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Target

NYSE:TGT
Snowflake Description

Established dividend payer with questionable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
TGT
NYSE
$38B
Market Cap
  1. Home
  2. US
  3. Retail
Company description

Target Corporation operates as a general merchandise retailer in the United States. The last earnings update was 83 days ago. More info.


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TGT Share Price and Events
7 Day Returns
3.8%
NYSE:TGT
0.4%
US Multiline Retail
1.2%
US Market
1 Year Returns
-3.8%
NYSE:TGT
0.5%
US Multiline Retail
0.9%
US Market
TGT Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Target (TGT) 3.8% 3.1% 5.5% -3.8% 0.5% 29.7%
US Multiline Retail 0.4% 4% -4% 0.5% 14.1% 24.4%
US Market 1.2% 6.6% 1.2% 0.9% 44.3% 41.3%
1 Year Return vs Industry and Market
  • TGT underperformed the Multiline Retail industry which returned 0.5% over the past year.
  • TGT underperformed the Market in United States of America which returned 0.9% over the past year.
Price Volatility
TGT
Industry
5yr Volatility vs Market

TGT Value

 Is Target undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Target to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Target.

NYSE:TGT Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 18 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:TGT
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 7.3%
Multiline Retail Unlevered Beta Simply Wall St/ S&P Global 0.56
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.562 (1 + (1- 21%) (36.46%))
0.724
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.8 * 7.27%)
8.55%

Discounted Cash Flow Calculation for NYSE:TGT using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Target is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:TGT DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (USD, Millions) 2,393.55 2,651.43 2,855.93 2,887.50 3,100.80
Source Analyst x8 Analyst x10 Analyst x4 Analyst x2 Analyst x2
Present Value
Discounted (@ 8.55%)
2,205.10 2,250.36 2,233.09 2,080.02 2,057.81
Present value of next 5 years cash flows $10,826.37
NYSE:TGT DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= $3,100.80 × (1 + 2.73%) ÷ (8.55% – 2.73%)
$54,770.49
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= $54,770.49 ÷ (1 + 8.55%)5
$36,347.75
NYSE:TGT Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= $10,826.37 + $36,347.75
$47,174.12
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $47,174.12 / 521.83
$90.4
NYSE:TGT Discount to Share Price
Calculation Result
Value per share (USD) From above. $90.40
Current discount Discount to share price of $72.84
= -1 x ($72.84 - $90.40) / $90.40
19.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Target is available for.
Intrinsic value
19%
Share price is $72.84 vs Future cash flow value of $90.4
Current Discount Checks
For Target to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Target's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Target's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Target's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Target's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:TGT PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-11-03) in USD $6.07
NYSE:TGT Share Price ** NYSE (2019-02-15) in USD $72.84
United States of America Multiline Retail Industry PE Ratio Median Figure of 9 Publicly-Listed Multiline Retail Companies 11.96x
United States of America Market PE Ratio Median Figure of 3,045 Publicly-Listed Companies 16.97x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Target.

NYSE:TGT PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:TGT Share Price ÷ EPS (both in USD)

= 72.84 ÷ 6.07

12x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Target is overvalued based on earnings compared to the US Multiline Retail industry average.
  • Target is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Target's expected growth come at a high price?
Raw Data
NYSE:TGT PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 12x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 18 Analysts
-0.1%per year
United States of America Multiline Retail Industry PEG Ratio Median Figure of 9 Publicly-Listed Multiline Retail Companies -0.2x
United States of America Market PEG Ratio Median Figure of 2,115 Publicly-Listed Companies 1.36x

*Line of best fit is calculated by linear regression .

