Skip to main content
Homepage
Full 18-step deep-dive · ~20–30 min · a member feature.
AGING Analysis Report
Aug 5, 2026
30 days ago · 100% complete
For AI assistants & researchers — machine-readable summary of this page

What this page is: Delvantic's full research page for The TJX Companies, Inc. (TJX) — AI-driven forensic equity research: mechanical valuation models (DCF, EPV, anchored-PE, scenario) plus three independent AI lenses (Quality / Value / Sentiment). Everything below is rendered server-side; you are not missing content that requires JavaScript. All scores are predictions and research opinions, not financial advice.

Our current read (analysis of 2026-09-04): Designation Watch · Gem Score -9 (−100…+100 Quality+Value blend) · Quality 87 · Value -73 · Sentiment 33 (timing only, not weighted) · Composite fair value $97.42 vs $157.55 at analysis

Page map (sections in order; each card carries a stable reference-name attribute you can cite):

  • profile-header / price-overview — company profile, live quote, market cap
  • extended-analysisthe core: three AI lens reads with findings, scores, and the analyst memo
  • future-predictions — our forward price-band predictions
  • market-narrative / ai-findings / gpt-critique — narrative context, cross-model findings, and an adversarial critique of our own analysis (near the end of the document)
  • Members-only sections (render as login gates for anonymous readers): price-history, income-trend, key-metrics, financials (statement tables), insider-trading. The analysis above is public; the raw data tables require a free account.

More for machine readers: site briefing at /llms.txt · any ticker resolves at delvantic.com/stock/TICKER · raw inputs are public-company filings and market data (via licensed data feeds); every model, score, lens read, and prediction on this page is Delvantic's own analysis.

The TJX Companies, Inc.

TJX NYSE
Consumer Cyclical · Apparel Retail
Framingham, MA 01701, United States tjx.com Updated Aug 5, 12:07am
Price
$157.55
Market Cap
$174.0B
Employees
377,000
Beta
0.62
Avg Volume
5,472,286
Last Dividend
$1.76
CEO
Mr. Ernie L. Herrman

The TJX Companies, Inc. is a leading off-price retailer of apparel and home fashion merchandise, headquartered in Framingham, Massachusetts since its founding in 1962. The company operates through four main business segments: Marmaxx, which includes TJ Maxx and Marshalls stores; HomeGoods, featuring home furnishings and décor; TJX Canada; and TJX International. The TJX Companies, Inc. serves value-conscious consumers by offering brand-name and designer merchandise at discounted prices through its diverse store formats. The company operates a substantial network of retail locations across multiple markets, distributing apparel, footwear, accessories, and home goods to shoppers seeking quality products at reduced prices. With an extensive physical retail presence and a commitment to the off-price retail segment, The TJX Companies, Inc. plays a significant role in the apparel and home retail industries, serving both individual consumers and contributing substantially to the retail landscape across North America and internationally.

