TARGET CORP (TGT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TGT - US87612E1064 - Common Stock
105.52 USD
-0.81 (-0.76%)
105.49 USD
-0.03 (-0.03%)
Overall TGT gets a fundamental rating of 5 out of 10. We evaluated TGT against 38 industry peers in the Consumer Staples Distribution & Retail industry. While TGT has a great profitability rating, there are quite some concerns on its financial health. TGT has a valuation in line with the averages, but it does not seem to be growing. TGT also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
TGT had positive earnings in the past year.
TGT had a positive operating cash flow in the past year.
TGT had positive earnings in each of the past 5 years.
Each year in the past 5 years TGT had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 6.27%, TGT is doing good in the industry, outperforming 65.79% of the companies in the same industry.
TGT has a Return On Equity of 24.28%. This is in the better half of the industry: TGT outperforms 76.32% of its industry peers.
The Return On Invested Capital of TGT (12.98%) is better than 89.47% of its industry peers.
TGT had an Average Return On Invested Capital over the past 3 years of 11.15%. This is significantly below the industry average of 28.32%.
The last Return On Invested Capital (12.98%) for TGT is above the 3 year average (11.15%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.27% | ||
| ROE | 24.28% | ||
| ROIC | 12.98% |
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 has a better Profit Margin (3.58%) than 84.21% of its industry peers.
TGT's Profit Margin has declined in the last couple of years.
TGT has a Operating Margin of 6.13%. This is amongst the best in the industry. TGT outperforms 86.84% of its industry peers.
In the last couple of years the Operating Margin of TGT has declined.
TGT's Gross Margin of 27.74% is fine compared to the rest of the industry. TGT outperforms 65.79% of its industry peers.
TGT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.13% | ||
| PM (TTM) | 3.58% | ||
| GM | 27.74% |
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 just above the Cost of Capital (WACC), so TGT is still creating some value.
TGT has less shares outstanding than it did 1 year ago.
TGT has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, TGT has an improved debt to assets ratio.
2.2 Solvency
TGT has an Altman-Z score of 2.95. This is not the best score and indicates that TGT is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of TGT (2.95) is worse than 65.79% of its industry peers.
The Debt to FCF ratio of TGT is 5.48, which is a neutral value as it means it would take TGT, 5.48 years of fcf income to pay off all of its debts.
TGT has a Debt to FCF ratio of 5.48. This is comparable to the rest of the industry: TGT outperforms 50.00% of its industry peers.
TGT has a Debt/Equity ratio of 0.99. This is a neutral value indicating TGT is somewhat dependend on debt financing.
TGT has a Debt to Equity ratio of 0.99. This is in the lower half of the industry: TGT underperforms 65.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 5.48 | ||
| Altman-Z | 2.95 |
ROIC/WACC1.76
WACC7.37%
2.3 Liquidity
TGT has a Current Ratio of 0.97. This is a bad value and indicates that TGT is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.97, TGT is not doing good in the industry: 71.05% of the companies in the same industry are doing better.
A Quick Ratio of 0.27 indicates that TGT may have some problems paying its short term obligations.
TGT has a Quick ratio of 0.27. This is in the lower half of the industry: TGT underperforms 76.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.27 |
3. Growth
3.1 Past
The earnings per share for TGT have decreased strongly by -20.04% in the last year.
The Earnings Per Share has been growing slightly by 6.72% on average over the past years.
The Revenue has decreased by -2.16% in the past year.
The Revenue has been growing slightly by 6.41% on average over the past years.
EPS 1Y (TTM)-20.04%
EPS 3Y-13.2%
EPS 5Y6.72%
EPS Q2Q%-3.78%
Revenue 1Y (TTM)-2.16%
Revenue growth 3Y0.18%
Revenue growth 5Y6.41%
Sales Q2Q%-1.55%
3.2 Future
The Earnings Per Share is expected to grow by 2.78% on average over the next years.
TGT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.93% yearly.
EPS Next Y-16.75%
EPS Next 2Y-5.93%
EPS Next 3Y-1.77%
EPS Next 5Y2.78%
Revenue Next Year-1.48%
Revenue Next 2Y0.14%
Revenue Next 3Y1%
Revenue Next 5Y1.93%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
With a Price/Earnings ratio of 13.99, TGT is valued correctly.
76.32% 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 (27.19), we can say TGT is valued slightly cheaper.
A Price/Forward Earnings ratio of 13.46 indicates a correct valuation of TGT.
TGT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TGT is cheaper than 71.05% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.88, TGT is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.99 | ||
| Fwd PE | 13.46 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TGT is valued a bit cheaper than the industry average as 78.95% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TGT indicates a somewhat cheap valuation: TGT is cheaper than 71.05% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.88 | ||
| EV/EBITDA | 6.37 |
4.3 Compensation for Growth
The decent profitability rating of TGT may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.08
EPS Next 2Y-5.93%
EPS Next 3Y-1.77%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.66%, TGT is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.77, TGT pays a better dividend. On top of this TGT pays more dividend than 100.00% of the companies listed in the same industry.