NYSE:TGT PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 12x ÷ -0.1%

-152.85x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Target earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Target's assets?
Raw Data
NYSE:TGT PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-11-03) in USD $21.23
NYSE:TGT Share Price * NYSE (2019-02-15) in USD $72.84
United States of America Multiline Retail Industry PB Ratio Median Figure of 12 Publicly-Listed Multiline Retail Companies 2.09x
United States of America Market PB Ratio Median Figure of 5,122 Publicly-Listed Companies 1.82x
NYSE:TGT PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:TGT Share Price ÷ Book Value per Share (both in USD)

= 72.84 ÷ 21.23

3.43x

* Primary Listing of Target.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Target is overvalued based on assets compared to the US Multiline Retail industry average.
X
Value checks
We assess Target's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Multiline Retail industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Multiline Retail industry average (and greater than 0)? (1 check)
  5. Target has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

TGT Future Performance

 How is Target expected to perform in the next 1 to 3 years based on estimates from 18 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-0.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Target expected to grow at an attractive rate?
  • Target's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Target's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.
  • Target's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:TGT Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:TGT Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 18 Analysts -0.1%
NYSE:TGT Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 18 Analysts 2.3%
United States of America Multiline Retail Industry Earnings Growth Rate Market Cap Weighted Average 2.1%
United States of America Multiline Retail Industry Revenue Growth Rate Market Cap Weighted Average 4.1%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:TGT Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 18 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:TGT Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-01-31 84,012 6,105 2,973 3
2023-01-31 82,479 6,042 2,932 3
2022-01-31 80,915 6,021 2,903 3
2021-01-31 79,955 5,922 2,920 9
2020-01-31 77,627 5,686 2,920 18
2019-01-31 75,413 5,757 2,912 18
NYSE:TGT Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-11-03 74,527 6,052 3,240
2018-08-04 73,580 6,721 3,099
2018-05-05 72,437 6,132 2,970
2018-02-03 71,879 6,923 2,928
2017-10-28 70,421 7,050 2,642
2017-07-29 69,988 6,874 2,775
2017-04-29 69,522 6,494 2,730
2017-01-28 69,495 5,436 2,669
2016-10-29 70,431 5,000 3,268
2016-07-30 71,603 4,583 3,136
2016-04-30 72,862 4,594 3,284
2016-01-30 73,785 5,958 3,321

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Target's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Target's revenue is expected to grow by 2.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:TGT Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 18 Analyst Estimates (S&P Global) See Below

All data from Target Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:TGT Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-01-31 6.44 6.80 6.08 2.00
2023-01-31 6.16 6.37 5.95 2.00
2022-01-31 5.99 6.14 5.83 3.00
2021-01-31 5.81 6.05 5.49 6.00
2020-01-31 5.62 5.75 5.49 12.00
2019-01-31 5.47 5.51 5.33 10.00
NYSE:TGT Past Financials Data
Date (Data in USD Millions) EPS *
2018-11-03 6.07
2018-08-04 5.75
2018-05-05 5.47
2018-02-03 5.35
2017-10-28 4.79
2017-07-29 4.97
2017-04-29 4.82
2017-01-28 4.62
2016-10-29 5.54
2016-07-30 5.19
2016-04-30 5.32
2016-01-30 5.29

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Target is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Target's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Target has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

