Target Stock Analysis, Valuation (NYSE:TGT)

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$75.7 $0.34 (0.45%) TGT stock closing price Feb 16, 2018 (Closing)
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Target
Updated on : Feb 16, 2018
previous close
TGT 75.7 (0%)
S&P 500 2732.2 (0%)
Closing Price On: Feb 16, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Retail-Discount and variety
Sector :
Retail-Wholesale
5 Quarter Revenue
Revenue Growth
2018-Q3
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-0.5%
Operating Profit
Operating Margin:
6.5%
Sector Average:
5.8%
5 Quarter Net Profit
Net Margins
2018-Q3
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
12.63B
Debt/Equity Ratio:
 1.13
Compared to the industry
Cash Flow
Operating cash flow:
$1.57B
Net Income:
$480M
Dividend Yield
TGT dividend yield:
3.2%
PROS      CONS
Cash Flow
ROIC
ROE
FCF Margin
PE Valuation
Long Term Growth
High Debt Burden
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
TGT PS :
0.6
Industry PS :
0.8
Sector:   Retail-Wholesale.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
13.4%
Return on Equity:
24%
Free Cash Flow Margin:
4.3%
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Target Stock Analysis

1773 5 3

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 3.2/5

Amigobulls TGT stock analysis relies on business fundamentals such as Target revenue growth, profits and return on equity measures from the latest quarter 2018 Q3 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 operating cash flow looks good at 3.3 times the net income.
  • The Target stock currently trades at a price to earnings ratio of 15.8. We rate this as a positive, compared to the industry average of 20.8.
  • Target's return on invested capital of 13.4% is good.
  • Target has a good Return On Equity (ROE) of 24%.
  • The company has a healthy free cash flow margin of 4.3%.

Should you sell TGT stock?

  • Revenue declined at a CAGR of -0.5% over the last 5 years.
  • With a debt/equity ratio of  1.13, Target is highly leveraged in comparison to Retail-Wholesale peers.

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.