TARGET CORP (TGT)
US87612E1064 - Common Stock
TGT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 43 industry peers in the Consumer Staples Distribution & Retail industry. TGT scores excellent on profitability, but there are some minor concerns on its financial health. TGT is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year TGT was profitable.
In the past year TGT had a positive cash flow from operations.
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
TGT has a better Return On Assets (7.47%) than 81.40% of its industry peers.
The Return On Equity of TGT (30.16%) is better than 88.37% of its industry peers.
TGT's Return On Invested Capital of 13.03% is amongst the best of the industry. TGT outperforms 88.37% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TGT is significantly above the industry average of 8.45%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.47% | ||
| ROE | 30.16% | ||
| ROIC | 13.03% |
ROA(3y)8.53%
ROA(5y)8.36%
ROE(3y)36.57%
ROE(5y)33.54%
ROIC(3y)14.84%
ROIC(5y)15.04%
1.3 Margins
TGT's Profit Margin of 4.06% is amongst the best of the industry. TGT outperforms 93.02% of its industry peers.
TGT's Profit Margin has been stable in the last couple of years.
TGT's Operating Margin of 5.58% is amongst the best of the industry. TGT outperforms 93.02% of its industry peers.
In the last couple of years the Operating Margin of TGT has remained more or less at the same level.
With a decent Gross Margin value of 28.39%, TGT is doing good in the industry, outperforming 67.44% of the companies in the same industry.
In the last couple of years the Gross Margin of TGT has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.58% | ||
| PM (TTM) | 4.06% | ||
| GM | 28.39% |
OM growth 3Y-9.5%
OM growth 5Y-0.61%
PM growth 3Y-6.2%
PM growth 5Y-0.23%
GM growth 3Y-2.17%
GM growth 5Y-1.15%
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.
Compared to 1 year ago, TGT has more shares outstanding
Compared to 5 years ago, TGT has less shares outstanding
Compared to 1 year ago, TGT has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.16 indicates that TGT is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.16, TGT is in line with its industry, outperforming 41.86% of the companies in the same industry.
The Debt to FCF ratio of TGT is 3.52, which is a good value as it means it would take TGT, 3.52 years of fcf income to pay off all of its debts.
TGT has a better Debt to FCF ratio (3.52) than 79.07% of its industry peers.
A Debt/Equity ratio of 0.99 indicates that TGT is somewhat dependend on debt financing.
The Debt to Equity ratio of TGT (0.99) is worse than 65.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 3.52 | ||
| Altman-Z | 3.16 |
ROIC/WACC1.65
WACC7.9%
2.3 Liquidity
TGT has a Current Ratio of 0.94. 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 has a worse Current ratio (0.94) than 60.47% of its industry peers.
TGT has a Quick Ratio of 0.94. 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 has a worse Quick ratio (0.25) than 76.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.25 |
3. Growth
3.1 Past
TGT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.28%, which is quite impressive.
TGT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.54% yearly.
TGT shows a small growth in Revenue. In the last year, the Revenue has grown by 0.64%.
The Revenue has been growing slightly by 7.35% on average over the past years.
EPS 1Y (TTM)20.28%
EPS 3Y-1.8%
EPS 5Y10.54%
EPS Q2Q%-11.9%
Revenue 1Y (TTM)0.64%
Revenue growth 3Y4.71%
Revenue growth 5Y7.35%
Sales Q2Q%1.06%
3.2 Future
TGT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.12% yearly.
Based on estimates for the next years, TGT will show a small growth in Revenue. The Revenue will grow by 2.76% on average per year.
EPS Next Y-0.77%
EPS Next 2Y3.64%
EPS Next 3Y4.44%
EPS Next 5Y8.12%
Revenue Next Year-1.15%
Revenue Next 2Y0.82%
Revenue Next 3Y1.66%
Revenue Next 5Y2.76%
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
TGT is valuated correctly with a Price/Earnings ratio of 13.94.
Based on the Price/Earnings ratio, TGT is valued a bit cheaper than 72.09% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.73, TGT is valued a bit cheaper.
A Price/Forward Earnings ratio of 13.71 indicates a correct valuation of TGT.
Based on the Price/Forward Earnings ratio, TGT is valued a bit cheaper than 76.74% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TGT to the average of the S&P500 Index (22.83), we can say TGT is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.94 | ||
| Fwd PE | 13.71 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TGT indicates a somewhat cheap valuation: TGT is cheaper than 67.44% of the companies listed in the same industry.
TGT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TGT is cheaper than 86.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.26 | ||
| EV/EBITDA | 8.08 |
4.3 Compensation for Growth
TGT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.32
EPS Next 2Y3.64%
EPS Next 3Y4.44%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.43%, TGT has a reasonable but not impressive dividend return.
TGT's Dividend Yield is rather good when compared to the industry average which is at 2.38. TGT pays more dividend than 95.35% of the companies in the same industry.
TGT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.24.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.43% |
5.2 History
On average, the dividend of TGT grows each year by 11.60%, which is quite nice.
TGT has paid a dividend for at least 10 years, which is a reliable track record.
TGT has decreased its dividend recently.
Dividend Growth(5Y)11.6%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
46.70% 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.
