One Very Overrated And One Very Underrated REIT
Not all REITs are worth buying. Some of the most popular REITs are also the least attractive. I highlight one very overrated REIT and a better alternative.
Fiscal Year: March - February
The TJX Companies, Inc. (TJX), listed on the NYSE, has a market capitalization of $. As of Aug 19, 2025, the stock is trading at $133.06 per share, offering investors a clear view of its current market value. The TJX Companies, Inc. is a prominent player in the industry sector, attracting both institutional and retail investors due to its performance and potential.
With a P/E ratio of 31.3, investors can assess the stock's valuation in comparison to its earnings. A P/E ratio is a crucial indicator for value investors, showing whether the stock is over or undervalued relative to its current earnings. The TJX Companies, Inc. also offers a dividend yield of 1.28%, making it an attractive option for income-focused investors who seek regular dividends.
Our Discounted Cash Flow (DCF) analysis reveals that The TJX Companies, Inc. (TJX) may be overvalued compared to its intrinsic worth. However, to see the exact DCF fair value, please Login or Upgrade for access.
The proprietary SS Score for The TJX Companies, Inc. is a unique metric that analyzes the company's financial health and growth potential. The score takes into account critical factors such as revenue growth, net income, free cash flow (FCF) compound annual growth rate (CAGR), the trend of shares outstanding, and the debt-to-FCF ratio. This helps investors to make a more informed decision, as an undervalued stock might still have poor financial fundamentals.
To view the detailed SS Score for The TJX Companies, Inc., Login or Upgrade for access.
The Price to Free Cash Flow (P/FCF) ratio for The TJX Companies, Inc. is 39.3, offering insights into how much investors are paying for the company's free cash flow. A lower P/FCF ratio typically suggests that the stock is undervalued, while a higher ratio may indicate overvaluation.
In summary, The TJX Companies, Inc. (TJX) has shown consistent financial performance, as illustrated by the financial charts above, which track its revenue growth, net income, free cash flow, and shares outstanding over the past several years. These metrics provide investors with key insights into the company's past and projected future performance. Investors should use the SS Score alongside the DCF Fair Value to make better-informed decisions about whether to buy or hold the stock.
*This analysis is for informational purposes only and does not constitute investment advice. Always read the company's 10-K filings and do your own research before making any investment decisions.
Whether The TJX Companies, Inc. (TJX) is a good stock to buy depends on various factors, including its financial health, market conditions, and your investment strategy. Our analysis indicates that the stock may be overvalued compared to its intrinsic value. However, it is important to assess the SS Score and review the company's fundamentals before making any investment decisions.
The fair value of The TJX Companies, Inc. (TJX) is determined through our Discounted Cash Flow (DCF) analysis. This value represents the intrinsic worth of the stock based on its expected future cash flows. To view the specific fair value, consider subscribing to our service for complete access.
The SS Score is a proprietary financial quality metric that assesses factors such as revenue growth, net income, free cash flow growth, and debt levels. It helps investors evaluate the overall financial health of The TJX Companies, Inc.. To access the full SS Score, consider upgrading your subscription.
The TJX Companies, Inc. is a significant player in the industry sector, with a market capitalization of $ and a competitive P/E ratio of 31.3. Investors should compare these metrics with industry peers to gauge whether The TJX Companies, Inc. is outperforming or underperforming within its sector.
Not all REITs are worth buying. Some of the most popular REITs are also the least attractive. I highlight one very overrated REIT and a better alternative.
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Below estimates were sourced from SimplyWallSt and are intended for educational purposes only as a baseline for the analysis.
Year | FCF Estimate | % | # Analysts |
---|---|---|---|
2026 | 4.20B | Analyst x6 | |
2027 | 4.78B | 13.59% | Analyst x6 |
2028 | 5.18B | 8.54% | Analyst x4 |
2029 | 5.85B | 12.83% | Analyst x2 |
2030 | 6.30B | 7.72% | Analyst x2 |
2031 | 6.57B | 4.28% | Est @4.3% |
2032 | 6.81B | 3.69% | Est @3.7% |
2033 | 7.04B | 3.28% | Est @3.3% |
2034 | 7.23B | 2.79% | Est @2.8% |
2035 | 7.42B | 2.60% | Est @2.6% |
Below are the FCF estimates with the discount factor and the calculated present value with the terminal value that led the results above.
Year | FCF | Discount Factor | PV of Future FCF |
---|---|---|---|
2024A | 4.34B | 1.00 | 4.34B |
2025A | 4.20B | 1.00 | 4.20B |
2026E | 4.20B | 1.08 | 3.88B |
2027E | 4.78B | 1.17 | 4.07B |
2028E | 5.18B | 1.27 | 4.07B |
2029E | 5.85B | 1.38 | 4.24B |
2030E | 6.30B | 1.49 | 4.22B |
2031E | 6.57B | 1.62 | 4.06B |
2032E | 6.81B | 1.75 | 3.88B |
2033E | 7.04B | 1.90 | 3.70B |
2034E | 7.23B | 2.06 | 3.51B |
2035E | 7.42B | 2.23 | 3.32B |
Terminal | 129.74B | 2.23 | 58.12B |
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