TARGET CORP (1TGT.MI) Stock Fundamental Analysis
BIT:1TGT - Euronext Milan - US87612E1064 - Common Stock - Currency: EUR
Overall 1TGT gets a fundamental rating of 5 out of 10. We evaluated 1TGT against 24 industry peers in the Consumer Staples Distribution & Retail industry. While 1TGT has a great profitability rating, there are some minor concerns on its financial health. 1TGT has a valuation in line with the averages, but it does not seem to be growing. 1TGT also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
1TGT had positive earnings in the past year.
In the past year 1TGT had a positive cash flow from operations.
1TGT had positive earnings in each of the past 5 years.
1TGT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1TGT's Return On Assets of 7.45% is amongst the best of the industry. 1TGT outperforms 88.46% of its industry peers.
1TGT's Return On Equity of 28.00% is amongst the best of the industry. 1TGT outperforms 84.62% of its industry peers.
With a decent Return On Invested Capital value of 12.17%, 1TGT is doing good in the industry, outperforming 76.92% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for 1TGT is in line with the industry average of 9.41%.
The 3 year average ROIC (11.15%) for 1TGT is below the current ROIC(12.17%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.45% | ||
| ROE | 28% | ||
| ROIC | 12.17% |
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
1TGT has a Profit Margin of 3.95%. This is amongst the best in the industry. 1TGT outperforms 96.15% of its industry peers.
1TGT's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 5.49%, 1TGT belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
1TGT's Operating Margin has declined in the last couple of years.
1TGT has a Gross Margin of 28.05%. This is in the better half of the industry: 1TGT outperforms 73.08% of its industry peers.
1TGT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.49% | ||
| PM (TTM) | 3.95% | ||
| GM | 28.05% |
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) below the Cost of Capital (WACC), 1TGT is destroying value.
Compared to 1 year ago, 1TGT has less shares outstanding
1TGT has less shares outstanding than it did 5 years ago.
The debt/assets ratio for 1TGT has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.06 indicates that 1TGT is not in any danger for bankruptcy at the moment.
1TGT has a Altman-Z score (3.06) which is comparable to the rest of the industry.
The Debt to FCF ratio of 1TGT is 4.38, which is a neutral value as it means it would take 1TGT, 4.38 years of fcf income to pay off all of its debts.
1TGT has a Debt to FCF ratio of 4.38. This is in the better half of the industry: 1TGT outperforms 69.23% of its industry peers.
A Debt/Equity ratio of 0.96 indicates that 1TGT is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.96, 1TGT is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | 4.38 | ||
| Altman-Z | 3.06 |
ROIC/WACC0.97
WACC12.59%
2.3 Liquidity
1TGT has a Current Ratio of 0.94. This is a bad value and indicates that 1TGT is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.94, 1TGT is in line with its industry, outperforming 53.85% of the companies in the same industry.
A Quick Ratio of 0.25 indicates that 1TGT may have some problems paying its short term obligations.
1TGT has a worse Quick ratio (0.25) than 88.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.25 |
3. Growth
3.1 Past
The earnings per share for 1TGT have decreased by -8.75% in the last year.
1TGT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.72% yearly.
1TGT shows a decrease in Revenue. In the last year, the revenue decreased by -0.69%.
Measured over the past years, 1TGT shows a small growth in Revenue. The Revenue has been growing by 6.41% on average per year.
EPS 1Y (TTM)-8.75%
EPS 3Y-13.2%
EPS 5Y6.72%
EPS Q2Q%-35.96%
Revenue 1Y (TTM)-0.69%
Revenue growth 3Y0.18%
Revenue growth 5Y6.41%
Sales Q2Q%-2.79%
3.2 Future
The Earnings Per Share is expected to grow by 8.26% on average over the next years. This is quite good.
Based on estimates for the next years, 1TGT will show a small growth in Revenue. The Revenue will grow by 2.70% on average per year.
EPS Next Y-2.85%
EPS Next 2Y2.1%
EPS Next 3Y5.08%
EPS Next 5Y8.26%
Revenue Next Year0.59%
Revenue Next 2Y1.62%
Revenue Next 3Y2%
Revenue Next 5Y2.7%
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 accelerating.
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
Based on the Price/Earnings ratio of 12.16, the valuation of 1TGT can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of 1TGT indicates a somewhat cheap valuation: 1TGT is cheaper than 73.08% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.43, 1TGT is valued rather cheaply.
A Price/Forward Earnings ratio of 10.70 indicates a reasonable valuation of 1TGT.
73.08% of the companies in the same industry are more expensive than 1TGT, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of 1TGT to the average of the S&P500 Index (22.17), we can say 1TGT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.16 | ||
| Fwd PE | 10.7 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1TGT is valued a bit cheaper than 73.08% of the companies in the same industry.
