TGT Target Corporation

Exchange

NYSE

Sector

Consumer Services

Industry

Department/Specialty Retail Stores

Market Cap.

44.044B

Poor Cash Return on Invested Capital over the past 5 years

TGT has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

TGT has only created $5.70 of cash for every $100 invested.

Figures in USD. Fiscal year ends in January

	2008	2009	2010	2011	2012
Free Cash Flow	-244.00M	883.00M	4.15B	3.14B	1.07B
divided by
Invested Capital	30.33B	32.73B	31.01B	31.92B	31.55B
Cash ROIC	-0.80%	2.70%	13.39%	9.84%	3.38%

Excellent Return on Equity over the past 5 years

Over the past 5 years, TGT has generated strong profits with money shareholders have invested. This is considered one of the best indicators of quality management. Beware of extremely high Return on Equity (> 50%) as this is often unsustainable.

TGT has generated $17.67 of Earnings for every $100 of Shareholders' Equity.

Figures in USD. Fiscal year ends in January

	2008	2009	2010	2011	2012
Net Income	2.85B	2.21B	2.49B	2.92B	2.93B
divided by
Stockholders' Equity	15.31B	13.71B	15.35B	15.49B	15.82B
Return on Equity	18.61%	16.15%	16.21%	18.85%	18.51%

Good Business Performance over the past 10 years

It's likely TGT has been unable to maintain profitability in tough economic times, making it a somewhat cyclical business. The other possibility is TGT has expended significant capital on items such as property, plant and equipment in specific years. Look for correlations.

TGT has created positive free cash flow for 7 or 8 of the past 10 years.

Figures in USD. Fiscal year ends in January

	2003	2004	2005	2006	2007	2008	2009	2010	2011	2012
Free Cash Flow	-1.63B	156.00M	127.00M	1.06B	934.00M	-244.00M	883.00M	4.15B	3.14B	1.07B