The TJX Companies, Inc. (TJX) Fundamental Checkup
The TJX Companies, Inc. fundamental checkup using revenue growth, EPS growth, free cash flow, margins, ROIC, debt-to-equity, and TGMCharts chart exhibits as of August 7, 2026.
By TGMCharts Research · Data as of · Updated
The TJX Companies, Inc. gets a balanced fundamental read when revenue growth of 10.24%, EPS growth of 130.62%, free-cash-flow growth of 3.70%, net margin of 9.40%, and ROIC of 21.50% support the same story.
The checkup weighs operating growth, shareholder conversion, cash conversion, reinvestment quality, and balance-sheet flexibility. Current ratio is 1.14x and debt-to-equity is 1.36x, so the balance-sheet read is part of the final view rather than a footnote.
- The TJX Companies, Inc. has market cap of $178.26B and closed at $161 on August 7, 2026.
- Five-year revenue CAGR is 10.24% and five-year EPS CAGR is 130.62%.
- Five-year free-cash-flow CAGR is 3.70%.
- Net margin is 9.40% and ROIC is 21.50%.
- Current ratio is 1.14x and debt-to-equity is 1.36x.
Fundamental snapshot
The valuation, growth, profitability, and balance-sheet facts behind the checkup.
A Multi-Dimensional Assessment of Off-Price Retail Performance
Analyzing The TJX Companies, Inc. requires evaluating whether top-line expansion, bottom-line efficiency, cash generation, capital returns, and capital structure align to form a cohesive investment thesis. With the stock closing at $161 as of August 7, 2026, this fundamental review dissects the operational health of the business before reconciling these metrics with the prevailing market valuation.
Our analysis begins by examining the historical five-year revenue CAGR of 10.24% alongside the five-year EPS CAGR of 130.62%. We then cross-reference these growth vectors against the five-year free cash flow CAGR of 3.70% to verify the quality of earnings. A rigorous fundamental assessment must look beyond isolated growth rates to ensure operational cash flows validate reported accounting profits.
Current compounder snapshot · TJX
Live supporting context; not part of the article's frozen 2026-08-07 evidence snapshot.
- Score
- 10/100
- 10Y CAGR
- 6.9%
- Median YoY
- 6.6%
- YoY volatility
- σ 26.2pp· choppy
- Quarters ≥ 20%
- 4 of 40
- Negative quarters
- 7
- Valuation vs own 10Y history
- P/S 2.9x · 10Y median 1.9x · 98th percentile · as of Aug 7, 2026
How this score is computed
- Quarters at or above 20%: 4 of 40 → 4 of 40 pts
- Steadiness (typical swing 26.2pp) → 6.3 of 25 pts
- Pace (median 6.6% YoY) → 0 of 20 pts
- Latest quarter (9.2% YoY) → 0 of 15 pts
- Score: 10 of 100
Annual revenue · last 11 fiscal years
Quarterly YoY revenue growth vs the 20% line
P/S multiple vs its 10Y median
Operational Health and Market Position in Off-Price Retail
As a prominent player in the Consumer Cyclical sector, The TJX Companies, Inc. must be evaluated through its core operational metrics. This snapshot integrates the firm's market capitalization, valuation multiples, historical growth trajectories, profitability margins, and leverage ratios into a unified framework, establishing the necessary context before diving into detailed historical charts.
Fundamental evidence table
A compact cross-check of valuation, growth, quality, and financial flexibility.
TJX revenue
Revenue history shows whether the business has been expanding before margins and per-share metrics are considered.
Five-year revenue CAGR: 10.24%. This is endpoint-to-endpoint from the fiscal years shown — a depressed start year can inflate it, so read it against the recent bars.
Five-year revenue CAGR of 10.24% is the top-line test. A fundamental checkup becomes more durable when revenue growth is paired with earnings growth instead of depending only on margin expansion.
Evaluating the Transmission of Sales Growth to Per-Share Earnings
The efficiency of growth conversion reveals how effectively top-line gains are translated into shareholder returns. The company's five-year revenue CAGR of 10.24% serves as the baseline for operational expansion, while its five-year EPS CAGR of 130.62% measures net income growth on a per-share basis. Because earnings per share have expanded at a faster rate than revenue, we must investigate whether this outperformance is driven by structural margin expansion, share repurchases, or favorable base effects.
TJX EPS
EPS history shows how much of the business growth has reached shareholders.
Five-year EPS CAGR: 130.62%. This is endpoint-to-endpoint from the fiscal years shown — a depressed or negative start year can inflate it, so read it against the recent bars.
Five-year EPS CAGR of 130.62% is the shareholder conversion check. If EPS grows faster than revenue, the note should ask whether that came from margin quality, buybacks, or a temporary base effect.
Assessing the Integrity of Accrual Earnings Against Cash Flows
Free cash flow provides the ultimate reality check on any earnings-driven growth narrative. With a five-year free cash flow CAGR of 3.70%, the cash generation profile of the business exhibits a distinct trajectory compared to its accounting profits. A persistent divergence where cash flow growth trails per-share earnings growth warrants caution, as it may signal rising working capital requirements or intensifying capital expenditure demands.
TJX free cash flow
Free cash flow checks whether earnings are converting into owner cash.
Five-year free-cash-flow CAGR: 3.70%. This is endpoint-to-endpoint from the fiscal years shown — a depressed or negative start year can inflate it, so read it against the recent bars.
Free-cash-flow CAGR of 3.70% is the counterweight to the EPS story. If cash flow lags earnings, the quality of the fundamental setup deserves a more cautious reading.
