Target Corporation
Target Corporation Fundamental Analysis
Target Corporation (TGT) shows moderate financial fundamentals with a PE ratio of 13.98, profit margin of 3.58%, and ROE of 24.87%. The company generates $105.2B in annual revenue with weak year-over-year growth of -0.79%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 43.8/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze TGT's fundamental strength across five key dimensions:
Efficiency Score
WeakTGT struggles to generate sufficient returns from assets.
Valuation Score
ExcellentTGT trades at attractive valuation levels.
Growth Score
WeakTGT faces weak or negative growth trends.
Financial Health Score
WeakTGT carries high financial risk with limited liquidity.
Profitability Score
ModerateTGT maintains healthy but balanced margins.
Key Financial Metrics
Is TGT Expensive or Cheap?
P/E Ratio
TGT trades at 13.98 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, TGT's PEG of -3.54 indicates potential undervaluation.
Price to Book
The market values Target Corporation at 3.39 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 4.33 times EBITDA. This is generally considered low.
How Well Does TGT Make Money?
Net Profit Margin
For every $100 in sales, Target Corporation keeps $3.58 as profit after all expenses.
Operating Margin
Core operations generate 4.94 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $24.87 in profit for every $100 of shareholder equity.
ROA
Target Corporation generates $6.27 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Target Corporation generates limited operating cash flow of $6.77B, signaling weaker underlying cash strength.
Free Cash Flow
Target Corporation generates weak or negative free cash flow of $3.01B, restricting financial flexibility.
FCF Per Share
Each share generates $6.62 in free cash annually.
FCF Yield
TGT converts 5.71% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.98
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-3.54
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.39
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.50
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.29
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.97
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.25
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How TGT Stacks Against Its Sector Peers
| Metric | TGT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.98 | 23.21 | Better (Cheaper) |
| ROE | 24.87% | 1251.00% | Weak |
| Net Margin | 3.58% | -5497.00% (disorted) | Weak |
| Debt/Equity | 1.29 | 0.79 | Weak (High Leverage) |
| Current Ratio | 0.97 | 2.44 | Weak Liquidity |
| ROA | 6.27% | -200095.00% (disorted) | Weak |
TGT outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Target Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
51.39%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
38.36%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
14.87%
Industry Style: Defensive, Dividend, Low Volatility
High Growth