The fact that the shares of TJX Companies, Inc. (NYSE:TJX) are down about 8% over the past year should not discourage investors from buying now. In my view, the company is an excellent investment at these levels, and I’ll go through my reasoning below by looking at the fundamentals here, along with the relative value of these shares versus the overall market. I’ll also do my best to model a future price for the shares based on the dividend here. In my view, investors with a long-term focus would do well to load up on these shares.
Financial Snapshot
After quickly reviewing the financial history here, it becomes obvious that this is a growth company. Since 2011, for instance, revenue is up at a CAGR of about 6.15%, and net income has grown at a CAGR of about 7.4%. There hasn’t been a single year when either of these measures has fallen, and that trend has continued with the most recent quarterly report from the company. This is the textbook example of a growth company. In addition, the fact that it is able to grow net income at a faster rate than revenue is a huge positive for me, as it suggests a level of scalability to the business.
