The TJX Companies, Inc. (TJX) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: The TJX Companies, Inc.

Updated on September 26, 2026 · accounts published on August 19, 2026

Reading of September 26, 2026: A high-return business

TJX Companies trades at a P/E of 23.5 over the last 12 months, 36 % above its sector median but 9 % below its own ten-year average.

• Is TJX Companies expensive or cheap? At a P/E of 23.5, TJX Companies trades 36 % above its sector median but 9 % below its ten-year average of 25.7.
• How is the business doing? Operating margin reached 12.8 % over the last 12 months, above its 10.3 % average for fiscal 2015-2026, with EPS up 15 %.
• How strong is the balance sheet? Net debt is 0.8× EBITDA in fiscal 2026, just 5 % of the share price, and the dividend has risen five fiscal years in a row.
• Would the balance sheet hold up in a recession? TJX Companies passes 6 of 8 cyclical-sector checks; the misses are a 1.15 current ratio and EV/sales above its decade average.
• What to expect from the next earnings? Analysts expect EPS of $1.33 when TJX Companies reports on November 18, 2026; it has beaten estimates in 8 of the last 8 quarters.

Is TJX Companies expensive or cheap?

TJX Companies trades at a P/E of 23.5 over the last 12 months. That is 9 % below its decade average of 25.7 and far from the peak of 45.9. Still, it traded at a lower P/E in 43 % of the quarters of the last ten years, and the floor was 17.8. The consumer cyclical sector median is 17.3, so the stock carries a 36 % premium. EV/sales of 2.9× in fiscal 2026 sits above its ten-year average of 2.1×, and the free cash flow yield is 3.6 %. At 23 % below its 52-week high the stock is cheaper than it was, but it is hardly a bargain.

How is the business doing?

Over the last 12 months revenue grew 7 % and EPS grew 15 %, so profits are rising faster than sales. The operating margin of 12.8 % over the same period beats fiscal 2026 (11.9 %) and the 12-year average of 10.3 %, a sign of widening profitability. Returns on capital stand out most. ROIC is 22.8 % against a sector median of 9.2 %, 13.6 points higher. It stayed above 10 % in 9 of the last 10 fiscal years, and the only lapse was 2.6 % in 2021. ROE of 59.8 % looks spectacular, but a P/B of 13.6× and debt/equity of 1.34 suggest a thin equity base does part of the work.

How strong is the balance sheet?

Net debt of $6.52 per share in fiscal 2026 equals only 5.1 % of the current price. At 0.8× EBITDA it sits far below the 3× the sector treats as healthy. The Altman Z of 6.7 over the last 12 months is well inside the safe zone above 2.99, and the Piotroski score is 8 of 9. The dividend yields 1.4 % and has grown for 5 consecutive fiscal years. The payout was 34 % of fiscal 2026 earnings, which leaves room to keep raising it. The weak spot is liquidity: the current ratio is 1.15 over the last 12 months, below the 1.5 the sector likes to see.

Would the balance sheet hold up in a recession?

Peter Lynch warned that cyclical stocks look cheap when they are expensive and expensive when they are cheap, so one year's P/E can mislead. That is why this sector is judged on five-year averages and resilience instead of a single snapshot. TJX Companies clears most of the checks. Its five-year average operating margin is 10.7 % against a healthy threshold of 8 %, and its average ROIC is 19.9 % against 12 %. Inventory turned 5.7× in fiscal 2026, above the 4× benchmark. Its P/E of 23.5 is neutral next to its five-year average of 27.5. In a downturn, the tight current ratio would matter more than the modest net debt.

What to expect from the next earnings?

On August 19, 2026, TJX Companies reported EPS of $1.22 against $1.19 expected, a 2.5 % beat that extended its streak to 8 of the last 8 quarters. For the report on November 18, 2026, analysts expect quarterly EPS of $1.33. Sentiment is one-sided: of 53 analysts, 44 rate the stock a buy, 7 a hold and 1 a sell. The 2027 EPS consensus has held at $5.28 over the last 11 days, and revenue estimates have barely moved, so expectations are stable. After eight straight beats, the market is used to results above estimates, and a quarter merely in line with them could disappoint.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.