TARGET CORP (TGT) Stock Fundamental Analysis
NYSE:TGT - US87612E1064 - Common Stock
95.98 USD
-0.83 (-0.86%)
96.15 USD
+0.17 (+0.18%)
TGT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 41 industry peers in the Consumer Staples Distribution & Retail industry. While TGT belongs to the best of the industry regarding profitability, 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.
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 has a Return On Assets of 6.79%. This is in the better half of the industry: TGT outperforms 77.50% of its industry peers.
Looking at the Return On Equity, with a value of 25.47%, TGT is in the better half of the industry, outperforming 77.50% of the companies in the same industry.
TGT's Return On Invested Capital of 12.20% is amongst the best of the industry. TGT outperforms 85.00% 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 8.14%.
The last Return On Invested Capital (12.20%) 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 | 12.2% |
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
With an excellent Profit Margin value of 3.72%, TGT belongs to the best of the industry, outperforming 85.00% 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 (5.73%) than 90.00% of its industry peers.
In the last couple of years the Operating Margin of TGT has declined.
TGT has a Gross Margin of 27.79%. This is in the better half of the industry: TGT outperforms 62.50% of its industry peers.
TGT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.73% | ||
| 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
TGT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
TGT has less shares outstanding than it did 1 year ago.
TGT has less shares outstanding than it did 5 years ago.
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.
The Altman-Z score of TGT (3.00) is worse than 60.00% 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.
The Debt to FCF ratio of TGT (5.59) is comparable to the rest of the industry.
TGT has a Debt/Equity ratio of 0.99. This is a neutral value indicating TGT is somewhat dependend on debt financing.
The Debt to Equity ratio of TGT (0.99) is worse than 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 5.59 | ||
| Altman-Z | 3 |
ROIC/WACC1.67
WACC7.3%
2.3 Liquidity
A Current Ratio of 0.99 indicates that TGT may have some problems paying its short term obligations.
With a Current ratio value of 0.99, TGT is not doing good in the industry: 67.50% of the companies in the same industry are doing better.
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.
TGT has a Quick ratio of 0.32. This is in the lower half of the industry: TGT underperforms 72.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.32 |
3. Growth
3.1 Past
TGT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -21.38%.
The Earnings Per Share has been growing slightly by 6.72% on average over the past years.
Looking at the last year, TGT shows a decrease in Revenue. The Revenue has decreased by -1.55% in the last year.
The Revenue has been growing slightly by 6.41% on average over the past years.
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 3.26% 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 1.72% on average per year.
EPS Next Y-15.72%
EPS Next 2Y-4.3%
EPS Next 3Y-0.69%
EPS Next 5Y3.26%
Revenue Next Year-1.35%
Revenue Next 2Y0.33%
Revenue Next 3Y1.07%
Revenue Next 5Y1.72%
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
The Price/Earnings ratio is 12.61, which indicates a correct valuation of TGT.
Based on the Price/Earnings ratio, TGT is valued a bit cheaper than 80.00% of the companies in the same industry.
TGT's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.08.
Based on the Price/Forward Earnings ratio of 11.83, the valuation of TGT can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TGT indicates a rather cheap valuation: TGT is cheaper than 85.00% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.72. TGT is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.61 | ||
| Fwd PE | 11.83 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TGT is valued a bit cheaper than 77.50% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TGT is valued a bit cheaper than 72.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.81 | ||
| EV/EBITDA | 6.11 |
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)1.88
EPS Next 2Y-4.3%
EPS Next 3Y-0.69%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.71%, TGT is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.93, TGT pays a better dividend. On top of this TGT pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, TGT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.71% |
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
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-4.3%
EPS Next 3Y-0.69%
95.98
-0.83 (-0.86%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners86.74%
Inst Owner Change0.89%
Ins Owners0.22%
Ins Owner Change5.84%
Market Cap43.61B
Analysts66.67
Price Target107.21 (11.7%)
Short Float %3.42%
Short Ratio2.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.71% |
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)0.45%
PT rev (3m)-16.62%
EPS NQ rev (1m)3.96%
EPS NQ rev (3m)-16.08%
EPS NY rev (1m)0.27%
EPS NY rev (3m)-13.26%
Revenue NQ rev (1m)0.57%
Revenue NQ rev (3m)-3.49%
Revenue NY rev (1m)0.39%
Revenue NY rev (3m)-1.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.61 | ||
| Fwd PE | 11.83 | ||
| P/S | 0.41 | ||
| P/FCF | 14.81 | ||
| P/OCF | 6.83 | ||
| P/B | 2.83 | ||
| P/tB | 2.83 | ||
| EV/EBITDA | 6.11 |
EPS(TTM)7.61
EY7.93%
EPS(NY)8.11
Fwd EY8.45%
FCF(TTM)6.48
FCFY6.75%
OCF(TTM)14.05
OCFY14.64%
SpS232.48
BVpS33.93
TBVpS33.93
PEG (NY)N/A
PEG (5Y)1.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.79% | ||
| ROE | 25.47% | ||
| ROCE | 15.66% | ||
| ROIC | 12.2% | ||
| ROICexc | 13.75% | ||
| ROICexgc | 13.75% | ||
| OM | 5.73% | ||
| 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%
ROICexcg growth 3Y-26%
ROICexcg 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 | 1.68 | ||
| Cap/Depr | 111.83% | ||
| Cap/Sales | 3.26% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 69.98% | ||
| Profit Quality | 74.95% | ||
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.32 | ||
| Altman-Z | 3 |
F-Score5
WACC7.3%
ROIC/WACC1.67
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-15.72%
EPS Next 2Y-4.3%
EPS Next 3Y-0.69%
EPS Next 5Y3.26%
Revenue 1Y (TTM)-1.55%
Revenue growth 3Y0.18%
Revenue growth 5Y6.41%
Sales Q2Q%-0.95%
Revenue Next Year-1.35%
Revenue Next 2Y0.33%
Revenue Next 3Y1.07%
Revenue Next 5Y1.72%
EBIT growth 1Y-2.72%
EBIT growth 3Y-14.56%
EBIT growth 5Y3.78%
EBIT Next Year44.26%
EBIT Next 3Y16.29%
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%