NYSE:TGT

Stock Analysis Report

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Market Cap

US$129.7b

Last Updated

2021/08/03 23:18 UTC

Data Sources

Company Financials +

Executive Summary

Target Corporation operates as a general merchandise retailer in the United States. More Details


Snowflake Analysis

Outstanding track record with excellent balance sheet and pays a dividend.


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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: TGT's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

1.5%

TGT

1.7%

US Multiline Retail

0.9%

US Market


1 Year Return

101.0%

TGT

59.0%

US Multiline Retail

34.7%

US Market

Return vs Industry: TGT exceeded the US Multiline Retail industry which returned 59.1% over the past year.

Return vs Market: TGT exceeded the US Market which returned 34.4% over the past year.


Shareholder returns

TGTIndustryMarket
7 Day1.5%1.7%0.9%
30 Day6.3%4.2%0.2%
90 Day23.4%10.5%4.7%
1 Year104.2%101.0%60.6%59.0%36.8%34.7%
3 Year243.4%218.8%110.3%98.5%62.5%52.4%
5 Year319.1%261.1%155.6%130.8%123.1%98.4%

Long-Term 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

Valuation

Is Target undervalued compared to its fair value and its price relative to the market?

1.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TGT ($262.2) is trading below our estimate of fair value ($266.27)

Significantly Below Fair Value: TGT is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: TGT is poor value based on its PE Ratio (21.2x) compared to the US Multiline Retail industry average (19.7x).

PE vs Market: TGT is poor value based on its PE Ratio (21.2x) compared to the US market (17.9x).


Price to Earnings Growth Ratio

PEG Ratio: TGT is poor value based on its PEG Ratio (17.4x)


Price to Book Ratio

PB vs Industry: TGT is overvalued based on its PB Ratio (8.7x) compared to the US Multiline Retail industry average (3.1x).


Future Growth

How is Target forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

1.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TGT's forecast earnings growth (1.2% per year) is below the savings rate (2%).

Earnings vs Market: TGT's earnings (1.2% per year) are forecast to grow slower than the US market (15% per year).

High Growth Earnings: TGT's earnings are forecast to grow, but not significantly.

Revenue vs Market: TGT's revenue (2.8% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: TGT's revenue (2.8% 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 (30.4%)


Past Performance

How has Target performed over the past 5 years?

8.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TGT has high quality earnings.

Growing Profit Margin: TGT's current net profit margins (6.3%) are higher than last year (3.5%).


Past Earnings Growth Analysis

Earnings Trend: TGT's earnings have grown by 8.9% per year over the past 5 years.

Accelerating Growth: TGT's earnings growth over the past year (123.4%) exceeds its 5-year average (8.9% per year).

Earnings vs Industry: TGT earnings growth over the past year (123.4%) exceeded the Multiline Retail industry 109%.


Return on Equity

High ROE: TGT's Return on Equity (41.3%) is considered outstanding.


Financial Health

How is Target's financial position?


Financial Position Analysis

Short Term Liabilities: TGT's short term assets ($19.9B) exceed its short term liabilities ($18.6B).

Long Term Liabilities: TGT's short term assets ($19.9B) exceed its long term liabilities ($16.9B).


Debt to Equity History and Analysis

Debt Level: TGT's debt to equity ratio (84.8%) is considered high.

Reducing Debt: TGT's debt to equity ratio has reduced from 113.3% to 84.8% over the past 5 years.

Debt Coverage: TGT's debt is well covered by operating cash flow (81.8%).

Interest Coverage: TGT's interest payments on its debt are well covered by EBIT (18.2x coverage).


Balance Sheet


Dividend

What is Target current dividend yield, its reliability and sustainability?

1.37%

Current Dividend Yield


Upcoming Dividend Payment

TodayAug 04 2021Ex Dividend DateAug 17 2021Dividend Pay DateSep 10 202124 days from Ex DividendBuy in the next 12 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: TGT's dividend (1.37%) is higher than the bottom 25% of dividend payers in the US market (1.32%).

High Dividend: TGT's dividend (1.37%) is low compared to the top 25% of dividend payers in the US market (3.57%).


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 low payout ratio (21.8%), 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 (27.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.9yrs

Average management tenure


CEO

Brian Cornell (62 yo)

7yrs

Tenure

US$19,755,188

Compensation

Mr. Brian C. Cornell has been Non-Executive Chairman and Independent Director of Yum! Brands, Inc. since November 16, 2018 and September 18, 2015 respectively. He has been the Chairman and Chief Executive ...


CEO Compensation Analysis

Compensation vs Market: Brian's total compensation ($USD19.76M) is above average for companies of similar size in the US market ($USD11.16M).

Compensation vs Earnings: Brian's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: TGT's management team is considered experienced (4.9 years average tenure).


Board Members

Experienced Board: TGT's board of directors are considered experienced (5.9 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$129.717b
  • Shares outstanding: 494.72m
  • Website: https://corporate.target.com

Number of Employees


Location

  • Target Corporation
  • 1000 Nicollet Mall
  • Minneapolis
  • Minnesota
  • 55403
  • United States

Listings


Biography

Target Corporation operates as a general merchandise retailer in the United States. The company offers food assortments, including perishables, dry grocery, dairy, and frozen items; apparel, accessories, h...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/03 23:18
End of Day Share Price2021/08/03 00:00
Earnings2021/05/01
Annual Earnings2021/01/30


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.