DP46.7%
EPS Next 2Y3.64%
EPS Next 3Y4.44%
TARGET CORP
NYSE:TGT (12/20/2024, 8:04:00 PM)
After market: 131.85 +0.37 (+0.28%)131.48
+1.05 (+0.81%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners82.98%
Inst Owner Change1.03%
Ins Owners0.18%
Ins Owner Change3.65%
Market Cap60.25B
Analysts73.02
Price Target146.29 (11.26%)
Short Float %3.02%
Short Ratio2.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.43% |
Dividend Growth(5Y)11.6%
DP46.7%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.93%
Min EPS beat(2)-20.39%
Max EPS beat(2)16.53%
EPS beat(4)2
Avg EPS beat(4)4.01%
Min EPS beat(4)-20.39%
Max EPS beat(4)22.09%
EPS beat(8)6
Avg EPS beat(8)16.82%
EPS beat(12)7
Avg EPS beat(12)3.46%
EPS beat(16)11
Avg EPS beat(16)7.33%
Revenue beat(2)0
Avg Revenue beat(2)-0.94%
Min Revenue beat(2)-1.86%
Max Revenue beat(2)-0.02%
Revenue beat(4)0
Avg Revenue beat(4)-0.88%
Min Revenue beat(4)-1.86%
Max Revenue beat(4)-0.02%
Revenue beat(8)1
Avg Revenue beat(8)-0.76%
Revenue beat(12)2
Avg Revenue beat(12)-0.66%
Revenue beat(16)5
Avg Revenue beat(16)0.38%
PT rev (1m)-19.08%
PT rev (3m)-19.12%
EPS NQ rev (1m)-25.24%
EPS NQ rev (3m)-25.24%
EPS NY rev (1m)-8.24%
EPS NY rev (3m)-8.16%
Revenue NQ rev (1m)-2.35%
Revenue NQ rev (3m)-2.35%
Revenue NY rev (1m)-0.72%
Revenue NY rev (3m)-0.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.94 | ||
| Fwd PE | 13.71 | ||
| P/S | 0.56 | ||
| P/FCF | 13.26 | ||
| P/OCF | 8.18 | ||
| P/B | 4.16 | ||
| P/tB | 4.16 | ||
| EV/EBITDA | 8.08 |
EPS(TTM)9.43
EY7.17%
EPS(NY)9.59
Fwd EY7.29%
FCF(TTM)9.92
FCFY7.54%
OCF(TTM)16.08
OCFY12.23%
SpS234.76
BVpS31.62
TBVpS31.62
PEG (NY)N/A
PEG (5Y)1.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.47% | ||
| ROE | 30.16% | ||
| ROCE | 16.34% | ||
| ROIC | 13.03% | ||
| ROICexc | 14.37% | ||
| ROICexgc | 14.37% | ||
| OM | 5.58% | ||
| PM (TTM) | 4.06% | ||
| GM | 28.39% | ||
| FCFM | 4.23% |
ROA(3y)8.53%
ROA(5y)8.36%
ROE(3y)36.57%
ROE(5y)33.54%
ROIC(3y)14.84%
ROIC(5y)15.04%
ROICexc(3y)19.57%
ROICexc(5y)22.13%
ROICexgc(3y)20.1%
ROICexgc(5y)22.89%
ROCE(3y)18.62%
ROCE(5y)18.87%
ROICexcg growth 3Y-27.25%
ROICexcg growth 5Y0.99%
ROICexc growth 3Y-26.63%
ROICexc growth 5Y1.17%
OM growth 3Y-9.5%
OM growth 5Y-0.61%
PM growth 3Y-6.2%
PM growth 5Y-0.23%
GM growth 3Y-2.17%
GM growth 5Y-1.15%
F-Score8
Asset Turnover1.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 3.52 | ||
| Debt/EBITDA | 1.6 | ||
| Cap/Depr | 95.86% | ||
| Cap/Sales | 2.62% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 82.33% | ||
| Profit Quality | 104.01% | ||
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.25 | ||
| Altman-Z | 3.16 |
F-Score8
WACC7.9%
ROIC/WACC1.65
Cap/Depr(3y)170.15%
Cap/Depr(5y)146.66%
Cap/Sales(3y)4.29%
Cap/Sales(5y)3.92%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)20.28%
EPS 3Y-1.8%
EPS 5Y10.54%
EPS Q2Q%-11.9%
EPS Next Y-0.77%
EPS Next 2Y3.64%
EPS Next 3Y4.44%
EPS Next 5Y8.12%
Revenue 1Y (TTM)0.64%
Revenue growth 3Y4.71%
Revenue growth 5Y7.35%
Sales Q2Q%1.06%
Revenue Next Year-1.15%
Revenue Next 2Y0.82%
Revenue Next 3Y1.66%
Revenue Next 5Y2.76%
EBIT growth 1Y17.52%
EBIT growth 3Y-5.24%
EBIT growth 5Y6.69%
EBIT Next Year66.33%
EBIT Next 3Y19.36%
EBIT Next 5Y14.56%
FCF growth 1Y351.94%
FCF growth 3Y-21.47%
FCF growth 5Y9.2%
OCF growth 1Y105.78%
OCF growth 3Y-6.44%
OCF growth 5Y7.62%