NYSE:TGT

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Established dividend payer with proven 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


Market Performance


7 Day Return

3.0%

TGT

2.5%

US Multiline Retail

1.3%

US Market


1 Year Return

31.4%

TGT

13.7%

US Multiline Retail

5.9%

US Market

Return vs Industry: TGT exceeded the US Multiline Retail industry which returned 13.7% over the past year.

Return vs Market: TGT exceeded the US Market which returned 5.9% over the past year.


Shareholder returns

TGTIndustryMarket
7 Day3.0%2.5%1.3%
30 Day2.9%1.2%-1.9%
90 Day25.9%9.7%-1.8%
1 Year35.9%31.4%16.7%13.7%8.3%5.9%
3 Year84.2%65.3%56.1%44.6%45.6%36.2%
5 Year118.1%84.4%58.8%38.7%66.1%47.9%

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?

27.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: TGT ($111.15) is trading below our estimate of fair value ($152.68)

Significantly Undervalued: 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 (18.3x) compared to the Multiline Retail industry average (12.8x).

PE vs Market: TGT is poor value based on its PE Ratio (18.3x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

Low 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 (4.8x) compared to the US Multiline Retail industry average (1.4x).


Next Steps

Future Growth

How is Target forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

4.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TGT's forecast earnings growth (4.3% per year) is above the savings rate (2.7%).

Earnings vs Market: TGT's earnings (4.3% per year) are forecast to grow slower than the US market (14.4% 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 (7.3% 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

High Future ROE: TGT's Return on Equity is forecast to be high in 3 years time (26.8%)


Next Steps

Past Performance

How has Target performed over the past 5 years?

2.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: TGT's earnings have grown by 2.5% per year over the past 5 years.

Accelerating Growth: TGT's earnings growth over the past year (2.2%) is below its 5-year average (2.5% per year).

Earnings vs Industry: TGT earnings growth over the past year (2.2%) exceeded the Multiline Retail industry -14.9%.


Return on Equity

High ROE: TGT's Return on Equity (26.6%) is considered high.


Return on Assets

ROA vs Industry: TGT has a higher Return on Assets than the Multiline Retail industry average last year.


Return on Capital Employed

ROCE Improving: TGT's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Target's financial position?


Financial Position Analysis

Short Term Liabilities: TGT's short term assets ($12.1B) do not cover its short term liabilities ($14.4B)

Long Term Liabilities: TGT's short term assets (12.1B) do not cover its long term liabilities (15.4B)


Debt to Equity History and Analysis

Debt Level: TGT's debt to equity ratio (97.3%) is considered high

Reducing Debt: TGT's debt to equity ratio has increased from 86.4% to 97.3% over the past 5 years.

Debt Coverage: TGT's debt is well covered by operating cash flow (52.6%).

Interest Coverage: TGT's interest payments on its debt are well covered by EBIT (9.5x 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 1.052170x debt).


Next Steps

Dividend

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

2.38%

Current Dividend Yield


Upcoming Dividend Payment

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


Dividend Yield vs Market

company2.4%marketbottom25%1.5%markettop25%3.8%industryaverage2.4%forecastin3Years2.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: TGT's dividend (2.38%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: TGT's dividend (2.38%) is low compared to the top 25% of dividend payers in the US market (3.77%).

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 (42.2%), 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 (37.6% payout ratio).


Next Steps

Management

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

3.1yrs

Average management tenure


CEO

Brian Cornell (60yo)

5.2yrs

Tenure

US$17,204,069

Compensation

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


CEO Compensation Analysis

Compensation vs. Market: Brian's total compensation ($USD17.20M) is about average for companies of similar size in the US market ($USD11.20M).

Compensation vs Earnings: Brian's compensation has increased by more than 20% in the past year.


Management Age and Tenure

3.1yrs

Average Tenure

54yo

Average Age

Experienced Management: TGT's management team is considered experienced (3.1 years average tenure).


Board Age and Tenure

5.7yrs

Average Tenure

60yo

Average Age

Experienced Board: TGT's board of directors are considered experienced (5.7 years average tenure).


