TARGET CORP (1TGT.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1TGT - US87612E1064 - Common Stock
91.02 EUR
+16.36 (+21.91%)
We assign a fundamental rating of 5 out of 10 to 1TGT. 1TGT was compared to 27 industry peers in the Consumer Staples Distribution & Retail industry. 1TGT has an excellent profitability rating, but 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
- In the past year 1TGT was profitable.
- In the past year 1TGT had a positive cash flow from operations.
- In the past 5 years 1TGT has always been profitable.
- 1TGT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a decent Return On Assets value of 6.27%, 1TGT is doing good in the industry, outperforming 74.07% of the companies in the same industry.
- 1TGT's Return On Equity of 24.28% is amongst the best of the industry. 1TGT outperforms 88.89% of its industry peers.
- 1TGT has a better Return On Invested Capital (12.98%) than 85.19% of its industry peers.
- 1TGT had an Average Return On Invested Capital over the past 3 years of 11.15%. This is in line with the industry average of 9.71%.
- The last Return On Invested Capital (12.98%) for 1TGT 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
- 1TGT has a Profit Margin of 3.58%. This is amongst the best in the industry. 1TGT outperforms 92.59% of its industry peers.
- In the last couple of years the Profit Margin of 1TGT has declined.
- With an excellent Operating Margin value of 6.13%, 1TGT belongs to the best of the industry, outperforming 88.89% 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 27.74%. This is in the better half of the industry: 1TGT outperforms 66.67% of its industry peers.
- 1TGT'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), 1TGT is creating some value.
- The number of shares outstanding for 1TGT has been reduced compared to 1 year ago.
- The number of shares outstanding for 1TGT has been reduced compared to 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 2.95 indicates that 1TGT is not a great score, but indicates only limited risk for bankruptcy at the moment.
- The Altman-Z score of 1TGT (2.95) is comparable to the rest of the industry.
- The Debt to FCF ratio of 1TGT is 5.48, which is a neutral value as it means it would take 1TGT, 5.48 years of fcf income to pay off all of its debts.
- 1TGT has a Debt to FCF ratio (5.48) which is in line with its industry peers.
- 1TGT has a Debt/Equity ratio of 0.99. This is a neutral value indicating 1TGT is somewhat dependend on debt financing.
- 1TGT has a Debt to Equity ratio of 0.99. This is comparable to the rest of the industry: 1TGT outperforms 51.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 5.48 | ||
| Altman-Z | 2.95 |
ROIC/WACC1.79
WACC7.25%
2.3 Liquidity
- 1TGT has a Current Ratio of 0.97. This is a bad value and indicates that 1TGT is not financially healthy enough and could expect problems in meeting its short term obligations.
- 1TGT has a better Current ratio (0.97) than 62.96% of its industry peers.
- 1TGT has a Quick Ratio of 0.97. This is a bad value and indicates that 1TGT is not financially healthy enough and could expect problems in meeting its short term obligations.
- 1TGT's Quick ratio of 0.27 is on the low side compared to the rest of the industry. 1TGT is outperformed by 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.27 |
3. Growth
3.1 Past
- 1TGT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -20.04%.
- 1TGT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.72% yearly.
- The Revenue has decreased by -2.16% in the past year.
- 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)-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, 1TGT will show a small growth in Revenue. The Revenue will grow by 1.93% on average per year.
EPS Next Y-16.73%
EPS Next 2Y-6.06%
EPS Next 3Y-1.77%
EPS Next 5Y2.78%
Revenue Next Year-1.56%
Revenue Next 2Y0.09%
Revenue Next 3Y0.99%
Revenue Next 5Y1.93%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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
- The Price/Earnings ratio is 14.13, which indicates a correct valuation of 1TGT.
- 1TGT's Price/Earnings ratio is in line with the industry average.
- When comparing the Price/Earnings ratio of 1TGT to the average of the S&P500 Index (27.21), we can say 1TGT is valued slightly cheaper.
- The Price/Forward Earnings ratio is 13.63, which indicates a correct valuation of 1TGT.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of 1TGT is on the same level as its industry peers.
- 1TGT is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.13 | ||
| Fwd PE | 13.63 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1TGT indicates a somewhat cheap valuation: 1TGT is cheaper than 77.78% of the companies listed in the same industry.
- 1TGT's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.03 | ||
| EV/EBITDA | 6.38 |
4.3 Compensation for Growth
- 1TGT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.1
EPS Next 2Y-6.06%
EPS Next 3Y-1.77%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.98%, 1TGT is a good candidate for dividend investing.
- 1TGT's Dividend Yield is rather good when compared to the industry average which is at 2.88. 1TGT pays more dividend than 81.48% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, 1TGT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.98% |
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 54.48% 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.
DP54.48%
EPS Next 2Y-6.06%
EPS Next 3Y-1.77%
TARGET CORP / 1TGT.MI FAQ
What is the ChartMill fundamental rating of TARGET CORP (1TGT.MI) stock?
ChartMill assigns a fundamental rating of 5 / 10 to 1TGT.MI.
What is the valuation status for 1TGT stock?
ChartMill assigns a valuation rating of 4 / 10 to TARGET CORP (1TGT.MI). This can be considered as Fairly Valued.
What is the profitability of 1TGT stock?
TARGET CORP (1TGT.MI) has a profitability rating of 7 / 10.
What is the earnings growth outlook for TARGET CORP?
The Earnings per Share (EPS) of TARGET CORP (1TGT.MI) is expected to decline by -16.73% in the next year.
Can you provide the dividend sustainability for 1TGT stock?
The dividend rating of TARGET CORP (1TGT.MI) is 7 / 10 and the dividend payout ratio is 54.48%.