Runs with full report Generated: Aug 5, 2026 12:20am
Price Overview
Price at report time
$157.55
as of Aug 5, 12:26am (30d ago)
Change · Aug 5
+0.05 (+0.03%)
Day Range
$155.30 – $158.49
52-Week Range
$126.30 – $170.00
50-Day MA
$157.53
200-Day MA
$154.58
Volume
3,384,867.00
Right now · live
Log in to get the live feed
Members see the real-time price and the move since this report (over 30d).
Share Structure
Outstanding 1,105,051,999.00
Float 1,102,141,532.00
Free Float 99.7%
High free float — 99.7% of shares trade freely, ~0.3% held by insiders/institutions
Very liquid — most shares trade freely. Low insider ownership can mean less management alignment, but makes large position sizing straightforward.
Price History (1 Year)
Last updated: Aug 5, 2026 12:31am (30d ago)
Revenue & Net Income Trend
The directional story — useful even when net income is negative.
Last updated: Aug 1, 2026 12:29pm (34d ago)
Revenue
The top line — total sales before any costs or taxes are subtracted. A measure of how much business the company is doing.
Net Income
The bottom line — profit left after subtracting all expenses, interest, and taxes from revenue. Reflects accounting profitability, but includes non-cash items like depreciation, so it isn't the same as cash earned.
Operating Cash Flow
The real cash generated by the day-to-day business — selling products, paying suppliers, collecting from customers. Calculated from net income by adding back non-cash items and adjusting for timing (unpaid bills, unsold inventory). When OCF consistently lags net income, the reported profit may not be converting to real money.
Period Revenue Net Income Net Margin YoY/QoQ
Key Metrics
TD Twelve Data statement HEX SEC filing
Industry comparison last run: Aug 5, 2026 12:15am
P/E Ratio (Price per dollar of earnings)
HEX
Stock Price / EPS (Diluted)
32.35
Stock Price: $157.55
EPS (Diluted): 4.87
P/B Ratio (Price vs net asset value)
HEX
Stock Price / Book Value Per Share
17.44
Stock Price: $157.55
Total Equity: $10.19B
Shares: 1,128,000,000
EV/EBITDA (Total value vs operating profit)
HEX
Enterprise Value / EBITDA
20.28
Market Cap: $174.05B
Total Debt: $2.87B
Cash: $6.23B
EBITDA: $8.43B
Enterprise Value (Takeover price (cap + debt - cash))
HEX
Market Cap + Total Debt - Cash
$170.9B
Market Cap: $174.05B
Total Debt: $2.87B
Cash: $6.23B
Gross Margin (Revenue left after direct costs)
HEX
Gross Profit / Revenue
31.0%
Gross Profit: $18.69B
Revenue: $60.37B
Operating Margin (Revenue left after all operations)
HEX
Operating Income / Revenue
11.9%
Operating Income: $7.18B
Revenue: $60.37B
Net Margin (Revenue left as actual profit)
HEX
Net Income / Revenue
9.1%
Net Income: $5.49B
Revenue: $60.37B
ROE (Profit from shareholder equity)
HEX
Net Income / Total Equity
53.9%
Net Income: $5.49B
Total Equity: $10.19B
ROIC (Profit from all invested capital)
HEX
NOPAT / Invested Capital
79.1%
Operating Income: $7.18B
Tax Rate: 24.7%
Equity: $10.19B
Total Debt: $2.87B
Cash: $6.23B
Current Ratio (Can it pay short-term bills)
HEX
Current Assets / Current Liabilities
1.14
Current Assets: $15.20B
Current Liabilities: $13.36B
Debt/Equity (Leverage — debt vs equity)
HEX
Total Debt / Total Equity
0.28
Short-Term Debt: $999.00M
Long-Term Debt: $1.87B
Total Debt: $2.87B
Total Equity: $10.19B
Rev/Share (Top-line per share)
HEX
Revenue / Shares Outstanding
$53.52
Revenue: $60.37B
Shares: 1,128,000,000
Book Value/Share (Net assets per share)
HEX
(Total Assets - Total Liabilities) / Shares
$9.03
Total Equity: $10.19B
Shares: 1,128,000,000
FCF/Share (Real cash generated per share)
HEX
(Operating Cash Flow + CapEx) / Shares
$4.36
Operating CF: $6.87B
CapEx: -$1.96B
Shares: 1,128,000,000
CapEx is negative (outflow) — added to OCF to get FCF
Div Yield (Annual income from holding)
TD
Last Annual Dividend / Stock Price
1.1%
Last Dividend: $1.76
Stock Price: $157.55
Payout Ratio (Earnings paid out as dividends)
HEX
Dividends Paid / Net Income
33.5%
Dividends Paid: -$1.84B
Net Income: $5.49B
Industry Benchmarks
Last run: Aug 5, 2026 12:14am
Compares TJX against LLM-researched typical ranges for its industry. One research call per industry, cached indefinitely — every stock in the same industry reuses the same baseline.
Income Statement (Annual)
Last updated: Aug 1, 2026 12:29pm (34d ago)
Metric 2022 2023 2024 2025 2026
Revenue $48.5B $49.9B $54.2B $56.4B $60.4B
Cost of Revenue $34.7B $36.1B $38.0B $39.1B $41.7B
Gross Profit $13.8B $13.8B $16.3B $17.2B $18.7B
Operating Expenses $9.1B $8.9B $10.5B $10.9B $11.5B
Operating Income $4.8B $4.9B $5.8B $6.3B $7.2B
Net Income $3.3B $3.5B $4.5B $4.9B $5.5B
EBITDA $5.6B $5.7B $6.8B $7.4B $8.4B
EPS $2.74 $3.00 $3.90 $4.31 $4.93
