|
Related Topics
|
Category: Target Corporation and Stock Market
Last updated: 17 June 2020 Stock price: $119.21 On this page we will look to provide more details, often not covered by mainstream financial websites of Target Corporation, one of the largest retailers in the United States with 1 868 outlets across the United States
|
About Target Corporation
Target Corporation (Target, the Corporation or the Company) was incorporated in Minnesota in 1902. We offer to our customers, referred to as "guests," everyday essentials and fashionable, differentiated merchandise at discounted prices. Our ability to deliver a preferred shopping experience to our guests is supported by our supply chain and technology, our devotion to innovation, our loyalty offerings and suite of fulfillment options, and our disciplined approach to managing our business and investing in future growth. We operate as a single segment designed to enable guests to purchase products seamlessly in stores or through our digital channels. Since 1946, we have given 5 percent of our profit to communities.
Quick facts about Target Corporation
- Target Corporation is listed on the New York Stock Exchange under share code ticker: TGT
- Target Corporation (TGT) market capital: $59.6 billion (as at 17 June 2020)
- Total number of Target outlets: 1,868
- Square footage of all Target outlets: 240 516 000
- Total revenues for Target Corporation during 2019: $78.11 billion
- Total profits for Target Corporation during 2019: $3.281 billion
- Earnings per TGT share in 2019: $6.42
- Dividend per TGT share in 2019: $2.42
- Number of Target Corporation shares outstanding: 515.6 million
- Cash on balance sheet: $2.577 billion
- Stockholders equity: $11.833 billion
- Stockholders equity per share in Target Corporation: $22.94
Merchandise of Target Corporation
We sell a wide assortment of general merchandise and food. The majority of our general merchandise stores offer an edited food assortment, including perishables, dry grocery, dairy, and frozen items. Nearly all of our stores larger than 170,000 square feet offer a full line of food items comparable to traditional supermarkets. Our small format stores, generally smaller than 50,000 square feet, offer curated general merchandise and food assortments. Our digital channels include a wide merchandise assortment, including many items found in our stores, along with a complementary assortment. A significant portion of our sales is from national brand merchandise. Approximately one-third of 2019 sales was related to our owned and exclusive brands, including but not limited to the following:
Owned Brands A New Day™ Hyde & EEK! Boutique™ Smartly™ All in Motion™ JoyLab™ Smith & Hawken® Archer Farms® Kona Sol™ Sonia Kashuk® Art Class™ Made By Design™ Spritz™ Auden™ Market Pantry® Stars Above™ Ava & Viv® More Than Magic™ Sun Squad™ Boots & Barkley® Opalhouse™ Sutton & Dodge® Cat & Jack™ Open Story™ Threshold™ Cloud Island™ Original Use™ Universal Thread™ Colsie™ Pillowfort™ up & up® Everspring™ Project 62™ Wild Fable™ Good & Gather™ Prologue™ Wondershop™ Goodfellow & Co™ Room Essentials® Xhilaration® Hearth & Hand™ with Magnolia Shade & Shore™ heyday™ Simply Balanced™
Exclusive Brands
California Roots™ Isabel Maternity™ by Ingrid & Isabel® The Collection Defy & Inspire™ Just One You® made by carter's® Wine Cube® Fieldcrest® Kristin Ess Who What Wear™ Hand Made Modern® Rosé Bae™
We also sell merchandise through periodic exclusive design and creative partnerships and generate revenue from in-store amenities such as Target Café and leased or licensed departments such as Target Optical, Starbucks, and other food service offerings. CVS Pharmacy, Inc. (CVS) operates pharmacies and clinics in our stores under a perpetual operating agreement from which we generate annual occupancy income.
