TARGET CORP (TGT) Stock Fundamental Analysis
USA - NYSE:TGT - US87612E1064 - Common Stock
91.53 USD
+0.69 (+0.76%)
91.7 USD
+0.17 (+0.19%)
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 belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. TGT is valued correctly, but it does not seem to be growing. Finally 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.
TGT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of TGT (6.79%) is better than 74.36% of its industry peers.
With a decent Return On Equity value of 25.47%, TGT is doing good in the industry, outperforming 76.92% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 13.47%, TGT belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TGT is above the industry average of 8.71%.
The last Return On Invested Capital (13.47%) for TGT is above the 3 year average (11.15%), which is a sign of increasing profitability.
| 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 has a Profit Margin of 3.72%. This is amongst the best in the industry. TGT outperforms 87.18% of its industry peers.
TGT's Profit Margin has declined in the last couple of years.
TGT has a better Operating Margin (6.32%) than 89.74% of its industry peers.
In the last couple of years the Operating Margin of TGT has declined.
TGT has a better Gross Margin (27.79%) 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.
Compared to 1 year ago, TGT has less shares outstanding
Compared to 5 years ago, TGT has less shares outstanding
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.
With a Altman-Z score value of 3.00, TGT is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
The Debt to FCF ratio of TGT is 5.59, which is a neutral value as it means it would take TGT, 5.59 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of TGT (5.59) is comparable to the rest of the industry.
TGT has a Debt/Equity ratio of 0.99. This is a neutral value indicating TGT is somewhat dependend on debt financing.
The Debt to Equity ratio of TGT (0.99) is worse than 64.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 5.59 | ||
| Altman-Z | 3 |
ROIC/WACC1.9
WACC7.09%
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.
TGT's Current ratio of 0.99 is on the low side compared to the rest of the industry. TGT is outperformed by 71.79% of its industry peers.
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
The earnings per share for TGT have decreased strongly by -21.38% in the last year.
TGT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.72% yearly.
TGT shows a decrease in Revenue. In the last year, the revenue decreased by -1.55%.
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 3.40% on average per year.
Based on estimates for the next years, TGT will show a small growth in Revenue. The Revenue will grow by 1.86% on average per year.
EPS Next Y-15.98%
EPS Next 2Y-4.51%
EPS Next 3Y-1.32%
EPS Next 5Y3.4%
Revenue Next Year-1.26%
Revenue Next 2Y0.33%
Revenue Next 3Y1.05%
Revenue Next 5Y1.86%
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
A Price/Earnings ratio of 12.03 indicates a correct valuation of TGT.
TGT's Price/Earnings ratio is rather cheap when compared to the industry. TGT is cheaper than 82.05% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.69. TGT is valued rather cheaply when compared to this.
TGT is valuated reasonably with a Price/Forward Earnings ratio of 11.33.
TGT's Price/Forward Earnings ratio is rather cheap when compared to the industry. TGT is cheaper than 84.62% of the companies in the same industry.
TGT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.18.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.03 | ||
| Fwd PE | 11.33 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TGT is valued cheaply inside the industry as 84.62% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, TGT is valued a bit cheaper than 74.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.13 | ||
| EV/EBITDA | 5.51 |
4.3 Compensation for Growth
The decent profitability rating of TGT may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.79
EPS Next 2Y-4.51%
EPS Next 3Y-1.32%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.06%, TGT is a good candidate for dividend investing.
TGT's Dividend Yield is rather good when compared to the industry average which is at 1.94. TGT pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, TGT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.06% |
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
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-4.51%
EPS Next 3Y-1.32%
91.53
+0.69 (+0.76%)
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-1.78%
Ins Owners0.22%
Ins Owner Change-0.44%
Market Cap41.59B
Analysts65.12
Price Target105.96 (15.77%)
Short Float %3.7%
Short Ratio2.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.06% |
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)-1.48%
PT rev (3m)-0.73%
EPS NQ rev (1m)-1.04%
EPS NQ rev (3m)2.57%
EPS NY rev (1m)-0.3%
EPS NY rev (3m)-0.03%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)0.4%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)0.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.03 | ||
| Fwd PE | 11.33 | ||
| P/S | 0.39 | ||
| P/FCF | 14.13 | ||
| P/OCF | 6.51 | ||
| P/B | 2.7 | ||
| P/tB | 2.7 | ||
| EV/EBITDA | 5.51 |
EPS(TTM)7.61
EY8.31%
EPS(NY)8.08
Fwd EY8.83%
FCF(TTM)6.48
FCFY7.08%
OCF(TTM)14.05
OCFY15.35%
SpS232.48
BVpS33.93
TBVpS33.93
PEG (NY)N/A
PEG (5Y)1.79
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%
ROICexcg growth 3Y-26%
ROICexcg 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
WACC7.09%
ROIC/WACC1.9
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-15.98%
EPS Next 2Y-4.51%
EPS Next 3Y-1.32%
EPS Next 5Y3.4%
Revenue 1Y (TTM)-1.55%
Revenue growth 3Y0.18%
Revenue growth 5Y6.41%
Sales Q2Q%-0.95%
Revenue Next Year-1.26%
Revenue Next 2Y0.33%
Revenue Next 3Y1.05%
Revenue Next 5Y1.86%
EBIT growth 1Y7.37%
EBIT growth 3Y-14.56%
EBIT growth 5Y3.78%
EBIT Next Year43.09%
EBIT Next 3Y15.7%
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%