TJX

TJX

TJX Companies

Dividend / Cash flow

★ Quality 79/100
Overvalued

Price today

$156.25

what the market pays

Worth

$109.82

calculated cycle value

Worth $109.82price today $156.25

Price is 42% above its value

charlieapp.co

Where does the value come from?

🏛️

Established business paying dividends

$105.95

per share

How it's calculated

💰

Free cash flow per share

normalized free cash flow

$4.99
×
📐

Multiplier

years of discounted cash flows

21.2x
=
🏢

Business value

without cash

$105.95

TJX Companies — high assistant estimate (2026-06-01). Review note.

🏦

Net cash in the bank

cash minus financial debt, per share

+$3.87

Total calculated value

business + cash

$109.82

How many times the cash flow

Dividend / Cash flow · vs 42 peers

You pay today
30.5x
Sector median
25.7x
Charlie: worth
21.2x

You pay 30.5x times this business's cash flow; its sector median is 25.7x.

30% above what Charlie thinks it's worth (21.2x) — you're overpaying, sector or no sector.

Why Overvalued?

Its free cash flow is $4.99/share × 21.2x multiplier plus $3.87 in net cash = $109.82 in intrinsic value. Today's price of $156.25 is 30% above the calculated value — the market is paying a premium over what the model sees as fair.

⚠️

The price is 42% above the calculated value. You're paying more than it's worth.

⚠️

Buying here lowers your expected return and wipes out the safety margin.

💡

The next reasonable entry zone starts at $104.33.

At what price would buying make sense?

Entry zones

🟢 Undervalued

$87.86

-20% off Value

🟡 Discounted

$104.33

-5% off Value

🔴 Today

$156.25

-30% Valor

🔴

Overvalued

The market prices it too high versus what the business makes. Patience pays off here.

Time is the friend of the wonderful company, the enemy of the mediocre.

— Warren Buffett

Model updated · July 2026

The business

Buys the brands' leftovers and sells them as a treasure hunt.

TJX is a discount retailer: it buys excess inventory and clearance stock from well-known brands and sells it up to 60% cheaper at TJ Maxx, Marshalls, and HomeGoods. It brings in $60.4B with 1,300+ buyers tracking deals around the world. Customers keep coming back because the assortment changes every week.

The edge lies in buying scale and relationships with thousands of suppliers who need to clear out warehouses fast. Nobody buys as big or as opportunistically. It's hard to copy: it takes decades of network and a bargain-hunting culture, not an algorithm.

Revenue history

$48.6B
2022
$49.9B
2023
$54.2B
2024
$56.4B
2025
$60.4B
2026
CAGR 5 años: +6%

From $48.6B to $60.4B in 4 years. The business grows steadily.

Where each $100 of sales goes

Revenue $60.4B · FY2026

Cost of sales$41.7B · 69%
Operations$11.4B · 19%
Taxes and other$1.8B · 3%
Net profit$5.5B · 9%

Of every $100 in sales, $91 goes to costs and operations; $9 is left as net profit (9% margin).

Catalysts and risks

Expansion of HomeSense and Sierra in North America, still-young formats.

Traditional online commerce leaves behind surplus stock that TJX soaks up cheaply.

International growth in Europe and Australia under the TK Maxx brand.

⚠️

Thin margins: 31% gross leaves little cushion against freight costs and wages.

⚠️

Depends on a steady flow of surplus inventory that can dry up in lean years.

⚠️

The physical-store model demands flawless execution; a logistics stumble shows up fast.

Charlie's note

A retailer growing 6% with a 31% gross margin and no deep moat, trading at 21x. It's a good business at a good-business price; nobody hands you operating excellence, but you're not paying for fantasy either.

Analysis · July 2026

So when would be a good price for TJX Companies?

By our calculation, not yet. We will email you the day it drops to $104.33 — so you do not have to keep checking.

🔔 Email me

Free · no card

Charlie informs, it doesn't advise. No information should be taken as a recommendation to buy or sell.