TGT's Dividend Yield is rather good when compared to the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.66% |
5.2 History
The dividend of TGT is nicely growing with an annual growth rate of 11.38%!
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
54.48% of the earnings are spent on dividend by TGT. This is a bit on the high side, but may be sustainable.
TGT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP54.48%
EPS Next 2Y-5.93%
EPS Next 3Y-1.77%
105.52
-0.81 (-0.76%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners85%
Inst Owner Change0%
Ins Owners0.22%
Ins Owner Change-0.38%
Market Cap47.78B
Revenue(TTM)105.24B
Net Income(TTM)3.76B
Analysts65.91
Price Target100.9 (-4.38%)
Short Float %4.47%
Short Ratio2.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.66% |
Yearly Dividend4.46
Dividend Growth(5Y)11.38%
DP54.48%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.31%
Min EPS beat(2)-0.01%
Max EPS beat(2)2.64%
EPS beat(4)2
Avg EPS beat(4)-3.01%
Min EPS beat(4)-19.93%
Max EPS beat(4)5.26%
EPS beat(8)4
Avg EPS beat(8)0.5%
EPS beat(12)8
Avg EPS beat(12)10.21%
EPS beat(16)9
Avg EPS beat(16)1.84%
Revenue beat(2)1
Avg Revenue beat(2)-0.54%
Min Revenue beat(2)-1.19%
Max Revenue beat(2)0.11%
Revenue beat(4)1
Avg Revenue beat(4)-1.14%
Min Revenue beat(4)-2.72%
Max Revenue beat(4)0.11%
Revenue beat(8)1
Avg Revenue beat(8)-1.01%
Revenue beat(12)2
Avg Revenue beat(12)-0.89%
Revenue beat(16)3
Avg Revenue beat(16)-0.78%
PT rev (1m)-3.85%
PT rev (3m)-4.78%
EPS NQ rev (1m)-0.21%
EPS NQ rev (3m)-3.02%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)-0.92%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.63%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)-0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.99 | ||
| Fwd PE | 13.46 | ||
| P/S | 0.45 | ||
| P/FCF | 15.88 | ||
| P/OCF | 7.05 | ||
| P/B | 3.08 | ||
| P/tB | 3.08 | ||
| EV/EBITDA | 6.37 |
EPS(TTM)7.54
EY7.15%
EPS(NY)7.84
Fwd EY7.43%
FCF(TTM)6.65
FCFY6.3%
OCF(TTM)14.96
OCFY14.18%
SpS232.42
BVpS34.23
TBVpS34.23
PEG (NY)N/A
PEG (5Y)2.08
Graham Number76.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.27% | ||
| ROE | 24.28% | ||
| ROCE | 16.66% | ||
| ROIC | 12.98% | ||
| ROICexc | 14.4% | ||
| ROICexgc | 14.4% | ||
| OM | 6.13% | ||
| PM (TTM) | 3.58% | ||
| GM | 27.74% | ||
| FCFM | 2.86% |
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 Turnover1.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 5.48 | ||
| Debt/EBITDA | 1.61 | ||
| Cap/Depr | 121.57% | ||
| Cap/Sales | 3.58% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 70.92% | ||
| Profit Quality | 79.96% | ||
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.27 | ||
| Altman-Z | 2.95 |
F-Score5
WACC7.37%
ROIC/WACC1.76
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)-20.04%
EPS 3Y-13.2%
EPS 5Y6.72%
EPS Q2Q%-3.78%
EPS Next Y-16.75%
EPS Next 2Y-5.93%
EPS Next 3Y-1.77%
EPS Next 5Y2.78%
Revenue 1Y (TTM)-2.16%
Revenue growth 3Y0.18%
Revenue growth 5Y6.41%
Sales Q2Q%-1.55%
Revenue Next Year-1.48%
Revenue Next 2Y0.14%
Revenue Next 3Y1%
Revenue Next 5Y1.93%
EBIT growth 1Y7.49%
EBIT growth 3Y-14.56%
EBIT growth 5Y3.78%
EBIT Next Year40.99%
EBIT Next 3Y14.91%
EBIT Next 5Y11.36%
FCF growth 1Y-17.36%
FCF growth 3Y-4.14%
FCF growth 5Y1.82%
OCF growth 1Y-23.01%
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.
What is the valuation status for TGT stock?
ChartMill assigns a valuation rating of 5 / 10 to TARGET CORP (TGT). This can be considered as Fairly Valued.
How profitable is TARGET CORP (TGT) stock?
TARGET CORP (TGT) has a profitability rating of 7 / 10.
What is the earnings growth outlook for TARGET CORP?
The Earnings per Share (EPS) of TARGET CORP (TGT) is expected to decline by -16.75% in the next year.
Can you provide the dividend sustainability for TGT stock?
The dividend rating of TARGET CORP (TGT) is 7 / 10 and the dividend payout ratio is 54.48%.