EPS (Diluted) $2.70 $2.97 $3.86 $4.26 $4.87
Balance Sheet (Annual)
Last updated: Aug 1, 2026 12:02am (34d ago)
Metric 2022 2023 2024 2025 2026
Cash & Equivalents $6.2B $5.5B $5.6B $5.3B $6.2B
Total Current Assets $13.3B $12.5B $12.7B $13.0B $15.2B
Total Assets $28.5B $28.3B $29.7B $31.7B $35.8B
Current Liabilities $10.5B $10.3B $10.5B $11.0B $13.4B
Long-Term Debt $3.4B $2.9B $2.9B $2.9B $1.9B
Total Liabilities $22.5B $22.0B $22.4B $23.4B $25.6B
Total Equity $6.0B $6.4B $7.3B $8.4B $10.2B
Retained Earnings $5.5B $5.8B $6.7B $7.9B $9.4B
Cash Flow (Annual)
Last updated: Aug 1, 2026 12:29pm (34d ago)
Metric 2022 2023 2024 2025 2026
Operating Cash Flow $3.1B $4.1B $6.1B $6.1B $6.9B
Capital Expenditure -$1.0B -$1.5B -$1.7B -$1.9B -$2.0B
Free Cash Flow $2.0B $2.6B $4.3B $4.2B $4.9B
Acquisitions (net)
Net Debt Issued / (Repaid) $0 $0
Dividends Paid -$1.3B -$1.3B -$1.5B -$1.6B -$1.8B
Stock Buybacks -$2.2B -$2.3B -$2.5B -$2.5B -$2.5B
Net Change in Cash -$4.2B -$750.0M $123.0M -$265.0M $895.0M
Growth Trends (YoY %)
Last updated: Aug 1, 2026 12:29pm (34d ago)
Metric 2023 2024 2025 2026
Revenue Growth +2.9% +8.6% +4.0% +7.1%
Gross Profit Growth -0.4% +18.0% +6.0% +8.4%
Operating Income Growth +2.2% +19.3% +8.7% +13.9%
Net Income Growth +6.6% +27.9% +8.7% +13.0%
EBITDA Growth +2.2% +17.6% +9.5% +13.8%
Dividend History (Last 20)
Last updated: Aug 1, 2026 12:02am (34d ago)
Date Dividend Declaration Record Payment
2026-05-14 $0.48
2026-02-12 $0.43
2025-11-13 $0.43
2025-08-14 $0.43
2025-05-15 $0.43
2025-02-13 $0.38
2024-11-14 $0.38
2024-08-15 $0.38
2024-05-15 $0.38
2024-02-14 $0.33
2023-11-08 $0.33
2023-08-09 $0.33
2023-05-10 $0.33
2023-02-08 $0.30
2022-11-09 $0.30
2022-08-10 $0.30
2022-05-11 $0.30
2022-02-09 $0.26
2021-11-09 $0.26
2021-08-11 $0.26
0Company Classification 1Industry Landscape 2Company Momentum 3Forward Projection 4aDCF Valuation 4bEarnings Power Value 4cAnchored PE 4dReverse DCF 4eRevenue-Based DCF 4fAnchored P/S 4gScenario Analysis 4hDividend Discount Model 4iBook Value Analysis 4jInsider Activity 4fCash Flow Quality 4gDebt Maturity Risk 4hMacro Environment 4iSector Intelligence 4jRevenue Confidence 4kSensitivity Analysis 4lSector Demand Cycle 5AI Investigation 5bThesis Evaluation 6Valuation Synthesis
computed not applicable not yet run 17 computed · 6 not applicable · 1 not yet run
Risk : Reward — upside vs downside from this company's own quarters
Computed 2026-09-02 02:12
-0.8 : 1 +1σ upside vs −1σ downside, from this company's own quarterly history
A +1σ run of quarters pays -43%; a −1σ run costs 54%. Ratio -0.8:1 (μ 6.7%, σ 3.3% floored by sector, 16 pairs).
Older method (repeat-worst-quarter): -0.7 : 1
CaseGrowthMarginFair valuevs price ($157.55)
Bull — recovery +10% 11.2% $101.43 -36%
Base — stabilizes +7% 9.7% $80.26 -49%
Bear — keeps slipping +3% 8.3% $62.28 -60%
Stress — last quarter repeats +5% 9.7% $77.23 -51%
Upside — a +1σ run of quarters (v2) +10% 9.7% $89.48 -43%
Stress — a −1σ run of quarters (v2) +3% 9.7% $72.26 -54%
The next quarters keep the trajectory of the worst recent matched quarter (ending 2026-08-01) — growth stays at 5.4% and margins bend by the same profit-vs-revenue ratio (×1.00). Stress is a trajectory, not a prediction — it answers "what if the ship's current heading simply continues," which history says is the case to respect.
Why this is appearing: this company files quarterly, so its recent trajectory could be measured rather than assumed — the engine matched Aug 2026, May 2026 against the same quarters one year earlier and found revenue +7.2% · net income +25.1% year-over-year. That measured heading is what the stress case extends forward. Of those, the stress case extends the worst matched quarter — the one ending Aug 1, 2026 (revenue +5.4% YoY) — not the average. Data measured through Aug 1, 2026 — this card recalculates automatically when the next quarterly filing is ingested. Companies without quarterly filings (many foreign listings) never show this card: with no measured trajectory, there is nothing honest to repeat.
Narrative Economics
The story the market is telling about this stock — the intangible X-factor (founder mythology, cult dynamics, TAM-of-imagination) that moves price beyond what cash flows alone explain. After Shiller, Narrative Economics.
No narrative profile yet for TJX — it's generated by the pipeline (market-narrative step).
Claude Reading
Independent analyst synthesis · claude-opus-4-7 · generated 2026-08-05 00:30:18
Verdict Modestly overvalued but not by 29% — fair value $135-145 on forward earnings and demonstrated margin expansion; wait for pullback to $140 rather than chase, and watch full-price retail inventory discipline as the key tell.

