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Target Corp TGT

Morningstar Rating
$147.97 −2.36 (1.57%)
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Company Report

Target's Near-Term Results Likely to Be Under Pressure as Spending on Discretionary Goods Softens

Target has built a well-known brand over the past several decades, establishing itself as one of the nation’s leading retailers focused on delivering a gratifying in-store shopping experience while boasting an assortment of trendy apparel, home goods, and household essentials at competitive prices. Since 2014 under CEO Brian Cornell, Target has revamped its brand image after several years of lackluster performance and strategic missteps. The company has peeled back its investments to expand its physical footprint in recent years, instead focusing on driving cost efficiencies throughout its supply chain, renovating existing stores, and building out its omnichannel fulfillment capabilities through its "stores as hubs" model.

Price vs Fair Value

TGT is trading at a 295% premium.
Price
$150.27
Fair Value
$936.00
Uncertainty
Medium
1-Star Price
$871.50
5-Star Price
$29.90
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Given its iconic brand that attracts consumers due to its promise of a more gratifying customer experience compared with other low-cost retailers, we are confident in Target’s ability to drive recurring foot traffic.

Bears

Target lacks the scale and differentiation to drive significant market share across its product categories, since its product offerings lack a clear value proposition.

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News

Trading Information

Previous Close Price
$150.33
Day Range
$147.87150.89
52-Week Range
$102.92181.77
Bid/Ask
$147.85 / $147.97
Market Cap
$68.42 Bil
Volume/Avg
280,334 / 4.0 Mil

Key Statistics

Price/Earnings (Normalized)
16.87
Price/Sales
0.65
Dividend Yield (Trailing)
2.93%
Dividend Yield (Forward)
2.98%
Total Yield
2.93%

Company Profile

Target serves as the nation’s sixth-largest retailer, with its strategy predicated on delivering a gratifying in-store shopping experience and a wide product assortment of trendy apparel, home goods, and household essentials at competitive prices. Target’s upscale and stylish image began to carry national merit in the 1990s—a decade in which the brand saw its top line grow threefold to almost $30 billion—and has since cemented itself as a leading US retailer.Today, Target operates over 1,950 stores in the United States, generates over $100 billion in sales, and fulfills over 2 billion customer orders annually. The firm’s vast physical footprint is typically concentrated in urban and suburban markets as the firm seeks to attract a more affluent consumer base.
Sector
Consumer Defensive
Industry
Discount Stores
Stock Style Box
Large Value
Total Number of Employees
415,000

Competitors

Valuation

Metric
TGT
DLTR
DG
Price/Earnings (Normalized)
16.8718.2617.53
Price/Book Value
5.023.193.78
Price/Sales
0.650.760.67
Price/Cash Flow
9.1510.1910.34
Price/Earnings
TGT
DLTR
DG

Financial Strength

Metric
TGT
DLTR
DG
Quick Ratio
0.180.130.11
Current Ratio
0.861.281.22
Interest Coverage
12.52−8.377.12
Quick Ratio
TGT
DLTR
DG

Profitability

Metric
TGT
DLTR
DG
Return on Assets (Normalized)
7.99%5.58%5.07%
Return on Equity (Normalized)
34.30%15.40%23.87%
Return on Invested Capital (Normalized)
14.78%7.29%7.31%
Return on Assets
TGT
DLTR
DG
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