TARGET CORP (TGT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TGT - US87612E1064 - Common Stock
92.19 USD
+0.6 (+0.66%)
92.251 USD
+0.06 (+0.07%)
TGT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 39 industry peers in the Consumer Staples Distribution & Retail industry. TGT has an excellent profitability rating, but there are concerns on its financial health. TGT has a valuation in line with the averages, but on the other hand it scores bad on growth. 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.
In the past 5 years TGT has always 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 (6.27%) than 66.67% of its industry peers.
TGT has a better Return On Equity (24.28%) than 76.92% of its industry peers.
TGT's Return On Invested Capital of 12.98% is amongst the best of the industry. TGT outperforms 89.74% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TGT is above the industry average of 8.81%.
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
The Profit Margin of TGT (3.58%) is better than 87.18% of its industry peers.
TGT's Profit Margin has declined in the last couple of years.
The Operating Margin of TGT (6.13%) is better than 89.74% of its industry peers.
In the last couple of years the Operating Margin of TGT has declined.
With a decent Gross Margin value of 27.74%, TGT is doing good in the industry, outperforming 64.10% 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 | 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
TGT has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for TGT has been reduced compared to 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 2.86. 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.
TGT has a worse Altman-Z score (2.86) than 61.54% 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 48.72% of its industry peers.
A Debt/Equity ratio of 0.99 indicates that TGT is somewhat dependend on debt financing.
TGT has a worse Debt to Equity ratio (0.99) than 64.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 5.48 | ||
| Altman-Z | 2.86 |
ROIC/WACC1.81
WACC7.18%
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: 71.79% of the companies in the same industry are doing better.
TGT has a Quick 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.
TGT has a Quick ratio of 0.27. This is in the lower half of the industry: TGT underperforms 71.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.27 |
3. Growth
3.1 Past
TGT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -20.04%.
Measured over the past 5 years, TGT shows a small growth in Earnings Per Share. The EPS has been growing by 6.72% on average per year.
Looking at the last year, TGT shows a decrease in Revenue. The Revenue has decreased by -2.16% in the last 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
Based on estimates for the next years, TGT will show a small growth in Earnings Per Share. The EPS will grow by 2.78% on average per year.
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-15.63%
EPS Next 2Y-4.64%
EPS Next 3Y-2.27%
EPS Next 5Y2.78%
Revenue Next Year-1.28%
Revenue Next 2Y0.28%
Revenue Next 3Y1%
Revenue Next 5Y1.93%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 12.23 indicates a correct valuation of TGT.
TGT's Price/Earnings ratio is rather cheap when compared to the industry. TGT is cheaper than 84.62% of the companies in the same industry.
When comparing the Price/Earnings ratio of TGT to the average of the S&P500 Index (26.46), we can say TGT is valued rather cheaply.
The Price/Forward Earnings ratio is 11.44, which indicates a very decent valuation of TGT.
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.
When comparing the Price/Forward Earnings ratio of TGT to the average of the S&P500 Index (36.10), we can say TGT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.23 | ||
| Fwd PE | 11.44 |
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.
TGT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TGT is cheaper than 74.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.87 | ||
| EV/EBITDA | 5.67 |
4.3 Compensation for Growth
The decent profitability rating of TGT may justify a higher PE ratio.
A cheap valuation may be justified as TGT's earnings are expected to decrease with -2.27% in the coming years.
PEG (NY)N/A
PEG (5Y)1.82
EPS Next 2Y-4.64%
EPS Next 3Y-2.27%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.98%, TGT is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.99, 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 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.98% |
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
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-4.64%
EPS Next 3Y-2.27%
92.19
+0.6 (+0.66%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners85%
Inst Owner Change-2.11%
Ins Owners0.22%
Ins Owner Change-0.48%
Market Cap41.74B
Revenue(TTM)105.24B
Net Income(TTM)3.76B
Analysts65.91
Price Target100.8 (9.34%)
Short Float %25.92%
Short Ratio2.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.98% |
Yearly Dividend4.46
Dividend Growth(5Y)11.38%
DP54.48%
Div Incr Years1
Div Non Decr Years1
Ex-Date
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)-0.96%
PT rev (3m)-2.12%
EPS NQ rev (1m)-2.67%
EPS NQ rev (3m)-2.68%
EPS NY rev (1m)0.01%
EPS NY rev (3m)0.11%
Revenue NQ rev (1m)-0.52%
Revenue NQ rev (3m)-0.64%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.23 | ||
| Fwd PE | 11.44 | ||
| P/S | 0.4 | ||
| P/FCF | 13.87 | ||
| P/OCF | 6.16 | ||
| P/B | 2.69 | ||
| P/tB | 2.69 | ||
| EV/EBITDA | 5.67 |
EPS(TTM)7.54
EY8.18%
EPS(NY)8.06
Fwd EY8.74%
FCF(TTM)6.65
FCFY7.21%
OCF(TTM)14.96
OCFY16.23%
SpS232.42
BVpS34.23
TBVpS34.23
PEG (NY)N/A
PEG (5Y)1.82
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 | 2.86 |
F-Score5
WACC7.18%
ROIC/WACC1.81
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-15.63%
EPS Next 2Y-4.64%
EPS Next 3Y-2.27%
EPS Next 5Y2.78%
Revenue 1Y (TTM)-2.16%
Revenue growth 3Y0.18%
Revenue growth 5Y6.41%
Sales Q2Q%-1.55%
Revenue Next Year-1.28%
Revenue Next 2Y0.28%
Revenue Next 3Y1%
Revenue Next 5Y1.93%
EBIT growth 1Y7.49%
EBIT growth 3Y-14.56%
EBIT growth 5Y3.78%
EBIT Next Year43.09%
EBIT Next 3Y14.79%
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.
Can you provide the valuation status for TARGET CORP?
ChartMill assigns a valuation rating of 6 / 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 valuation of TARGET CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for TARGET CORP (TGT) is 12.23 and the Price/Book (PB) ratio is 2.69.
How financially healthy is TARGET CORP?
The financial health rating of TARGET CORP (TGT) is 3 / 10.