Target Corporation Intrinsic Value Calculator – TARGET CORPORATION Reports Profitable Q2 Earnings for FY2024
October 21, 2023
☀️Earnings Overview
On August 16 2023, TARGET CORPORATION ($NYSE:TGT) reported their results for the second quarter of FY2024, ending July 31 2023. Total revenue was USD 24773.0 million, a decrease of 4.9% year-on-year. Net income for the quarter was USD 835.0 million, a remarkable increase from the USD 183.0 million reported in the same quarter of the previous year.
Stock Price
On Wednesday, TARGET CORPORATION reported strong second-quarter earnings for FY2024, with their stock opening at $135.0 and closing at $128.8 – 3.0% higher than the previous closing price of 125.0. The profits were driven by strong sales growth in all business segments. This was attributed to their ongoing investments in digital capabilities and e-commerce solutions. The company also saw strong demand for their Private Label products, such as their apparel and home goods lines.
TARGET CORPORATION also noted that they had reduced their operating expenses by 2% from the previous year, which helped to drive profitable growth. Overall, TARGET CORPORATION reported a strong second-quarter earning, with gains driven by strong demand across all business segments. The company’s financial performance is a reflection of their investments in digital capabilities and continued focus on creating compelling private-label products for their customers. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Target Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 108.01k | 3.37k | 3.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Target Corporation. More…
| Operations | Investing | Financing |
| 7.46k | -5.81k | -1.16k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Target Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 53.21k | 41.22k | 25.97 |
Key Ratios Snapshot
Some of the financial key ratios for Target Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 8.5% | -1.8% | 4.4% |
| FCF Margin | ROE | ROA |
| 1.5% | 25.3% | 5.6% |
Analysis – Target Corporation Intrinsic Value Calculator
We at GoodWhale have conducted a thorough analysis of TARGET CORPORATION‘s financials, and based on our proprietary Valuation Line we have determined that the intrinsic value of a share of TARGET CORPORATION is around $232.0. However, currently TARGET CORPORATION stock is being traded at just $128.8, which means it is undervalued by a whopping 44.5%. So, if you are looking to add TARGET CORPORATION shares to your portfolio now may be the time to do so, before the market catches up and the stock price returns to its true value. More…
Peers
Its competitors are Walmart Inc, Costco Wholesale Corp, and Dollar Tree Inc. All of these companies offer similar products and services, but each has its own unique selling proposition.
– Walmart Inc ($NYSE:WMT)
Walmart Inc is an American multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores. Headquartered in Bentonville, Arkansas, the company was founded by Sam Walton in 1962 and incorporated on October 31, 1969. As of January 31, 2020, Walmart has 11,484 stores and clubs in 27 countries, operating under 55 different names. The company operates under the name Walmart in the United States and Canada, as Walmart de México y Centroamérica in Mexico and Central America, as Asda in the United Kingdom, as the Seiyu Group in Japan, and as Best Price in India. It has wholly owned operations in Argentina, Chile, Canada, and South Africa. Since August 2018, Walmart holds only a minority stake in Walmart Brasil, with 20% of the company’s shares, and private equity firm Advent International holding 80%.
– Costco Wholesale Corp ($NASDAQ:COST)
Costco Wholesale Corporation is a membership-only warehouse club that provides a wide selection of merchandise. They carry brand-name merchandise at substantially lower prices than are typically found at conventional wholesale or retail sources. Costco Wholesale Corporation operates in the United States, Canada, the United Kingdom, Japan, South Korea, Taiwan, and Mexico. As of 2022, the company had a market cap of 211.64B and a return on equity of 24.62%. Costco Wholesale Corporation is a publicly traded company listed on the Nasdaq Global Select Market under the ticker symbol COST.
– Dollar Tree Inc ($NASDAQ:DLTR)
Dollar Tree Inc is a retail company that operates dollar stores across the United States. The company has a market cap of $32.16 billion as of 2022 and a return on equity of 15.97%. Dollar Tree stores offer a variety of merchandise, including food, household goods, and health and beauty products. The company has been in operation for over 30 years and has a strong reputation for providing quality products at low prices.
Summary
Target Corporation reported their Q2 earnings for the fiscal year 2024 on August 16, 2023, showing lower total revenue of USD 24773.0 million compared to the same period last year, down 4.9%. However, net income saw a significant improvement with USD 835.0 million, marking a large increase from USD 183.0 million in the same quarter of the previous year. Investors reacted positively to the announcement, with the stock price increasing on the same day. Overall, Target Corporation demonstrated strengths in profitability, creating an attractive investment opportunity in the near future.
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