Analyzing Profitability Thresholds and Reinvestment Efficiency
The durability of the company's growth depends heavily on its underlying operational efficiency and capital allocation success. A net margin of 9.40% demonstrates the business's ability to retain profits from its sales volume. Concurrently, a return on invested capital (ROIC) of 21.50% indicates highly productive asset utilization, confirming that management is generating robust returns on the capital deployed back into the business.
TJX net margin
Net margin is the operating-quality check behind the growth record.
Net margin (TTM): 9.40%. The bars below are annual fiscal years.
Net margin of 9.40% shows how much revenue becomes profit. The checkup is stronger when margin quality supports EPS growth rather than simply flattering one recent period.
TJX ROIC Chart
ROIC tests whether the business earns enough on reinvested capital to deserve attention.
Latest ROIC: 21.50%.
ROIC of 21.50% is the reinvestment-quality check. A business with stronger returns can support a better long-term read even when the valuation is not obviously cheap.
Liquidity Profiles and Solvency Guardrails
Balance sheet flexibility represents the essential safety margin supporting operational expansion. Currently, the company maintains a current ratio of 1.14x and a debt-to-equity ratio of 1.36x. These metrics are critical because robust top-line growth and healthy operating margins can be compromised if a restrictive debt load or tight short-term liquidity limits strategic execution.
TJX debt-to-equity Chart
Debt-to-equity keeps the checkup honest about balance-sheet flexibility.
Latest debt-to-equity ratio: 1.36x.
Debt-to-equity of 1.36x and current ratio of 1.14x are the balance-sheet checks. They matter because growth and margins are less valuable if financial flexibility is narrowing.
Deconstructing the Market Multiple and Implied Expectations
Valuation serves as the final test of market expectations rather than an isolated starting point. The equity trades at a trailing price-to-earnings ratio of 31.33x, which corresponds to an earnings yield of 3.19%. This multiple indicates the level of sustained growth and operational execution that the market expects the business to deliver to justify its current price.
TJX Price Chart
Latest close: $161 as of August 7, 2026.
The close at $161 is not the conclusion, but it is the market reference point. The fundamental read has to explain whether growth, margins, and balance-sheet support justify the price investors are paying.
Weighing Reinvestment Strengths Against Cash Conversion Divergence
The positive fundamental case rests on a highly efficient operating model, characterized by robust revenue and EPS growth, strong operating margins, and an exceptional ROIC. Conversely, the primary risk to this thesis lies in the slower historical growth rate of free cash flow relative to net income, alongside a capital structure that carries moderate leverage. If cash generation does not accelerate to match accounting earnings, the premium valuation multiple could face downward pressure.
Bull and bear case
Fundamental support
- Five-year revenue CAGR of 10.24% and five-year EPS CAGR of 130.62% support the business case.
- Net margin of 9.40% and ROIC of 21.50% are the quality checks behind the thesis.
Fundamental pressure
- Free-cash-flow CAGR of 3.70% can weaken the read if it falls away from EPS growth.
- Debt-to-equity of 1.36x and current ratio of 1.14x are the balance-sheet checks that can change the view.
Synthesized Fundamental Outlook and Monitoring Thresholds
In summary, the operational strength of the business is well-supported by high returns on capital and steady top-line growth, though the stock's market price sits above its estimated analyst DCF reference value. This fundamental outlook would require revision if subsequent quarterly updates show a deceleration in the five-year revenue CAGR, a deterioration in the current ratio, or a contraction in the return on invested capital.
FAQ
What is the fundamental read on TJX?
The TJX Companies, Inc. is judged through revenue growth of 10.24%, EPS growth of 130.62%, free-cash-flow growth of 3.70%, net margin of 9.40%, and ROIC of 21.50%.
Which TJX fundamental metric matters most?
No single metric carries the article. The checkup requires growth, cash conversion, profitability quality, balance-sheet flexibility, and valuation to be read together.
When should this TJX checkup refresh?
Its figures are as of August 7, 2026, the note's dated snapshot; a note whose figures stop verifying against reported data is corrected or unpublished.
What would change our mind
- Revenue growth moving away from the current five-year CAGR of 10.24%.
- Free-cash-flow growth drifting away from five-year EPS CAGR of 130.62%.
- ROIC or balance-sheet flexibility weakening from ROIC of 21.50% and debt-to-equity of 1.36x.
The bottom line
The TJX Companies, Inc. fundamental research note from TGMCharts Research, grounded in a dated fundamentals snapshot, chart exhibits, and linked source facts.
Read next: Is The TJX Companies, Inc. (TJX) Fairly Valued?Valuation on The TJX Companies, Inc. — from the same data-checked research desk.How we checked this researchShowHide
Data snapshot · By TGMCharts Research.
Every number in this note comes from data we compute and store ourselves from the company's reported figures, plus verbatim excerpts from its SEC filings. When a value isn't available we say so — we never fill gaps with estimates.
Latest filing excerpt
10-Q · filed 2026-05-29 · period 2026-05-02 · SEC EDGAR source
- “As of May 2, 2026, both the number of stores in operation and the selling square footage increased approximately 3% compared to the end of the first quarter of fiscal 2026.”
- “Comp sales increased 6% and 3% for the first quarter of fiscal 2027 and fiscal 2026, respectively.”
- “As of May 2, 2026, both our store count and selling square footage increased approximately 3% compared to the end of the first quarter last year.”
- “Segment Profit Margin Segment profit margin increased to 14.7% for the first quarter of fiscal 2027 compared to 13.7% for the same period last year.”
Source pages
Exhibit sources
Research trail
Every number, checked
Every numeric or dated claim in this note was checked against our stored company data before publishing — each figure below links to the page it comes from.