TGT Past Performance

  How has Target performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Target's growth in the last year to its industry (Multiline Retail).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Target's year on year earnings growth rate has been positive over the past 5 years.
  • Target's 1-year earnings growth exceeds its 5-year average (21.8% vs 3.3%)
  • Target's earnings growth has not exceeded the US Multiline Retail industry average in the past year (21.8% vs 51.7%).
Earnings and Revenue History
Target's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Target Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:TGT Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-11-03 74,527.00 3,240.00 14,848.00
2018-08-04 73,580.00 3,099.00 14,635.00
2018-05-05 72,437.00 2,970.00 14,349.00
2018-02-03 71,879.00 2,928.00 14,157.00
2017-10-28 70,421.00 2,642.00 14,162.00
2017-07-29 69,988.00 2,775.00 13,774.00
2017-04-29 69,522.00 2,730.00 13,513.00
2017-01-28 69,495.00 2,669.00 13,313.00
2016-10-29 70,431.00 3,268.00 13,650.00
2016-07-30 71,603.00 3,136.00 13,952.00
2016-04-30 72,862.00 3,284.00 14,215.00
2016-01-30 73,785.00 3,321.00 14,473.00
2015-10-31 73,909.00 2,860.00 14,476.00
2015-08-01 73,550.00 2,911.00 14,489.00
2015-05-02 73,080.00 2,529.00 14,625.00
2015-01-31 72,618.00 2,449.00 14,552.00
2014-11-01 71,066.00 2,732.00 13,918.00
2014-08-02 71,070.00 2,546.00 14,126.00
2014-05-03 71,230.00 2,767.00 14,203.00
2014-02-01 71,279.00 2,694.00 14,365.00
2013-11-02 73,807.00 2,412.00 15,331.00
2013-08-03 73,478.00 2,708.00 15,183.00
2013-05-04 73,140.00 2,800.00 15,075.00
2013-02-02 73,301.00 3,315.00 14,606.00
2012-10-27 71,863.00 3,019.00 14,562.00
2012-07-28 71,336.00 2,937.00 14,382.00
2012-04-28 70,797.00 2,937.00 14,265.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst Target has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.
  • Target used its assets less efficiently than the US Multiline Retail industry average last year based on Return on Assets.
  • Target's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Target's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Multiline Retail industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Target has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

TGT Health

 How is Target's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Target's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Target's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Target's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Target's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Target Company Filings, last reported 3 months ago.

NYSE:TGT Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-11-03 11,080.00 13,860.00 825.00
2018-08-04 11,167.00 13,344.00 1,180.00
2018-05-05 11,158.00 13,557.00 1,060.00
2018-02-03 11,709.00 11,587.00 2,643.00
2017-10-28 11,137.00 12,631.00 2,725.00
2017-07-29 11,098.00 12,246.00 2,291.00
2017-04-29 11,021.00 12,803.00 2,680.00
2017-01-28 10,953.00 12,749.00 2,513.00
2016-10-29 11,069.00 12,826.00 1,231.00
2016-07-30 11,577.00 12,710.00 1,480.00
2016-04-30 12,545.00 14,226.00 4,041.00
2016-01-30 12,957.00 12,768.00 4,046.00
2015-10-31 13,256.00 12,788.00 1,996.00
2015-08-01 13,942.00 12,740.00 2,767.00
2015-05-02 14,174.00 12,786.00 2,768.00
2015-01-31 13,997.00 12,749.00 2,210.00
2014-11-01 16,373.00 14,332.00 780.00
2014-08-02 16,433.00 14,189.00 803.00
2014-05-03 16,486.00 14,124.00 716.00
2014-02-01 16,231.00 12,611.00 670.00
2013-11-02 16,156.00 14,830.00 708.00
2013-08-03 16,020.00 14,533.00 1,018.00
2013-05-04 16,520.00 14,267.00 1,820.00
2013-02-02 16,558.00 17,648.00 784.00
2012-10-27 16,352.00 18,617.00 1,480.00
2012-07-28 15,897.00 18,583.00 1,461.00
2012-04-28 15,863.00 17,520.00 690.00
  • Target's level of debt (125.1%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (91.5% vs 125.1% today).
  • Debt is well covered by operating cash flow (43.7%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 8.6x coverage).
X
Financial health checks
We assess Target's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Target has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

TGT Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.51%
Current annual income from Target dividends. Estimated to be 4% next year.
If you bought $2,000 of Target shares you are expected to receive $70 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Target's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).
  • Target's dividend is below the markets top 25% of dividend payers in United States of America (3.59%).
Upcoming dividend payment

