TARGET CORP (TGT) Stock Fundamental Analysis
USA - NYSE:TGT - US87612E1064 - Common Stock
89.9 USD
-0.72 (-0.79%)
90.1375 USD
+0.24 (+0.26%)
Overall TGT gets a fundamental rating of 5 out of 10. We evaluated TGT against 39 industry peers in the Consumer Staples Distribution & Retail industry. While TGT has a great profitability rating, there are some minor concerns on its financial health. TGT has a bad growth rate and is valued cheaply. Finally TGT also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
TGT had positive earnings in the past year.
In the past year TGT had a positive cash flow from operations.
Each year in the past 5 years TGT has been profitable.
Each year in the past 5 years TGT had a positive operating cash flow.
1.2 Ratios
TGT has a better Return On Assets (6.79%) than 76.92% of its industry peers.
Looking at the Return On Equity, with a value of 25.47%, TGT is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
TGT has a better Return On Invested Capital (13.47%) than 92.31% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TGT is above the industry average of 8.72%.
The 3 year average ROIC (11.15%) for TGT is below the current ROIC(13.47%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.79% | ||
| ROE | 25.47% | ||
| ROIC | 13.47% |
ROA(3y)6.59%
ROA(5y)8.24%
ROE(3y)27.82%
ROE(5y)33.57%
ROIC(3y)11.15%
ROIC(5y)14.5%
1.3 Margins
TGT's Profit Margin of 3.72% is amongst the best of the industry. TGT outperforms 87.18% of its industry peers.
TGT's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 6.32%, TGT belongs to the top of the industry, outperforming 89.74% of the companies in the same industry.
In the last couple of years the Operating Margin of TGT has declined.
The Gross Margin of TGT (27.79%) is better than 61.54% of its industry peers.
TGT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.32% | ||
| PM (TTM) | 3.72% | ||
| GM | 27.79% |
OM growth 3Y-14.71%
OM growth 5Y-2.48%
PM growth 3Y-16.32%
PM growth 5Y-1.78%
GM growth 3Y-1.24%
GM growth 5Y-1.06%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so TGT is creating value.
TGT has less shares outstanding than it did 1 year ago.
The number of shares outstanding for TGT has been reduced compared to 5 years ago.
The debt/assets ratio for TGT has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.00 indicates that TGT is not in any danger for bankruptcy at the moment.
The Altman-Z score of TGT (3.00) is worse than 64.10% of its industry peers.
TGT has a debt to FCF ratio of 5.59. This is a neutral value as TGT would need 5.59 years to pay back of all of its debts.
TGT has a Debt to FCF ratio (5.59) which is in line with its industry peers.
A Debt/Equity ratio of 0.99 indicates that TGT is somewhat dependend on debt financing.
TGT's Debt to Equity ratio of 0.99 is on the low side compared to the rest of the industry. TGT is outperformed by 64.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 5.59 | ||
| Altman-Z | 3 |
ROIC/WACC1.88
WACC7.15%
2.3 Liquidity
TGT has a Current Ratio of 0.99. This is a bad value and indicates that TGT is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.99, TGT is doing worse than 71.79% of the companies in the same industry.
TGT has a Quick Ratio of 0.99. This is a bad value and indicates that TGT is not financially healthy enough and could expect problems in meeting its short term obligations.
TGT's Quick ratio of 0.32 is on the low side compared to the rest of the industry. TGT is outperformed by 71.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.32 |
3. Growth
3.1 Past
TGT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -21.38%.
TGT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.72% yearly.
The Revenue has decreased by -1.55% in the past year.
Measured over the past years, TGT shows a small growth in Revenue. The Revenue has been growing by 6.41% on average per year.
EPS 1Y (TTM)-21.38%
EPS 3Y-13.2%
EPS 5Y6.72%
EPS Q2Q%-20.23%
Revenue 1Y (TTM)-1.55%
Revenue growth 3Y0.18%
Revenue growth 5Y6.41%
Sales Q2Q%-0.95%
3.2 Future
Based on estimates for the next years, TGT will show a small growth in Earnings Per Share. The EPS will grow by 3.06% on average per year.