Insider Trading

Insider Buying: TGT insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$2,206,76030 Aug 19
Michael McNamara
EntityIndividual
Role
Chief Information Officer
Executive VP & Chief Information Officer
Shares20,386
Max PriceUS$108.25
SellUS$1,575,00028 Aug 19
Mark Tritton
EntityIndividual
Shares15,000
Max PriceUS$105.00
SellUS$508,24627 Aug 19
John Mulligan
EntityIndividual
Role
Chief Operating Officer
Executive VP & COO
Shares4,855
Max PriceUS$104.69
SellUS$878,20726 Aug 19
Catherine Smith
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares8,412
Max PriceUS$104.40
SellUS$1,015,96826 Aug 19
Janna Potts
EntityIndividual
Shares9,540
Max PriceUS$106.50
SellUS$525,17826 Aug 19
Robert Harrison
EntityIndividual
Role
Chief Accounting Officer
Senior VP
Shares5,018
Max PriceUS$104.66
SellUS$1,055,78410 Jul 19
Michael McNamara
EntityIndividual
Role
Chief Information Officer
Executive VP & Chief Information Officer
Shares11,891
Max PriceUS$88.79
SellUS$1,616,59412 Apr 19
Catherine Smith
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares20,000
Max PriceUS$80.83
SellUS$143,77611 Apr 19
Robert Harrison
EntityIndividual
Role
Chief Accounting Officer
Senior VP
Shares1,791
Max PriceUS$80.28
SellUS$410,60928 Mar 19
Michael McNamara
EntityIndividual
Role
Chief Information Officer
Executive VP & Chief Information Officer
Shares5,186
Max PriceUS$79.18

Ownership Breakdown


Management Team

  • Don Liu (57yo)

    Executive VP

    • Tenure: 3.2yrs
    • Compensation: US$4.33m
  • Brian Cornell (60yo)

    Chairman & CEO

    • Tenure: 5.2yrs
    • Compensation: US$17.20m
  • Cathy Smith (55yo)

    Executive VP & CFO

    • Tenure: 4.1yrs
    • Compensation: US$5.58m
  • Rick Gomez (49yo)

    Executive VP and Chief Marketing & Digital Officer

    • Tenure: 2.8yrs
  • Mike McNamara (54yo)

    Executive VP & Chief Information Officer

    • Tenure: 3.1yrs
    • Compensation: US$5.36m
  • John Mulligan (53yo)

    Executive VP & COO

    • Tenure: 4.1yrs
    • Compensation: US$8.58m
  • John Hulbert

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Robert Harrison

    Senior VP

    • Tenure: 0yrs
  • Katie Boylan

    Senior VP & Chief Communications Officer

    • Tenure: 2.3yrs
  • Melissa Kremer (41yo)

    Executive VP & Chief HR Officer

    • Tenure: 0.8yrs

Board Members

  • Don Knauss (68yo)

    Independent Director

    • Tenure: 4.2yrs
    • Compensation: US$280.05k
  • Roxanne Austin (58yo)

    Independent Director

    • Tenure: 17.8yrs
    • Compensation: US$300.05k
  • Robert Edwards (63yo)

    Independent Director

    • Tenure: 4.2yrs
    • Compensation: US$310.05k
  • Calvin Darden (69yo)

    Independent Director

    • Tenure: 16.8yrs
    • Compensation: US$280.05k
  • Mary Minnick (60yo)

    Independent Director

    • Tenure: 14.2yrs
    • Compensation: US$295.05k
  • Doug Baker (60yo)

    Lead Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$325.05k
  • Brian Cornell (60yo)

    Chairman & CEO

    • Tenure: 5.2yrs
    • Compensation: US$17.20m
  • Melanie Healey (58yo)

    Independent Director

    • Tenure: 3.9yrs
    • Compensation: US$280.05k
  • Ken Salazar (64yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: US$295.05k
  • Henrique De Castro (53yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$280.05k

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$56.790b
  • Shares outstanding: 510.93m
  • 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
TGTSNSE (Santiago Stock Exchange)YesCommon SharesCLUSDJan 1969
0LD8LSE (London Stock Exchange)YesCommon SharesGBUSDJan 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 froz ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 23:40
End of Day Share Price2019/10/14 00:00
Earnings2019/08/03
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.