Target Corp. (TGT) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Costco Wholesale Corp.

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Target Corp.

Ulta Beauty, Inc.

Penske Automotive Group, Inc.

CarMax, Inc.

AutoZone, Inc.

O'Reilly Automotive, Inc.

Why is Target Corp. ?

High Management Efficiency with a high ROCE of 26.23%

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.42 times

Poor long term growth as Operating profit has grown by an annual rate -0.56% of over the last 5 years

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%

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

High Institutional Holdings at 88.98%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

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 Report

Verdict Report

How much should you hold?

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.

12.29%

-1.02

34.16%

S&P 500

20.12%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.50%

EBIT Growth (5y)

-4.61%

EBIT to Interest (avg)

12.00

Debt to EBITDA (avg)

1.42

Net Debt to Equity (avg)

0.87

Sales to Capital Employed (avg)

3.56

Tax Ratio

22.84%

Dividend Payout Ratio

50.35%

Pledged Shares

Institutional Holding

90.63%

ROCE (avg)

26.23%

ROE (avg)

35.94%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.70

EV to EBIT

11.04

EV to EBITDA

6.78

EV to Capital Employed

1.94

EV to Sales

0.51

PEG Ratio

Dividend Yield

251.10%

ROCE (Latest)

17.55%

ROE (Latest)

22.81%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at 107.1 %

DIVIDEND PER SHARE(HY)

Highest at USD 0

DIVIDEND PAYOUT RATIO(Y)

Highest at 75.3%

RAW MATERIAL COST(Y)

Fallen by 1.04% (YoY

-9What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 6,774 MM

NET PROFIT(9M)

At USD 2,255.72 MM has Grown at -24.87%

ROCE(HY)

Lowest at 25.1%

OPERATING PROFIT MARGIN(Q)

Lowest at 6.95 %

EPS(Q)

Lowest at USD 1.51

Here's what is working for Target Corp.

Debt-Equity Ratio

Lowest at 107.1 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Dividend per share

Highest at USD 0 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Dividend Payout Ratio

Highest at 75.3%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by 1.04% (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.

Operating Cash Flow

Lowest at USD 6,774 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Net Profit

At USD 2,255.72 MM has Grown at -24.87%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Operating Profit Margin

Lowest at 6.95 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

EPS

Lowest at USD 1.51

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Non Operating Income

Highest at USD 0.03 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income