TARGET CORP (TGT)
US87612E1064 - Common Stock
Overall TGT gets a fundamental rating of 5 out of 10. We evaluated TGT against 40 industry peers in the Consumer Staples Distribution & Retail industry. TGT has an excellent profitability rating, but there are some minor concerns on its financial health. TGT has a correct valuation and a medium growth rate.
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.
In the past 5 years TGT has always been profitable.
Each year in the past 5 years TGT had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 7.48%, TGT belongs to the best of the industry, outperforming 82.50% of the companies in the same industry.
TGT has a Return On Equity of 30.81%. This is amongst the best in the industry. TGT outperforms 87.50% of its industry peers.
With an excellent Return On Invested Capital value of 12.84%, TGT belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
TGT had an Average Return On Invested Capital over the past 3 years of 14.84%. This is above the industry average of 10.29%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.48% | ||
| ROE | 30.81% | ||
| ROIC | 12.84% |
ROA(3y)8.53%
ROA(5y)8.36%
ROE(3y)36.57%
ROE(5y)33.54%
ROIC(3y)14.84%
ROIC(5y)15.04%
1.3 Margins
With an excellent Profit Margin value of 3.85%, TGT belongs to the best of the industry, outperforming 92.50% of the companies in the same industry.
In the last couple of years the Profit Margin of TGT has remained more or less at the same level.
TGT has a Operating Margin of 5.41%. This is amongst the best in the industry. TGT outperforms 95.00% of its industry peers.
In the last couple of years the Operating Margin of TGT has remained more or less at the same level.
The Gross Margin of TGT (27.63%) is better than 67.50% of its industry peers.
TGT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.41% | ||
| PM (TTM) | 3.85% | ||
| GM | 27.63% |
OM growth 3Y-9.5%
OM growth 5Y-0.61%
PM growth 3Y-6.2%
PM growth 5Y-0.23%
GM growth 3Y-2.17%
GM growth 5Y-1.15%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), TGT is creating value.
Compared to 1 year ago, TGT has more shares outstanding
Compared to 5 years ago, TGT has less shares outstanding
The debt/assets ratio for TGT has been reduced compared to a year ago.
2.2 Solvency
TGT has an Altman-Z score of 3.49. This indicates that TGT is financially healthy and has little risk of bankruptcy at the moment.
TGT has a Altman-Z score (3.49) which is comparable to the rest of the industry.
TGT has a debt to FCF ratio of 4.20. This is a neutral value as TGT would need 4.20 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.20, TGT is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
TGT has a Debt/Equity ratio of 1.11. This is a high value indicating a heavy dependency on external financing.
TGT has a Debt to Equity ratio of 1.11. This is in the lower half of the industry: TGT underperforms 77.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | 4.2 | ||
| Altman-Z | 3.49 |
ROIC/WACC1.62
WACC7.94%
2.3 Liquidity
TGT has a Current Ratio of 0.91. This is a bad value and indicates that TGT is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.91, TGT is doing worse than 70.00% of the companies in the same industry.
TGT has a Quick Ratio of 0.91. 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 0.29 is on the low side compared to the rest of the industry. TGT is outperformed by 82.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.29 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 48.59% over the past year.
The Earnings Per Share has been growing by 10.54% on average over the past years. This is quite good.
Looking at the last year, TGT shows a decrease in Revenue. The Revenue has decreased by -1.57% in the last year.
Measured over the past years, TGT shows a small growth in Revenue. The Revenue has been growing by 7.35% on average per year.
EPS 1Y (TTM)48.59%
EPS 3Y-1.8%
EPS 5Y10.54%
EPS growth Q2Q57.67%
Revenue 1Y (TTM)-1.57%
Revenue growth 3Y4.71%
Revenue growth 5Y7.35%
Revenue growth Q2Q1.67%
3.2 Future
TGT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.32% yearly.
TGT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.94% yearly.
EPS Next Y6.32%
EPS Next 2Y9.01%
EPS Next 3Y9.05%
EPS Next 5Y8.32%
Revenue Next Year0%
Revenue Next 2Y1.86%
Revenue Next 3Y2.63%
Revenue Next 5Y2.94%
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
With a Price/Earnings ratio of 17.93, TGT is valued on the expensive side.
Based on the Price/Earnings ratio, TGT is valued a bit cheaper than 70.00% of the companies in the same industry.
TGT is valuated rather cheaply when we compare the Price/Earnings ratio to 28.15, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 16.87, which indicates a correct valuation of TGT.
TGT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TGT is cheaper than 72.50% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.20. TGT is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.93 | ||
| Fwd PE | 16.87 |
4.2 Price Multiples
TGT's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, TGT is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.38 | ||
| EV/EBITDA | 10.04 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of TGT may justify a higher PE ratio.
PEG (NY)2.84
PEG (5Y)1.7
EPS Next 2Y9.01%
EPS Next 3Y9.05%
5. Dividend
5.1 Amount
TGT has a Yearly Dividend Yield of 2.74%. Purely for dividend investing, there may be better candidates out there.
TGT's Dividend Yield is rather good when compared to the industry average which is at 2.45. TGT pays more dividend than 85.00% of the companies in the same industry.
TGT's Dividend Yield is comparable with the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.74% |
5.2 History
On average, the dividend of TGT grows each year by 11.61%, which is quite nice.
TGT has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)11.61%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
48.60% 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.
DP48.6%
EPS Next 2Y9.01%
EPS Next 3Y9.05%
TARGET CORP
NYSE:TGT (5/17/2024, 7:04:00 PM)
After market: 160.2 +0.07 (+0.04%)160.13
-0.52 (-0.32%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap73.93B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.74% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.93 | ||
| Fwd PE | 16.87 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.84
PEG (5Y)1.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.48% | ||
| ROE | 30.81% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.41% | ||
| PM (TTM) | 3.85% | ||
| GM | 27.63% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.94
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.29 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)48.59%
EPS 3Y-1.8%
EPS 5Y
EPS growth Q2Q
EPS Next Y6.32%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.57%
Revenue growth 3Y4.71%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y