Purchase Target on or before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:TGT Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 18 Analyst Estimates (S&P Global) See Below
United States of America Multiline Retail Industry Average Dividend Yield Market Cap Weighted Average of 7 Stocks 2.9%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1998 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:TGT Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2024-01-31
2023-01-31
2022-01-31 3.99 1.00
2021-01-31 3.01 4.00
2020-01-31 2.76 9.00
2019-01-31 2.57 9.00
NYSE:TGT Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-01-10 2.560 3.609
2018-09-19 2.560 3.363
2018-08-27 2.560 2.910
2018-08-22 2.560 2.955
2018-03-15 2.480 3.303
2018-01-11 2.480 3.342
2017-09-21 2.480 4.075
2017-06-14 2.480 4.513
2017-03-09 2.400 4.362
2017-01-12 2.400 3.783
2016-09-21 2.400 3.346
2016-06-08 2.400 3.373
2016-03-10 2.240 2.888
2016-01-14 2.240 3.057
2015-09-11 2.240 2.990
2015-06-10 2.240 2.778
2015-03-13 2.080 2.581
2015-01-15 2.080 2.724
2014-09-10 2.080 3.098
2014-06-11 2.080 3.499
2014-03-13 1.720 2.911
2014-01-09 1.720 2.933
2013-09-12 1.720 2.692
2013-06-12 1.720 2.498
2013-03-14 1.440 2.077
2013-01-10 1.440 2.290
2012-09-13 1.440 2.310
2012-06-13 1.440 2.351
2012-03-15 1.200 2.096
2012-01-12 1.200 2.255
2011-09-14 1.200 2.309
2011-06-08 1.200 2.438
2011-03-10 1.000 2.006
2011-01-13 1.000 1.866
2010-09-09 1.000 1.796
2010-06-09 1.000 1.939
2010-03-11 0.680 1.241
2010-01-14 0.680 1.336
2009-09-10 0.680 1.405
2009-06-11 0.680 1.627
2009-03-12 0.640 1.693
2009-02-19 0.640 2.332

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Target's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.4x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.6x coverage).
X
Income/ dividend checks
We assess Target's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Target afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Target has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

TGT Management

 What is the CEO of Target's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Brian Cornell
COMPENSATION $8,399,209
AGE 59
TENURE AS CEO 4.5 years
CEO Bio

Mr. Brian C. Cornell has been Independent Director and Non-Executive Chairman of Yum! Brands, Inc. since September 18, 2015 and November 19, 2018 respectively. He has been the Chairman and Chief Executive Officer of Target Corporation since August 12, 2014. Mr. Cornell served as the Chief Executive Officer of PepsiCo Americas Foods at Pepsico, Inc. from March 12, 2012 to July 30, 2014. Mr. Cornell served as the Chief Executive Officer and President of Sam's Club (now Sam's West, Inc.) of Wal-Mart International since April 3, 2009 until January 31, 2012. He served as an Associate of Sam's West, Inc since February 1, 2012. He served as the Chief Executive Officer of Michaels Stores, Inc. from June 4, 2007 to April 2, 2009. He served as the Chief Marketing Officer and Executive Vice President of Safeway Inc. from April 23, 2004 to June 1, 2007. He served as an Executive Officer of Wal-Mart Stores Inc. since January 31, 2012 and Executive Vice President until January 31, 2012. He has more than 30 years of experience at leading retail and global consumer product companies. He has been a Director of Target Corp. since 2014. He has been a Director of Centerplate, Inc. since August 2010. He serves as Director of Kirin-Tropicana, Inc. He served as a Director of Polaris Industries Inc. from November 19, 2012 to July 23, 2015. He served as a Director of The Home Depot, Inc. from January 2008 to March 9, 2009 and OfficeMax Incorporated from December 10, 2004 to April 14, 2007. He serves on the Anderson School Board of Visitors. Mr. Cornell earned a BA degree from the University of California, Los Angeles in 1981 and attended Anderson School of Management.

