0.25%
3.89%
-6.40%
-6.63%
0.98%
-36.29%
26.82%
AI Spotlight on TGT
Company Description
Target Corporation operates as a general merchandise retailer in the United States.The company offers food assortments, including perishables, dry grocery, dairy, and frozen items; apparel, accessories, home décor products, electronics, toys, seasonal offerings, food, and other merchandise; and beauty and household essentials.It also provides in-store amenities, such as Target Café, Target Optical, Starbucks, and other food service offerings.
The company sells its products through its stores; and digital channels, including Target.com.As of March 09, 2022, the company operated approximately 2,000 stores.Target Corporation was incorporated in 1902 and is headquartered in Minneapolis, Minnesota.
Market Data
| Last Price | 140.44 |
| Change Percentage | 0.25% |
| Open | 140.86 |
| Previous Close | 140.09 |
| Market Cap ( Millions) | 64351 |
| Volume | 2377589 |
| Year High | 181.86 |
| Year Low | 120.21 |
| M A 50 | 135.58 |
| M A 200 | 147.69 |
Financial Ratios
| FCF Yield | 7.06% |
| Dividend Yield | 3.16% |
| ROE | 31.11% |
| Debt / Equity | 133.89% |
| Net Debt / EBIDTA | 233.52% |
| Price To Book | 4.47 |
| Price Earnings Ratio | 14.83 |
| Price To FCF | 14.16 |
| Price To sales | 0.6 |
| EV / EBITDA | 11.75 |
News
- Jan -30 - Lockheed Martin Stock: A Buy With $565 Price Target
- Jan -30 - Kuya Silver Intersects Multiple >1,000 g/t Silver-Cobalt Veins in Wide Mineralized Zone At Campbell-Crawford Target, Silver Kings Project, Ontario, Canada
- Jan -30 - Polyrizon Announces Filing of Divisional Patent Application for Its Innovative Trap & Target™ (T&T) Intranasal Drug Delivery Platform
- Jan -29 - Midnight Sun Intersects High-Grade Oxide Copper at Kazhiba Target
- Jan -29 - 3 Cheap Dividend Stocks That Pay More Than Double the S&P 500 Average
- Jan -29 - My Best Dividend Aristocrats For February 2025
- Jan -28 - Target (TGT) Stock Drops Despite Market Gains: Important Facts to Note
- Jan -28 - Target facing backlash from LGBT groups after scaling down DEI practices
- Jan -28 - Target Looks Like A Strong Retail Play After Record-Breaking Holiday
- Jan -27 - Power Nickel Update -Following up on 2024 Drill Successes, Expanding Exploration Target Areas, and Announcing a New Discovery 700 Metres East of The Lion Zone
- Jan -26 - Can This Beaten-Down Dividend King Make a Comeback in 2025?
- Jan -26 - 1 Growth Stock Down 49% to Buy Right Now
- Jan -24 - Target joins Walmart in pulling back on DEI. But this big retailer and its shareholders are staying the course.
- Jan -24 - Target rolls back DEI initiatives, the latest big company to retreat
- Jan -24 - 2 Heavily Discounted Dividend Kings To Buy For 2025
- Jan -23 - Is Target Stock a Buy, Hold or Sell After Holiday Sales Results?
- Jan -22 - Target (TGT) Stock Dips While Market Gains: Key Facts
- Jan -21 - Market Navigator: Paid to wait out turnarounds
- Jan -21 - Core Assets Samples up to 1,092 g/t Silver, 48% Lead, & 1.2% Copper & Identifies New Gold Target at Silver Lime
- Jan -21 - Seabridge Gold Expands Iskut's Snip North Target and Prepares to Initiate Resource Definition Drilling in 2025
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Beauty and Household Essentials
Expected Growth : 3.5 %
What the company do ?
Beauty and Household Essentials from Target Corporation offers a wide range of personal care and household products, including skincare, haircare, cosmetics, and cleaning supplies.
Why we expect these perspectives ?