The Revenue is expected to grow by 1.97% on average over the next years.
EPS Next Y-15.63%
EPS Next 2Y-4.64%
EPS Next 3Y-1.47%
EPS Next 5Y3.06%
Revenue Next Year-1.28%
Revenue Next 2Y0.28%
Revenue Next 3Y1.07%
Revenue Next 5Y1.97%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 11.81, the valuation of TGT can be described as reasonable.
82.05% of the companies in the same industry are more expensive than TGT, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of TGT to the average of the S&P500 Index (25.89), we can say TGT is valued rather cheaply.
A Price/Forward Earnings ratio of 11.16 indicates a reasonable valuation of TGT.
Based on the Price/Forward Earnings ratio, TGT is valued cheaply inside the industry as 84.62% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of TGT to the average of the S&P500 Index (34.59), we can say TGT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.81 | ||
| Fwd PE | 11.16 |
4.2 Price Multiples
TGT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TGT is cheaper than 87.18% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TGT indicates a somewhat cheap valuation: TGT is cheaper than 74.36% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.88 | ||
| EV/EBITDA | 5.46 |
4.3 Compensation for Growth
The decent profitability rating of TGT may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.76
EPS Next 2Y-4.64%
EPS Next 3Y-1.47%
5. Dividend
5.1 Amount
TGT has a Yearly Dividend Yield of 5.03%, which is a nice return.
TGT's Dividend Yield is rather good when compared to the industry average which is at 2.01. TGT pays more dividend than 100.00% of the companies in the same industry.
TGT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.03% |
5.2 History
On average, the dividend of TGT grows each year by 11.38%, which is quite nice.
TGT has been paying a dividend for at least 10 years, so it has a reliable track record.
TGT has decreased its dividend recently.
Dividend Growth(5Y)11.38%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
TGT pays out 52.14% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of TGT is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP52.14%
EPS Next 2Y-4.64%
EPS Next 3Y-1.47%
89.9
-0.72 (-0.79%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners85.63%
Inst Owner Change-2.21%
Ins Owners0.22%
Ins Owner Change-0.48%
Market Cap40.85B
Revenue(TTM)105.64B
Net Income(TTM)3.93B
Analysts65.78
Price Target105.2 (17.02%)
Short Float %4.58%
Short Ratio2.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.03% |
Yearly Dividend4.46
Dividend Growth(5Y)11.38%
DP52.14%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-9.97%
Min EPS beat(2)-19.93%
Max EPS beat(2)-0.01%
EPS beat(4)1
Avg EPS beat(4)-8.77%
Min EPS beat(4)-20.39%
Max EPS beat(4)5.26%
EPS beat(8)4
Avg EPS beat(8)5.27%
EPS beat(12)7
Avg EPS beat(12)7.63%
EPS beat(16)9
Avg EPS beat(16)2.05%
Revenue beat(2)1
Avg Revenue beat(2)-1.3%
Min Revenue beat(2)-2.72%
Max Revenue beat(2)0.11%
Revenue beat(4)1
Avg Revenue beat(4)-1.31%
Min Revenue beat(4)-2.72%