CEO Compensation
  • Brian's compensation has been consistent with company performance over the past year.
  • Brian's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Target management team in years:

3
Average Tenure
53
Average Age
  • The tenure for the Target management team is about average.
Management Team

Brian Cornell

TITLE
Chairman & CEO
COMPENSATION
$8M
AGE
59
TENURE
4.5 yrs

Cathy Smith

TITLE
Executive VP & CFO
COMPENSATION
$3M
AGE
54
TENURE
3.4 yrs

John Mulligan

TITLE
Executive VP & COO
COMPENSATION
$4M
AGE
52
TENURE
3.4 yrs

Mike McNamara

TITLE
Executive VP & Chief Information Officer
COMPENSATION
$3M
AGE
53
TENURE
2.4 yrs

Janna Potts

TITLE
Executive VP & Chief Stores Officer
COMPENSATION
$3M
AGE
50
TENURE
9.5 yrs

Robert Harrison

TITLE
Senior VP

John Hulbert

TITLE
Vice President of Investor Relations

Don Liu

TITLE
Executive VP
COMPENSATION
$8M
AGE
56
TENURE
2.5 yrs

Katie Boylan

TITLE
Senior VP & Chief Communications Officer
TENURE
1.7 yrs

Rick Gomez

TITLE
Executive VP and Chief Marketing & Digital Officer
AGE
48
TENURE
2.1 yrs
Board of Directors Tenure

Average tenure and age of the Target board of directors in years:

5.6
Average Tenure
59
Average Age
  • The tenure for the Target board of directors is about average.
Board of Directors

Brian Cornell

TITLE
Chairman & CEO
COMPENSATION
$8M
AGE
59
TENURE
4.5 yrs

Roxanne Austin

TITLE
Independent Director
COMPENSATION
$125K
AGE
57
TENURE
17.1 yrs

Mary Minnick

TITLE
Independent Director
AGE
59
TENURE
13.5 yrs

Doug Baker

TITLE
Lead Independent Director
COMPENSATION
$160K
AGE
59

Ken Salazar

TITLE
Independent Director
COMPENSATION
$128K
AGE
63
TENURE
5.6 yrs

Robert Edwards

TITLE
Independent Director
COMPENSATION
$128K
AGE
62
TENURE
3.5 yrs

Calvin Darden

TITLE
Independent Director
COMPENSATION
$112K
AGE
68
TENURE
16.1 yrs

Henrique De Castro

TITLE
Independent Director
AGE
52
TENURE
6.1 yrs

Don Knauss

TITLE
Independent Director
COMPENSATION
$112K
AGE
67
TENURE
3.5 yrs

Melanie Healey

TITLE
Independent Director
COMPENSATION
$112K
AGE
57
TENURE
3.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
10. Oct 18 Sell Stephanie Lundquist Individual 09. Oct 18 09. Oct 18 -2,100 $86.00 $-180,600
X
Management checks
We assess Target's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Target has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

TGT News

Simply Wall St News

Target Corporation (NYSE:TGT): What’s In It For The Shareholders?

Two important questions to ask before you buy Target Corporation (NYSE:TGT) is, how it makes money and how it spends its cash. … I’ve analysed below, the health and outlook of Target’s cash flow, which will help you understand the stock from a cash standpoint. … Free cash flow (FCF) is the amount of cash Target has left after it pays off its expenses, including its net capital expenditures, which is what the company needs to spend each year to maintain or grow its business operations.

Simply Wall St -

How Financially Strong Is Target Corporation (NYSE:TGT)?

One reason being its ‘too big to fail’ aura which gives it the appearance of a strong and stable investment. … I will provide an overview of Target’s financial liquidity and leverage to give you an idea of Target’s position to take advantage of potential acquisitions or comfortably endure future downturns. … Note that this commentary is very high-level and solely focused on financial health, so I suggest you dig deeper yourself

Simply Wall St -

Is There An Opportunity With Target Corporation's (NYSE:TGT) 23.81% Undervaluation?

In this article I am going to calculate the intrinsic value of Target Corporation (NYSE:TGT). … by taking the expected future cash flows and discounting them to their present value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

What Kind Of Shareholder Owns Most Target Corporation (NYSE:TGT) Stock?

The big shareholder groups in Target Corporation (NYSE:TGT) have power over the company. … Generally speaking, as a company grows, institutions will increase their ownership. … Taking a look at the our data on the ownership groups (below), it's seems that.

