Target TGT
Target operates large discount department stores in the US, selling food, fashion, and home goods, with a growing focus on digital sales and same-day delivery. Target shows stable financial health (Debt/EBITDA 1.60x) and solid quality (ROE 26.41%), with a reasonable valuation (P/E 16.33) and a well-covered dividend (payout 47.3%). The strong 100.5% earnings growth reflects a low comparable base, not a sustainable operational improvement.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Target operates large discount department stores in the US, selling food, fashion, and home goods, with a growing focus on digital sales and same-day delivery. Target shows stable financial health (Debt/EBITDA 1.60x) and solid quality (ROE 26.41%), with a reasonable valuation (P/E 16.33) and a well-covered dividend (payout 47.3%). The strong 100.5% earnings growth reflects a low comparable base, not a sustainable operational improvement.
Score by category
| Category | Score |
|---|---|
| Financial health | 5.5 |
| Quality / Moat | 6.3 |
| Valuation | 6.8 |
| Growth | 7.6 |
| Dividend | 7.6 |
| Momentum | 9.8 |
| Risk & Context | 6.4 |
OVERALL SCORE: 6.8/10
Context and risks
No material exposure to the geopolitical or rate factors affecting other sectors. Target's defensive consumer business is not directly impacted by Middle East tensions or the crude oil rally.
News considered in the analysis
- Is the Beauty Aisle Becoming Retail’s Next Big Battleground for Walmart (WMT) and Ulta (ULTA)? — Artículo de opinión sobre el sector de la belleza; no aporta información específica sobre Target.
- Target (TGT) Stock Still Looks Below Fair Value Following Merchandising Refresh — Opinión de analista de Simply Wall St. que sugiere que la acción está infravalorada tras la renovación de su oferta de mercancía; refuerza el caso de valoración.
- Target’s Dividend Has Room to Grow, But Capital Spending Matters — Análisis de Insider Monkey sobre la sostenibilidad del dividendo; señala que el crecimiento del dividendo está ligado a la disciplina de gasto de capital, un factor ya conocido.
- Business People: Evereve hires Target exec Alanna Baker to lead digital — Movimiento de personal de una ejecutiva de Target a otra empresa; sin impacto material en los fundamentales de Target.
- 1 Overlooked Dividend King With a 55-Year Winning Streak Worth Buying Now — Listículo genérico de Motley Fool que menciona a Target como un 'Dividend King'; sin información nueva.
Verdict: Hold; valuation is fair and the defensive business offers stability, but revenue growth is moderate.
Main risk: The main risk is pressure on the operating margin (6.04%) from price competition and rising costs, which could erode profitability if consumer spending weakens.
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