Latest Ratios: P/E Ratio 27.0x · EV/EBITDA 18.1x · ROE 59.1%. (1997–2026 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $145.4B | $168.5B | $142.5B | $110.0B | $96.4B | $87.5B | $77.8B | $72.4B | $62.6B | $51.9B | $49.8B |
| Enterprise Value | $152.7B | $175.8B | $150.0B | $116.9B | $103.7B | $93.8B | $82.8B | $80.7B | $62.1B | $51.6B | $49.3B |
| P/E Ratio → | 26.98 | 30.70 | 29.29 | 24.59 | 27.56 | 26.66 | 859.60 | 22.11 | 20.47 | 19.88 | 21.65 |
| P/S Ratio | 2.41 | 2.79 | 2.53 | 2.03 | 1.93 | 1.80 | 2.42 | 1.74 | 1.61 | 1.45 | 1.50 |
| P/B Ratio | 14.53 | 16.54 | 16.98 | 15.06 | 15.15 | 14.57 | 13.34 | 12.17 | 12.40 | 10.08 | 11.04 |
| P/FCF | 29.58 | 34.28 | 33.95 | 25.38 | 36.71 | 43.47 | 19.48 | 25.47 | 21.13 | 26.37 | 19.32 |
| P/OCF | 21.16 | 24.52 | 23.30 | 18.16 | 23.61 | 28.61 | 17.05 | 17.81 | 15.32 | 17.15 | 13.82 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.91 | 2.66 | 2.16 | 2.08 | 1.93 | 2.58 | 1.93 | 1.59 | 1.44 | 1.48 |
| EV / EBITDA | 18.12 | 20.87 | 20.25 | 17.30 | 18.04 | 16.68 | 57.00 | 15.27 | 12.32 | 10.95 | 10.92 |
| EV / EBIT | 21.27 | 24.08 | 22.86 | 19.34 | 21.97 | 20.76 | 292.66 | 18.06 | 14.65 | 13.16 | 13.01 |
| EV / FCF | — | 35.75 | 35.72 | 26.98 | 39.47 | 46.59 | 20.74 | 28.37 | 20.95 | 26.21 | 19.11 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 31.0% | 31.0% | 30.6% | 30.0% | 27.6% | 28.5% | 23.7% | 28.5% | 28.6% | 28.9% | 29.0% |
| Operating Margin | 11.9% | 11.9% | 11.2% | 10.7% | 9.7% | 9.8% | 1.8% | 10.6% | 10.8% | 11.1% | 11.6% |
| Net Profit Margin | 9.1% | 9.1% | 8.6% | 8.3% | 7.0% | 6.8% | 0.3% | 7.8% | 7.9% | 7.3% | 6.9% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 59.1% | 59.1% | 62.0% | 65.5% | 56.6% | 55.5% | 1.5% | 59.5% | 60.0% | 54.0% | 52.1% |
| ROA | 16.3% | 16.3% | 15.8% | 15.4% | 12.3% | 11.1% | 0.3% | 17.0% | 21.6% | 19.4% | 18.9% |
| ROIC | 32.3% | 32.3% | 31.4% | 31.2% | 28.1% | 30.8% | 3.5% | 35.4% | 67.8% | 67.8% | 73.1% |
| ROCE | 33.3% | 33.3% | 31.5% | 31.0% | 27.0% | 25.0% | 3.1% | 34.2% | 47.6% | 46.7% | 50.6% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.32 | 1.32 | 1.52 | 1.72 | 2.00 | 2.08 | 2.66 | 1.93 | 0.49 | 0.48 | 0.53 |
| Debt / EBITDA | 1.60 | 1.60 | 1.73 | 1.86 | 2.22 | 2.22 | 10.67 | 2.17 | 0.49 | 0.52 | 0.53 |
| Net Debt / Equity | — | 0.71 | 0.89 | 0.95 | 1.14 | 1.05 | 0.86 | 1.39 | -0.11 | -0.06 | -0.12 |
| Net Debt / EBITDA | 0.86 | 0.86 | 1.00 | 1.03 | 1.26 | 1.12 | 3.46 | 1.56 | -0.11 | -0.06 | -0.12 |
| Debt / FCF | — | 1.48 | 1.77 | 1.60 | 2.77 | 3.12 | 1.26 | 2.90 | -0.19 | -0.16 | -0.20 |
