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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#317
Positioning
Market Dominance
Retail Trade
Retail
$155.5B
Ernie L. Herrman
The TJX Companies, Inc. operates through four segments: Marmaxx, HomeGoods, TJX Canada, and TJX International. As of February 23, 2022, the company operated 1,284 T.J. Maxx, 1,148 Marshalls, 850 Homegoods, 59 Sierra, and 39 Homesense stores. The company was incorporated in 1962 and is headquartered in Massachusetts.
Headcount
340.0K
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Dates updated upon official exchange announcement.
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = TJX ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$ARCO Arcos Dorados Holdings Inc. | 73 | 85 | 89 | 65 | - | - | 29.1% | 5.1% | 46.8% | 7.3% | 3.3% | 3.2% | 3.4% | 153.0x | $1.5B | VS | |
$IMKTA INGLES MARKETS INC | 70 | 73 | 89 | 76 | 11.3x | 4.1x | 5.3% | 3.3% | 23.9% | 2.2% | 1.6% | -5.4% | 1.0% | 32.0x | $1.3B | VS | |
$SGU STAR GROUP, L.P. | 69 | 82 | 79 | 63 | - | - | 26.2% | 7.8% | 31.5% | 6.4% | 4.1% | 1.0% | 6.1% | 63.0x | $399M | VS | |
$EZPW EZCORP INC | 68 | 77 | 82 | 89 | 7.2x | 4.2x | 12.0% | 6.4% | 58.6% | 11.7% | 8.6% | 9.7% | 0.0% | 51.0x | $1.2B | VS | |
$HTHT H World Group Ltd | 68 | 91 | 44 | 84 | - | - | 24.9% | 4.9% | 100.0% | 21.8% | 13.0% | 6.2% | 2.9% | 45.0x | $101.1B | VS | |
$DDL Dingdong (Cayman) Ltd | 68 | 86 | 82 | 57 | - | - | 42.4% | 4.0% | 100.0% | 0.9% | 1.3% | 12.3% | 0.0% | 201.0x | $1.2B | VS | |
$SBH Sally Beauty Holdings, Inc. | 68 | 83 | 92 | 77 | 5.1x | 2.3x | 27.5% | 6.9% | 51.6% | 8.9% | 5.3% | -0.4% | 0.0% | 177.0x | $1.6B | VS | |
$SPH SUBURBAN PROPANE PARTNERS LP | 67 | 80 | 90 | 53 | - | 13.0x | 18.6% | 4.7% | 60.7% | 14.4% | 7.4% | 7.9% | 7.1% | 202.0x | $1.2B | VS | |
$IHG INTERCONTINENTAL HOTELS GROUP PLC /NEW/ | 67 | 63 | 81 | 67 | - | - | -29.5% | 13.1% | 58.6% | 40.7% | 27.4% | 6.8% | 1.3% | - | $21.5B | VS | |
$ROST ROSS STORES, INC. | 67 | 63 | 55 | 83 | 25.2x | 16.5x | 34.8% | 13.3% | 28.0% | 11.6% | 9.1% | 10.4% | 1.0% | 26.0x | $51.6B | VS | |
$TJX TJX COMPANIES INC /DE/ | 65 | 72 | 50 | 72 | 35.4x | 25.7x | 53.0% | 14.1% | 30.9% | 11.4% | 8.7% | 7.5% | 1.1% | 276.0x | $155.5B | ||
| SECTOR BENCH | - | - | - | - | - | 21.4x | 9.1x | 8.9% | 2.9% | 36.2% | 3.9% | 1.6% | 3.8% | 0.0% | 0.6x | - | REF |
TJX COMPANIES INC /DE/ (TJX) receives a "Hold" rating with a composite score of 64.5/100. It ranks #317 out of 7,333 stocks in our coverage universe and carries a 3-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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YOY expansion rate
Core pricing power
Operating efficiency
Bottom-line conversion
Equity capital efficiency
Asset base utilization
Financial leverage load
Direct cash return
Ernie L. Herrman
Chief Executive Officer
Labor Force
340,000
72
32
96
Audit Verdict: Average governance indicators based on financial metrics.
