TARGET CORP (TGT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TGT - US87612E1064 - Common Stock
87.62 USD
+3.94 (+4.71%)
87.64 USD
+0.02 (+0.02%)
Overall TGT gets a fundamental rating of 5 out of 10. We evaluated TGT against 39 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 is cheap, but on the other hand it scores bad on growth. 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.
Each year in the past 5 years TGT had a positive operating cash flow.
1.2 Ratios
TGT has a Return On Assets of 6.27%. This is in the better half of the industry: TGT outperforms 69.23% of its industry peers.
TGT has a Return On Equity of 24.28%. This is in the better half of the industry: TGT outperforms 76.92% of its industry peers.
TGT has a Return On Invested Capital of 12.98%. This is amongst the best in the industry. TGT outperforms 92.31% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TGT is above the industry average of 8.70%.
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
With an excellent Profit Margin value of 3.58%, TGT belongs to the best of the industry, outperforming 87.18% of the companies in the same industry.
TGT's Profit Margin has declined in the last couple of years.
TGT has a Operating Margin of 6.13%. 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.
Looking at the Gross Margin, with a value of 27.74%, TGT is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
In the last couple of years the Gross Margin of TGT has remained more or less at the same level.
| 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
TGT has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating 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.
The debt/assets ratio for TGT has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.82 indicates that TGT is not a great score, but indicates only limited risk for bankruptcy at the moment.
TGT has a worse Altman-Z score (2.82) than 64.10% of its industry peers.
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's Debt to FCF ratio of 5.48 is in line compared to the rest of the industry. TGT outperforms 53.85% of 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 64.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 5.48 | ||
| Altman-Z | 2.82 |
ROIC/WACC1.84
WACC7.07%
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.
TGT has a Current ratio of 0.97. This is in the lower half of the industry: TGT underperforms 71.79% of its industry peers.
TGT has a Quick 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.
TGT's Quick ratio of 0.27 is on the low side compared to the rest of the industry. TGT is outperformed by 71.79% of its industry peers.
| 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.
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 -2.16% 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)-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
TGT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.06% yearly.
Based on estimates for the next years, TGT will show a small growth in Revenue. The Revenue will grow by 1.97% on average per year.
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
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 11.62, 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 84.62% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.45, TGT is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.87, the valuation of TGT can be described as reasonable.
TGT's Price/Forward Earnings ratio is rather cheap when compared to the industry. TGT is cheaper than 84.62% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.46. TGT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.62 | ||
| Fwd PE | 10.87 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TGT is valued cheaply inside the industry as 87.18% 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 76.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.23 | ||
| EV/EBITDA | 5.31 |
4.3 Compensation for Growth
The decent profitability rating of TGT may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.73
EPS Next 2Y-4.64%
EPS Next 3Y-1.47%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.45%, TGT is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.04, 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 2.45, TGT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.45% |
5.2 History
On average, the dividend of TGT grows each year by 11.38%, which is quite nice.
TGT has paid a dividend for at least 10 years, which is 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
54.48% of the earnings are spent on dividend by TGT. This is a bit on the high side, but may be sustainable.
TGT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP54.48%
EPS Next 2Y-4.64%
EPS Next 3Y-1.47%
87.62
+3.94 (+4.71%)
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-2.24%
Ins Owners0.22%
Ins Owner Change-0.68%
Market Cap39.81B
Revenue(TTM)105.24B
Net Income(TTM)3.76B
Analysts65.78
Price Target104.94 (19.77%)
Short Float %3.94%
Short Ratio2.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.45% |
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)1.13%
Min EPS beat(2)-0.01%
Max EPS beat(2)2.27%
EPS beat(4)2
Avg EPS beat(4)-3.1%
Min EPS beat(4)-19.93%
Max EPS beat(4)5.26%
EPS beat(8)4
Avg EPS beat(8)0.45%
EPS beat(12)8
Avg EPS beat(12)10.18%
EPS beat(16)9
Avg EPS beat(16)1.82%
Revenue beat(2)1
Avg Revenue beat(2)-0.58%
Min Revenue beat(2)-1.27%
Max Revenue beat(2)0.11%
Revenue beat(4)1
Avg Revenue beat(4)-1.16%
Min Revenue beat(4)-2.72%
Max Revenue beat(4)0.11%
Revenue beat(8)1
Avg Revenue beat(8)-1.02%
Revenue beat(12)2
Avg Revenue beat(12)-0.89%
Revenue beat(16)3
Avg Revenue beat(16)-0.78%
PT rev (1m)-0.71%
PT rev (3m)-1.44%
EPS NQ rev (1m)-1.25%
EPS NQ rev (3m)1.14%
EPS NY rev (1m)0.41%
EPS NY rev (3m)0.38%
Revenue NQ rev (1m)-0.23%
Revenue NQ rev (3m)0.15%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.62 | ||
| Fwd PE | 10.87 | ||
| P/S | 0.38 | ||
| P/FCF | 13.23 | ||
| P/OCF | 5.88 | ||
| P/B | 2.57 | ||
| P/tB | 2.57 | ||
| EV/EBITDA | 5.31 |
EPS(TTM)7.54
EY8.61%
EPS(NY)8.06
Fwd EY9.2%
FCF(TTM)6.62
FCFY7.56%
OCF(TTM)14.91
OCFY17.01%
SpS231.61
BVpS34.11
TBVpS34.11
PEG (NY)N/A
PEG (5Y)1.73
Graham Number76.07
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 | 2.82 |
F-Score5
WACC7.07%
ROIC/WACC1.84
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-15.63%
EPS Next 2Y-4.64%
EPS Next 3Y-1.47%
EPS Next 5Y3.06%
Revenue 1Y (TTM)-2.16%
Revenue growth 3Y0.18%
Revenue growth 5Y6.41%
Sales Q2Q%-1.55%
Revenue Next Year-1.28%
Revenue Next 2Y0.28%
Revenue Next 3Y1.07%
Revenue Next 5Y1.97%
EBIT growth 1Y7.49%
EBIT growth 3Y-14.56%
EBIT growth 5Y3.78%
EBIT Next Year43.09%
EBIT Next 3Y15.34%
EBIT Next 5Y17.69%
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 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 11.62 and the Price/Book (PB) ratio is 2.57.
How financially healthy is TARGET CORP?
The financial health rating of TARGET CORP (TGT) is 3 / 10.