Target
Market Cap
US$59.5b
Last Updated
2020/02/20 00:41 UTC
Data Sources
Company Financials +
Executive Summary
Target Corporation operates as a general merchandise retailer in the United States.
Rewards
Risk Analysis
Snowflake Analysis
Established dividend payer with acceptable track record.
Similar Companies
Share Price & News
How has Target's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: TGT has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-0.8%
TGT
0.5%
US Multiline Retail
0.5%
US Market
1 Year Return
63.0%
TGT
18.9%
US Multiline Retail
20.3%
US Market
Return vs Industry: TGT exceeded the US Multiline Retail industry which returned 18.9% over the past year.
Return vs Market: TGT exceeded the US Market which returned 20.3% over the past year.
Shareholder returns
| TGT | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.8% | 0.5% | 0.5% |
| 30 Day | 2.9% | 1.3% | 2.0% |
| 90 Day | -7.6% | -5.8% | 9.4% |
| 1 Year | 67.6%63.0% | 21.5%18.9% | 22.8%20.3% |
| 3 Year | 100.1%80.7% | 55.0%44.0% | 50.1%40.4% |
| 5 Year | 80.1%52.7% | 27.6%11.4% | 73.1%54.1% |
Price Volatility Vs. Market
How volatile is Target's share price compared to the market and industry in the last 5 years?
Simply Wall St News
6 days ago | Simply Wall St
Be Sure To Check Out Target Corporation (NYSE:TGT) Before It Goes Ex-Dividend2 weeks ago | Simply Wall St
What Can We Make Of Target Corporation’s (NYSE:TGT) High Return On Capital?3 weeks ago | Simply Wall St
Is Target Corporation's (NYSE:TGT) CEO Salary Justified?Valuation
Is Target undervalued compared to its fair value and its price relative to the market?
27.6%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: TGT ($117.39) is trading below our estimate of fair value ($162.14)
Significantly Below Fair Value: TGT is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: TGT is poor value based on its PE Ratio (18.7x) compared to the Multiline Retail industry average (12.2x).
PE vs Market: TGT is poor value based on its PE Ratio (18.7x) compared to the US market (18.3x).
Price to Earnings Growth Ratio
PEG Ratio: TGT is poor value based on its PEG Ratio (4.5x)
Price to Book Ratio
PB vs Industry: TGT is overvalued based on its PB Ratio (5.2x) compared to the US Multiline Retail industry average (1.3x).
Next Steps
Future Growth
How is Target forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?
4.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TGT's forecast earnings growth (4.1% per year) is above the savings rate (1.7%).
Earnings vs Market: TGT's earnings (4.1% per year) are forecast to grow slower than the US market (14.2% per year).
High Growth Earnings: TGT's earnings are forecast to grow, but not significantly.
Revenue vs Market: TGT's revenue (3.1% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: TGT's revenue (3.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: TGT's Return on Equity is forecast to be high in 3 years time (22.4%)
Next Steps
Past Performance
How has Target performed over the past 5 years?
2.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TGT has high quality earnings.
Growing Profit Margin: TGT's current net profit margins (4.2%) are lower than last year (4.3%).
Past Earnings Growth Analysis
Earnings Trend: TGT's earnings have grown by 2.3% per year over the past 5 years.
Accelerating Growth: TGT's earnings growth over the past year (0.5%) is below its 5-year average (2.3% per year).
Earnings vs Industry: TGT earnings growth over the past year (0.5%) exceeded the Multiline Retail industry -9%.
Return on Equity
High ROE: Whilst TGT's Return on Equity (28.01%) is high, this metric is skewed due to their high level of debt.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Target's financial position?
Financial Position Analysis
Short Term Liabilities: TGT's short term assets ($13.8B) do not cover its short term liabilities ($16.6B).
Long Term Liabilities: TGT's short term assets ($13.8B) do not cover its long term liabilities ($15.6B).
Debt to Equity History and Analysis
Debt Level: TGT's debt to equity ratio (101.1%) is considered high.
Reducing Debt: TGT's debt to equity ratio has increased from 87.6% to 101.1% over the past 5 years.
Debt Coverage: TGT's debt is well covered by operating cash flow (55.8%).
Interest Coverage: TGT's interest payments on its debt are well covered by EBIT (9.9x coverage).
Balance Sheet
Inventory Level: TGT has a high level of physical assets or inventory.
Debt Coverage by Assets: TGT's debt is covered by short term assets (assets are 1.2x debt).
Next Steps
Dividend
What is Target's current dividend yield, its reliability and sustainability?
2.25%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: TGT's dividend (2.25%) is higher than the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: TGT's dividend (2.25%) is low compared to the top 25% of dividend payers in the US market (3.73%).
Stability and Growth of Payments
Stable Dividend: TGT's dividends per share have been stable in the past 10 years.
