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TJX Companies Inc (NYSE:TJX)
Piotroski F-Score
6 (As of Today)

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

TJX Companies Inc has an F-score of 6 indicating the company's financial situation is typical for a stable company.

TJX' s Piotroski F-Score Range Over the Past 10 Years
Min: 4   Max: 9
Current: 6

4
9

During the past 13 years, the highest Piotroski F-Score of TJX Companies Inc was 9. The lowest was 4. And the median was 7.


Definition

How is the Piotroski F-Score calculated?

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Apr16) TTM:Last Year (Apr15) TTM:
Net Income was 549.335 + 587.256 + 666.466 + 508.346 = $2,311 Mil.
Cash Flow from Operations was 481.041 + 727.984 + 1280.779 + 420.268 = $2,910 Mil.
Revenue was 7363.731 + 7753.495 + 8962.075 + 7542.356 = $31,622 Mil.
Gross Profit was 2144.54 + 2246.596 + 2573.883 + 2170.213 = $9,135 Mil.
Average Total Assets from the begining of this year (Apr15)
to the end of this year (Apr16) was
(11205.843 + 11341.042 + 11992.433 + 11499.482 + 11704.722) / 5 = $11548.7044 Mil.
Total Assets at the begining of this year (Apr15) was $11,206 Mil.
Long-Term Debt was $1,615 Mil.
Total Current Assets was $6,878 Mil.
Total Current Liabilities was $4,297 Mil.
Net Income was 517.624 + 594.957 + 648.23 + 474.601 = $2,235 Mil.

Revenue was 6917.212 + 7366.066 + 8303.953 + 6865.637 = $29,453 Mil.
Gross Profit was 1981.356 + 2162.437 + 2344.916 + 1945.396 = $8,434 Mil.
Average Total Assets from the begining of last year (Apr14)
to the end of last year (Apr15) was
(10429.938 + 10921.997 + 11592.048 + 10988.75 + 11205.843) / 5 = $11027.7152 Mil.
Total Assets at the begining of last year (Apr14) was $10,430 Mil.
Long-Term Debt was $1,614 Mil.
Total Current Assets was $6,725 Mil.
Total Current Liabilities was $4,137 Mil.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by total assets at the beginning of the year.

Score 1 if positive, 0 if negative.

TJX Companies Inc's current net income (TTM) was 2,311. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by total assets at the beginning of the year.

Score 1 if positive, 0 if negative.

TJX Companies Inc's current cash flow from operations (TTM) was 2,910. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year’s return on assets (1) to last year’s return on assets.

Score 1 if it’s higher, 0 if it’s lower.

ROA (This Year)=Net Income (TTM)/Total Assets at the Beginning of This Year (Apr15)
=2311.403/11205.843
=0.20626766

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Apr14)
=2235.412/10429.938
=0.21432649

TJX Companies Inc's return on assets of this year was 0.20626766. TJX Companies Inc's return on assets of last year was 0.21432649. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

TJX Companies Inc's current net income (TTM) was 2,311. TJX Companies Inc's current cash flow from operations (TTM) was 2,910. ==> 2,910 > 2,311 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year’s gearing (long-term debt divided by average total assets) to last year’s gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Apr16)=Long-Term Debt/Average Total Assets from Apr15 to Apr16
=1615.477/11548.7044
=0.13988383

Gearing (Last Year: Apr15)=Long-Term Debt/Average Total Assets from Apr14 to Apr15
=1613.581/11027.7152
=0.14632052

TJX Companies Inc's gearing of this year was 0.13988383. TJX Companies Inc's gearing of last year was 0.14632052. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year’s current ratio (current assets divided by current liabilities) to last year’s current ratio.

Score 1 if this year'’s current ratio is higher, 0 if it’s lower

Current Ratio (This Year: Apr16)=Total Current Assets/Total Current Liabilities
=6877.701/4296.735
=1.60068075

Current Ratio (Last Year: Apr15)=Total Current Assets/Total Current Liabilities
=6724.521/4136.536
=1.62564063

TJX Companies Inc's current ratio of this year was 1.60068075. TJX Companies Inc's current ratio of last year was 1.62564063. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

TJX Companies Inc's number of shares in issue this year was 670.4. TJX Companies Inc's number of shares in issue last year was 691.2. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year’s gross margin (gross profit divided by sales) to last year’s.

Score 1 if this year’s gross margin is higher, 0 if it’s lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=9135.232/31621.657
=0.28889163

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=8434.105/29452.868
=0.28635938

TJX Companies Inc's gross margin of this year was 0.28889163. TJX Companies Inc's gross margin of last year was 0.28635938. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year’s asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year’s asset turnover ratio.

Score 1 if this year’s asset turnover ratio is higher, 0 if it’s lower

Asset Turnover (This Year)=Revenue (TTM)/Total Assets at the Beginning of This Year (Apr15)
=31621.657/11205.843
=2.82189006

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Apr14)
=29452.868/10429.938
=2.82387757

TJX Companies Inc's asset turnover of this year was 2.82189006. TJX Companies Inc's asset turnover of last year was 2.82387757. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+0+1+1+0+1+1+0
=6

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

TJX Companies Inc has an F-score of 6 indicating the company's financial situation is typical for a stable company.


Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Related Terms

Net Income, Cash Flow from Operations, Revenue, Gross Profit, Total Assets, Long-Term Debt, Total Current Assets, Total Current Liabilities


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

TJX Companies Inc Annual Data

Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15Jan16
Question 1 1111111111
Question 2 1111111111
Question 3 0011011000
Question 4 1111111111
Question 5 1110111001
Question 6 1001010100
Question 7 1111111111
Question 8 1101111111
Question 9 0001001000
F-score 7668688656

TJX Companies Inc Quarterly Data

Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16
Question 1 1111111111
Question 2 1111111111
Question 3 0000000000
Question 4 1111111111
Question 5 0100001111
Question 6 1000000000
Question 7 1111111111
Question 8 1000111111
Question 9 0000010000
F-score 6544566666
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