Wednesday, June 14, 2017

Undervalued Stock Alert

Stock: Target Corporation
Ticker: TGT
Price: 57.86/share
52-Week Average: 52.72-79.33
Dividend: 2.40 – 4.15% (not updated for today’s small raise)
5 Year Average Yield: 2.73%
Years of Increasing Dividend: 49
Ex-Dividend Date: 8/14/17
EPS: 4.88
Payout Ratio: 49.37%
Total Cash: 2.68B
Total Debt: 12.8B
P/E Ratio: 11.86
PEG Ratio: -3.07
Beta: 0.28
Profit Margin: 4.02%
Operating Margin: 7.04%
ROA: 7.91%
ROE: 23.19%
CEO: Brian Cornell
Number of Employees: 323,000 full-time employees
Sector: Services
Industry: Discount, Variety Stores

Hot points:
  • Solidity of the brand
  • Positive net income
  • Positive financial leveraging – less than five times current cash on hand
  • 3/4 past quarters have beat earnings estimates which positively impact the stock price
  • 5 new stores opened in Q1 with several more coming this fiscal year
  • Redcard usage/membership is up which benefits customers with a 5% off and the business by growing from positive feedback

Cold points:
  • Stock has been hit hard with most of all retail
  • P/E seems to be hovering around 11-12 and it might be a little while until it can get out from under the stall out
  • Buybacks will temporarily impact the stock price


  1. Cool logo!

    I own TGT and I'm happy to be collecting a little more in dividends after the 3.33% raise this week!

    All the best and happy investing!

    1. Thanks! I designed it myself :). I thought it turned out great. And that's a great pick. It got hit hard after Amazon announced the purchase of Whole Foods. Hope you bought in on that dip!

  2. I just bought another 20 shares today of Target with the dip. I'm hoping it continues to go up.

    1. I think it's a pretty safe investment. I think the TGT and Whole Foods have very different clientele and I only expect a short hit with Amazon's planned purchase.