Simply Wall St -

Why Target Corporation (NYSE:TGT) Is A Top Dividend Stock

The stock currently pays out a dividend yield of 4.2%, and has a market cap of US$32b. … Let's dig deeper into whether Target should have a place in your portfolio. … 5 questions to ask before buying a dividend stock

Simply Wall St -

How Good Is Target Corporation (NYSE:TGT), When It Comes To ROE?

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.29 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Target Corporation (NYSE:TGT) Should Be In Your Dividend Portfolio, Here's Why

Its yield of 3.8% makes it one of the market's top dividend payer. … In the past ten years, Target has also grown its dividend from $0.64 to $2.56. … Below, I have outlined more attractive dividend aspects for Target for income investors who may be interested in new dividend stocks for their portfolio.

Simply Wall St -

Should You Be Tempted To Sell Target Corporation (NYSE:TGT) Because Of Its P/E Ratio?

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … How Do I Calculate Target's Price To Earnings Ratio … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Read This Before Considering Target Corporation (NYSE:TGT) For Its Upcoming US$0.64 Dividend

Target Corporation (NYSE:TGT) will be distributing its dividend of US$0.64 per share on the 10 December 2018, and will start trading ex-dividend in 4 days time on the 20 November 2018. … Whenever I am looking at a potential dividend stock investment, I always check these five metrics:? … Is its earnings sufficient to payout dividend at the current rate

Simply Wall St -

What Should Investors Know About Target Corporation's (NYSE:TGT) Return On Capital?

This share represents a portion of capital used by the company to operate the business, and it is important the company is able to use the capital base efficiently to create adequate cash flows for you as an investor. … Thus, to understand how your money can grow by investing in Target, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE) … Target's Return On Capital Employed

Simply Wall St -

TGT Company Info

Map
Description

Target Corporation operates as a general merchandise retailer in the United States. The company offers beauty and household essentials, including beauty products, personal and baby care products, cleaning products, paper products, and pet supplies; food and beverage products, such as dry grocery, dairy, frozen food, beverage, candy, snacks, deli, bakery, meat, and produce products; and apparel for women, men, boys, girls, toddlers, infants, and newborns, as well as intimate apparel, jewelry, accessories, and shoes. It also provides home furnishings and décor comprising furniture, lighting, kitchenware, small appliances, home décor, bed and bath products, home improvement products, and automotive products, as well as seasonal merchandise comprising patio furniture and holiday décor; and music, movies, books, computer software, sporting goods, and toys, as well as electronics that include video game hardware and software. In addition, the company offers in-store amenities, which comprise 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 March 8, 2018, the company operated 1,826 stores. Target Corporation was founded in 1902 and is headquartered in Minneapolis, Minnesota.

Details
Name: Target Corporation
TGT
Exchange: NYSE
Founded: 1902
$38,010,359,642
521,833,603
Website: http://investors.target.com
Address: Target Corporation
1000 Nicollet Mall,
Minneapolis,
Minnesota, 55403,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE TGT Common Shares New York Stock Exchange US USD 02. Jan 1969
DB DYH Common Shares Deutsche Boerse AG DE EUR 02. Jan 1969
LSE 0LD8 Common Shares London Stock Exchange GB USD 02. Jan 1969
SNSE TGT Common Shares Santiago Stock Exchange CL USD 02. Jan 1969
BMV TGT * Common Shares Bolsa Mexicana de Valores MX MXN 02. Jan 1969
BOVESPA TGTB34 EACH BDR REPR 1 COM STK USD0.0833 Bolsa de Valores de Sao Paulo BR BRL 24. Aug 2015
Number of employees
Current staff
Staff numbers
345,000
Target employees.
Industry
General Merchandise Stores
Retail
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/02/18 01:36
End of day share price update: 2019/02/15 00:00
Last estimates confirmation: 2019/02/15
Last earnings filing: 2018/11/27
Last earnings reported: 2018/11/03
Last annual earnings reported: 2018/02/03


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.