About Target Corporation
Target Corporation operates as a general merchandise retailer in the United States. It offers apparel for women, men, young adults, kids, toddlers, and babies, as well as jewelry, accessories, and shoes; and beauty products, such as skin and bath care, cosmetics, hair care, oral care, deodorant, and shaving products. The company also provides food and beverage products comprising dry and perishable grocery, including snacks, candy, beverages, deli, bakery, meat, produce, and food service; electronics which includes video games and consoles, toys, sporting goods, entertainment, and luggage; bed and bath, home décor, school/office supplies, storage, small appliances, kitchenware, greeting cards, party supplies, furniture, lighting, home improvement, and seasonal merchandise; and household essentials, such as household cleaning, paper products, over-the-counter healthcare, vitamins and supplements, baby gear, and pet supplies. In addition, it sells merchandise through periodic design and creative partnerships, and shop-in-shop experience; and in-store amenities. The company sells its products through its stores; and digital channels, including Target.com. Target Corporation was incorporated in 1902 and is headquartered in Minneapolis, Minnesota.
Target Corporation (TGT) is a Consumer Defensive company in the Discount Stores industry with a market capitalisation of $70.8B. The stock trades at 16.15x trailing earnings and yields 2.98%.
- Sector
- Consumer Defensive
- Industry
- Discount Stores
- Market cap
- $70.8B
- P/E ratio
- 16.15
- Forward P/E
- 16.33
- EPS (TTM)
- $9.65
- Revenue (TTM)
- $107.7B
- Free cash flow
- $3.4B
- Profit margin
- 4.1%
- Dividend yield
- 2.98%
- Beta
- 0.99
- Shares outstanding
- 454.3M
Financial health: Fair6.4/10
5 strengths, 2 concerns. Weakest points: current ratio, net margin.
- 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: 26.4% (Strong, benchmark > 15%) — Earns 26.4% on shareholder equity, comfortably past the > 15% mark.
- Gross margin: 28.4% (Watch, benchmark > 40%) — Keeps 28.4% of revenue after the direct cost of sales, short of the > 40% mark.
- Net margin: 4.1% (Concern, benchmark > 10%) — Turns 4.1% 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: 5.3% (Watch, benchmark > 10%) — Revenue changed 5.3% year on year, short of the > 10% mark.
- Earnings growth: 100.5% (Strong, benchmark > 10%) — Earnings changed 100.5% year on year, comfortably past the > 10% mark.
- PEG ratio: 1.94 (Watch, benchmark < 1) — At 1.94, the price looks fair relative to expected growth — Lynch treated 1.0 as fair value.
- Payout ratio: 47.3% (Strong, benchmark < 60%) — Pays out 47.3% of earnings as dividends, leaving room to keep paying.