Max Revenue beat(4)0.11%
Revenue beat(8)1
Avg Revenue beat(8)-0.91%
Revenue beat(12)2
Avg Revenue beat(12)-0.82%
Revenue beat(16)4
Avg Revenue beat(16)-0.54%
PT rev (1m)-0.71%
PT rev (3m)-1.44%
EPS NQ rev (1m)-1.73%
EPS NQ rev (3m)1.21%
EPS NY rev (1m)0.41%
EPS NY rev (3m)0.38%
Revenue NQ rev (1m)-0.28%
Revenue NQ rev (3m)0.19%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.81 | ||
| Fwd PE | 11.16 | ||
| P/S | 0.39 | ||
| P/FCF | 13.88 | ||
| P/OCF | 6.4 | ||
| P/B | 2.65 | ||
| P/tB | 2.65 | ||
| EV/EBITDA | 5.46 |
EPS(TTM)7.61
EY8.46%
EPS(NY)8.06
Fwd EY8.96%
FCF(TTM)6.48
FCFY7.21%
OCF(TTM)14.05
OCFY15.63%
SpS232.48
BVpS33.93
TBVpS33.93
PEG (NY)N/A
PEG (5Y)1.76
Graham Number76.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.79% | ||
| ROE | 25.47% | ||
| ROCE | 17.28% | ||
| ROIC | 13.47% | ||
| ROICexc | 15.17% | ||
| ROICexgc | 15.17% | ||
| OM | 6.32% | ||
| PM (TTM) | 3.72% | ||
| GM | 27.79% | ||
| FCFM | 2.79% |
ROA(3y)6.59%
ROA(5y)8.24%
ROE(3y)27.82%
ROE(5y)33.57%
ROIC(3y)11.15%
ROIC(5y)14.5%
ROICexc(3y)12.58%
ROICexc(5y)21.31%
ROICexgc(3y)12.84%
ROICexgc(5y)22.01%
ROCE(3y)14.31%
ROCE(5y)18.61%
ROICexgc growth 3Y-26%
ROICexgc growth 5Y-2.41%
ROICexc growth 3Y-25.72%
ROICexc growth 5Y-2.23%
OM growth 3Y-14.71%
OM growth 5Y-2.48%
PM growth 3Y-16.32%
PM growth 5Y-1.78%
GM growth 3Y-1.24%
GM growth 5Y-1.06%
F-Score5
Asset Turnover1.83
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 5.59 | ||
| Debt/EBITDA | 1.57 | ||
| Cap/Depr | 111.83% | ||
| Cap/Sales | 3.26% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 65.48% | ||
| Profit Quality | 74.95% | ||
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.32 | ||
| Altman-Z | 3 |
F-Score5
WACC7.15%
ROIC/WACC1.88
Cap/Depr(3y)157.77%
Cap/Depr(5y)142.81%
Cap/Sales(3y)4.08%
Cap/Sales(5y)3.69%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-21.38%
EPS 3Y-13.2%
EPS 5Y6.72%
EPS Q2Q%-20.23%
EPS Next Y-15.63%
EPS Next 2Y-4.64%
EPS Next 3Y-1.47%
EPS Next 5Y3.06%
Revenue 1Y (TTM)-1.55%
Revenue growth 3Y0.18%
Revenue growth 5Y6.41%
Sales Q2Q%-0.95%
Revenue Next Year-1.28%
Revenue Next 2Y0.28%
Revenue Next 3Y1.07%
Revenue Next 5Y1.97%
EBIT growth 1Y7.37%
EBIT growth 3Y-14.56%
EBIT growth 5Y3.78%
EBIT Next Year43.09%
EBIT Next 3Y15.34%
EBIT Next 5Y17.69%
FCF growth 1Y80.28%
FCF growth 3Y-4.14%
FCF growth 5Y1.82%
OCF growth 1Y-14.43%
OCF growth 3Y-5.12%
OCF growth 5Y0.69%
TARGET CORP / TGT FAQ
What is the ChartMill fundamental rating of TARGET CORP (TGT) stock?
ChartMill assigns a fundamental rating of 5 / 10 to TGT.
Can you provide the valuation status for TARGET CORP?
ChartMill assigns a valuation rating of 7 / 10 to TARGET CORP (TGT). This can be considered as Undervalued.
How profitable is TARGET CORP (TGT) stock?
TARGET CORP (TGT) has a profitability rating of 7 / 10.
What is the valuation of TARGET CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for TARGET CORP (TGT) is 11.81 and the Price/Book (PB) ratio is 2.65.
How financially healthy is TARGET CORP?
The financial health rating of TARGET CORP (TGT) is 4 / 10.