| Interest Coverage | 98.64 | 98.64 | 86.30 | 76.53 | 56.19 | 37.96 | 1.46 | 75.57 | 65.36 | 60.98 | 61.37 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.14 | 1.14 | 1.18 | 1.21 | 1.21 | 1.27 | 1.46 | 1.24 | 1.53 | 1.66 | 1.63 |
| Quick Ratio | 0.59 | 0.59 | 0.60 | 0.64 | 0.64 | 0.70 | 1.06 | 0.56 | 0.70 | 0.84 | 0.86 |
| Cash Ratio | 0.47 | 0.47 | 0.48 | 0.54 | 0.53 | 0.59 | 0.97 | 0.45 | 0.55 | 0.64 | 0.73 |
| Asset Turnover | — | 1.69 | 1.78 | 1.82 | 1.76 | 1.71 | 1.04 | 1.73 | 2.72 | 2.55 | 2.58 |
| Inventory Turnover | 5.71 | 5.71 | 6.09 | 6.36 | 6.21 | 5.82 | 5.66 | 6.13 | 6.08 | 6.09 | 6.47 |
| Days Sales Outstanding | — | 3.69 | 4.00 | 3.96 | 4.99 | 4.76 | 5.65 | 3.38 | 3.24 | 3.33 | 2.85 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.2% | 1.1% | 1.2% | 1.3% | 1.4% | 1.4% | 0.4% | 1.5% | 1.5% | 1.5% | 1.3% |
| Payout Ratio | 33.5% | 33.5% | 33.9% | 33.2% | 38.3% | 38.1% | 308.9% | 32.7% | 30.2% | 29.3% | 28.3% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.7% | 3.3% | 3.4% | 4.1% | 3.6% | 3.8% | 0.1% | 4.5% | 4.9% | 5.0% | 4.6% |
| FCF Yield | 3.4% | 2.9% | 2.9% | 3.9% | 2.7% | 2.3% | 5.1% | 3.9% | 4.7% | 3.8% | 5.2% |
| Buyback Yield | 1.7% | 1.5% | 1.8% | 2.3% | 2.3% | 2.5% | 0.3% | 2.1% | 3.8% | 3.2% | 3.4% |
| Total Shareholder Yield | 3.0% | 2.6% | 2.9% | 3.6% | 3.7% | 3.9% | 0.6% | 3.6% | 5.3% | 4.6% | 4.7% |
| Shares Outstanding | — | $1.1B | $1.1B | $1.2B | $1.2B | $1.2B | $1.2B | $1.2B | $1.3B | $1.3B | $1.3B |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying TJX stock.
The TJX Companies, Inc.'s current P/E ratio is 27.0x. The historical average is 19.8x. This places it at the 90th percentile of its historical range.
The TJX Companies, Inc.'s current EV/EBITDA is 18.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 12.4x.
The TJX Companies, Inc.'s return on equity (ROE) is 59.1%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 46.1%.
Based on historical data, The TJX Companies, Inc. is trading at a P/E of 27.0x. This is at the 90th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
The TJX Companies, Inc.'s current dividend yield is 1.24% with a payout ratio of 33.5%.
The TJX Companies, Inc. has 31.0% gross margin and 11.9% operating margin. Operating margin between 10-20% is typical for established companies.
The TJX Companies, Inc.'s Debt/EBITDA ratio is 1.6x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Wage inflation pressuring SG&A
Metrics are mathematically derived from official filings.
Premium Valuation Reflects Quality Compounder Status
TJX trades at a forward P/E of 28.46 and EV/EBITDA of 18.53, a premium to direct peers like Burlington (27.57 P/E) and Ross (34.68 P/E), suggesting the market is pricing in its superior scale and margin durability.
