Stock fact sheet · data as of
The TJX Companies, Inc. (TJX): fair value, margin of safety and Wheel Score
Consumer Cyclical · Apparel - Retail · United States · Quality / Blue-Chip
Is TJX undervalued?
The TJX Companies, Inc. (TJX) closed at 142.80 on 16 Oct 2026, 46% above the GLS average fair value of 97.87. 6 of the 9 models that produced a number value the shares below the current price. A gap this wide usually means the market is paying for growth or a story the trailing numbers do not show yet; the models work from filed results, not forecasts, so they are conservative by design.
The 9 models disagree widely: DDM gives 26.63 while Payback Time gives 165.51. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files TJX under Quality / Blue-Chip: a high moat score and a high health score together.
Nine valuation models for TJX
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 89.22 | -38% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 34.14 | -76% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 142.13 | -0% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 49.60 | -65% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 161.04 | +13% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 152.22 | +7% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 165.51 | +16% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 26.63 | -81% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 60.35 | -58% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -9.43 | -107% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 174.15 | +22% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
On financial health TJX scores 7/9 (Piotroski): most of the nine tests - positive earnings and cash flow, falling debt, rising margins and turnover - are passed, which is the kind of balance sheet a wheel trader is happy to be assigned. The GLS Moat score is 8.0 out of 10, built from ten years of revenue, earnings, margins, cash flow, share count and returns on capital scored for consistency - a high reading that points to a durable business.
Returns on capital are high - ROIC 23.2%, ROE 53.9%, ROA 15.4% - with debt at 1.32 times equity and a free-cash-flow yield of 3.7%.
The dividend yield is 1.27% with a payout ratio of 32% - a small yield that leaves most of the earnings in the business. Revenue comes mainly from Marmaxx 60%, Home Goods 17%, TJX International 14% (quarter Q2 FY2027).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 4/10 on the GLS smart-money scales.
| Piotroski F-score | 7 / 9 | ROIC | 23.2% |
|---|---|---|---|
| GLS Moat | 8.0 / 10 | ROE | 53.9% |
| Debt / equity | 1.32 | ROA | 15.4% |
| Free-cash-flow yield | 3.7% | Payout ratio | 32% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 4 / 10 |
Wheel Score 62: Fair
TJX scores 62 out of 100 on the Wheel Score (Fair band, 50-64): a usable but unremarkable fit for the wheel strategy. The parts: Value 0/25, Health 16/20, Moat 12/15, Premium 15/20, Stability 20/20. Value (0/25) is where the points are missing.
Implied volatility is 30% on the near-the-money contracts 20-60 days out: some premium, but under the 35-60% range the Wheel Score pays full marks for (15 of 20 points). The option chain is deep: 129,168 contracts of open interest across all expiries, which means tight fills at most strikes.
Volume runs at 5.1M shares a day on a market cap of $157.1B, with a beta of 0.56 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 20 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 0 / 25 | -46% margin of safety | |
| Health | 16 / 20 | Piotroski 7/9 | |
| Moat | 12 / 15 | moat 8.0/10 | |
| Premium | 15 / 20 | implied volatility 30% | |
| Stability | 20 / 20 | 5.1M shares/day, $157.1B cap, beta 0.56 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 18 Nov 2026 (before the open), 33 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium. The shares go ex-dividend on 12 Nov 2026 (0.4800 per share), so a covered call sold before then carries a small early-assignment risk around that date.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Apparel - Retail
The 12 companies below are the closest to The TJX Companies, Inc. by market cap within the Apparel - Retail industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| ROST Ross Stores, Inc. | 230.57 | 127.90 | -80% | 70Good | $74.0B |
| BURL Burlington Stores, Inc. | 267.79 | 361.33 | +26% | 86Prime | $16.8B |
| LULU Lululemon Athletica Inc. | 99.09 | 240.75 | +59% | 89Prime | $11.5B |
| GAP The Gap, Inc. | 23.46 | 76.74 | +69% | 84Prime | $8.2B |
| URBN Urban Outfitters, Inc. | 84.68 | 132.92 | +36% | 92Prime | $7.3B |
| VSXY Victoria's Secret & Company | 88.39 | 75.84 | -17% | 67Good | $7.1B |
| ANF Abercrombie & Fitch Co. | 152.07 | 291.83 | +48% | 86Prime | $6.5B |
| BOOT Boot Barn Holdings, Inc. | 120.62 | 116.86 | -3% | 71Good | $3.7B |
| AEO American Eagle Outfitters, Inc. | 18.05 | 18.32 | +1% | 71Good | $3.0B |
| BKE The Buckle, Inc. | 46.57 | 50.55 | +8% | 70Good | $2.4B |
| CRI Carter's Inc. | 32.64 | 88.45 | +63% | 78Good | $1.2B |
| CAL Caleres, Inc. | 13.14 | 42.46 | +69% | 75Good | $453M |
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Start free See the Sunday ScanQuestions about TJX
Is TJX undervalued right now?
No: at 142.80 the stock trades 46% above the GLS average fair value of 97.87 (data as of 16 Oct 2026), well beyond what trailing earnings, cash flow and book value support.
What is the Wheel Score of TJX and what does it mean?
TJX scores 62 out of 100 (Fair). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for TJX?
97.87 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does The TJX Companies, Inc. report earnings next?
The next earnings report is due on 18 Nov 2026 (before the open), 33 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does TJX have listed options, and how liquid are they?
Yes. The nightly snapshot found 1,000 listed contracts with 129,168 open interest across all expiries and implied volatility of 30% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.