TARGET CORP (TGT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TGT - US87612E1064 - Common Stock
99.55 USD
+3.02 (+3.13%)
99.5192 USD
-0.03 (-0.03%)
We assign a fundamental rating of 5 out of 10 to TGT. TGT was compared to 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.
Each year in the past 5 years TGT has been profitable.
TGT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TGT's Return On Assets of 6.27% is fine compared to the rest of the industry. TGT outperforms 65.79% of its industry peers.
With a decent Return On Equity value of 24.28%, TGT is doing good in the industry, outperforming 76.32% of the companies in the same industry.
With an excellent Return On Invested Capital value of 12.98%, TGT belongs to the best of the industry, outperforming 89.47% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TGT 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
Looking at the Profit Margin, with a value of 3.58%, TGT belongs to the top of the industry, outperforming 84.21% of the companies in the same industry.
TGT's Profit Margin has declined in the last couple of years.
TGT has a better Operating Margin (6.13%) than 86.84% of its industry peers.
TGT's Operating Margin has declined in the last couple of years.
TGT has a better Gross Margin (27.74%) than 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TGT is creating some value.
The number of shares outstanding for TGT has been reduced compared to 1 year ago.
The number of shares outstanding for TGT has been reduced compared to 5 years ago.
TGT has a better debt/assets ratio than last year.
2.2 Solvency
TGT has an Altman-Z score of 2.91. 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.
With a Altman-Z score value of 2.91, TGT is not doing good in the industry: 63.16% of the companies in the same industry are doing better.
TGT has a debt to FCF ratio of 5.48. This is a neutral value as TGT would need 5.48 years to pay back of all of its debts.
TGT has a Debt to FCF ratio (5.48) which is in line with 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's Debt to Equity ratio of 0.99 is on the low side compared to the rest of the industry. TGT is outperformed by 65.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 5.48 | ||
| Altman-Z | 2.91 |
ROIC/WACC1.79
WACC7.27%
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.
Looking at the Quick ratio, with a value of 0.27, TGT is doing worse than 76.32% of the companies in the same industry.
| 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.
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.
TGT shows a decrease in Revenue. In the last year, the revenue decreased by -2.16%.
TGT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.41% yearly.
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.
Based on estimates for the next years, TGT will show a small growth in Revenue. The Revenue will grow by 1.93% on average per year.
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
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 13.20 indicates a correct valuation of TGT.
Based on the Price/Earnings ratio, TGT is valued cheaply inside the industry as 84.21% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of TGT to the average of the S&P500 Index (26.92), we can say TGT is valued rather cheaply.
TGT is valuated correctly with a Price/Forward Earnings ratio of 12.70.
Based on the Price/Forward Earnings ratio, TGT is valued a bit cheaper than 73.68% of the companies in the same industry.
TGT is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.2 | ||
| Fwd PE | 12.7 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TGT is valued cheaply inside the industry as 84.21% of the companies are valued more expensively.
TGT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TGT is cheaper than 71.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.98 | ||
| EV/EBITDA | 6.05 |
4.3 Compensation for Growth
TGT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.96
EPS Next 2Y-5.93%
EPS Next 3Y-1.77%
5. Dividend
5.1 Amount
TGT has a Yearly Dividend Yield of 4.72%, which is a nice return.
TGT's Dividend Yield is rather good when compared to the industry average which is at 0.78. TGT pays more dividend than 100.00% of the companies in the same industry.
TGT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.72% |
5.2 History
The dividend of TGT is nicely growing with an annual growth rate of 11.38%!
TGT has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of TGT decreased 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.
The dividend of TGT is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP54.48%
EPS Next 2Y-5.93%
EPS Next 3Y-1.77%
99.55
+3.02 (+3.13%)
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-2.04%
Ins Owners0.22%
Ins Owner Change-0.38%
Market Cap45.08B
Revenue(TTM)105.24B
Net Income(TTM)3.76B
Analysts65.91
Price Target100.9 (1.36%)
Short Float %4.35%
Short Ratio2.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.72% |
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)-3.85%
PT rev (3m)-6.19%
EPS NQ rev (1m)-0.29%
EPS NQ rev (3m)-3.17%
EPS NY rev (1m)-1.33%
EPS NY rev (3m)-0.92%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-0.63%
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)-0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.2 | ||
| Fwd PE | 12.7 | ||
| P/S | 0.43 | ||
| P/FCF | 14.98 | ||
| P/OCF | 6.65 | ||
| P/B | 2.91 | ||
| P/tB | 2.91 | ||
| EV/EBITDA | 6.05 |
EPS(TTM)7.54
EY7.57%
EPS(NY)7.84
Fwd EY7.88%
FCF(TTM)6.65
FCFY6.68%
OCF(TTM)14.96
OCFY15.03%
SpS232.42
BVpS34.23
TBVpS34.23
PEG (NY)N/A
PEG (5Y)1.96
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 | 2.91 |
F-Score5
WACC7.27%
ROIC/WACC1.79
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.
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 13.2 and the Price/Book (PB) ratio is 2.91.
How financially healthy is TARGET CORP?
The financial health rating of TARGET CORP (TGT) is 3 / 10.