No recent insider transactions available for TJX
HQ Base
Framingham, Massachusetts
Outperforming peers — winners tend to keep winning over 3-12 months
Fair valuation relative to peers
High profitability & efficiency — strong quality floor supports entry
Low volatility — smoother ride and historically better risk-adjusted returns
Aggressive spending — empire-building risk, dilutive growth
Mid-range overall rating
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Relative valuation derived from Retail Trade sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for TJX.
View All RatingsMaterial decline in asset turnover efficiency detected
High margin volatility — erratic forensic earnings quality
| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 72 | 90 | -18DRAG |
| MOMENTUM | 72 | 80 | -8DRAG |
| VALUATION | 50 | 55 | -5NEUTRAL |
| INVESTMENT | 32 | 44 | -12DRAG |
| STABILITY | 96 | 99 | -3NEUTRAL |
| SHORT INT | 74 | 85 | -11DRAG |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROE proxy 53.0% (sector 8.9%)
GM 31% vs sector 36%, OM 11% vs sector 4%
Capital turnover N/A
Rev growth 7%, 11yr history
Interest coverage N/A
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
Our model assigns TJX COMPANIES INC /DE/ a Hold rating, with a composite score of 64.5/100 and 3 out of 5 stars. Ranked #317 of 7,333 stocks, TJX presents a mixed quantitative picture — neither compelling enough to initiate new positions nor weak enough to warrant selling. Investors already holding may consider maintaining their position while monitoring for changes in the factor profile.
TJX earns a quality score of 72/100, indicating above-average business quality. The company reports a return on equity of 53.0% (sector avg: 8.9%), gross margins of 30.9% (sector avg: 36.2%), net margins of 8.7% (sector avg: 1.6%). Companies in this tier generally demonstrate consistent profitability and efficient capital deployment, though they may face some competitive pressure.
TJX's value score of 50/100 indicates the stock is fairly valued based on its current fundamentals. Key valuation metrics include a P/E ratio of 35.40x, an EV/EBITDA of 25.70x, a P/B ratio of 18.77x. At this level, neither a clear bargain nor overpriced, the stock's attractiveness depends more on forward growth expectations and qualitative factors.
TJX COMPANIES INC /DE/'s investment score of 32/100 suggests limited reinvestment activity. Key growth metrics include revenue growth of 7.5% vs. a sector average of 3.8% and a return on assets of 14.1% (sector: 2.9%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
TJX shows strong momentum characteristics with a score of 72/100. The stock has been trending above key moving averages, indicating solid demand from institutional buyers. Revenue growth stands at 7.5% year-over-year, while a beta of 0.40 reflects its sensitivity to broader market moves. This level of momentum typically signals sustained investor confidence and favorable near-term price action.
TJX COMPANIES INC /DE/ earns an excellent stability score of 96/100, reflecting low price volatility and a conservatively managed balance sheet. Key stability metrics include a beta of 0.40 and a debt-to-equity ratio of 276.00x (sector avg: 0.6x). Stocks with this level of stability tend to act as portfolio anchors, providing downside protection during market corrections while still participating in broad market advances.
TJX carries a short interest score of 74/100, indicating moderate short selling activity. This is a neutral reading — not enough to signal systemic bearishness, but worth monitoring. Specific risk factors include elevated leverage (D/E: 276.00x). At $155.5B market cap (large-cap), TJX COMPANIES INC /DE/ offers reasonable institutional liquidity.
TJX offers a modest dividend yield of 1.1%. While the income contribution is relatively small, even a small dividend signals management's commitment to shareholder returns and can serve as a signal of financial discipline.
TJX COMPANIES INC /DE/ is a large-cap company in the Retail Trade sector, ranked #15 of 50 in its sector (70th percentile) and #317 of 7,333 overall (96th percentile). Key comparisons include ROE of 53.0% exceeding the 8.9% sector median and operating margins of 11.4% above the 3.9% sector average. This above-median position indicates TJX is outperforming a majority of its Retail Trade peers, though there is room to close the gap with sector leaders.
While TJX currently exhibits a HOLD profile, superior opportunities exist within the RETAIL TRADE sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Retail Trade Alpha →Quant Factor Profile
Key factor gap
Stability (96) vs Investment (32) — closing this gap could shift the rating.
