January 3, 2018

TJX – Market expectations are for record-high Uniform ROA, but management has concerns about their execution and margins


  • The TJX Companies, Inc. (TJX:USA)¬†currently trades near historical highs relative to UAFRS-based (Uniform) Earnings, with a 19.5x Uniform P/E, implying bullish expectations for the firm. However, management has concerns about their execution and margins
  • Specifically, management is confident that their own internal execution negatively impacted the performance of their fashion business. They are also confident that increased supply chain and freight costs negatively impacted HomeGoods margins. Moreover, they may lack confidence in their ability to achieve their Q4 2017 gross margin target
To read this Embedded Expectations Analysis report in its entirety, please log into the Valens Research web app. If you don't have an account, you can sign up for the 30-day trial.