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TJX (WBO:TJXC) Piotroski F-Score : 9 (As of Dec. 12, 2024)


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What is TJX Piotroski F-Score?

Good Sign:

Piotroski F-Score is 9, indicates a very healthy situation.

The zones of discrimination were as such:

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

TJX has an F-score of 9. It is a good or high score, which usually indicates a very healthy situation.

The historical rank and industry rank for TJX's Piotroski F-Score or its related term are showing as below:

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

During the past 13 years, the highest Piotroski F-Score of TJX was 9. The lowest was 4. And the median was 6.


TJX Piotroski F-Score Historical Data

The historical data trend for TJX's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

TJX Piotroski F-Score Chart

TJX Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.00 4.00 7.00 6.00 9.00

TJX Quarterly Data
Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.00 9.00 9.00 9.00 9.00

Competitive Comparison of TJX's Piotroski F-Score

For the Apparel Retail subindustry, TJX's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


TJX's Piotroski F-Score Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, TJX's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where TJX's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Oct24) TTM:Last Year (Oct23) TTM:
Net Income was 1287.954 + 997.24 + 1013.278 + 1190.646 = €4,489 Mil.
Cash Flow from Operations was 2570.4 + 686.884 + 1501.938 + 960.228 = €5,719 Mil.
Revenue was 15065.298 + 11630.428 + 12417.496 + 12909.834 = €52,023 Mil.
Gross Profit was 4482.594 + 3485.68 + 3769.136 + 4076.838 = €15,814 Mil.
Average Total Assets from the begining of this year (Oct23)
to the end of this year (Oct24) was
(28742.397 + 27307.746 + 27660.828 + 28171.71 + 29776.248) / 5 = €28331.7858 Mil.
Total Assets at the begining of this year (Oct23) was €28,742 Mil.
Long-Term Debt & Capital Lease Obligation was €10,164 Mil.
Total Current Assets was €13,175 Mil.
Total Current Liabilities was €11,032 Mil.
Net Income was 963.264 + 812.592 + 894.056 + 1127.877 = €3,798 Mil.

Revenue was 13474.56 + 10746.096 + 11533.232 + 12561.955 = €48,316 Mil.
Gross Profit was 3516.192 + 3109.008 + 3478.592 + 3907.322 = €14,011 Mil.
Average Total Assets from the begining of last year (Oct22)
to the end of last year (Oct23) was
(28854.877 + 26307.872 + 26157.072 + 26145.488 + 28742.397) / 5 = €27241.5412 Mil.
Total Assets at the begining of last year (Oct22) was €28,855 Mil.
Long-Term Debt & Capital Lease Obligation was €10,263 Mil.
Total Current Assets was €13,074 Mil.
Total Current Liabilities was €11,023 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

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's current Net Income (TTM) was 4,489. ==> 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's current Cash Flow from Operations (TTM) was 5,719. ==> 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/Total Assets (Oct23)
=4489.118/28742.397
=0.15618454

ROA (Last Year)=Net Income/Total Assets (Oct22)
=3797.789/28854.877
=0.13161688

TJX's return on assets of this year was 0.15618454. TJX's return on assets of last year was 0.13161688. ==> This year is higher. ==> Score 1.

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's current Net Income (TTM) was 4,489. TJX's current Cash Flow from Operations (TTM) was 5,719. ==> 5,719 > 4,489 ==> 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: Oct24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Oct23 to Oct24
=10164.096/28331.7858
=0.35875239

Gearing (Last Year: Oct23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Oct22 to Oct23
=10262.639/27241.5412
=0.37672755

TJX's gearing of this year was 0.35875239. TJX's gearing of last year was 0.37672755. ==> 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: Oct24)=Total Current Assets/Total Current Liabilities
=13175.136/11031.606
=1.19430806

Current Ratio (Last Year: Oct23)=Total Current Assets/Total Current Liabilities
=13074.282/11023.08
=1.18608247

TJX's current ratio of this year was 1.19430806. TJX's current ratio of last year was 1.18608247. ==> This year's current ratio is higher. ==> Score 1.

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's number of shares in issue this year was 1141. TJX's number of shares in issue last year was 1158. ==> 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
=15814.248/52023.056
=0.30398537

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=14011.114/48315.843
=0.28999006

TJX's gross margin of this year was 0.30398537. TJX's gross margin of last year was 0.28999006. ==> 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/Total Assets at the Beginning of This Year (Oct23)
=52023.056/28742.397
=1.80997625

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Oct22)
=48315.843/28854.877
=1.67444287

TJX's asset turnover of this year was 1.80997625. TJX's asset turnover of last year was 1.67444287. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

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

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

TJX has an F-score of 9. It is a good or high score, which usually indicates a very healthy situation.

TJX  (WBO:TJXC) Piotroski F-Score 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.


TJX Piotroski F-Score Related Terms

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TJX Business Description

Address
770 Cochituate Road, Framingham, MA, USA, 01701
TJX Companies is the leading off-price retailer of apparel, accessories, and home merchandise in the United States. The firm leverages its more than 21,000 global vendor relationships to procure and sell brand-name merchandise at prices 20%-60% cheaper than conventional retail channels. TJX opportunistically purchases excess inventory that stems from manufacturing overruns and retail closeout sales. The off-price retailer disperses its vast and disparate merchandise across its 5,000 global stores, creating a treasure-hunt shopping experience for consumers. Over three quarters of TJX's sales are derived from the United States, primarily via the T.J. Maxx, Marshalls, and HomeGoods banners. About 10% of sales are from Canada and 12% from Europe and Australia.

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