Tjx Companies Stock Fair Value – TJX Companies: Good Company, But De-Rating Is Likely

☀️Trending News

The TJX ($NYSE:TJX) Companies, Inc. is a retail company headquartered in Framingham, Massachusetts. It is the owner of several major retail brands such as T.J.Maxx, Marshalls, HomeGoods, and Sierra Trading Post. The TJX Companies has a long history of success in providing quality products at competitive prices.

However, it appears that this success may not continue as the company could be facing a de-rating. The company’s stock has been steadily losing value over the past few months and analysts believe that this trend is likely to continue in the short to medium term. This de-rating is likely due to a number of factors, including a slowdown in consumer spending and competition from online retailers. Another concern is the company’s reliance on brick-and-mortar stores which are increasingly becoming obsolete due to the rise of ecommerce. Despite these concerns, it is important to remember that The TJX Companies is still a good company with a strong track record of success. They have a loyal customer base and are well-regarded for their commitment to quality and value. Thus, while the stock may be de-rating in the short term, investors should take comfort in the fact that The TJX Companies is still a good and reliable company.

Price History

TJX Companies had a good day on Tuesday, as their stock opened at $89.5 and closed at $91.3. This was a 1.6% increase from their prior closing price of $89.8. Despite this good day for TJX Companies, there is still the chance of a de-rating, which is when the stock price could be overpriced relative to its true value. Investors should keep this in mind as they consider their potential investments. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Tjx Companies. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Tjx Companies. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Tjx Companies. More…

Key Ratios Snapshot

Some of the financial key ratios for Tjx Companies are shown below. More…

Analysis – Tjx Companies Stock Fair Value

At GoodWhale, we have conducted an analysis of TJX COMPANIES and its fundamentals. Using our proprietary Valuation Line, we have determined that the intrinsic value of TJX COMPANIES shares is around $82.0. Currently, TJX COMPANIES stock is trading at $91.3, representing a fair price that is overvalued by 11.3%. More…

Peers

In the retail industry, there is intense competition between TJX Companies Inc and its competitors Ross Stores Inc, Destination Maternity Corp, and United Arrows Ltd. This is due to the fact that each company is vying for the same consumers. In order to attract and retain customers, each company must offer competitive prices, a wide variety of merchandise, and excellent customer service.

– Ross Stores Inc ($NASDAQ:ROST)

Ross Stores is an American chain of off-price department stores headquartered in Dublin, California, founded in 1957 by Morris Ross. The company operates 1,378 Ross Dress for Less locations and 122 dd’s Discounts locations in 37 states, the District of Columbia and Guam. Ross Stores Inc has a market cap of 29.23B as of 2022, a Return on Equity of 30.69%. Ross Stores is an American chain of off-price department stores headquartered in Dublin, California, founded in 1957 by Morris Ross. The company operates 1,378 Ross Dress for Less locations and 122 dd’s Discounts locations in 37 states, the District of Columbia and Guam. Ross Dress for Less offers first-quality, in-season, name brand and designer apparel, accessories, footwear and home fashions for the entire family at every day savings of 20% to 60% off department and specialty store regular prices. dd’s Discounts is designed to offer brand-name apparel, accessories, footwear and home fashions for the entire family at 20% to 70% off moderate department and discount store prices every day.

– Destination Maternity Corp ($OTCPK:DESTQ)

Destination Maternity Corporation is an international retailer of maternity apparel, selling its products under the Destination Maternity®, Motherhood Maternity®, A Pea in the Pod® and Destination Baby® brands. The Company also operates ecommerce websites, destinationmaternity.com in the United States, motherhood.com and apeainthepod.com. As of October 28, 2017, Destination Maternity operated 1,944 retail locations, including 512 stores in the United States, Puerto Rico and Canada, and 1,432 leased department locations. The Company’s retail locations are located in the United States, Puerto Rico, Canada and the United Kingdom.

– United Arrows Ltd ($TSE:7606)

United Arrows Ltd is a Japanese fashion retailer. The company was founded in 1989 and is headquartered in Tokyo, Japan. United Arrows Ltd has a market cap of 58.64B as of 2022, a Return on Equity of 9.39%. The company operates over 800 stores across Japan and also has a presence in Hong Kong, China, and Taiwan. United Arrows Ltd offers a wide range of products including men’s and women’s clothing, accessories, and beauty products. The company has a strong focus on quality and design, and its products are popular among Japanese consumers.

Summary

TJX Companies has been a successful retail store chain for many years, however recent market conditions may result in further downgrading of the stock. At the same time, its gross margins shrank, and the company is facing increased competition from other retailers. Although its dividend yield is high compared to other retailers, investors should be wary of taking on too much risk by investing in TJX Companies stock. The stock’s current price may not reflect the full potential of the company, but it’s likely to face pressure from the market in the near future.