About Target Corporation
Target Corporation (TGT) is a Consumer Cyclical company in the Retail-Variety Stores industry with a market capitalisation of $71.2B. The stock trades at 16.20x trailing earnings and yields 2.94%.
- Sector
- Consumer Cyclical
- Industry
- Retail-Variety Stores
- Market cap
- $71.2B
- P/E ratio
- 16.20
- EPS (TTM)
- $8.13
- Revenue (TTM)
- $104.8B
- Free cash flow
- $2.8B
- Profit margin
- 3.5%
- Dividend yield
- 2.94%
- Shares outstanding
- 454.3M
Financial health: Fair5/10
4 strengths, 4 concerns. Weakest points: current ratio, net margin, revenue growth and 1 more.
- Debt to equity: 0.89 (Watch, benchmark < 0.5) — Debt of 0.89x equity is moderate against the 0.5x benchmark. It has improved over the last 4 years.
- Net debt vs cash flow: 1.5y (Strong, benchmark < 4 years) — Net debt of $4.3B is 1.5x annual free cash flow — about 2 years of cash flow to repay.
- Current ratio: 0.94 (Concern, benchmark > 1.5) — Short-term assets cover only 0.94x short-term liabilities — below 1.0, meaning bills due this year exceed the assets on hand to pay them. It has been broadly flat over the last 4 years.
- Return on equity: 22.9% (Strong, benchmark > 15%) — Earns 22.9% on shareholder equity, comfortably past the > 15% mark.
- Gross margin: 29.3% (Watch, benchmark > 40%) — Keeps 29.3% of revenue after the direct cost of sales, short of the > 40% mark.
- Net margin: 3.5% (Concern, benchmark > 10%) — Turns 3.5% of revenue into profit, well short of the > 10% mark.
- Free cash flow: $2.8B (Strong, benchmark positive) — Generated $2.8B of free cash flow after capital spending. It has improved over the last 4 years.
- Revenue growth: -1.7% (Concern, benchmark > 10%) — Revenue changed -1.7% year on year, well short of the > 10% mark.
- Earnings growth: -9.4% (Concern, benchmark > 10%) — Earnings changed -9.4% year on year, well short of the > 10% mark.
- Payout ratio: 55.4% (Strong, benchmark < 60%) — Pays out 55.4% of earnings as dividends, leaving room to keep paying.