I got a job at Homesense and I started my 2-day orientation and the beginning of my training, but I was just wondering if I am going to get paid for that training and orientation? And if so, when? My manager told us to punch in and out and I have all of my info on direct deposit so I am just wondering. Also, does the discount card come in the mail or in the office of Homesense? TIA!
Karen's paradise. Cheap decent stuff. They own home goods tj maxxx and marshals. They have been consistently busy all q2. They were also one of the first to reopen their stores from covid and we all saw how long the lines were. 62.5c 8/28 are going to print. I'm 1 for 1 on playing quiet ER. First one was NLS.
TJX Companies is the largest US off-price retailer of brand-name and designer apparel and home fashions. It sells its assortment at prices generally 20%-60% lower than regular prices. TJX operates almost 3,000 stores in the nation under its T.J. Maxx, Marshalls, HomeGoods, Homesense, and Sierra Trading Post brands and over 1,000 stores in Canada, Australia, and Europe under the Winners, HomeSense, Marshalls, Trade Secret, and T.K. Maxx brands. Along with Home Depot, it is one of my two stocks through which I get retail exposure.
Their business model is pretty straightforward. They buy name brand products at fire sale prices in situations such as department store cancellations, a manufacturer making up too much product, or a closeout deal when a vendor wants to clear merchandise at the end of a season etc. While they aren't completely recession proof, this business model gives them a couple of competitive advantages during recessions. They will be able to procure more name brand inventory at lower prices and off-price retailers will see more traffic compared to their competitors. This was proven when they were able to grow their earnings during the recession of 2008-2009.
The following reasons are why I believe at current prices, TJX ($45.47 per share) is approaching my buy zone.
- Forward PE ~ 17.5, EV/EBITDA ~ 11.0
- Yield ~ 1.7% (on average it's around 1.25% with it being at its peak at the end of 2008 at 2.04%)
- Fortress balance sheet. Debt/EBITDA ~ 0.45 (Anything less than 2.5 is considered pretty safe).
- Interest coverage ratio ~ 65 which tells me the quality of their small amount of debt is pretty good.
- Return on invested capital consistently in the 35% - 40% range. At the height of the recession it was 29% (S&P 500 averages 13%).
- The dividend growth has compounded at a phenomenal rate of 20% over the last 10 years (compared to 7% for the S&P 500). Even if future dividend growth is in the 12-13% range, at the current yield, TJX is attractive. It is one year away from becoming a dividend aristocrat.
- Payout ratio is low at around 30%. Even if earnings take a hit, the dividend is extremely safe.
- They've built themselves a narrow moat over the years. They've crushed their competition in the off-price retail space, leaving ROST as their only significant competitor (Also a solid company). [https://www.washingtonpost.com/news/business/wp/2016/05/17/t-j-maxx-the-rare-store-thats-thriving-while-those-at-the-mall-struggle/?utm_term=.
