One-glance verdict
Overvalued
$112.15 our estimate vs market $157.50
Wall Street consensus: $177.21 (58.0% higher than our fair-value estimate)
40% above our estimate, beyond the bull case
Fundamentals snapshot
The TJX Companies, Inc.
TJX · NYQ · Consumer Cyclical · Apparel Retail
Current price
$157.50
52-week range
$126.30 - $170.00
Market cap
$173.99B
Balance sheet
Watch
97.00x Strong cushion
Net debt $8.60B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 2.5% last year.
- Reward Returns 61.3% on equity, ahead of 80% of its peers.
- Risk Stock trades 9.0% above its 5-year average P/E.
- Risk Insider ownership is only 0.2% (peer median: 1.9%).
What this company does
The TJX Companies, Inc.
The TJX Companies owns off-price stores you likely know, like T.J. Maxx, Marshalls, and HomeGoods, selling brand-name clothing and home decor. The company makes money by buying excess inventory (extra goods that other stores or brands couldn't sell) and offering it to shoppers at a steep discount. This business model attracts bargain hunters, which can help the company do well even when people are trying to spend less money overall.
How the company got here
The TJX Companies' story started in 1977 with the first T.J. Maxx stores, which were part of a now-defunct discount retailer called Zayre Corp. The company as we know it today was officially formed in the late 1980s. A huge turning point was the acquisition (the buying of one company by another) of its main competitor, Marshalls, in 1995, which greatly expanded its size and reach in the United States. Over the years, it has grown by launching new store chains, like HomeGoods in 1992, and by expanding into other countries, including Canada and the United Kingdom.
What it actually does
TJX is an 'off-price' retailer, which means it sells brand-name clothing, shoes, and home products for 20% to 60% less than what traditional department stores charge. It does this by having a large team of buyers who purchase excess inventory (products that other stores couldn't sell) from over 21,000 vendors around the world. This creates a constantly changing selection of items and a 'treasure hunt' shopping experience that encourages customers to visit often to see what's new.
Marmaxx
This is the company's largest and most important business, making up well over half of its sales. It includes the T.J. Maxx and Marshalls stores in the United States, which sell a wide variety of brand-name clothing, footwear, and accessories for the whole family. While both stores are similar, Marshalls often has a larger men's and children's shoe department. This segment is the main profit engine (the part of the business that makes the most money) for the entire company.
HomeGoods
This part of the company focuses exclusively on items for the home, like furniture, rugs, lamps, kitchenware, and decorative accessories. Launched in 1992, HomeGoods operates its own stores across the United States and has become a significant contributor to the company's growth. Shoppers go to HomeGoods to find a unique and ever-changing assortment of home fashions at discounted prices. Some HomeGoods stores are combined with T.J. Maxx or Marshalls to create larger 'superstores'.
TJX Canada
This segment operates the company's stores in Canada, which include Winners, HomeSense, and Marshalls. Winners, which TJX bought in 1990, is the leading off-price retailer in Canada for family clothing and home items. HomeSense is the Canadian version of HomeGoods, specializing in home decor, while Marshalls offers a similar mix of apparel and footwear as its U.S. counterpart.
TJX International
This division handles the company's business in Europe and Australia. The main store brand here is T.K. Maxx, which is the European and Australian equivalent of T.J. Maxx, selling a similar mix of off-price apparel and home goods. This segment also operates HomeSense stores in Europe. TJX International represents a significant part of the company's plan to grow outside of North America.
