TJX Companies (TJX) is not your typical retail store like Walmart (WMT) or Target (TGT). Its not like The Gap (GPS), or other clothing stores. No, this store is quite the opposite in fact. This store offers high quality and oft time designer fashions at discounted prices. And unlike WMT or TGT, its earnings have been growing in the double digits for years right along side its dividend. In fact, the company just announced a 25% increase in its dividend. How’s that for confidence in the retail space! But, is the market offering a discount on the company’s share price? Time to investigate.
Where are we?
To answer this question, let’s look at how the market has historically valued TJX. The current PE is 22.0 which is above both its 5-year average of 21.1 (according to YCharts) and its 10-year history of 19.2 (according to Gurufocus.com). In comparison, TJX’s PE is also below the market’s 24.9 but above it’s industry’s 20.5.