RANK #15 OF 50 IN CONSUMER DISCRETIONARY
EV/EBITDA 182% ABOVE SECTOR MEDIAN
ROE 496% ABOVE SECTOR MEDIAN (FAVORABLE)
Gross Margin 15% BELOW SECTOR MEDIAN
AUDIT DATA AS OF NOV 1, 2025 (Q3 FY2025)
We rate TJX COMPANIES INC /DE/ (TJX) as a Hold with a composite score of 64.5/100 at a current price of $158.10. The stock presents a mixed quantitative picture — neither compelling enough to warrant new accumulation nor weak enough to justify selling for existing holders. Our factors are split, and the overall profile suggests patience is warranted.
The rating is primarily driven by strength in stability (96th percentile) and momentum (72th percentile), which together account for the majority of the composite score. Offsetting weakness in investment (32th percentile) and value (50th percentile) tempers our overall conviction. We assign a Narrow Moat rating (48/100), Medium uncertainty, and Standard capital allocation.
Key items to watch: balance sheet deleveraging progress. Any material change in these dynamics could warrant a reassessment of our rating. The moat trend is stable, which suggests the competitive landscape is stable for now.
TJX COMPANIES INC /DE/ holds an above-average position (#15 of 50) within the Retail Trade sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 64.5/100 places it at rank #317 in our full 7,333-stock universe. With a $155.5B market capitalization, TJX COMPANIES INC /DE/ operates at meaningful scale within the Retail Trade sector, providing competitive advantages in distribution, procurement, and customer reach.
The outlook is moderately positive, with revenue expanding at 7% and favorable momentum (72th percentile) reflecting constructive market sentiment. The business shows steady execution, though the growth rate is below the levels typically associated with high-conviction growth stories. Momentum confirmation provides support for the current price level.
The margin cascade tells an important story: gross margins of 31% (-5.3pp vs sector) narrow to operating margins of 11% (+7.5pp vs sector) and net margins of 8.7%, yielding a gross-to-net conversion rate of 28%. This conversion rate is typical for the sector, suggesting a standard cost structure without notable efficiency advantages or disadvantages.
At a current price of $158.10, TJX COMPANIES INC /DE/ is trading near fair value based on current fundamentals. Our value factor score of 50/100 reflects a composite assessment across multiple valuation metrics including price-to-earnings, price-to-book, EV/EBITDA, and price-to-sales ratios relative to both sector peers and the broader market. Valuation metrics are mixed, with no strong signal of mispricing in either direction.
The stock currently trades at a P/E of 35.4x (a 65% premium to the sector median of 21.4x), EV/EBITDA of 25.7x (at a premium), P/B of 18.8x, P/S of 3.1x. The above-sector P/E multiple suggests the market is pricing in superior growth or quality, which our analysis partially supports given strong quality metrics.
Returns on equity of 53.0% exceed the cost of equity for most companies, indicating genuine shareholder value creation and a reinvestment engine that compounds wealth over time.
Positive momentum (72th percentile) indicates institutional accumulation and favorable technical dynamics that tend to persist in the intermediate term.
Return on assets of 14.1% indicates efficient deployment of the full asset base, not just equity capital.
A P/E of 35.4x leaves little room for execution misses — any earnings disappointment could trigger a sharp multiple compression.
Elevated leverage (276% D/E) amplifies downside risk and limits management's financial flexibility in adverse scenarios.
Elevated short interest (74th percentile) indicates that sophisticated market participants are betting against the stock.
We assign a Medium uncertainty rating to TJX COMPANIES INC /DE/. The stock presents a balanced risk profile: significant leverage (276% debt-to-equity) and low beta of 0.40 — while defensive, this may indicate limited upside participation in bull markets. While not risk-free, the core business fundamentals are adequate to withstand moderate economic stress, and the range of potential outcomes around our fair value estimate is manageable.
Specific risk factors that inform our assessment include: significant leverage (276% debt-to-equity); low beta of 0.40 — while defensive, this may indicate limited upside participation in bull markets. Each of these factors independently widens the distribution of potential outcomes, and in combination they create a risk profile that demands careful position sizing. The stability factor at the 96th percentile and quality factor at the 72th percentile provide a quantitative summary of the overall risk landscape.
Key risk mitigants include: above-average stability (96th percentile) suggests predictable business dynamics; large-cap scale ($155.5B) provides resilience. These factors partially offset the identified risks and provide downside protection in adverse scenarios. On balance, the risk-reward profile is favorable for long-term investors.
