CluenexThe TJX Companies TJX
The TJX Companies scores good on business quality (6.5 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What The TJX Companies does
TJX Companies operates off-price retail chains like T.J. Maxx and Marshalls, selling apparel and home fashions to bargain-hunting consumers through opportunistic buying.
- What it does best
TJX secures branded merchandise at deep discounts due to its massive buying scale, boasting a gross margin of 32% that outpaces Ross Stores at 29%. This vendor relationship network is exceptionally difficult for new entrants to replicate quickly.
- The main risk
Supplier and freight cost inflation threatens operating margins, squeezing profitability if passing higher expenses to price-sensitive consumers fails.
Quality, check by check
Scored against its own industry, from company filings.
Operating margins sit at 12.7% with a free cash flow margin near 9.4%, supported by disciplined inventory turns. The business model scales efficiently as volume expands.
Scale creates a procurement moat locking in major brand suppliers and value-seeking shoppers. Its top-quartile ROE of 60% reflects pricing power and capital efficiency that smaller peers cannot easily match.
Revenue grows at a 7.1% rate, powered by steady store traffic increases. This top-line expansion tracks consistently above historical levels as off-price retail gains enduring consumer favor.
With $6.2B in cash and net debt in negative territory, the balance sheet is fortified. Free cash flow of $5.9B fuels continuous buybacks and dividends, keeping the financial footing exceptionally strong.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
No open market buys or unplanned sales by executives or directors.
Our sealed record on TJX
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
The TJX Companies scores good on the Cluenex quality check (6.5 of 10), measured against its own industry. Profitability is fair, moat fair, growth steady and financial health strong.
In the last 90 days of SEC Form 4 filings: No open market buys or unplanned sales by executives or directors.
Nov 18, 2026.
See TJX today
- Today's verdict on TJX, and why
- Fair value with cautious, base and optimistic cases
- The exact price that would change the verdict
- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “The TJX Companies (TJX)”, https://cluenex.com/stocks/tjx/, data as of Oct 10, 2026.