ScoreWhy is Target Corp. ?
1
High Management Efficiency with a high ROCE of 26.23%
2
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.42 times
3
Poor long term growth as Operating profit has grown by an annual rate -0.56% of over the last 5 years
4
Flat results in Jul 25
- OPERATING CASH FLOW(Y) Lowest at USD 6,386 MM
- NET PROFIT(HY) At USD 1,543.46 MM has Grown at -28.29%
- ROCE(HY) Lowest at 26.32%
5
With ROCE of 20.83%, it has a attractive valuation with a 2.05 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -28.69%, its profits have risen by 0.7% ; the PEG ratio of the company is 7.1
- At the current price, the company has a high dividend yield of 351.9
6
High Institutional Holdings at 88.98%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
7
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -28.69% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods
Real-Time Research ReportHow much should you buy?
- Overall Portfolio exposure to Target Corp. should be less than 10%
- Overall Portfolio exposure to Retailing should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Retailing)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Target Corp. for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Target Corp.
76.91%
-1.02
34.16%
S&P 500
15.36%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
2.29%
EBIT Growth (5y)
-6.67%
EBIT to Interest (avg)
12.00
Debt to EBITDA (avg)
1.42
Net Debt to Equity (avg)
0.87
Sales to Capital Employed (avg)
3.52
Tax Ratio
22.84%
Dividend Payout Ratio
55.83%
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
26.23%
ROE (avg)
35.94%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
16
Industry P/E
Price to Book Value
3.36
EV to EBIT
13.59
EV to EBITDA
8.14
EV to Capital Employed
2.49
EV to Sales
0.61
PEG Ratio
NA
Dividend Yield
3.81%
ROCE (Latest)
18.34%
ROE (Latest)
20.84%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend18What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 8,723 MM
DIVIDEND PER SHARE(HY)
Highest at USD 0
INTEREST COVERAGE RATIO(Q)
Highest at 3,247.12
RAW MATERIAL COST(Y)
Fallen by -18.6% (YoY
DEBT-EQUITY RATIO
(HY)
Lowest at 76.66 %
OPERATING PROFIT(Q)
Highest at USD 3,377 MM
OPERATING PROFIT MARGIN(Q)
Highest at 12.72 %
PRE-TAX PROFIT(Q)
Highest at USD 2,486 MM
NET PROFIT(Q)
Highest at USD 1,897.61 MM
EPS(Q)
Highest at USD 4.11
-2What is not working for the Company
DIVIDEND PAYOUT RATIO(Y)
Lowest at 28.22%
INVENTORY TURNOVER RATIO(HY)
Lowest at 6.03 times
Here's what is working for Target Corp.
Interest Coverage Ratio
Highest at 3,247.12
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Dividend per share
Highest at USD 0 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Operating Cash Flow
Highest at USD 8,723 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Operating Profit
Highest at USD 3,377 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Operating Profit Margin
Highest at 12.72 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at USD 2,486 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Pre-Tax Profit
At USD 2,486 MM has Grown at 99.52%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
Highest at USD 1,897.61 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
Net Profit
At USD 1,897.61 MM has Grown at 98.39%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
EPS
Highest at USD 4.11
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Debt-Equity Ratio
Lowest at 76.66 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Raw Material Cost
Fallen by -18.6% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Target Corp.
Inventory Turnover Ratio
Lowest at 6.03 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Dividend Payout Ratio
Lowest at 28.22%
in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
GET THE MARKETSMOJO APP
Company
Stocks
Portfolio
"Investment in securities markets are subject to market risk. Read all the related documents carefully before investing."
