The TJX Companies, Inc. (TJX) on Decifer

Why it ranks here

• It earns strong returns on the money it puts to work, around 21% and those returns have been improving and it turns most of its profit into real cash.
• Revenue is growing about 7% a year, profits grew 13% over the past year, and growth is speeding up, not slowing down.
• It keeps a healthy share of every sale as profit, and that has stayed steady over the years, a sign of real pricing power, with profitability widening as it grows.
• and has the balance sheet to fund its growth.
• It is not watering down its owners with new shares and it returns cash to shareholders.
• TJX is one of 3 credible suppliers of value-oriented retail distribution that captures trade-down and staples demand for the thesis: Household spending on discretionary and staples retail, travel, and services will continue to drive revenue growth over the next 2-3 years. The market has partly recognized this, but not fully.

The current read

The evidence on TJX lines up on the supportive side: a live market force supports this name through its theme connection. The independent signals we track are telling the same story.

Themes

• Value & Off-Price Retail: Persistent inflation and value-seeking behavior are driving consumers toward discount, off-price, and resale formats.

Read the full TJX research brief · See all quality rankings

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