The raw numbers tell a boringly excellent story. Trailing four quarters of revenue sum to ~$61.6B with net income ~$5.78B (9.4% net margin), versus $57.3B and $5.08B a year prior — that's ~7.5% revenue growth and ~14% earnings growth, cleanly beating the 5.5% five-year revenue CAGR as operating margin expanded from 9.8% (FY22) to 11.9% (FY26). Q1 FY27 (May 2026) printed $14.32B revenue up 9.2% YoY with 9.3% net margin vs 7.9% prior-year Q1 — margin expansion is accelerating, not decelerating. ROIC of 79% and ROE of 54% on debt/equity of 0.28 with $6.23B cash against $2.87B debt is a genuinely elite capital-efficiency profile. FCF of $4.92B on $174B market cap is a 2.8% FCF yield — thin, but the reinvestment rate is low and buybacks/dividends absorb most of it.

Where I part company with the synthesis: the $104-112 "fair value" composite looks mechanically low for a business earning 79% ROIC and compounding earnings at low-teens. At $157.55 and ~$4.80 TTM EPS, the ~33x P/E is rich versus a 10-year average closer to 22-24x, but the earnings growth in the current print (13% YoY) exceeds the 5-year CAGR and margins are still expanding — this is not a decelerating mature earner, it's a mature earner mid-re-rating on demonstrated margin gains. A more defensible fair value uses a 25-27x multiple on forward EPS of ~$5.10-5.20 → $128-140, meaning the stock is 10-20% expensive, not 29% expensive. The synthesis and the narrative layer both correctly identify the premium but the DCF anchor at $111.75 implicitly assumes multiple compression AND growth deceleration simultaneously; that's double-counting the bear case.

The contrarian argument the models underweight: off-price is genuinely counter-cyclical on the demand side but pro-cyclical on the supply side — TJX's sourcing advantage depends on brand oversupply/inventory glut at full-price retailers, which is abundant right now (post-2022 inventory hangover still working through) but historically mean-reverts. If full-price retail rationalizes inventory management (which Nike, Lululemon, and others have publicly committed to), TJX's gross margin tailwind reverses. Gross margin went from 28.5% (FY23) to 31.0% (FY26) — 250bps of that expansion is the interesting question. Is it structural (scale, logistics, buying team) or cyclical (glut)? Neither the momentum model nor the narrative layer interrogates this, and it's the single biggest risk to the thesis. The "macro headwinds" secondary signal also contradicts the bull narrative of "recession-resistant cash machine" — you can't have both a consumer-weakness tailwind AND macro headwinds hurting the stock; one of those framings is wrong.

Data-quality flags: the "annual" canonical metrics appear to reflect FY26 (Jan 2026) actuals but the P/E of 32.35 implies EPS of ~$4.87 which reconciles with FY26 NI of $5.49B / ~1.13B shares — that's trailing, not forward, so the premium looks worse than it is on forward numbers. Insider activity isn't provided, which is a real gap for a $174B name where insider selling would be a meaningful tell. Market Forces failed entirely — I'd normally want a competitive-dynamics read on Burlington and Ross before committing. My verdict: I partially dissent from the synthesis's "fully_priced" framing only on magnitude — the composite fair value is too pessimistic, but the direction is right. TJX is 10-15% expensive, not 29% expensive; it's the kind of quality name where you wait for a 5-8% market pullback rather than short or exit. The trajectory of accelerating margin and 13% earnings growth on a 9%+ topline in Q1 doesn't support aggressive de-rating unless comp growth breaks. I'd be a buyer under $140, a holder here, and a seller only above $175.

GPT Reading
Independent reading · gpt-5.4 · generated 2026-08-05 00:30:37
Verdict Overvalued at $157.55 — TJX is a best-in-class retailer, but the current 32x earnings multiple prices in sustained mid-teens compounding that the underlying 5%-7% sales growth profile does not support; fair value is closer to $120-$130.

TJX is an excellent business priced like an exceptional one. The operating story is easy to like: revenue has climbed from $48.55B in FY2022 to $60.37B in FY2026, a 24% increase in four years, while operating income rose from $4.75B to $7.18B and net income from $3.28B to $5.49B. That is not just sales growth; it is genuine profit leverage. Gross margin improved from 28.5% in FY2023 to 31.0% in FY2026, operating margin from 9.7% to 11.9%, and net margin from 7.0% to 9.1%. Quarterly data show that this is not a one-off holiday distortion: the latest quarter delivered $14.32B of revenue and $1.33B of net income versus $13.11B and $1.04B a year earlier, taking margin from 7.9% to 9.3%. For a retailer of this scale, that combination of compounding sales, margin expansion, and resilience is rare.

