TJX - Embedded Expectations Analysis - 2021 05 07
The TJX Companies, Inc. (TJX:USA) currently trades at a historical high relative to UAFRS-based (Uniform) earnings, with a 31.8x Uniform P/E. At these levels, the market has bullish expectations for the firm, but management may have concerns about rising sourcing costs, new stores launches, and market share in their home businessSpecifically, management may lack confidence in their ability to continue gaining market share in their home business, take advantage of other retailer store closures, and open new stores in high-quality locations. Moreover, they may be downplaying concerns about further pandemic-related headwinds and they may have concerns about their current inventory levels and rising sourcing costs. Additionally, management may lack confidence in their ability to secure new vendor relationships, improve customer shopping experiences, and sustain their merchandise margin. They may also have concerns about the impact of their jurisdictional mix on EPS, as well as the potential of their capex investments in their distribution network and infrastructure
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.
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