NYSE:TGT

Stock Analysis Report

Executive Summary

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


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

-6.4%

TGT

-5.9%

US Multiline Retail

-7.6%

US Market


1 Year Return

52.3%

TGT

12.6%

US Multiline Retail

10.2%

US Market

Return vs Industry: TGT exceeded the US Multiline Retail industry which returned 12.6% over the past year.

Return vs Market: TGT exceeded the US Market which returned 10.2% over the past year.


Shareholder returns

TGTIndustryMarket
7 Day-6.4%-5.9%-7.6%
30 Day-4.1%-2.4%-4.5%
90 Day-11.5%-6.6%-0.6%
1 Year56.7%52.3%15.1%12.6%12.5%10.2%
3 Year111.5%91.0%53.6%42.8%37.1%28.3%
5 Year66.9%41.5%22.2%6.6%60.8%43.2%

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?

31.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TGT ($110.66) 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 (17.6x) compared to the Multiline Retail industry average (11.9x).

PE vs Market: TGT is poor value based on its PE Ratio (17.6x) compared to the US market (17.1x).


Price to Earnings Growth Ratio

PEG Ratio: TGT is poor value based on its PEG Ratio (4.3x)


Price to Book Ratio

PB vs Industry: TGT is overvalued based on its PB Ratio (4.9x) compared to the US Multiline Retail industry average (1.2x).


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 (13.2% 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 (22.3%)


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?

2.39%

Current Dividend Yield


Dividend Yield vs Market

company2.4%marketbottom25%1.5%markettop25%4.0%industryaverage2.5%forecastin3Years2.5%

Current dividend yield vs market & industry

Notable Dividend: TGT's dividend (2.39%) is higher than the bottom 25% of dividend payers in the US market (1.53%).

High Dividend: TGT's dividend (2.39%) is low compared to the top 25% of dividend payers in the US market (3.96%).


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 (36.6% payout ratio).


Next Steps

Management

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

3.3yrs

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

NamePositionTenureCompensationOwnership
Brian Cornell
Chairman & CEO5.5yrsUS$17.20m0.062% $34.7m
John Mulligan
Executive VP & COO4.4yrsUS$8.58m0.036% $20.3m
Michael McNamara
Executive VP & Chief Information Officer3.4yrsUS$5.36m0.013% $7.1m
Don Liu
Executive VP3.5yrsUS$4.33m0.0074% $4.2m
Catherine Smith
Strategic Advisor0.3yrsUS$5.58m0.0047% $2.6m
Michael Fiddelke
Executive VP & CFO0.3yrsno data0.0023% $1.3m
Robert Harrison
Senior VP0yrsno data0.0016% $874.8k
John Hulbert
Vice President of Investor Relations0yrsno datano data
Katie Boylan
Senior VP & Chief Communications Officer2.7yrsno datano data
Richard Gomez
Executive VP and Chief Marketing3.1yrsno data0.0067% $3.8m

3.3yrs

Average Tenure

54.5yo

Average Age

Experienced Management: TGT's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Brian Cornell
Chairman & CEO5.5yrsUS$17.20m0.062% $34.7m
Donald Knauss
Independent Director4.5yrsUS$280.05k0.0021% $1.2m
Roxanne Austin
Independent Director18.1yrsUS$300.05k0.0020% $1.1m
Robert Edwards
Independent Director4.5yrsUS$310.05k0.0020% $1.1m
Calvin Darden
Independent Director17.1yrsUS$280.05kno data
Mary Minnick
Independent Director14.5yrsUS$295.05k0.00017% $95.3k
Douglas Baker
Lead Independent Director5.1yrsUS$325.05kno data
Melanie Healey
Independent Director4.3yrsUS$280.05kno data
Kenneth Salazar
Independent Director6.6yrsUS$295.05kno data
Henrique De Castro
Independent Director7.1yrsUS$280.05kno 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: 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 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$56.076b
  • Shares outstanding: 506.74m
  • Website: https://investors.target.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TGTNYSE (New York Stock Exchange)YesCommon SharesUSUSDJan 1969
TGT *BMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNJan 1969
DYHDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1969
DYHXTRA (XETRA Trading Platform)YesCommon SharesDEEURJan 1969
TGTSNSE (Santiago Stock Exchange)YesCommon SharesCLUSDJan 1969
0LD8LSE (London Stock Exchange)YesCommon SharesGBUSDJan 1969
DYHETLX (Eurotlx)YesCommon SharesITEURJan 1969
TGTCWBAG (Wiener Boerse AG)YesCommon SharesATEURJan 1969
TGTB34BOVESPA (Bolsa de Valores de Sao Paulo)EACH BDR REPR 1 COM STK USD0.0833BRBRLAug 2015
TGTBASE (Buenos Aires Stock Exchange)CEDEAR EACH 4 REP 1 COM USD0.0833ARARSApr 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 01:12
End of Day Share Price2020/02/26 00:00
Earnings2019/11/02
Annual Earnings2019/02/02


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.