TARGET CORP (TGT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TGT - US87612E1064 - Common Stock
97.09 USD
+0.12 (+0.12%)
97.1 USD
+0.01 (+0.01%)
Taking everything into account, TGT scores 5 out of 10 in our fundamental rating. TGT was compared to 39 industry peers in the Consumer Staples Distribution & Retail industry. TGT scores excellent on profitability, but 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
In the past year TGT was profitable.
TGT had a positive operating cash flow in the past year.
TGT had positive earnings in each of the past 5 years.
TGT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TGT's Return On Assets of 6.27% is fine compared to the rest of the industry. TGT outperforms 66.67% of its industry peers.
TGT's Return On Equity of 24.28% is fine compared to the rest of the industry. TGT outperforms 76.92% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.98%, TGT belongs to the top of the industry, outperforming 89.74% of the companies in the same industry.
TGT had an Average Return On Invested Capital over the past 3 years of 11.15%. This is above the industry average of 8.85%.
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
TGT has a better Profit Margin (3.58%) than 84.62% of its industry peers.
TGT's Profit Margin has declined in the last couple of years.
TGT has a better Operating Margin (6.13%) than 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 64.10% of the companies in the same industry.
TGT'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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TGT is still creating some 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 2.90. This is not the best score and indicates that TGT is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.90, TGT is doing worse than 66.67% of the companies in the same industry.
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 has a Debt to FCF ratio of 5.48. This is comparable to the rest of the industry: TGT outperforms 48.72% 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.
The Debt to Equity ratio of TGT (0.99) is worse than 64.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 5.48 | ||
| Altman-Z | 2.9 |
ROIC/WACC1.78
WACC7.28%
2.3 Liquidity
A Current Ratio of 0.97 indicates that TGT may have some problems paying its short term obligations.
The Current ratio of TGT (0.97) is worse than 69.23% 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 74.36% 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.
The Earnings Per Share has been growing slightly by 6.72% on average over the past years.
The Revenue has decreased by -2.16% in the past 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 2.78% yearly.
The Revenue is expected to grow by 1.93% on average over the next years.
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 12.88, which indicates a correct valuation of TGT.
Compared to the rest of the industry, the Price/Earnings ratio of TGT indicates a rather cheap valuation: TGT is cheaper than 82.05% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.56, TGT is valued rather cheaply.
A Price/Forward Earnings ratio of 12.42 indicates a correct valuation of TGT.
74.36% of the companies in the same industry are more expensive than TGT, based on the Price/Forward Earnings ratio.
TGT is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.79, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.88 | ||
| Fwd PE | 12.42 |
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.
Based on the Price/Free Cash Flow ratio, TGT is valued a bit cheaper than 71.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.61 | ||
| EV/EBITDA | 5.93 |
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)1.92
EPS Next 2Y-6.06%
EPS Next 3Y-1.77%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.70%, TGT is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.76, 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 1.87, TGT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.7% |
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.
The dividend of TGT decreased recently.
Dividend Growth(5Y)11.38%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
TGT pays out 54.48% of its income as dividend. 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-6.06%
EPS Next 3Y-1.77%
97.09
+0.12 (+0.12%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners85%
Inst Owner Change-2.04%
Ins Owners0.22%
Ins Owner Change-0.38%
Market Cap43.96B
Revenue(TTM)105.24B
Net Income(TTM)3.76B
Analysts65.91
Price Target100.8 (3.82%)
Short Float %25.92%
Short Ratio2.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.7% |
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)1.31%
Min EPS beat(2)-0.01%
Max EPS beat(2)2.64%
EPS beat(4)2
Avg EPS beat(4)-3.01%
Min EPS beat(4)-19.93%
Max EPS beat(4)5.26%
EPS beat(8)4
Avg EPS beat(8)0.5%
EPS beat(12)8
Avg EPS beat(12)10.21%
EPS beat(16)9
Avg EPS beat(16)1.84%
Revenue beat(2)1
Avg Revenue beat(2)-0.54%
Min Revenue beat(2)-1.19%
Max Revenue beat(2)0.11%
Revenue beat(4)1
Avg Revenue beat(4)-1.14%
Min Revenue beat(4)-2.72%
Max Revenue beat(4)0.11%
Revenue beat(8)1
Avg Revenue beat(8)-1.01%
Revenue beat(12)2
Avg Revenue beat(12)-0.89%
Revenue beat(16)3
Avg Revenue beat(16)-0.78%
PT rev (1m)-4.18%
PT rev (3m)-6.28%
EPS NQ rev (1m)-2.16%
EPS NQ rev (3m)-2.97%
EPS NY rev (1m)-1.3%
EPS NY rev (3m)-1.19%
Revenue NQ rev (1m)-0.53%
Revenue NQ rev (3m)-0.63%
Revenue NY rev (1m)-0.29%
Revenue NY rev (3m)-0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.88 | ||
| Fwd PE | 12.42 | ||
| P/S | 0.42 | ||
| P/FCF | 14.61 | ||
| P/OCF | 6.49 | ||
| P/B | 2.84 | ||
| P/tB | 2.84 | ||
| EV/EBITDA | 5.93 |
EPS(TTM)7.54
EY7.77%
EPS(NY)7.82
Fwd EY8.05%
FCF(TTM)6.65
FCFY6.84%
OCF(TTM)14.96
OCFY15.41%
SpS232.42
BVpS34.23
TBVpS34.23
PEG (NY)N/A
PEG (5Y)1.92
Graham Number76.21
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 | 2.9 |
F-Score5
WACC7.28%
ROIC/WACC1.78
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-16.73%
EPS Next 2Y-6.06%
EPS Next 3Y-1.77%
EPS Next 5Y2.78%
Revenue 1Y (TTM)-2.16%
Revenue growth 3Y0.18%
Revenue growth 5Y6.41%
Sales Q2Q%-1.55%
Revenue Next Year-1.56%
Revenue Next 2Y0.09%
Revenue Next 3Y0.99%
Revenue Next 5Y1.93%
EBIT growth 1Y7.49%
EBIT growth 3Y-14.56%
EBIT growth 5Y3.78%
EBIT Next Year40.96%
EBIT Next 3Y15%
EBIT Next 5Y11.36%
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 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 12.88 and the Price/Book (PB) ratio is 2.84.
How financially healthy is TARGET CORP?
The financial health rating of TARGET CORP (TGT) is 3 / 10.