What management is betting on now
The company's main focus is on growing its number of physical stores around the world, with a long-term goal of reaching 7,000 locations. They are also investing in their supply chain (the network for getting products from suppliers to stores) to keep their off-price business model running efficiently. While they have some online stores, their strategy is heavily focused on the unique 'treasure hunt' experience that brings shoppers into their physical locations. Additionally, TJX is committed to environmental sustainability, with goals to reduce greenhouse gas emissions and use 100% renewable energy in its operations by 2030.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q3
$1.07B
FY2025 Q4
$624.00M
FY2026 Q1
$2.19B
FY2026 Q2
$-103.00M
FY2026 Q3
$1.33B
FY2026 Q4
$1.00B
FY2027 Q2
$457.00M
Revenue
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Net income
$1.33B
Diluted EPS
1.19
Operating cash flow
$1.12B
Free cash flow
$457.00M
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Sources
Revenue
—
Net income
$1.44B
Diluted EPS
1.28
Operating cash flow
$1.53B
Free cash flow
$1.00B
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Sources
Revenue
—
Net income
$1.24B
Diluted EPS
1.10
Operating cash flow
$1.79B
Free cash flow
$1.33B
Fetching…
Sources
Revenue
—
Net income
$1.04B
Diluted EPS
0.92
Operating cash flow
$394.00M
Free cash flow
$-103.00M
Fetching…
Sources
Revenue
—
Net income
$1.40B
Diluted EPS
1.23
Operating cash flow
$2.70B
Free cash flow
$2.19B
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Sources
Revenue
—
Net income
$1.30B
Diluted EPS
1.14
Operating cash flow
$1.05B
Free cash flow
$624.00M
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Sources
Revenue
—
Net income
$1.10B
Diluted EPS
0.96
Operating cash flow
$1.63B
Free cash flow
$1.07B
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Sources
Is it cheap or expensive?
Fair value $112.15 vs current price $157.50
Wall Street consensus is the average analyst price target: $177.21 (58.0% higher than our fair-value estimate).
Our most-likely fair value is $112.15 a share — about 28.8% below today's price of $157.50, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Watch
Net debt $8.6B. Interest coverage 97.0x.
Net debt
$8.60B
Interest coverage
97.00x
The TJX Companies, Inc.'s profit covers its interest bill about 97.0 times over. which is stronger than every peer shown here.
Watch
Worse cushion
Baseline
Better cushion
TJX
BASELINE
The TJX Companies, Inc.
Total debt $14.18B Interest coverage 97.00x This is the baseline the peer rows are being compared against.
Total debt $4.72B Interest coverage 71.36x -26% vs TJX Carries about 1.4x less debt cushion than TJX.
Total debt $5.87B Interest coverage 11.89x -88% vs TJX Carries about 8.2x less debt cushion than TJX.
Total debt $5.64B Interest coverage 11.99x -88% vs TJX Carries about 8.1x less debt cushion than TJX.
Total debt $2.00B Interest coverage 34.71x -64% vs TJX Carries about 2.8x less debt cushion than TJX.
What you should know
The case for and against TJX
3 Rewards
2 Risks
Rewards
-
Revenue grew 2.5% last year.
-
Returns 61.3% on equity, ahead of 80% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Stock trades 9.0% above its 5-year average P/E.
-
Insider ownership is only 0.2% (peer median: 1.9%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
30.58x
Forward P/E
27.35x
P/B
16.73x
P/S
2.83x
EV/EBITDA
20.65x
PEG ratio
3.36x
Profitability
How much profit each dollar creates
Gross margin
31.4%
Operating margin
11.8%
Net margin
9.4%
ROE
61.3%
ROA
13.9%
Health
Liquidity and balance-sheet strength
Debt / equity
1.36x
Current ratio
1.14x
Quick ratio
0.49x
Total debt
$14.18B
Total cash
$5.58B
Growth
How the business has been compounding
Revenue TTM
$36.77B
Revenue 5Y CAGR
6.9%
EPS TTM
5.15
EPS 5Y CAGR
17.9%
Cash flow
How much cash the business throws off
Operating CF TTM
$7.60B
Free CF TTM
$4.92B
FCF margin
13.4%
Dividend
Shareholder payout
Yield
1.2%
Payout ratio
33.1%
Last ex-div date
2026-08-13