The balance sheet and cash generation strengthen the quality case. TJX has $6.23B of cash against just $2.87B of debt, so it is in net cash despite returning capital. Operating cash flow of $6.87B and free cash flow of $4.92B on $60.37B of sales mean it converts roughly 8% of revenue into free cash, excellent for a brick-and-mortar retailer still spending nearly $2.0B on capex. Reported ROE of 53.9% is inflated by a relatively thin $10.19B equity base, but even adjusting for that, the economics are clearly strong; ROA of 15.4% and high margins support the view that TJX is a best-in-class operator. This is exactly the kind of retailer that deserves a premium to department stores, apparel chains, and most discretionary peers.

But the stock price already reflects that superiority and then some. At $157.55, TJX trades at 32.4x earnings, 2.94x sales, and 20.3x EV/EBITDA. Those are rich multiples for a company whose medium-term growth profile, based on the raw numbers here, looks more like mid-single-digit revenue growth and low-double-digit earnings growth than anything explosive. Annual revenue growth from FY2025 to FY2026 was 7.1%; from FY2024 to FY2025 it was 4.0%. Earnings are growing faster because margins are rising, but operating margin is already 11.9%, up from 9.8% two years ago. That leaves less room for multiple years of easy expansion. Put differently, the market is valuing TJX more like a long-duration compounder than a mature off-price retailer. A 32x P/E against a 10.8% earnings CAGR and 1.1% dividend yield does not leave much room for normal retail volatility, let alone a consumer slowdown. I think the stock is over-earning its multiple, not the other way around.

The best argument against that view is straightforward: TJX keeps beating the “mature retailer” template. Recent quarterly numbers show accelerating year-over-year comparisons, with revenue up 9.2% and earnings up nearly 28% in the most recent quarter versus the prior-year quarter, and the full-year trend shows a business still widening margins despite already large scale. If the company can sustain 7%-8% sales growth and push net margin toward 10%, then EPS can plausibly grow in the low-to-mid teens for longer than skeptics expect. Add a fortress balance sheet, recession-resistant trade-down dynamics, and a history of disciplined merchandising, and perhaps 32x is simply the price of certainty in a market short on dependable growers. I respect that case; I just think it asks investors to assume that cyclical consumer demand, sourcing advantages, and margin gains all stay unusually favorable at once.

What would change my mind is not another “good quarter,” but evidence that the business can outrun the valuation from here. Specifically, I would need to see revenue sustain above 8% annual growth for several quarters while net margin holds around 9.5%-10.0%, implying annual net income power moving decisively past $6.0B without balance-sheet risk. If TJX can show that FY2027 is not just another 6%-7% revenue year but a step-up year with continued margin expansion, the premium could be justified. Conversely, if revenue slips back toward 4%-5% growth or operating margin stalls near 12%, the current multiple should compress. At today’s price, I see a great company but not a great stock; fair value is closer to $120-$130 than $157.55.

Grok Reading
Independent reading · grok-4.5 · generated 2026-08-05 00:31:20
Verdict High-quality compounder fully priced at $157; fair value nearer $115–130, limited upside without multiple expansion

TJX’s numbers describe a machine that keeps grinding out incremental excellence: fiscal 2026 revenue of $60.37B grew 7.1% year-over-year, net income climbed to $5.49B for a 9.1% net margin, and operating margin reached 11.9%—all while free cash flow hit $4.92B against only $1.96B of capex. The last five years show earnings CAGR of 10.8% roughly doubling the 5.5% revenue CAGR, evidence of sustained gross-margin leverage (now 31%) and tight cost control rather than top-line heroics. Quarterly progression is clean: the May 2026 quarter delivered $14.32B revenue and a 9.3% net margin versus $13.11B and 7.9% a year earlier, confirming the same trajectory. Balance-sheet strength is unambiguous—$6.23B cash against $2.87B debt, debt-to-equity of 0.28, ROE of 54% and ROIC of 79%—so capital returns and store growth can continue without leverage risk. The story the raw data tell is textbook mature-earner compounding with genuine operating leverage, not a cyclical recovery flash.

Yet the market is asking 32.4× trailing earnings, 20.3× EV/EBITDA and nearly 3× sales for a retailer whose top line still expands at mid-single digits. That multiple embeds the assumption that mid-teens EPS growth can persist for half a decade while the off-price moat remains pristine; anything short of that leaves the stock vulnerable to ordinary multiple compression toward the high-teens or low-20s that more typical high-quality retailers command. FCF yield is only 2.8% and the dividend yield 1.1%, so the valuation is almost entirely a growth-and-quality story rather than a cash-return story. At $157.55 the shares already discount near-perfect execution; the composite fair-value work pointing near $112 simply quantifies how little margin of safety remains once that perfection is removed.

