Target logged a -1.3% change during today's afternoon session, and is now trading at a price of $89.72 per share.
Target returned losses of -41.7% last year, with its stock price reaching a high of $158.97 and a low of $85.36. Over the same period, the stock underperformed the S&P 500 index by -55.9%. AThe company's 50-day average price was $93.85. Target Corporation operates as a general merchandise retailer in the United States. Based in Minneapolis, MN, the Large-Cap Consumer Discretionary company has 440,000 full time employees. Target has offered a 4.9% dividend yield over the last 12 months.
Increasing Revenues but Narrowing Margins:
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $78,112 | $93,561 | $106,005 | $109,120 | $107,412 | $106,566 |
| Operating Margins | 6% | 7% | 8% | 4% | 5% | 5% |
| Net Margins | 4% | 5% | 7% | 3% | 4% | 4% |
| Net Income (M) | $3,281 | $4,368 | $6,946 | $2,780 | $4,138 | $4,091 |
| Net Interest Expense (M) | $477 | $977 | $421 | $478 | $502 | $615 |
| Depreciation & Amort. (M) | $2,357 | $2,230 | $2,344 | $2,385 | $2,415 | $3,000 |
| Diluted Shares (M) | 505 | 489 | 462 | 463 | 462 | 456 |
| Earnings Per Share | $6.36 | $8.64 | $14.1 | $5.98 | $8.94 | $8.86 |
| EPS Growth | n/a | 35.85% | 63.19% | -57.59% | 49.5% | -0.89% |
| Avg. Price | $84.79 | $125.33 | $216.57 | $195.92 | $142.42 | $90.91 |
| P/E Ratio | 13.21 | 14.37 | 15.22 | 32.54 | 15.9 | 10.23 |
| Free Cash Flow (M) | $4,090 | $7,876 | $5,081 | -$1,510 | $3,815 | $4,476 |
| CAPEX (M) | $3,027 | $2,649 | $3,544 | $5,528 | $4,806 | $2,891 |
| EV / EBITDA | 7.0 | 7.92 | 10.06 | 16.57 | 9.58 | 6.31 |
| Total Debt (M) | $12,651 | $12,730 | $14,408 | $15,013 | $15,462 | $15,540 |
| Net Debt / EBITDA | 0.95 | 0.8 | 1.19 | 2.1 | 1.48 | 1.48 |
| Current Ratio | 1.05 | 0.97 | 0.86 | 0.86 | 0.94 | 0.94 |
Target has growing revenues and a flat capital expenditure trend, positive EPS growth, and healthy leverage levels. However, Target has weak operating margins with a negative growth trend, positive cash flows, and not enough current assets to cover current liabilities because its current ratio is 0.94.
Target Trades at a Premium:
Target has a trailing twelve month P/E ratio of 10.9, compared to an average of 20.93 for the Consumer Discretionary sector. Based on its EPS guidance of $10.51, the company has a forward P/E ratio of 8.9. The 7.4% compound average growth rate of Target's historical and projected earnings per share yields a PEG ratio of 1.47. This implies that the shares are fairly valued. In contrast, the market is likely undervaluing Target in terms of its equity because its P/B ratio is 2.64 while the sector average is 2.93. The company's shares are currently trading 11.1% below their Graham number.
Target Has an Average Rating of Hold:
The 33 analysts following Target have set target prices ranging from $80.0 to $130.0 per share, for an average of $101.52 with a hold rating. The company is trading -11.6% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Target has an average amount of shares sold short because 4.5% of the company's shares are sold short. Institutions own 85.4% of the company's shares, and the insider ownership rate stands at 0.26%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 11% stake in the company is worth $4,615,586,068.
