T.J. Maxx Beneish M Score

TJX
 Stock
  

USD 62.82  0.86  1.35%   

This module uses fundamental data of T.J. Maxx to approximate the value of its Beneish M Score. T.J. Maxx M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Additionally, take a look at T.J. Maxx Piotroski F Score and T.J. Maxx Altman Z Score analysis.
  
T.J. Maxx Debt Current is fairly stable at the moment as compared to the past year. T.J. Maxx reported Debt Current of 355.52 Million in 2021. Debt Non Current is likely to rise to about 1.6 B in 2022, whereas Total Debt is likely to drop slightly above 1.2 B in 2022. T.J. Maxx Book Value per Share is fairly stable at the moment as compared to the past year. T.J. Maxx reported Book Value per Share of 5.60 in 2021. Dividends per Basic Common Share is likely to rise to 0.65 in 2022, whereas Enterprise Value over EBITDA is likely to drop 8.83 in 2022.
At this time, it appears that TJX Companies is an unlikely manipulator. The earnings manipulation may begin if T.J. Maxx's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by T.J. Maxx executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of T.J. Maxx's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.37
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables1.03Focus
Asset Quality0.86Focus
Expense Coverage1.02Focus
Gross Margin Strengs1.05Focus
Accruals Factor1.02Focus
Depreciation Resistance0.98Focus
Net Sales Growth0.84Focus
Financial Leverage Condition0.95Focus

T.J. Maxx Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if T.J. Maxx's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Revenues40.9 B48.5 B
Fairly Down
Increasing
Slightly volatile
Selling General and Administrative Expense3.6 B4.2 B
Fairly Down
Decreasing
Slightly volatile
Net Cash Flow from Operations3.2 B3.1 B
Sufficiently Up
Increasing
Slightly volatile
Depreciation Amortization and Accretion447.7 M530.1 M
Fairly Down
Decreasing
Stable
Total Assets20.8 B28.5 B
Way Down
Increasing
Slightly volatile
Investments222.1 M254.4 M
Fairly Down
Decreasing
Slightly volatile
Investments Current222.1 M254.4 M
Fairly Down
Decreasing
Slightly volatile
Property Plant and Equipment Net2.9 B3.5 B
Significantly Down
Decreasing
Stable
Trade and Non Trade Receivables166.8 M192.4 M
Fairly Down
Decreasing
Slightly volatile
Total Liabilities15.4 B22.5 B
Way Down
Increasing
Slightly volatile
Current Assets10.5 B13.3 B
Significantly Down
Increasing
Slightly volatile
Assets Non Current3.3 BB
Significantly Down
Decreasing
Stable
Current Liabilities7.6 B10.5 B
Way Down
Increasing
Slightly volatile
Liabilities Non CurrentB2.5 B
Significantly Down
Increasing
Very volatile
Total Debt1.2 B1.5 B
Significantly Down
Increasing
Stable
Debt Current383.6 M355.5 M
Significantly Up
Increasing
Slightly volatile
Debt Non Current1.6 B1.5 B
Significantly Up
Increasing
Slightly volatile
Operating Income4.3 B4.5 B
Notably Down
Increasing
Slightly volatile
Gross Margin30.0328.4988
Notably Up
Increasing
Slightly volatile

TJX Companies Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between T.J. Maxx's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards T.J. Maxx in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find T.J. Maxx's degree of accounting gimmicks and manipulations.

About T.J. Maxx Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Operating Expenses

3.62 Billion

T.J. Maxx Operating Expenses is fairly stable at the moment as compared to the past year. T.J. Maxx reported Operating Expenses of 4.23 Billion in 2021

T.J. Maxx ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, T.J. Maxx's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to T.J. Maxx's managers, analysts, and investors.
Environment Score
Governance Score
Social Score

About T.J. Maxx Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze TJX Companies's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of T.J. Maxx using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of TJX Companies based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
The TJX Companies, Inc., together with its subsidiaries, operates as an off-price apparel and home fashions retailer. The company was incorporated in 1962 and is headquartered in Framingham, Massachusetts. T.J. Maxx operates under Apparel Retail classification in the United States and is traded on New York Stock Exchange. It employs 340000 people.

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Our tools can tell you how much better you can do entering a position in T.J. Maxx without increasing your portfolio risk or giving up expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate.risk-adjusted returns of your individual positions relative to your overall portfolio.

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Additionally, take a look at T.J. Maxx Piotroski F Score and T.J. Maxx Altman Z Score analysis. Note that the TJX Companies information on this page should be used as a complementary analysis to other T.J. Maxx's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.

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When running TJX Companies price analysis, check to measure T.J. Maxx's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy T.J. Maxx is operating at the current time. Most of T.J. Maxx's value examination focuses on studying past and present price action to predict the probability of T.J. Maxx's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move T.J. Maxx's price. Additionally, you may evaluate how the addition of T.J. Maxx to your portfolios can decrease your overall portfolio volatility.
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Is T.J. Maxx's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of T.J. Maxx. If investors know T.J. Maxx will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about T.J. Maxx listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.11
Market Capitalization
73.6 B
Quarterly Revenue Growth YOY
0.13
Return On Assets
0.1
Return On Equity
0.57
The market value of TJX Companies is measured differently than its book value, which is the value of T.J. Maxx that is recorded on the company's balance sheet. Investors also form their own opinion of T.J. Maxx's value that differs from its market value or its book value, called intrinsic value, which is T.J. Maxx's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because T.J. Maxx's market value can be influenced by many factors that don't directly affect T.J. Maxx's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between T.J. Maxx's value and its price as these two are different measures arrived at by different means. Investors typically determine T.J. Maxx value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, T.J. Maxx's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.