What moat does The TJX Companies have?

The advantage is the buyer who already knows where the leftover is and the store the customer comes back to browse. The brand is not obliged to sell the excess. The moat narrows if opportunistic inventory runs short, or if the customer stops coming into the store.

How do you read the The TJX Companies radar?

Health is debt against inventory and against stores. Quality is the margin on what was bought cheap and sold before it goes out of fashion. Growth is more stores and more visits, not a licence. P/E valuation is read against a year of heavy liquidation, not against a dry year for leftovers. Shareholder return is the dividend, crossed with the cash the inventory leaves.

Which multiples matter for The TJX Companies?

The P/E of a year when brands are liquidating is not normal earnings. EV/EBITDA is read with the inventory inside. The leftover margin is not Inditex's, which controls the product. Do not use it. A dash means the TJX cache is cold.

What does this The TJX Companies analysis leave out?

Not advice on TJX. Vaultflake does not count stores and does not treat the leftover buy as assured. This is not immunity to online retail. Read the filings. A past dividend is not a right. The table is a snapshot, not a target price.

The TJX Companies (TJX) analysis

The TJX Companies, Inc.

Sector:Consumer Discretionary · Off-price Retail

Country:United States

Profile and moat

TJX buys the brands' excess and sells it in the store: T.J. Maxx, Marshalls and, in Europe, TK Maxx. The trade is the leftover. If the brand has no surplus, there is no buy. Ross does a similar trade. It is not Inditex, which designs and orders what it sells. It is not immune to Amazon: the model is that the customer comes in to look, and if they do not come in, there is no sale.

Inventory availability runs the margin. A year in which brands liquidate a lot is not normal earnings. Freight and store labour do too. This report does not state a brand count and does not say nobody can copy the scale.

The dividend comes from that cash. It has to fit after the inventory.

Sustainable Competitive Advantage

The TJX Companies (TJX) analysis

The TJX Companies, Inc.

Sector:Consumer Discretionary · Off-price Retail

Country:United States

Profile and moat

The dividend comes from that cash. It has to fit after the inventory.

Sustainable Competitive Advantage

The TJX Companies (TJX) analysis

Profile and moat

The TJX Companies (TJX) analysis

Profile and moat

Radar axes

Limits of this report

Questions from this report

What moat does The TJX Companies have?

How do you read the The TJX Companies radar?

Which multiples matter for The TJX Companies?

What does this The TJX Companies analysis leave out?

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