Owned Brands A New Day™ Hyde & EEK! Boutique™ Smartly™ All in Motion™ JoyLab™ Smith & Hawken® Archer Farms® Kona Sol™ Sonia Kashuk® Art Class™ Made By Design™ Spritz™ Auden™ Market Pantry® Stars Above™ Ava & Viv® More Than Magic™ Sun Squad™ Boots & Barkley® Opalhouse™ Sutton & Dodge® Cat & Jack™ Open Story™ Threshold™ Cloud Island™ Original Use™ Universal Thread™ Colsie™ Pillowfort™ up & up® Everspring™ Project 62™ Wild Fable™ Good & Gather™ Prologue™ Wondershop™ Goodfellow & Co™ Room Essentials® Xhilaration® Hearth & Hand™ with Magnolia Shade & Shore™ heyday™ Simply Balanced™
Exclusive Brands
California Roots™ Isabel Maternity™ by Ingrid & Isabel® The Collection Defy & Inspire™ Just One You® made by carter's® Wine Cube® Fieldcrest® Kristin Ess Who What Wear™ Hand Made Modern® Rosé Bae™
We also sell merchandise through periodic exclusive design and creative partnerships and generate revenue from in-store amenities such as Target Café and leased or licensed departments such as Target Optical, Starbucks, and other food service offerings. CVS Pharmacy, Inc. (CVS) operates pharmacies and clinics in our stores under a perpetual operating agreement from which we generate annual occupancy income.
Distribution of Target Corporation
The vast majority of merchandise is distributed to our stores through our network of distribution centers. Common carriers ship merchandise to and from our distribution centers. Vendors or third-party distributors ship certain food items and other merchandise directly to our stores. Merchandise sold through our digital channels is distributed to our guests via common carriers (from stores, distribution centers, vendors, and third-party distributors), delivery via our wholly owned subsidiary, Shipt, Inc. (Shipt), and through guest pick-up at our stores. Our stores fulfill the majority of the digitally originated sales, which allows improved product availability, faster delivery times, and reduced shipping costs.
Geographic representation of Target Corporation earnings
Nearly all of our revenues are generated within the U.S. The vast majority of our property and equipment is located within the U.S.
The summary below shows the number of stores and square footage (in thousands) per region
The summary below shows the number of stores and square footage (in thousands) per region
- Missouri: 35 (4608)
- Alabama: 22 (3 132 )
- Alaska: 3 (504 )
- Arizona: 46 (6 080 )
- Arkansas: 9 (1165)
- California: 297 (36474)
- Colorado: 42 (6 244 )
- Connecticut: 21 (2 731 )
- Delaware: 3 (440 )
- District District of Colombia: 5 (342 )
- Florida: 124 (17 053 )
- Georgia: 50 (6 820 )
- Hawaii: 7 (1 111 )
- Idaho: 6 (664 )
- Illinois: 95 (11 950 )
- Indiana: 31 (4 174 )
- Iowa: 20 (2 835 )
- Kansas: 17 (2 385 )
- Kentucky: 14 (1571)
- Louisiana: 15 (2120)
- Maine: 5 (630 )
- Maryland: 40 (4 960 )
- Massachusetts: 47 (5 467 )
- Michigan: 53 (6 286 )
- Minnesota: 73 (10 315 )
- Mississippi: 6 (743 )
- Montana: 7 (777 )
- Nebraska: 14 (2 005 )
- Nevada: 17 (2 242 )
- New Hampshire: 9 (1 148 )
- New Jersey: 47 (5 992 )
- New Mexico: 10 (1 185 )
- New York: 84 (10 178 )
- North Carolina: 51 (6 540 )
- North Dakota: 4 (554 )
- Ohio: 64 (7 829 )
- Oklahoma: 15 (2 167 )
- Oregon: 20 (2 312 )
- Pennsylvania: 75 (9 094 )
- Rhode Island: 4 (517 )
- South Carolina: 19 (2 359 )
- South Dakota: 5 (580 )
- Tennessee: 30 (3 816 )
- Texas: 150 (20 919 )
- Utah: 14 (1 979 )
- Vermont: 1 (60 )
- Virginia: 59 (7 713 )
- Washington: 39 (4 377 )
- West Virginia: 6 (755 )
- Wisconsin: 36 (4 427 )
- Wyoming: 2 (187 )
Trademarks of Target Corporation
Our brand image is a critical element of our business strategy. Our principal trademarks, including Target, our "Expect More. Pay Less." brand promise, and our "Bullseye Design," have been registered with the United States (U.S.) Patent and Trademark Office. We also seek to obtain and preserve intellectual property protection for our owned brands.