The strongest counter-argument is that scarce, high-ROIC compounders routinely and correctly trade at premiums that look absurd on trailing multiples. TJX has delivered rising margins through inflation spikes, supply-chain chaos and shifting consumer wallets; its sourcing flywheel and inventory turns are structural advantages that full-price peers cannot replicate. Institutional ownership and sell-side targets in the $170–185 range reflect a consensus that 12–15% EPS compounding plus modest multiple stability is realistic, which would make today’s 29× forward PE (assuming another 12% earnings step-up) look merely full rather than egregious. In a world starved for durable mid-teens growers with fortress balance sheets, the 41% premium to DCF can be defended as the price of admission rather than a bubble.

I would reverse to a neutral or constructive stance if the next two quarters print revenue growth re-accelerating through 9–10% while net margin holds above 9.5%, or if a market-wide drawdown brings the stock into the $120–130 zone (roughly 24–26× forward earnings) where the same fundamentals would offer a genuine margin of safety.

Big-3 Panel — where each AI stands
Each AI above independently stated a direction (undervalued, fairly valued, or overvalued) and how strongly it believes it (conviction, 0–5). We combine those into a Bull-Bear Index on a 0–10 scale: 5 is neutral, 10 is maximum bullish (undervalued at full conviction), 0 is maximum bearish. We compute the score ourselves with the same arithmetic for every seat — the models never grade their own bullishness — so the three are directly comparable. Δ shows how far each seat sits from the panel average of 1.3; a large Δ marks the dissenting voice, usually the one worth reading.
Claude claude-opus-4-7 2.0
overvalued · conviction 3/5 · Δ +0.7 vs panel · self: 4.0
GPT gpt-5.4 1.0
overvalued · conviction 4/5 · Δ -0.3 vs panel · self: 3.0
Grok grok-4.5 1.0
overvalued · conviction 4/5 · Δ -0.3 vs panel · self: 3.0
Advanced Analysis Forensic deep-dive · separate lenses
Separate reads — Company Quality (is it a great business?), Valuation (is it mispriced?), and General Sentiment (how macro + narrative are pushing it), kept deliberately apart · 2026-08-05 01:27:29
Delvantic - Cairn AI
Quality - wait for a dip 8/10
Fortress-quality compounder trading ~30% above deserved value; great business, wrong price, so I wait.
The cruxWhether TJX can grow into a $157 tape without multiple compression - and at 32x on 5-7% top-line, the math says no unless the premium multiple holds forever.
Forensic checks Derived mechanically from TJX's filed financials — not from the AI lenses
Liquidity & RunwaySelf-Funding
DilutionShare Count Shrinking
Earnings QualityHigh Earnings Quality
The four lensesswitch a tab for its full read — score + evidence
Company Quality
+87
Fortress
edge √Σ 165 · risk √Σ 32 · conf 9/10

Revenue has climbed from $48.55B in FY2022 to $60.37B in FY2026 (roughly 5.6% CAGR) with gross margin expanding from 28.5% to 31.0% and operating margin from 9.8% to 11.9%. Net income rose from $3.28B to $5.49B (67% cumulative) while free cash flow scaled from $2.01B to $4.92B - and crucially FCF has tracked or exceeded net income (OCF/NI 1.19x), with accruals a healthy -2.9% of assets and Beneish M at -2.59, indicating clean earnings. Altman Z of 6.86 confirms deep balance sheet safety. Per-share value is being concentrated: diluted share count fell from 1.22B to 1.13B (-1.9% CAGR), SBC is a trivial 0.4% of revenue, and buybacks run 13.8x SBC - management is a genuine net repurchaser, not a dilution offsetter. Net cash of $3.36B plus $4.92B/yr FCF means the business is fully self-funding with optionality. What is impressive is the direction: margins are not just holding, they are expanding through a period when many apparel peers have struggled with inventory and promotions - consistent with the off-price model absorbing excess supply from full-price channels. This is the profile of a mature earner that is still improving, not coasting.

