TARGET CORP (TGT) Stock Fundamental Analysis
USA - NYSE:TGT - US87612E1064 - Common Stock
92.72 USD
-0.2 (-0.22%)
92.5926 USD
-0.13 (-0.14%)
We assign a fundamental rating of 5 out of 10 to TGT. TGT was compared to 39 industry peers in the Consumer Staples Distribution & Retail industry. While TGT belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. TGT has a valuation in line with the averages, but on the other hand it scores bad on growth. TGT also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year TGT was profitable.
TGT had a positive operating cash flow in the past year.
Each year in the past 5 years TGT has been profitable.
In the past 5 years TGT always reported a positive cash flow from operatings.
1.2 Ratios
TGT has a Return On Assets of 6.79%. This is in the better half of the industry: TGT outperforms 76.92% of its industry peers.
With a decent Return On Equity value of 25.47%, TGT is doing good in the industry, outperforming 76.92% of the companies in the same industry.
The Return On Invested Capital of TGT (13.47%) is better than 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 8.75%.
The last Return On Invested Capital (13.47%) 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 | 13.47% |
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
TGT has a better Profit Margin (3.72%) than 87.18% of its industry peers.
TGT's Profit Margin has declined in the last couple of years.
TGT has a better Operating Margin (6.32%) than 89.74% of its industry peers.
TGT's Operating Margin has declined in the last couple of years.
TGT's Gross Margin of 27.79% is fine compared to the rest of the industry. TGT outperforms 61.54% of its industry peers.
TGT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.32% | ||
| 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 well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, TGT has less shares outstanding
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 3.01. This indicates that TGT is financially healthy and has little risk of bankruptcy at the moment.
TGT has a Altman-Z score of 3.01. This is in the lower half of the industry: TGT underperforms 66.67% of its industry peers.
TGT has a debt to FCF ratio of 5.59. This is a neutral value as TGT would need 5.59 years to pay back of all of its debts.
TGT has a Debt to FCF ratio of 5.59. This is comparable to the rest of the industry: TGT outperforms 53.85% of its industry peers.
A Debt/Equity ratio of 0.99 indicates that TGT is somewhat dependend on debt financing.
TGT has a Debt to Equity ratio of 0.99. This is in the lower half of the industry: TGT underperforms 64.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 5.59 | ||
| Altman-Z | 3.01 |
ROIC/WACC1.88
WACC7.17%
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: 71.79% 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.
With a Quick ratio value of 0.32, TGT is not doing good in the industry: 71.79% of the companies in the same industry are doing better.
| 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%.
TGT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.72% yearly.
TGT shows a decrease in Revenue. In the last year, the revenue decreased by -1.55%.
TGT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.41% yearly.
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 3.40% on average over the next years.
The Revenue is expected to grow by 1.86% on average over the next years.
EPS Next Y-15.63%
EPS Next 2Y-4.62%
EPS Next 3Y-1.31%
EPS Next 5Y3.4%
Revenue Next Year-1.27%
Revenue Next 2Y0.27%
Revenue Next 3Y1.06%
Revenue Next 5Y1.86%
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
With a Price/Earnings ratio of 12.18, TGT is valued correctly.
Based on the Price/Earnings ratio, TGT is valued cheaper than 82.05% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.11, TGT is valued rather cheaply.
A Price/Forward Earnings ratio of 11.50 indicates a reasonable valuation of TGT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TGT indicates a rather cheap valuation: TGT is cheaper than 84.62% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.55, TGT is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.18 | ||
| Fwd PE | 11.5 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TGT is valued cheaply inside the industry as 84.62% 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 74.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.31 | ||
| EV/EBITDA | 5.56 |
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)1.81
EPS Next 2Y-4.62%
EPS Next 3Y-1.31%
5. Dividend
5.1 Amount
TGT has a Yearly Dividend Yield of 4.91%, which is a nice return.
Compared to an average industry Dividend Yield of 1.99, 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 2.37, TGT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.91% |
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
TGT pays out 52.14% of its income as dividend. 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-4.62%
EPS Next 3Y-1.31%
92.72
-0.2 (-0.22%)
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-3.83%
Ins Owners0.22%
Ins Owner Change-0.44%
Market Cap42.13B
Revenue(TTM)105.64B
Net Income(TTM)3.93B
Analysts65.12
Price Target105.2 (13.46%)
Short Float %4.58%
Short Ratio2.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.91% |
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)-2.19%
PT rev (3m)-1.44%
EPS NQ rev (1m)-0.46%
EPS NQ rev (3m)2.51%
EPS NY rev (1m)0.41%
EPS NY rev (3m)0.37%
Revenue NQ rev (1m)-0.16%
Revenue NQ rev (3m)0.3%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.18 | ||
| Fwd PE | 11.5 | ||
| P/S | 0.4 | ||
| P/FCF | 14.31 | ||
| P/OCF | 6.6 | ||
| P/B | 2.73 | ||
| P/tB | 2.73 | ||
| EV/EBITDA | 5.56 |
EPS(TTM)7.61
EY8.21%
EPS(NY)8.06
Fwd EY8.69%
FCF(TTM)6.48
FCFY6.99%
OCF(TTM)14.05
OCFY15.16%
SpS232.48
BVpS33.93
TBVpS33.93
PEG (NY)N/A
PEG (5Y)1.81
Graham Number76.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.79% | ||
| ROE | 25.47% | ||
| ROCE | 17.28% | ||
| ROIC | 13.47% | ||
| ROICexc | 15.17% | ||
| ROICexgc | 15.17% | ||
| OM | 6.32% | ||
| 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%
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 Turnover1.83
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 5.59 | ||
| Debt/EBITDA | 1.57 | ||
| Cap/Depr | 111.83% | ||
| Cap/Sales | 3.26% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 65.48% | ||
| Profit Quality | 74.95% | ||
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.32 | ||
| Altman-Z | 3.01 |
F-Score5
WACC7.17%
ROIC/WACC1.88
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-15.63%
EPS Next 2Y-4.62%
EPS Next 3Y-1.31%
EPS Next 5Y3.4%
Revenue 1Y (TTM)-1.55%
Revenue growth 3Y0.18%
Revenue growth 5Y6.41%
Sales Q2Q%-0.95%
Revenue Next Year-1.27%
Revenue Next 2Y0.27%
Revenue Next 3Y1.06%
Revenue Next 5Y1.86%
EBIT growth 1Y7.37%
EBIT growth 3Y-14.56%
EBIT growth 5Y3.78%
EBIT Next Year43.09%
EBIT Next 3Y15.7%
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%
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 12.18 and the Price/Book (PB) ratio is 2.73.
How financially healthy is TARGET CORP?
The financial health rating of TARGET CORP (TGT) is 4 / 10.