65.38% of the companies in the same industry are more expensive than 1TGT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.71 | ||
| EV/EBITDA | 6.49 |
4.3 Compensation for Growth
The decent profitability rating of 1TGT may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.81
EPS Next 2Y2.1%
EPS Next 3Y5.08%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.72%, 1TGT is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.78, 1TGT pays a bit more dividend than its industry peers.
1TGT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.72% |
5.2 History
The dividend of 1TGT is nicely growing with an annual growth rate of 11.38%!
Dividend Growth(5Y)11.38%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1TGT pays out 48.94% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of 1TGT is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP48.94%
EPS Next 2Y2.1%
EPS Next 3Y5.08%
BIT:1TGT (5/19/2025, 7:00:00 PM)
87.18
+4.76 (+5.78%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners83.33%
Inst Owner ChangeN/A
Ins Owners0.18%
Ins Owner ChangeN/A
Market Cap39.61B
Analysts69.55
Price Target115.65 (32.66%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.72% |
Yearly Dividend3.93
Dividend Growth(5Y)11.38%
DP48.94%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-7.34%
Min EPS beat(2)-19.93%
Max EPS beat(2)5.26%
EPS beat(4)2
Avg EPS beat(4)-4.63%
Min EPS beat(4)-20.39%
Max EPS beat(4)16.53%
EPS beat(8)5
Avg EPS beat(8)8.85%
EPS beat(12)7
Avg EPS beat(12)3.79%
EPS beat(16)10
Avg EPS beat(16)2.25%
Revenue beat(2)0
Avg Revenue beat(2)-1.74%
Min Revenue beat(2)-2.72%
Max Revenue beat(2)-0.76%
Revenue beat(4)0
Avg Revenue beat(4)-1.34%
Min Revenue beat(4)-2.72%
Max Revenue beat(4)-0.02%
Revenue beat(8)0
Avg Revenue beat(8)-1.23%
Revenue beat(12)1
Avg Revenue beat(12)-0.91%
Revenue beat(16)3
Avg Revenue beat(16)-0.59%
PT rev (1m)-8.79%
PT rev (3m)-17.19%
EPS NQ rev (1m)-15.86%
EPS NQ rev (3m)-18.57%
EPS NY rev (1m)-3.68%
EPS NY rev (3m)-7.77%
Revenue NQ rev (1m)-2.69%
Revenue NQ rev (3m)-3.78%
Revenue NY rev (1m)-0.49%
Revenue NY rev (3m)-1.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.16 | ||
| Fwd PE | 10.7 | ||
| P/S | 0.42 | ||
| P/FCF | 12.71 | ||
| P/OCF | 6.87 | ||
| P/B | 3 | ||
| P/tB | 3 | ||
| EV/EBITDA | 6.49 |
EPS(TTM)7.17
EY8.22%
EPS(NY)8.15
Fwd EY9.34%
FCF(TTM)6.86
FCFY7.87%
OCF(TTM)12.7
OCFY14.56%
SpS205.51
BVpS29.01
TBVpS29.01
PEG (NY)N/A
PEG (5Y)1.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.45% | ||
| ROE | 28% | ||
| ROCE | 15.62% | ||
| ROIC | 12.17% | ||
| ROICexc | 13.2% | ||
| ROICexgc | 13.2% | ||
| OM | 5.49% | ||
| PM (TTM) | 3.95% | ||
| GM | 28.05% | ||
| FCFM | 3.34% |
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)12.44%
ROICexc(5y)19.96%
ROICexgc(3y)12.69%
ROICexgc(5y)20.58%
ROCE(3y)14.31%
ROCE(5y)18.61%
ROICexcg growth 3Y-20.44%
ROICexcg growth 5Y-2.41%
ROICexc growth 3Y-20.29%
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 Turnover1.88
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | 4.38 | ||
| Debt/EBITDA | 1.62 | ||
| Cap/Depr | 98.59% | ||
| Cap/Sales | 2.84% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.83% | ||
| Profit Quality | 84.44% | ||
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.25 | ||
| Altman-Z | 3.06 |
F-Score5
WACC12.59%
ROIC/WACC0.97
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)-8.75%
EPS 3Y-13.2%
EPS 5Y6.72%
EPS Q2Q%-35.96%
EPS Next Y-2.85%
EPS Next 2Y2.1%
EPS Next 3Y5.08%
EPS Next 5Y8.26%
Revenue 1Y (TTM)-0.69%
Revenue growth 3Y0.18%
Revenue growth 5Y6.41%
Sales Q2Q%-2.79%
Revenue Next Year0.59%
Revenue Next 2Y1.62%
Revenue Next 3Y2%
Revenue Next 5Y2.7%
EBIT growth 1Y0.57%
EBIT growth 3Y-14.56%
EBIT growth 5Y3.78%
EBIT Next Year45.77%
EBIT Next 3Y16.99%
EBIT Next 5Y17.69%
FCF growth 1Y612.5%
FCF growth 3Y-4.14%
FCF growth 5Y1.82%
OCF growth 1Y-2.04%
OCF growth 3Y-5.12%
OCF growth 5Y0.69%