Employees of Target Corporation
As of February 1, 2020, we employed approximately 368,000 full-time, part-time, and seasonal employees, referred to as "team members." Because of the seasonal nature of the retail business, employment levels peak in the holiday season. We offer a broad range of company-paid benefits to our team members. Eligibility for and the level of benefits vary depending on team members' full-time or part-time status, compensation level, date of hire, and/or length of service. Company-paid benefits include a 401(k) plan, medical and dental plans, disability insurance, paid vacation, tuition reimbursement, various team member assistance programs, life insurance, a pension plan (closed to new participants, with limited exceptions), and merchandise and other discounts. We believe our team member relations are good
Competition of Target Corporation
We compete with traditional and internet retailers, including department stores, off-price general merchandise retailers, wholesale clubs, category-specific retailers, drug stores, supermarkets, and other forms of retail commerce. Our ability to positively differentiate ourselves from other retailers and provide compelling value to our guests largely determines our competitive position within the retail industry
Seasonality of Target Corporation's earnings
A larger share of annual revenues and earnings traditionally occurs in the fourth quarter because it includes the November and December holiday sales period.
Target Corporation (NYSE:TGT) stock performance
The graph below compares the cumulative total shareholder return on our common stock for the last five fiscal years with (i) the cumulative total return on the S&P 500 Index, (ii) the peer group used in previous filings consisting of 17 online, general merchandise, department store, food, and specialty retailers (Amazon.com, Inc., Best Buy Co., Inc., Costco Wholesale Corporation, CVS Health Corporation, Dollar General Corporation, Dollar Tree, Inc., The Gap, Inc., The Home Depot, Inc., Kohl's Corporation, The Kroger Co., Lowe's Companies, Inc., Macy's, Inc., Rite Aid Corporation, Sears Holdings Corporation, The TJX Companies, Inc., Walgreens Boots Alliance, Inc., and Walmart Inc.) (Previous Peer Group), and (iii) a new peer group consisting of the companies in the Previous Peer Group, plus Nordstrom, Inc., but excluding Sears Holdings Corporation, which filed for bankruptcy protection and is no longer publicly traded, and The Gap, Inc., which announced its intention to enter a transformational period for its brands (Current Peer Group). The Current Peer Group is consistent with the retail peer group used for our definitive Proxy Statement for the Annual Meeting of Shareholders to be held on June 10, 2020, excluding Publix Super Markets, Inc., which is not quoted on a public stock exchange.
The peer group is weighted by the market capitalization of each component company. The graph assumes the investment of $100 in Target common stock, the S&P 500 Index, and the Peer Group on January 30, 2015, and reinvestment of all dividends
The peer group is weighted by the market capitalization of each component company. The graph assumes the investment of $100 in Target common stock, the S&P 500 Index, and the Peer Group on January 30, 2015, and reinvestment of all dividends
Our latest Target Corporation (TGT) stock valuation (21 May 2020)
So what do we value Target Corporation's stock at based on their 4th quarter 2019 earnings report and their fiscal guidance provided? Based on Target Corporation's earnings report and the fiscal guidance provided our valuation model provides a target (full value) price for Target Corporation' stock at $121.90 (up from our 4th quarter 2019 earnings valuation of Target Corporation) We therefore believe the stock of Target Corporation's is slightly undervalued at its current price.
We usually recommend that long term fundamental or value investors look to enter a stock at least 10% below our target (full value) price which in this case is $108.50. A good entry point into Target would therefore be at $109.70 or below. We expect the stock of Target to kick up to levels closer to our target price in coming weeks and months, once the fears surrounding markets subsides and fades away and the markets returns to normal.
We usually recommend that long term fundamental or value investors look to enter a stock at least 10% below our target (full value) price which in this case is $108.50. A good entry point into Target would therefore be at $109.70 or below. We expect the stock of Target to kick up to levels closer to our target price in coming weeks and months, once the fears surrounding markets subsides and fades away and the markets returns to normal.