Target Corporation ($TGT) Confident Investor Rating: Poor

Company name Target Corporation
Stock ticker TGT
Live stock price [stckqut]TGT[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Poor
Sales growth Poor
EPS growth Fair
P/E growth Poor
EBIT growth Poor

ANALYSIS

Confident Investor Rating Poor
Target stock price (TWCA growth scenario) $46.19
Target stock price (averages with growth) $58.42
Target stock price (averages with no growth) $56.96
Target stock price (manual assumptions) $326.09

The following company description is from Google Finance: http://www.google.com/finance?q=tgt

Target Corporation sells a range of assortment of general merchandise and food in its stores. The Company’s general merchandise and CityTarget stores offer a food assortment on a smaller scale and its SuperTarget stores offer a line of food items comparable to traditional supermarkets. The Company operates in three segments: U.S. Retail, U.S. Credit Card and Canadian. The Company’s U.S. Retail Segment includes all of its United States merchandising operations. The Company’s U.S. Credit Card Segment offers credit to qualified guests through its credit cards: the Target Credit Card and the Target Visa. Its Canadian Segment includes costs incurred in the United States and Canada related to its Canadian retail market entry. As of February 2, 2013, the Company had 1,778 stores in 49 states and the District of Columbia. It also owns three distribution centers in Canada, with a total of 3,963 thousand square feet.

 

Confident Investor comments: At this price and at this time, I do not think that a Confident Investor can confidently invest in Target Corporation.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor.

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
[s2If current_user_can(s2member_level1)]
In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

Stock price at the time of the calculation: $63.2

Growth: 0.19

Current EPS (TTM): $3.73

P/E: 59

Future EPS Calc: $8.9

Future Stock Price Calc: $525.16

Target stock price: $326.08

I hope that this makes you a better investor. [/s2If]

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