Growing Dividend: TGT's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (41%), TGT's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: TGT's dividends in 3 years are forecast to be well covered by earnings (36.7% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.9yrs
Average management tenure
CEO
Brian Cornell (60yo)
5.5yrs
Tenure
US$17,204,069
Compensation
Mr. Brian C. Cornell has been Independent Director and Independent Non-Executive Chairman of Yum! Brands, Inc. since September 18, 2015 and November 16, 2018 respectively. He has been the Chairman and Chie ...
CEO Compensation Analysis
Compensation vs Market: Brian's total compensation ($USD17.20M) is above average for companies of similar size in the US market ($USD10.78M).
Compensation vs Earnings: Brian's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 5.5yrs | US$17.20m | 0.062% $36.8m | |
| Executive VP & COO | 4.4yrs | US$8.58m | 0.036% $21.6m | |
| Executive VP & Chief Information Officer | 3.4yrs | US$5.36m | 0.013% $7.6m | |
| Executive VP | 2.4yrs | US$4.33m | 0.0074% $4.4m | |
| Strategic Advisor | 0.3yrs | US$5.58m | 0.0047% $2.8m | |
| Executive VP & CFO | 0.3yrs | no data | 0.0023% $1.4m | |
| Senior VP | 0yrs | no data | 0.0016% $928.0k | |
| Vice President of Investor Relations | 0yrs | no data | no data | |
| Senior VP & Chief Communications Officer | 2.7yrs | no data | no data | |
| Executive VP and Chief Marketing | 3.1yrs | no data | 0.0067% $4.0m |
2.9yrs
Average Tenure
54.5yo
Average Age
Experienced Management: TGT's management team is considered experienced (2.9 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 5.5yrs | US$17.20m | 0.062% $36.8m | |
| Independent Director | 4.5yrs | US$280.05k | 0.0021% $1.3m | |
| Independent Director | 18.1yrs | US$300.05k | 0.0020% $1.2m | |
| Independent Director | 4.5yrs | US$310.05k | 0.0020% $1.2m | |
| Independent Director | 17.1yrs | US$280.05k | no data | |
| Independent Director | 14.5yrs | US$295.05k | 0.00017% $101.1k | |
| Lead Independent Director | 5.1yrs | US$325.05k | no data | |
| Independent Director | 4.3yrs | US$280.05k | no data | |
| Independent Director | 6.6yrs | US$295.05k | no data | |
| Independent Director | 7.1yrs | US$280.05k | no data |
6.0yrs
Average Tenure
60yo
Average Age
Experienced Board: TGT's board of directors are considered experienced (6 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: TGT insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Target Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Target Corporation
- Ticker: TGT
- Exchange: NYSE
- Founded: 1902
- Industry: General Merchandise Stores
- Sector: Retail
- Market Cap: US$59.486b
- Shares outstanding: 506.74m
- Website: https://investors.target.com
Number of Employees
Location
- Target Corporation
- 1000 Nicollet Mall
- Minneapolis
- Minnesota
- 55403
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| TGT | NYSE (New York Stock Exchange) | Yes | Common Shares | US | USD | Jan 1969 |
| TGT * | BMV (Bolsa Mexicana de Valores) | Yes | Common Shares | MX | MXN | Jan 1969 |
| DYH | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Jan 1969 |
| DYH | XTRA (XETRA Trading Platform) | Yes | Common Shares | DE | EUR | Jan 1969 |
| TGT | SNSE (Santiago Stock Exchange) | Yes | Common Shares | CL | USD | Jan 1969 |
| 0LD8 | LSE (London Stock Exchange) | Yes | Common Shares | GB | USD | Jan 1969 |
| DYH | ETLX (Eurotlx) | Yes | Common Shares | IT | EUR | Jan 1969 |
| TGTC | WBAG (Wiener Boerse AG) | Yes | Common Shares | AT | EUR | Jan 1969 |
| TGTB34 | BOVESPA (Bolsa de Valores de Sao Paulo) | EACH BDR REPR 1 COM STK USD0.0833 | BR | BRL | Aug 2015 | |
| TGT | BASE (Buenos Aires Stock Exchange) | CEDEAR EACH 4 REP 1 COM USD0.0833 | AR | ARS | Apr 2019 |
Biography
Target Corporation operates as a general merchandise retailer in the United States. The company offers beauty and household essentials; food assortments, including perishables, dry grocery, dairy, and frozen items; and apparel, accessories, home décor products, electronics, toys, seasonal offerings, and other merchandise. The company also provides in-store amenities, such as Target Café, Target Optical, Starbucks, and other food service offerings. It sells its products through its stores; and digital channels, including Target.com. As of September 19, 2019, the company operated approximately 1,800 stores. Target Corporation was founded in 1902 and is headquartered in Minneapolis, Minnesota.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/20 00:41 |
| End of Day Share Price | 2020/02/19 00:00 |
| Earnings | 2019/11/02 |
| Annual Earnings | 2019/02/02 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.