TJX – Markets expectations are for Uniform ROA to rebound to a new high, but management may have concerns about inventory, profitability, and sustainability

January 27, 2022

  • The TJX Companies, Inc. (TJX) currently trades near corporate and above historical averages relative to Uniform earnings, with a 25.0x Uniform P/E (Fwd. V/E’).
  • At these levels, markets are pricing in expectations for Uniform ROA to rebound to a new high of 25% in 2026, accompanied by 3% Uniform asset growth.
  • Meanwhile, analysts expect Uniform ROA to improve to 21% by 2023, accompanied by 3% Uniform asset shrinkage.
  • If sustained going forward, these levels would imply a stock price closer to $45, representing approximately 37% equity downside for the firm.
  • Moreover, the firm’s most recent earnings call suggests management may have concerns about inventory, profitability, and sustainability.

You don’t have access to the Valens Research Premium Application.

To get access to our best content including the highly regarded Conviction Long List and Market Phase Cycle macro newsletter, please contact our Client Relations Team at 630-841-0683 or email

Please fill out the fields below so that our client relations team can contact you

Or contact our Client Relationship Team at 630-841-0683