TJX
The TJX Companies, Inc.
Consumer Cyclical · Apparel Retail · United States · Stock
Score Breakdown
Scored for Dividend Income profile
Sub-scores are 0–20 each; Model Score is weighted by your selected investment goal. How it works →
Why Ranked Here
- TJX earned strong scores in dividend consistency and profitability, supported by four consecutive years of dividend per share growth and a 15.4% return on assets, which anchored the composite score at a solid mid-range level.
- The growth factor reflected healthy earnings acceleration relative to moderate top-line expansion, contributing positively but not enough to push the score into the highest tier given the 7.1% revenue growth rate.
- The absence of any macro theme assignment meant the model applied no thematic boost, which alongside the financial health factor kept the total score at 60.9/100 with a Medium risk rating.
Why Not Higher
- TJX is not currently assigned to any of the 24 tracked macro themes, so it receives no thematic tailwind that could have lifted the composite score.
- The quarterly momentum pattern shows a seasonal peak in 2026Q4 followed by a pullback in 2027Q1, preventing the momentum factor from reaching its highest range and limiting the overall score.
Data Confidence
9 / 10
Very High — full data coverage
Why This Score
Grounded in figures from this company's SEC EDGAR filings — not a restatement of the score itself.
Revenue grew from FY2025's $56,360,000,000 to FY2026's $60,372,000,000, a gain of +7.1%. Net income rose +13.0% over the same period, and diluted EPS increased +14.3% from FY2025 to FY2026.
The model rewarded solid earnings and EPS acceleration relative to the more moderate top-line growth rate, reflecting healthy margin expansion. The mid-range score suggests the revenue growth pace, while positive, was not exceptional enough to reach the highest tier.
In FY2026, TJX posted an operating margin of 12.1%, a net margin of 9.1%, and a return on assets of 15.4%.
The model rewarded the combination of double-digit operating margins and a notably high return on assets, which together indicate efficient use of the company's asset base to generate profit. These metrics placed TJX well above average profitability thresholds in the model's scoring framework.
Filing evidence currently available does not support a more specific explanation for this factor.
Over the last four reported quarters, revenue rose from $14,401,000,000 in 2026Q2 to $15,117,000,000 in 2026Q3 and peaked at $17,743,000,000 in 2026Q4 before pulling back to $14,323,000,000 in 2027Q1. Net income and operating income followed the same pattern, with operating income climbing from $1,647,000,000 in 2026Q2 to $2,390,000,000 in 2026Q4 and then receding to $1,721,000,000 in 2027Q1.
The model appears to have rewarded the overall upward trajectory across the four-quarter window, while the 2027Q1 pullback from the 2026Q4 peak likely tempered the score from reaching the highest range, reflecting a seasonal peak-and-retreat pattern rather than sustained sequential acceleration.
TJX has grown its dividends per share each year from $1.18 in FY2023 to $1.33 in FY2024, $1.50 in FY2025, and $1.70 in FY2026. The dividend payout ratio in FY2026 stood at 33.5%, indicating dividends are well covered by earnings.
The model rewarded the consistent multi-year dividend growth trajectory alongside a conservative payout ratio that leaves ample room for future increases, which together signal both commitment to shareholder returns and financial sustainability of the dividend.
TJX is not currently assigned to any of the 24 tracked macro themes in the model.
The absence of a theme assignment means the model did not apply any thematic tailwind or category boost to this security's score; this reflects the current state of the model's theme classifications and is not an indicator of the company's business quality.
Research Summary
AI-generated analysis reflects data and conditions as of the report date shown above. Verify any specific figures through primary sources before acting on this analysis.
TJX Companies delivered solid FY2026 results, with revenue reaching $60,372,000,000, a 7.1% year-over-year gain, while net income and diluted EPS grew at faster rates of 13.0% and 14.3% respectively, signaling healthy margin expansion. Profitability metrics were strong, with a 12.1% operating margin, 9.1% net margin, and a notably high 15.4% return on assets. The company also demonstrated a consistent dividend growth track record, raising dividends per share from $1.18 in FY2023 to $1.70 in FY2026, supported by a conservative 33.5% payout ratio. The composite score of 60.9/100 reflects these strengths alongside the absence of a macro theme assignment, which provided no thematic tailwind to the overall score.
Plain English
TJX is a profitable, growing retailer that keeps raising its dividend every year and earns strong returns on its assets, but its overall score is held back because it doesn't fit into any of the model's special macro trend categories right now.
Bull Case vs. Bear Case
Bull Case
- Earnings and EPS are growing faster than revenue — net income rose 13.0% and diluted EPS rose 14.3% against a 7.1% revenue gain — suggesting TJX is expanding its margins and becoming more efficient over time.
- TJX's return on assets of 15.4% and operating margin of 12.1% in FY2026 place it well above average profitability thresholds, indicating the company generates strong profits relative to the assets it deploys.
- Dividends per share have grown every year from $1.18 in FY2023 to $1.70 in FY2026, and the payout ratio of 33.5% leaves substantial room for continued increases, reflecting both shareholder commitment and financial sustainability.
Bear Case
- Revenue growth of 7.1% year-over-year, while positive, was not exceptional enough to reach the model's highest growth tier, suggesting the top-line expansion pace may be moderate relative to higher-growth peers.
- Quarterly results show a seasonal peak-and-retreat pattern, with revenue and operating income climbing to highs in 2026Q4 before pulling back in 2027Q1, which tempered the momentum score from reaching its highest range.
- TJX is not assigned to any of the 24 tracked macro themes in the model, meaning it receives no thematic tailwind or category boost, which structurally limits the composite score regardless of underlying business quality.
What Could Change the Picture
Bullish Triggers
- If TJX sustains sequential revenue and earnings growth beyond the typical seasonal peak — avoiding the 2027Q1-style pullback — momentum could strengthen and push the composite score higher.
- A macro theme assignment in a future model update, such as a consumer value or off-price retail theme, could provide a meaningful thematic tailwind that is currently absent from the score.
Bearish Triggers
- If revenue growth decelerates further from the current 7.1% pace, the growth factor score could weaken, particularly if earnings and EPS growth also slow and the margin expansion story fades.
- A deterioration in the quarterly earnings trajectory — where the 2027Q1 pullback deepens rather than recovers — would signal that the momentum trend is reversing rather than reflecting normal seasonality.
Risk Profile
Medium RiskTJX's interest coverage ratio of 92.4 in FY2026 suggests the company faces minimal debt service risk relative to its operating income. However, the quarterly revenue and earnings pattern shows a notable retreat from the 2026Q4 peak into 2027Q1, which introduces some uncertainty about whether near-term results will sustain the broader upward trend.
This report is for educational and research purposes only. It does not constitute financial, investment, legal, or tax advice — always conduct your own due diligence before making investment decisions.