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TGT

TargetNYSE:TGT Stock Report

Market Cap

US$116.8b

7D

-3.4%

1Y

36.3%

Updated

01 Dec, 2021

Data

Company Financials +
TGT fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance6/6
Financial Health4/6
Dividends5/6

TGT Stock Overview

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

Target Competitors

Dollar General

NYSE:DG

US$51.6b

Dollar Tree

NasdaqGS:DLTR

US$30.1b

Apple

NasdaqGS:AAPL

US$2.7t

Amazon.com

NasdaqGS:AMZN

US$1.8t

Price History & Performance

Summary of all time highs, changes and price drops for Target
Historical stock prices
Current Share PriceUS$240.39
52 Week HighUS$268.98
52 Week LowUS$166.83
Beta1.03
1 Month Change-6.80%
3 Month Change-2.21%
1 Year Change36.27%
3 Year Change246.83%
5 Year Change212.32%
Change since IPO4,346.52%

Recent News & Updates

Nov 29
We Think Target (NYSE:TGT) Can Manage Its Debt With Ease

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...

Nov 18
Target’s (NYSE:TGT) Capital Allocation is Working in the Company's Favor Despite Current Margin Pressure

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.

Oct 29

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.

Oct 29
Estimating The Fair Value Of Target Corporation (NYSE:TGT)

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...

Shareholder Returns

TGTUS Multiline RetailUS Market
7D-3.4%-5.4%-4.9%
1Y36.3%22.6%17.8%

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.

Price Volatility

Is TGT's price volatile compared to industry and market?
TGT volatility
TGT Average Weekly Movement3.1%
Multiline Retail Industry Average Movement7.5%
Market Average Movement6.0%
10% most volatile stocks in US Market15.1%
10% least volatile stocks in US Market2.4%

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

FoundedEmployeesCEOWebsite
1902409,000Brian Cornellhttps://corporate.target.com

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

How do Target's earnings and revenue compare to its market cap?
TGT fundamental statistics
Market CapUS$116.83b
Earnings (TTM)US$6.78b
Revenue (TTM)US$103.35b

17.0x

P/E Ratio

1.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TGT income statement (TTM)
RevenueUS$103.35b
Cost of RevenueUS$72.90b
Gross ProfitUS$30.45b
ExpensesUS$23.66b
EarningsUS$6.78b

Last Reported Earnings

Oct 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)14.16
Gross Margin29.46%
Net Profit Margin6.56%
Debt/Equity Ratio92.5%

How did TGT perform over the long term?

See historical performance and comparison

Dividends

1.5%

Current Dividend Yield

21%

Payout Ratio

Valuation

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

24.6%

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).


Future Growth

How is Target forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

1.3%

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%)


Past Performance

How has Target performed over the past 5 years?

16.8%

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.


Financial Health

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).


Balance Sheet


Dividend

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

1.50%

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).


Next Steps

Management

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

5.6yrs

Average management tenure


CEO

Brian Cornell (62 yo)

7.25yrs

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 ($USD19.76M) is above average for companies of similar size in the US market ($USD11.11M).

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 seasoned and experienced (5.6 years average tenure).


Board Members

Experienced Board: TGT's board of directors are considered experienced (4.8 years average tenure).


Ownership

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

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Target Corporation's 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$116.830b
  • Shares outstanding: 479.12m
  • Website: https://corporate.target.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/01 23:53
End of Day Share Price2021/12/01 00:00
Earnings2021/10/30
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.