Target's Beauty and Household Essentials segment growth of 3.5% is driven by increasing demand for affordable, high-quality products, strategic partnerships with popular brands, effective in-store experiences, and a strong e-commerce platform. Additionally, the company's focus on sustainability, diversity, and inclusivity resonates with consumers, contributing to the segment's growth.
Segment n°2 -> Food and Beverage
Expected Growth : 2.8 %
What the company do ?
Target Corporation's Food and Beverage segment offers a range of food and beverages, including Market Pantry and Cat & Fiddle brands, in its stores.
Why we expect these perspectives ?
Target's Food and Beverage segment growth of 2.8% is driven by increasing same-store sales, successful private label brands like Market Pantry and Cat & Fiddle, and strategic partnerships with popular food delivery services. Additionally, the company's focus on in-store experience, including remodels and technology upgrades, has improved customer satisfaction and loyalty.
Segment n°3 -> Home Furnishings and Decor
Expected Growth : 3.2 %
What the company do ?
Home Furnishings and Decor from Target Corporation offers a wide range of stylish and affordable furniture, decor, and textiles for the home.
Why we expect these perspectives ?
Target's Home Furnishings and Decor segment growth of 3.2% is driven by increasing online sales, strategic marketing campaigns, and a focus on affordable, on-trend products. Additionally, the company's efforts to enhance the in-store experience, including the introduction of new private labels, have contributed to the segment's growth.
Segment n°4 -> Apparel and Accessories
Expected Growth : 3.8 %
What the company do ?
Apparel and Accessories from Target Corporation refers to the retail giant's clothing, shoes, and accessories for men, women, and kids, offering trendy and affordable fashion.
Why we expect these perspectives ?
Target Corporation's Apparel and Accessories segment growth of 3.8% is driven by increasing demand for affordable and trendy clothing, successful marketing campaigns, and strategic partnerships with popular brands. Additionally, the company's focus on omnichannel retailing, improved in-store experience, and loyalty programs have contributed to the segment's growth.
Segment n°5 -> Hardlines
Expected Growth : 2.5 %
What the company do ?
Hardlines from Target Corporation refer to non-discretionary products like electronics, toys, and sporting goods that are essential for daily life.
Why we expect these perspectives ?
Target's Hardlines segment growth of 2.5% is driven by increasing demand for electronics, toys, and sporting goods. Strong marketing campaigns, competitive pricing, and an enhanced online shopping experience contribute to the growth. Additionally, the company's efforts to improve in-store experience, including remodels and technology upgrades, attract more customers and drive sales.
Segment n°6 -> Other Revenue - Other
Expected Growth : 2.2 %
What the company do ?
Other Revenue - Other from Target Corporation refers to miscellaneous revenue streams not classified under sales, credit card, or other categories, such as fees from services, rent, and other non-operating income.
Why we expect these perspectives ?
Target's 2.2% growth in Other Revenue - Other is driven by increasing demand for its Shipt same-day delivery service, growth in its RedCard loyalty program, and expansion of its CVS pharmacy services. Additionally, the company's focus on digital transformation and investments in its e-commerce platform have contributed to this growth.
Segment n°7 -> Credit Card Profit Sharing
Expected Growth : 3.0 %
What the company do ?
Target Corporation's Credit Card Profit Sharing program allows employees to share in the profits generated by the company's credit card operations, providing an additional incentive for employees to drive business growth.
Why we expect these perspectives ?
Target Corporation's 3.0% credit card profit sharing growth is driven by increased adoption of contactless payments, expanded online shopping, and strategic partnerships. Additionally, the company's focus on enhancing the customer experience through personalized offers and rewards has contributed to the growth. Furthermore, the rise of e-commerce and digital payments has also boosted credit card usage, resulting in higher profit sharing.
Segment n°8 -> Sales - Other
Expected Growth : 2.9 %
What the company do ?
Sales - Other from Target Corporation refers to revenue generated from non-core businesses, such as credit card services, pharmacy, and optical services.
Why we expect these perspectives ?
