TARGET CORP (TGT) Stock Fundamental Analysis
USA - NYSE:TGT - US87612E1064 - Common Stock
91.24 USD
+2.09 (+2.34%)
91.38 USD
+0.14 (+0.15%)
Taking everything into account, TGT scores 5 out of 10 in our fundamental rating. TGT was compared to 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 is valued quite cheap, but it does not seem to be growing. Finally TGT also has an excellent dividend rating.
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.
In the past 5 years TGT always reported a positive cash flow from operatings.
1.2 Ratios
TGT's Return On Assets of 6.79% is fine compared to the rest of the industry. TGT outperforms 76.92% of its industry peers.
TGT's Return On Equity of 25.47% is fine compared to the rest of the industry. TGT outperforms 76.92% of its industry peers.
TGT has a Return On Invested Capital of 13.47%. This is amongst the best in the industry. TGT outperforms 92.31% of its industry peers.
TGT had an Average Return On Invested Capital over the past 3 years of 11.15%. This is above the industry average of 8.75%.
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 Operating Margin of 6.32%. This is amongst the best in the industry. TGT outperforms 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 27.79%, TGT is doing good in the industry, outperforming 61.54% of the companies in the same industry.
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.
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.
TGT's Altman-Z score of 3.00 is on the low side compared to the rest of the industry. TGT is outperformed by 64.10% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 5.59, TGT is in line with its industry, outperforming 53.85% of the companies in the same industry.
TGT has a Debt/Equity ratio of 0.99. This is a neutral value indicating 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
A Current Ratio of 0.99 indicates that TGT may have some problems paying its short term obligations.
TGT has a Current ratio of 0.99. This is in the lower half of the industry: TGT underperforms 74.36% 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.
Looking at the Quick ratio, with a value of 0.32, TGT is doing worse than 71.79% of the companies in the same industry.
| 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.
Looking at the last year, TGT shows a decrease in Revenue. The Revenue has decreased by -1.55% in the last 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
The Earnings Per Share is expected to grow by 3.06% on average over the next years.
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.
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
The Price/Earnings ratio is 11.99, which indicates a very decent 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.
TGT is valuated cheaply when we compare the Price/Earnings ratio to 25.83, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 11.32, the valuation of TGT can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TGT indicates a rather cheap valuation: TGT is cheaper than 84.62% of the companies listed 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 32.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.99 | ||
| Fwd PE | 11.32 |
4.2 Price Multiples
84.62% of the companies in the same industry are more expensive than TGT, based on the Enterprise Value to EBITDA ratio.
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 | 14.08 | ||
| EV/EBITDA | 5.49 |
4.3 Compensation for Growth
The decent profitability rating of TGT may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.78
EPS Next 2Y-4.64%
EPS Next 3Y-1.47%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.11%, TGT is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.01, 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 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.11% |
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
52.14% of the earnings are spent on dividend by TGT. 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%
91.24
+2.09 (+2.34%)
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-3.83%
Ins Owners0.22%
Ins Owner Change-0.44%
Market Cap41.46B
Revenue(TTM)105.64B
Net Income(TTM)3.93B
Analysts65.78
Price Target105.2 (15.3%)
Short Float %4.58%
Short Ratio2.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.11% |
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 | 11.99 | ||
| Fwd PE | 11.32 | ||
| P/S | 0.39 | ||
| P/FCF | 14.08 | ||
| P/OCF | 6.49 | ||
| P/B | 2.69 | ||
| P/tB | 2.69 | ||
| EV/EBITDA | 5.49 |
EPS(TTM)7.61
EY8.34%
EPS(NY)8.06
Fwd EY8.83%
FCF(TTM)6.48
FCFY7.1%
OCF(TTM)14.05
OCFY15.4%
SpS232.48
BVpS33.93
TBVpS33.93
PEG (NY)N/A
PEG (5Y)1.78
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 11.99 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.