store operations are expected to grow driven by increasing consumer preference for value and convenience, coupled with the company's ability to offer high-quality products at discounted prices, expanding e-commerce capabilities, and strategic store expansions.

TJX International

Expected Growth: 5.5%

TJX International's growth is driven by increasing demand for off-price apparel and home goods in Canada and Europe, as well as the company's successful expansion into e-commerce and strategic store openings.

TJX Canada

Expected Growth: 3.8%

TJX Canada's growth is driven by its off-price model, offering customers a treasure hunt experience. Winners, HomeSense, and Marshalls stores benefit from a loyal customer base, increasing sales and market share in the Canadian retail market.

United States - Homegoods

Expected Growth: 8.5%

TJX Companies' off-price model, increasing consumer preference for value and experiential shopping, and growing e-commerce presence drive growth in the HomeGoods segment in the United States.

7. Detailed Products

TJ Maxx

Off-price department store offering a wide range of products including apparel, home goods, and more at discounted prices.

Marshalls

Off-price department store offering a wide range of products including apparel, home goods, and more at discounted prices.

HomeGoods

Off-price home decor store offering a wide range of products including furniture, rugs, and decorative items at discounted prices.

Sierra Trading Post

Off-price outdoor gear and apparel store offering a wide range of products including camping gear, hiking boots, and more at discounted prices.

Homesense

Off-price home decor store offering a wide range of products including furniture, rugs, and decorative items at discounted prices.

Winners

Off-price department store offering a wide range of products including apparel, home goods, and more at discounted prices.

HomeSense

Off-price home decor store offering a wide range of products including furniture, rugs, and decorative items at discounted prices.

8. The TJX Companies, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for TJX Companies is medium due to the presence of other off-price retailers and online shopping platforms. However, the company's unique business model and ability to offer high-quality products at discounted prices reduce the threat of substitutes.

Bargaining Power Of Customers

The bargaining power of customers is low due to the company's focus on offering high-quality products at discounted prices, which attracts price-conscious customers who have limited bargaining power.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium due to the company's dependence on a few large suppliers for its products. However, the company's scale and negotiating power reduce the bargaining power of suppliers.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the off-price retail industry, including the need for significant capital investment and a strong supply chain network.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several established players in the off-price retail industry, including Ross Stores and Burlington Stores, which compete with TJX Companies for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 38.03%
Debt Cost 3.95%
Equity Weight 61.97%
Equity Cost 8.31%
WACC 6.65%
Leverage 61.38%

11. Quality Control: The TJX Companies, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Buckle

A-Score: 6.8/10

Value: 4.5

Growth: 3.9

Quality: 7.5

Yield: 10.0

Momentum: 8.0

Volatility: 7.0

1-Year Total Return ->

View Full Report
Stock-Card
Booking

A-Score: 6.3/10

Value: 3.8

Growth: 8.7

Quality: 8.0

Yield: 1.0

Momentum: 7.5

Volatility: 8.7

1-Year Total Return ->

View Full Report
Stock-Card
PulteGroup

A-Score: 5.8/10

Value: 5.9

Growth: 8.8

Quality: 7.6

Yield: 2.0

Momentum: 4.0

Volatility: 6.3

1-Year Total Return ->

View Full Report
Stock-Card
TJX

A-Score: 5.7/10

Value: 1.6

Growth: 6.6

Quality: 5.8

Yield: 2.0

Momentum: 8.0

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
Lennar

A-Score: 5.4/10

Value: 7.5

Growth: 7.2

Quality: 7.1

Yield: 3.0

Momentum: 1.5

Volatility: 6.3

1-Year Total Return ->

View Full Report
Stock-Card
Ross Stores

A-Score: 5.3/10

Value: 2.6

Growth: 5.9

Quality: 6.3

Yield: 2.0

Momentum: 6.0

Volatility: 9.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

153.28$

Current Price

153.28$

Potential

-0.00%

Expected Cash-Flows