TGT Stock Overview
Target Corporation operates as a general merchandise retailer in the United States.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$240.39|
|52 Week High||US$268.98|
|52 Week Low||US$166.83|
|1 Month Change||-6.80%|
|3 Month Change||-2.21%|
|1 Year Change||36.27%|
|3 Year Change||246.83%|
|5 Year Change||212.32%|
|Change since IPO||4,346.52%|
Recent News & Updates
We Think Target (NYSE:TGT) Can Manage Its Debt With Ease
Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...
Target’s (NYSE:TGT) Capital Allocation is Working in the Company's Favor Despite Current Margin Pressure
The market’s knee jerk reaction to Target's (NYSE:TGT) third quarter results was to sell the stock due to declining margins. If we look beyond margin pressure - which may be temporary - the company has some strong underlying trends in place.
Target: Growth Investors Who Focus On Dividends Should Aim To Increase Their Position In This Retail Play
Target's seemingly unimpressive dividend should become much more impressive over the next 3-5 years. The company's market share gains during the pandemic should drive strong future growth. Valuation remains cheap given the growth forecast.
Estimating The Fair Value Of Target Corporation (NYSE:TGT)
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Target Corporation...
|TGT||US Multiline Retail||US Market|
Return vs Industry: TGT exceeded the US Multiline Retail industry which returned 22.6% over the past year.
Return vs Market: TGT exceeded the US Market which returned 17.8% over the past year.
|TGT Average Weekly Movement||3.1%|
|Multiline Retail Industry Average Movement||7.5%|
|Market Average Movement||6.0%|
|10% most volatile stocks in US Market||15.1%|
|10% least volatile stocks in US Market||2.4%|
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.
About the Company
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, home décor products, electronics, toys, seasonal offerings, food, and other merchandise; and beauty and household essentials. It also provides in-store amenities, such as Target Café, Target Optical, Starbucks, and other food service offerings.
Target Fundamentals Summary
|TGT fundamental statistics|
Is TGT overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|TGT income statement (TTM)|
|Cost of Revenue||US$72.90b|
Last Reported Earnings
Oct 30, 2021
Next Earnings Date
|Earnings per share (EPS)||14.16|
|Net Profit Margin||6.56%|
How did TGT perform over the long term?See historical performance and comparison
1.5%Current Dividend Yield
Is Target undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: TGT ($240.39) is trading below our estimate of fair value ($318.93)
Significantly Below Fair Value: TGT is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: TGT is good value based on its PE Ratio (17x) compared to the US Multiline Retail industry average (20x).
PE vs Market: TGT is poor value based on its PE Ratio (17x) compared to the US market (16.6x).
Price to Earnings Growth Ratio
PEG Ratio: TGT is poor value based on its PEG Ratio (13.4x)
Price to Book Ratio
PB vs Industry: TGT is overvalued based on its PB Ratio (8.3x) compared to the US Multiline Retail industry average (3.3x).
How is Target forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TGT's forecast earnings growth (1.3% per year) is below the savings rate (2%).
Earnings vs Market: TGT's earnings (1.3% per year) are forecast to grow slower than the US market (14.3% 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 (10.1% 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 (31.2%)
How has Target performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TGT has high quality earnings.
Growing Profit Margin: TGT's current net profit margins (6.6%) are higher than last year (4.3%).
Past Earnings Growth Analysis
Earnings Trend: TGT's earnings have grown by 16.8% per year over the past 5 years.
Accelerating Growth: TGT's earnings growth over the past year (77.7%) exceeds its 5-year average (16.8% per year).
Earnings vs Industry: TGT earnings growth over the past year (77.7%) exceeded the Multiline Retail industry 8.4%.
Return on Equity
High ROE: TGT's Return on Equity (49.1%) is considered outstanding.
How is Target's financial position?
Financial Position Analysis
Short Term Liabilities: TGT's short term assets ($22.6B) do not cover its short term liabilities ($23.4B).
Long Term Liabilities: TGT's short term assets ($22.6B) exceed its long term liabilities ($17.3B).
Debt to Equity History and Analysis
Debt Level: TGT's net debt to equity ratio (50.7%) is considered high.
Reducing Debt: TGT's debt to equity ratio has reduced from 115.9% to 92.5% over the past 5 years.
Debt Coverage: TGT's debt is well covered by operating cash flow (71.1%).
Interest Coverage: TGT's interest payments on its debt are well covered by EBIT (20.3x coverage).
What is Target current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: TGT's dividend (1.5%) is higher than the bottom 25% of dividend payers in the US market (1.37%).
High Dividend: TGT's dividend (1.5%) is low compared to the top 25% of dividend payers in the US market (3.69%).
Stability and Growth of Payments
Stable Dividend: TGT's dividends per share have been stable in the past 10 years.
Growing Dividend: TGT's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (21.4%), TGT's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: TGT's dividends in 3 years are forecast to be well covered by earnings (27.1% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Brian Cornell (62 yo)
Mr. Brian C. Cornell has been Non-Executive Chairman and Independent Director of Yum! Brands, Inc. since November 16, 2018 and September 18, 2015 respectively. He has been the Chairman and Chief Executive...
CEO Compensation Analysis
Compensation vs Market: Brian's total compensation ($USD19.76M) is above average for companies of similar size in the US market ($USD11.11M).
Compensation vs Earnings: Brian's compensation has been consistent with company performance over the past year.
Experienced Management: TGT's management team is seasoned and experienced (5.6 years average tenure).
Experienced Board: TGT's board of directors are considered experienced (4.8 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Target Corporation's employee growth, exchange listings and data sources
- Name: Target Corporation
- Ticker: TGT
- Exchange: NYSE
- Founded: 1902
- Industry: General Merchandise Stores
- Sector: Retail
- Market Cap: US$116.830b
- Shares outstanding: 479.12m
- Website: https://corporate.target.com
Number of Employees
- Target Corporation
- 1000 Nicollet Mall
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/12/01 23:53|
|End of Day Share Price||2021/12/01 00:00|
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.