Strengths 5
m85
Margin expansion at scale
Operating margin expanded from 9.8% (FY22) to 11.9% (FY26) while revenue grew ~24%, indicating real operating leverage rather than one-off benefits.
m80
Clean earnings quality
OCF/NI of 1.19x, accruals -2.9% of assets, Beneish M -2.59, Altman Z 6.86 - no mechanical red flags; reported earnings convert to cash.
m75
Genuine per-share value concentration
Diluted shares fell from 1.22B to 1.13B (-1.9% CAGR), SBC only 0.4% of revenue, buyback-to-SBC 13.8x - a true net repurchaser.
m70
Fortress liquidity and self-funding
Net cash $3.36B and $4.92B annual FCF; needs no external capital and could absorb a severe demand shock.
m55
FCF nearly doubled in three years
FCF grew from $2.63B (FY23) to $4.92B (FY26), tracking net income growth - not driven by working capital tricks.
Concerns 2
m25
Cyclical apparel exposure
Off-price retail depends on inventory arbitrage in the broader apparel supply chain; a prolonged full-price retailer discipline shift could compress sourcing advantage - not visible in data but structurally worth noting.
m20
Cash as % of market cap is thin
Liquid cash is 3.6% of market cap - fine given the FCF engine, but the balance sheet cushion is smaller than the headline 'net cash' framing suggests.
This is as clean a mature-earner profile as forensic modules produce. Margins are expanding at scale, cash conversion is above one, the share count is genuinely shrinking, and none of the mechanical fraud/quality tests light up. The off-price model has proven durable across multiple retail cycles, and the FY22-FY26 trajectory shows the business is still getting better, not just holding. I would rank this in the top decile of public businesses on quality alone. The reasons I stop short of a 92-plus tier are structural, not evidentiary: it is still cyclical apparel retail, the moat is operational excellence rather than an unassailable structural advantage, and the cash cushion relative to market cap is modest. But as a business, this is a fortress.
Verify before trusting this (5)
  • Lease obligations and off-balance-sheet commitments (retail footprint is lease-heavy; net cash framing may understate true leverage)
  • Inventory turns and mark-down cadence in the 10-K to confirm margin expansion is structural, not timing
  • Geographic and segment mix (Marmaxx vs HomeGoods vs Europe) to assess concentration risk
  • Buyback pace vs authorization remaining, and whether repurchases have been opportunistic or steady
  • Any pension or long-term liability items not visible in the summarized trajectory
Valuation / Mispricing
-73
Rich
edge √Σ 25 · risk √Σ 118 · conf 7/10
Price $157.55 vs signal-adjusted deserved value ~$111.75 - roughly 29% above deserved, negative margin of safety. attractive below $120.00

The composite FV of $104.05 and signal-adjusted FV of $111.75 both sit roughly 29-34% below the $157.55 price. DCF pins $87.29 and EPV floor $58.84, while only the anchored-PE method ($182.76) supports the tape - and that method essentially extrapolates today's premium multiple forward, so it is more a mirror of market sentiment than an independent deserved-value check. Two of three methods say clearly rich; one says cheap by leaning on the multiple. That is a classic priced-for-perfection setup.

Cheap signals 1
m25
Fortress quality justifies a premium multiple
Quality score 87, expanding margins at scale, cash conversion above one, and shrinking share count deserve a premium over pure DCF - but a premium, not a 30%+ gap above the signal-adjusted FV that already accounts for high earnings quality.
Rich / priced-in 4
m72
Composite fair value ~30% below price
Signal-adjusted FV $111.75 and composite FV $104.05 vs $157.55 imply -29% to -34% to deserved value. That is a real, sizeable overpricing gap even after crediting the Fortress-quality business.
m65
DCF and EPV both well below tape
DCF $87.29 (-45%) and EPV floor $58.84 (-63%) say the cash-flow reality does not support $157. Two independent cash-based methods aligning is meaningful.
m55
Anchored-PE is the only support and it is circular
The $182.76 anchored-PE hinges on TJX continuing to earn a premium multiple. It confirms the market's willingness to pay up but does not independently prove deserved value.
m40
No downside cushion on cyclical exposure
Bear case is right that a mature apparel retailer at these levels prices in zero multiple compression and flawless execution; any comp deceleration or margin normalization compresses both E and P/E.
This is the textbook great-business-full-price problem. I love the company - the quality lens is right - but at $157.55 I am paying about $50 more than the signal-adjusted deserved value of $111.75, and DCF/EPV say the gap is even wider. The only thing holding the price up is the market's willingness to keep paying a premium multiple, which is not an edge I get paid for. I want it in the low $120s or below before it is interesting; anywhere above ~$130 I am underwriting perfection.
Verify before trusting this (4)
  • Forward comp guidance and Q/Q comp trend across Marmaxx, HomeGoods, TJX International
  • Merchandise margin trajectory and freight/shrink assumptions in FY26 guide
  • Buyback pace vs current price (are they still repurchasing at this multiple)
  • Any one-time items inflating recent EPS that anchored-PE relies on
General Sentiment
+33
Tailwind
tail √Σ 77 · head √Σ 43 · conf 6/10

The macro backdrop is mildly supportive: VIX at 16.5, S&P at highs, and a nascent risk-on regime. TJX's low beta (0.62) means the tape barely moves it either way, but the narrative pressure is what matters here and it leans positive. The active story is the classic off-price winner: recession-resistant cash machine, consumer trade-down beneficiary, consistent comps. Fundsmith reiterating the thesis, Zacks flagging the industry favorably, and a 'likely beat' pre-earnings piece all reinforce a steady, non-euphoric bullish drumbeat. Analyst tone is bullish and the stock has outpaced the market over the past year - momentum and tone are aligned. There is no narrative crack visible in the news flow; if anything, the trade-down story is getting reaffirmed in an environment where consumers are still stretched. The offset is that this is a moderate-intensity, low-cult story running into an earnings print with 'beat expected' already priced in - the setup risk is that a merely-in-line quarter disappoints given how consensus is positioned. Higher rates and a 26.9 market PE are a generic overhang but land lightly on a low-beta defensive compounder like TJX. Net: a persistent, ordinary tailwind, not a decisive one.

