Target Stock Analysis, Valuation (NYSE:TGT)

Add to My Stocks
$77.12 $0.13 (0.17%) TGT stock closing price Jun 18, 2018 (Closing)

Watch the robo advisor video of Target stock analysis on Amigobulls. This is our analyst opinion covering the buy and sell arguments for TGT stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Target Corporation Stock Rating 2.8/5

Amigobulls TGT stock analysis relies on business fundamentals such as Target revenue growth, profits and return on equity measures from the latest quarter 2019 Q1 earnings. We compare Target valuation with its sector peers to gauge relative attractiveness of TGT stock. Target stock rating encapsulates our opinion about the company based on the fundamentals.

Should you buy TGT stock?

  • The Target stock currently trades at a price to earnings ratio of 16, compared to the sector average of 21.4. We rate this as a positive.
  • When compared with the Retail-Wholesale sector average PS ratio of 0.8, the price-to-sales ratio of 0.6 for TGT stock is attractive.
  • Target's return on invested capital of 15 is good.
  • The LTM ROE of 26.5 for Target is attractive.

Should you sell TGT stock?

  • Revenue declined at a CAGR of -0.1 over the last 5 years.
  • With a debt/equity ratio of 1.2, Target is highly leveraged in comparison to -sectordesc- peers.
  • The company has an operating cash flow which is 0.7159 times the net income. This is not a healthy sign.
  • The company has a negative free cash flow margin of -1.8.

Comments on this video and Target stock

Investors can make use of the Amigobulls Target stock analysis to ascertain how TGT stock fares in fundamental analysis investment criteria. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.

Target revenue growth and profit or net income are the main underlying forces which could detremine the direction of the share price. One can also combine technical analysis and fundamental analysis to get a holistic picture about TGT stock.