We rate TJX COMPANIES INC /DE/'s capital allocation as Standard. Management has shown adequate — though not exceptional — stewardship of shareholder capital. Returns on equity stand at 53.0%, and the balance sheet is managed within acceptable parameters (D/E: 276%). Exemplary allocators typically sustain ROE above 20% and D/E below 50%; TJX COMPANIES INC /DE/ falls short on at least one dimension.
There is room for improvement in optimizing the capital structure or enhancing shareholder returns. The 1.15% dividend yield provides some income return, but the overall capital allocation framework would benefit from either higher reinvestment returns, improved balance sheet efficiency, or increased shareholder distributions. We will monitor for signs of strategic improvement that could warrant an upgrade.
In summary, TJX COMPANIES INC /DE/ receives a Hold rating with a composite score of 64.5/100 (rank #317 of 7,333). Our quantitative framework assigns a Narrow Moat (48/100, trend: stable), Medium uncertainty, and Standard capital allocation. The average factor score across quality, value, momentum, stability, and investment is 65/100.
Our analysis supports a neutral stance on TJX COMPANIES INC /DE/. While the quantitative profile is not weak enough to warrant selling, it lacks the multi-factor strength required for a buy recommendation. Existing holders should maintain positions and monitor for catalysts — either fundamental improvement or valuation compression — that would shift the risk-reward balance.
Analysis derived from Blank Capital Research quantitative terminal. For informational purposes only. No trade solicitation. Past performance not indicative of future results. Consult a qualified advisor.
We assign TJX COMPANIES INC /DE/ a Narrow Moat rating with a composite moat score of 48/100. The company possesses identifiable competitive advantages, though they are less entrenched than those of wide-moat peers. Our analysis indicates that TJX COMPANIES INC /DE/ can sustain above-average returns on invested capital for at least 10 years, with the strongest contributor being economic value creation at 19.3/20.
The strongest moat sources are economic value creation (19.3/20) and margin superiority (13.2/20). ROE proxy 53.0% (sector 8.9%). GM 31% vs sector 36%, OM 11% vs sector 4%. These pillars form the core of TJX COMPANIES INC /DE/'s competitive identity and are the primary drivers of excess returns in our framework.
Areas of relative weakness include reinvestment efficiency (0/20) and financial resilience (5/20). Capital turnover N/A. Improvement in these areas could meaningfully widen the moat over time, while deterioration would be an early warning of competitive erosion.
Our moat trend assessment is Stable. Multi-year ROIC and operating margin trajectories show neither meaningful improvement nor deterioration, suggesting the competitive position is steady. We expect TJX COMPANIES INC /DE/'s moat profile to remain largely unchanged absent a material shift in return on capital or industry dynamics.
Key profit drivers include operating margins of 11% reflecting effective cost management, moderate revenue growth of 7%, returns on equity of 53.0% driving shareholder value creation. The margin cascade from 31% gross to 11% operating to 8.7% net reveals the company's cost structure and reinvestment intensity. Our analysis indicates that the profit engine is high-quality and likely sustainable, with the quality factor at the 72th percentile.
The margin profile shows gross margins of 31%, operating margins of 11%, net margins of 8.7%. Return metrics include ROE of 53.0% and ROA of 14.1%. Relative to the Retail Trade sector, gross margins are 5.3 percentage points below the sector median of 36%, and ROE of 53.0% compares to a sector median of 8.9%.
The balance sheet reflects high leverage with D/E of 276%, which may limit financial flexibility, a dividend yield of 1.15%, revenue growth of 7%. The sector median D/E is 1%, putting TJX COMPANIES INC /DE/ at higher leverage than the typical peer. Elevated leverage in combination with the current margin profile warrants close monitoring for any deterioration in debt-servicing capacity.
Above 50MA
37.18%
Net New Highs
+51081
About TJX COMPANIES INC 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
About TJX COMPANIES INC 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
About TJX COMPANIES INC 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
Despite talk of the great rotation out of growth and technology and into value and defensive areas, the Nasdaq 100 is only 4.5% off its all-time high.
The consumer discretionary sector has underperformed the S&P 500, but presents buying opportunities. Nike faces challenges with slumping sales, weak direct revenue, and intense competition despite management turnaround efforts. TJX Companies, operating off-price retail brands, has shown strong same-store sales growth and defensive characteristics, making it the preferred choice for long-term investors.