Tailwinds 3
m55
Off-price trade-down narrative intact and being reaffirmed
The steady-compounder / consumer-trade-down story is the prevailing frame and news flow (Fundsmith letter, Zacks industry piece) actively reinforces it. Moderate intensity, moderate durability - a real press, not a mania.
m45
Bullish analyst tone into earnings
Wall Street maintains a bullish outlook and pre-earnings coverage explicitly flags a likely beat given TJX's surprise history. That tone plus positive momentum is a genuine tailwind.
m30
Risk-on tape, but muted by low beta
S&P at highs and VIX 16.5 help sentiment broadly, but with beta 0.62 the macro tape barely presses on TJX either way - a light tailwind, not a decisive one.
Headwinds 2
m35
Beat-already-priced-in setup risk
With analyst tone bullish and 'beat again' framing dominant heading into the print, an in-line quarter or any margin softness could trigger a sharper-than-usual reaction. Sentiment is skewed long.
m25
Generic rate / high-PE market overhang
10y at 4.7% and market PE 26.9 create a background de-rating risk for all equities, but this lands lightly on a low-beta defensive name with a durable narrative.
The pressure on TJX leans positive but not forcefully so. The off-price winner narrative is being actively reaffirmed by respected holders and analyst tone is bullish into a print where a beat is already the base case. Low beta mutes the macro either way. My honest read: this is an ordinary tailwind - the sentiment is skewed long enough that the asymmetric risk sits on the earnings reaction, not on the tape. Tailwind, medium confidence.
Verify before trusting this (4)
  • Q2 earnings print - specifically comp growth and gross margin commentary vs the 'perfect execution' expectation embedded in tone
  • Any crack in the trade-down narrative if consumer data softens or higher-end retail surprises positively
  • Whether target revisions actually rise post-print or the bullish tone stalls
  • Sector rotation out of defensive consumer staples-adjacent names if risk-on broadens
The market-wide tape + this name's exposure to it (beta / sector / narrative durability). Context on the non-fundamental pressure — not a call on the business or the price. processId: detail-general-sentiment
Growth Outlook
not run

This lens hasn't been run for this ticker yet.

The forward growth verdict — is the business itself likely to grow (next 2 quarters / year 1 / years 2–3), judged against its category and against printed expectations. The full horizon ladder + creme renders on the Growth Outlook card above. Not a call on the price (Valuation owns that) or the tape (Sentiment owns that).
Please log in to view trade setups
The Augustus trade-setup read is a members feature.
Log in
Lenses kept deliberately separate — Company Quality (price-agnostic), Valuation (price-conditional), General Sentiment (non-fundamental macro/narrative pressure), and Growth Outlook (the forward growth verdict). The scores are not blended. Filing-level items (convertibles, lock-ups, customer concentration) are v2 — see each lens's "verify."
Price Prediction
Lower -5.7% v0.6.0 View full prediction →

When we made this prediction on Aug 5, 2026, TJX was $157.55. We expect it to be $148.50 by Feb 2027, and we consider it great value under $120.00. This is an early model (v0.6.0) — the direction is more reliable than the exact price. Made Aug 5, 2026.

Price when predicted$157.55
Our estimate for Feb 2027$148.50-5.7%
Great value below$120.00
Price history shown (6 Months)

Blue is our prediction, starting the day we made it. Grey is a slower route to the same place — the same destination, taking longer. Black is the actual price, so you can see how we are doing.

Post-Report Due Diligence UNSETTLED
The report is written. This is what its valuation stands on.
Analyzed Sep 2, 2026 · 02:12 2d ago
Read epv-floor ext-gem-composite anchored-pe · FY income statement, balance sheet
1 finding · 1 material · $0, re-derived on each view

Evidence for a closer look, not a verdict — no score or designation on this page has been changed by it. Items marked material are ones where a conclusion above moves to the other side of the price.

anchored-pe — the "fair value above price" reading turns on 2 inputs MATERIAL found by sensitivity, not by rule
Published $163.79 vs price $157.55. Nudging `trailing_eps` (down 5%), `adjusted_pe` (down 5%) moves the fair value to the other side of the price. This does not say those inputs are wrong — it says they are where to look first.
trailing_eps flips down 5% adjusted_pe flips down 5%
Price at analysis $157.55. This is where an investigation should start — it is not where one ends. Nothing here was checked against the filings, the tape, or the news; that is the investigator's job.
Community AI Feedback
No community reviews yet for TJX. Be the first — hit How to Contribute, have any AI review this page, and paste its take back here.
My Notes personal — only you see this
v1.1.594 · 0f1577a5 · 2026-09-03 12:57:33