TJX - Embedded Expectations Analysis - 2019 04 08
The TJX Companies, Inc. (TJX:USA) currently trades at historical highs relative to UAFRS-based (Uniform) Earnings, with a 23.0x Uniform P/E. At these levels, the market has muted expectations for the firm, but management is concerned about brick-and-mortar sales, creative execution efforts, and merchandising margin.Specifically, management may be concerned about their full-year plan and outlook, declining brick-and-mortar sales, and EPS performance. Also, they may be exaggerating the success of creative execution efforts, the quality of relationships gained from their flexible model, and their position as Canada's only major off-price apparel and home fashions retailer. Moreover, they may be concerned about their merchandising margin, and their ability to maximize multichannel engagement and drive incremental sales. Finally, they may lack confidence in their ability to sustain comparable store sales and HomeGoods comp growth, and increase average ticket prices.
TJX Companies is an off-price apparel and home fashions retailer. The company's segments comprised of: Marmaxx, which sells family apparel (including footwear and accessories), home fashions (including home basics, decorative accessories and giftware) and other merchandise; HomeGoods, which provides a range of home fashions, including home fashions, including furniture, rugs, lighting, soft home, decorative accessories, tabletop and cookware as well as pet, kids and gourmet food departments; TJX Canada, which operates the Winners, HomeSense and Marshalls chains in Canada; and TJX International, which operates the T.K. Maxx and HomeSense chains in Europe and the T.K. Maxx chain in Australia.
In 2009, just as the dust was settling from the last major equity and credit market crises, we launched a boutique research firm with the intention of breaking Wall Street’s biases and broken incentives:
- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
- Stock analyst recommendations are not grounded in disciplined financial analysis
- Credit agencies have been set up to grossly fail in their responsibilities to investors and the public markets
- Utter lack of willingness of major research firms to employ the the most advanced forensic analysis available
We sought to provide investors and company analysts with a source of information that changed all that.
Many years later, our business model remains because little has changed on Wall Street.
- Corporate credit ratings remain years behind the fundamental underpinnings of company performance
- Stock analysts continue to make recommendations with deeply inherent biases
- Research firms have failed to break down the walls between credit, equity, and macroeconomic research
- The governing accounting bodies have created more leeway for mis-estimates and mis-classifications as financials have become unwieldy and overwhelming
The integrity of Valens Research is founded in our disciplined processes and analytics. No “star” analysts. No corporate advisory relationships. No-nonsense opinions and recommendations.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.