Target's 2.9% growth in Sales - Other is driven by increasing demand for its same-day services, including Shipt and Drive Up, as well as growth in its loyalty program, RedCard. Additionally, the company's focus on enhancing the customer experience through investments in digital capabilities and store remodels has contributed to this growth.
Target Corporation Products
| Product Range | What is it ? |
|---|---|
| Clothing | Target Corporation offers a wide range of clothing for men, women, and children, including casual wear, formal wear, and activewear. |
| Home Goods | Target Corporation sells a variety of home goods, including furniture, bedding, kitchenware, and decorative items. |
| Electronics | Target Corporation offers a range of electronics, including TVs, laptops, tablets, smartphones, and gaming consoles. |
| Toys and Games | Target Corporation sells a variety of toys and games for children, including action figures, dolls, puzzles, and board games. |
| Health and Beauty | Target Corporation offers a range of health and beauty products, including skincare, haircare, cosmetics, and fragrances. |
| Food and Beverages | Target Corporation sells a variety of food and beverages, including snacks, beverages, and prepared meals. |
| Pharmacy and Health Services | Target Corporation offers pharmacy services, including prescription filling, immunizations, and health clinics. |
| Baby and Kids' Products | Target Corporation sells a range of baby and kids' products, including strollers, car seats, toys, and nursery furniture. |
| Sports and Outdoors | Target Corporation offers a variety of sports and outdoor gear, including bicycles, camping equipment, and athletic gear. |
| Pet Supplies | Target Corporation sells a range of pet supplies, including food, toys, and grooming products. |
Target Corporation's Porter Forces
Threat Of Substitutes
Target Corporation operates in the retail industry, where substitutes are readily available. However, the company's strong brand recognition and loyalty programs help to mitigate the threat of substitutes.
Bargaining Power Of Customers
Target Corporation's customers have a high bargaining power due to the availability of substitutes and the ease of switching to competitors. The company's pricing strategy and loyalty programs help to mitigate this threat.
Bargaining Power Of Suppliers
Target Corporation has a diverse supplier base, which reduces the bargaining power of individual suppliers. The company's large scale of operations also gives it negotiating power over its suppliers.
Threat Of New Entrants
The retail industry has high barriers to entry, including significant capital requirements and the need for a large scale of operations. This makes it difficult for new entrants to compete with established players like Target Corporation.
Intensity Of Rivalry
The retail industry is highly competitive, with many established players competing for market share. Target Corporation faces intense rivalry from competitors like Walmart, Costco, and Amazon, which puts pressure on its pricing and profitability.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 54.48% |
| Debt Cost | 3.95% |
| Equity Weight | 45.52% |
| Equity Cost | 9.74% |
| WACC | 6.58% |
| Leverage | 119.66% |
Target Corporation : Quality Control
Target Corporation passed 4 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| MO | Altria Group, Inc., through its subsidiaries, manufactures and sells smokeable and oral tobacco products in the United States. The company provides cigarettes primarily under the Marlboro brand; cigars and pipe … |
| COST | Costco Wholesale Corporation, together with its subsidiaries, engages in the operation of membership warehouses in the United States, Puerto Rico, Canada, the United Kingdom, Mexico, Japan, Korea, Australia, Spain, France, … |
| DG | Dollar General Corporation, a discount retailer, provides various merchandise products in the southern, southwestern, Midwestern, and eastern United States. It offers consumable products, including paper and cleaning products, such as … |
| WMT | Walmart Inc. engages in the operation of retail, wholesale, and other units worldwide. The company operates through three segments: Walmart U.S., Walmart International, and Sam's Club. It operates supercenters, supermarkets, … |
| DLTR | Dollar Tree, Inc. operates discount variety retail stores. It operates in two segments, Dollar Tree and Family Dollar. The Dollar Tree segment offers merchandise at the fixed price of $ … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
🥇
Altria
A-Score
1-Year Total Return ->
🥈
Walmart
A-Score
1-Year Total Return ->
🥉
Costco Wholesale
A-Score
1-Year Total Return ->
4
Target
A-Score
1-Year Total Return ->
5
Dollar General
A-Score
1-Year Total Return ->
6