The valuation premium appears justified by TJX's more consistent profitability and global diversification, which may offer a more stable earnings stream than its domestic-focused peers. However, the PEG ratio of 0.21 indicates the market is not pricing in aggressive growth, but rather steady, high-quality compounding. Investors should monitor if this premium holds if the favorable buying environment normalizes, as the valuation leaves limited room for margin disappointment.
Gross Margin Expansion Drives Record Operating Leverage
Gross margin expanded to 33.4% in Q2 FY2027, a 270 basis point year-over-year improvement, which flowed through to an operating margin of 13.1%, demonstrating the model's ability to convert favorable buying conditions into bottom-line profit.
The expansion in gross margin appears to be the primary driver of the recent profitability surge, suggesting the company is successfully navigating a favorable inventory procurement environment. This has allowed operating margin to reach the upper end of its historical range, even as wage pressures persist. The key question for sustainability is whether this gross margin level is structural or cyclical, as a reversion to the 10-quarter average of 31.1% would compress operating profitability.
ROIC Recovery Signals Improved Capital Efficiency
Return on Invested Capital (ROIC) improved to 7.9% in Q2 FY2027 from a low of 6.0% in Q1 FY2026, indicating the business is generating better returns on the capital deployed in its store network and inventory.
The recovery in ROIC, while still below the 10.0% peak in Q4 FY2026, suggests that the recent acceleration in sales and margin expansion is translating into better capital productivity. This trend is positive for long-term value creation, as it indicates the company is not just growing, but growing more efficiently. However, the ROIC remains significantly below the ROE of 14.4%, a gap largely explained by the company's use of operating leases, which are not fully captured in the invested capital base.
Working Capital Management Remains a Core Strength
The cash conversion cycle (CCC) of 32 days in Q2 FY2027 is well-managed, with days inventory outstanding (DIO) of 70 days reflecting the 'treasure hunt' model's need for fresh merchandise, while days payable outstanding (DPO) of 44 days shows strong supplier leverage.
The CCC has remained relatively stable in the low-30s range, indicating consistent working capital discipline. The DIO of 70 days is a structural feature of the business, as inventory must be available for the opportunistic buying model, but it also represents a significant cash investment. The company's ability to maintain a DPO of 44 days suggests it has favorable payment terms with its vendor network, which is a key component of its operational efficiency and cash flow generation.
Lease-Heavy Model Distorts Traditional Leverage Metrics
The reported debt-to-equity ratio of 1.34 appears elevated, but this is primarily a function of capitalized operating leases under ASC 842, as the company maintains a very low traditional debt load and strong interest coverage.
The leverage profile is a direct result of the company's asset-light, store-heavy operating model. While the headline D/E ratio is high, the underlying financial risk is low, as evidenced by the strong interest coverage ratio of 95.61x in Q1 FY2027. The key risk is not debt service, but the long-term fixed obligation of the lease portfolio, which could become a burden if store-level profitability declines. The recent reduction in D/E from 1.69 in Q1 FY2025 to 1.34 in Q2 FY2027 suggests the balance sheet is strengthening as equity grows faster than lease obligations.
The Misleading Signal of the Debt-to-Equity Ratio
The debt-to-equity ratio of 1.34 is the most commonly misapplied metric for TJX, as it obscures the company's strong liquidity position and low traditional debt, instead reflecting the capitalization of its massive operating lease portfolio.
Analysts often cite the D/E ratio as a sign of financial risk, but for a retailer like TJX with a large, fixed store footprint, this metric is distorted by ASC 842 lease accounting. A more appropriate measure of financial health is the company's cash position of $6.0B and its ability to generate robust free cash flow, which totaled $11.4% of revenue in Q2 FY2027. The focus should be on lease-adjusted leverage and the company's ability to cover its fixed obligations through store-level profitability, not the traditional D/E ratio.