Buffett Brain · Research note
Score updated 29 Oct 2026 · analysis from 12 Sept 2026
TJX· Consumer Discretionary
The TJX Companies
TJX's ROIC of 25% is sector-leading, but valuation at a P/E of 28 raises concerns about margin of safety.
Buffett fit
Partial fit
Owner
54
Durability
92
Management
72
Price
24
Score updated 29 Oct 2026 · analysis from 12 Sept 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Consumer Discretionary stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
Owning 100% of TJX, we'd focus on maintaining its sector-leading of 25.22% while managing the 1.32 debt/equity ratio.
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The durability of TJX is supported by a consistent profitability over the last 5 years and a 17.93% EPS CAGR.
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TJX has effectively reduced its share count by 1.44% annually over the past 5 years, with a yield of 1.39%.
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Current valuation metrics, such as a of 28.3 and an yield of 3.17%, do not provide a sufficient .
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
8- 1 of 25.22% is top-quintile in the Consumer Cyclical sector.
- 2EPS CAGR of 17.93% over 5 years indicates strong growth.
- 3 of $4.92B supports financial flexibility.
- 4Interest coverage ratio of 99.6 suggests robust ability to service debt.
Concerns
8- 1 ratio of 28.3 suggests high market expectations.
- 2 of 30.96% is below sector top-quintile levels.
- 3Net margin of 9.1% is below the sector's top-quintile threshold.
- 4Current ratio of 1.14 indicates potential liquidity constraints.
Price history
$138+111.3%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
The TJX Companies operate as an off-price retailer offering apparel and home fashions across various segments, including Marmaxx and HomeGoods. With $60.37B in revenue and a net margin of 9.1%, the company benefits from cost-conscious consumers. Its 5-year EPS CAGR of 17.93% signals strong earnings growth. Overall, TJX operates with a lean cost structure, evidenced by a 25.22% .
How this analysis has moved
The call has held across 6 reviews.
Sep 27, 2026 → Oct 29, 2026
What other investors would say
The same company, judged by three other documented playbooks.
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