Target Stock Analysis, Valuation (NYSE:TGT)

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$58.33 $0.93 (1.57%) TGT stock closing price Sep 21, 2017 (Closing)
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Target
Updated on : Sep 20, 2017
previous close
TGT 59.3 (0%)
S&P 500 2508.2 (0%)
Closing Price On: Sep 20, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Retail-Discount and variety
Sector :
Retail-Wholesale
5 Quarter Revenue
Revenue Growth
2018-Q2
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-0.3%
Operating Profit
Operating Margin:
6.8%
Sector Average:
5.6%
5 Quarter Net Profit
Net Margins
2018-Q2
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
12.25B
Debt/Equity Ratio:
 1.1
Compared to the industry
Cash Flow
Operating cash flow:
$1.62B
Net Income:
$672M
Dividend Yield
TGT dividend yield:
4.05%
PROS      CONS
Cash Flow
ROIC
ROE
FCF Margin
High Dividend Yield
PE Valuation
Long Term Growth
High Debt Burden
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
TGT PS :
0.5
Industry PS :
0.7
Sector:   Retail-Wholesale.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
13.3%
Return on Equity:
24.9%
Free Cash Flow Margin:
5.6%
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Target Stock Analysis

1773 5 2

View Target stock analysis video. This is our analyst opinion covering the buy and sell arguments for TGT stock.

Target Corporation Stock Rating 3.2/5

Our Target stock opinion is based on fundamentals of the company. This Target stock analysis is based on latest 2018 Q2 earnings. The stock price analysis takes into account the company's valuation metrics.

Should you buy TGT stock?

  • The company has an operating cash flow which is 2.4 times the net income. We see this as a positive signal.
  • The Target stock currently trades at a price to earnings ratio of 12. We rate this as a positive, compared to the industry average of 17.6.
  • When compared with the Retail-Discount and variety industry average PS ratio of 0.7, the price-to-sales ratio of 0.5 for TGT stock is attractive.
  • Target's dividend yield of 4.05% is attractive.
  • Target's return on invested capital of 13.3% is good.
  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for Target at 24.9%.
  • The company has a good Free Cash Flow (FCF) margin of 5.6%.

Should you sell TGT stock?

  • Sales declined by -0.3% annually over the last 5 years.
  • With a debt/equity ratio of  1.1, Target is highly leveraged in comparison to Retail-Wholesale peers.

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