Target Stock Beneish M Score

TGT Stock  USD 167.11  1.19  0.71%   
This module uses fundamental data of Target to approximate the value of its Beneish M Score. Target M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Check out Target Piotroski F Score and Target Altman Z Score analysis.
For more information on how to buy Target Stock please use our How to Invest in Target guide.
  
At this time, Target's Net Debt is comparatively stable compared to the past year. Short Term Debt is likely to gain to about 3.2 B in 2024, whereas Long Term Debt Total is likely to drop slightly above 13.7 B in 2024. At this time, Target's Price To Sales Ratio is comparatively stable compared to the past year. Days Sales Outstanding is likely to gain to 5.64 in 2024, whereas Free Cash Flow Yield is likely to drop 0.06 in 2024.
At this time, it appears that Target is an unlikely manipulator. The earnings manipulation may begin if Target's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Target executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Target's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-3.98
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

1.86

Focus
Asset Quality

-3.18

Focus
Expense Coverage

1.3

Focus
Gross Margin Strengs

1.14

Focus
Accruals Factor

1.3

Focus
Depreciation Resistance

1.39

Focus
Net Sales Growth

0.51

Focus
Financial Leverage Condition

1.36

Focus

Target Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Target's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Net Receivables1.3 B1.4 B
Notably Down
Pretty Stable
Total Revenue54.9 B107.4 B
Way Down
Slightly volatile
Total Assets32 B55.4 B
Way Down
Slightly volatile
Total Current Assets11.9 B17.5 B
Way Down
Slightly volatile
Non Current Assets Total20.1 B37.9 B
Way Down
Slightly volatile
Property Plant Equipment30.7 B39.3 B
Significantly Down
Slightly volatile
Depreciation And Amortization1.5 B2.8 B
Way Down
Slightly volatile
Selling General Administrative13.4 B20.1 B
Way Down
Slightly volatile
Total Current Liabilities9.9 B19.3 B
Way Down
Slightly volatile
Non Current Liabilities Total12.1 B22.6 B
Way Down
Slightly volatile
Net Debt21.4 B20.3 B
Sufficiently Up
Slightly volatile
Short Term Debt3.2 BB
Sufficiently Up
Pretty Stable
Long Term Debt13.5 B14.9 B
Moderately Down
Pretty Stable
Operating Income3.6 B5.8 B
Way Down
Slightly volatile
Total Cash From Operating Activities4.4 B8.6 B
Way Down
Slightly volatile
Short Term Investments2.2 B2.9 B
Significantly Down
Slightly volatile
Long Term Investments465.9 M506 M
Significantly Down
Slightly volatile
Gross Profit Margin0.290.2538
Fairly Up
Slightly volatile

Target Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Target's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Target in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Target's degree of accounting gimmicks and manipulations.

About Target Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Other Operating Expenses

51.33 Billion

At this time, Target's Other Operating Expenses is comparatively stable compared to the past year.

Target Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Target. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201920202021202220232024 (projected)
Net Receivables962M1.1B1.4B1.7B1.4B1.3B
Total Revenue78.1B93.6B106.0B109.1B107.4B54.9B
Total Assets42.8B51.2B53.8B53.3B55.4B32.0B
Total Current Assets12.9B20.8B21.6B17.8B17.5B11.9B
Net Debt11.2B6.4B10.3B16.5B20.3B21.4B
Short Term Debt161M1.1B171M130M3.0B3.2B
Long Term Debt10.0B9.8B13.5B16.0B14.9B13.5B
Operating Income4.7B6.5B8.9B3.8B5.8B3.6B
Investments20M16M7M(5.5B)(4.8B)(4.5B)

Target ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Target's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Target's managers, analysts, and investors.
Environment Score
Governance Score
Social Score

About Target Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Target's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Target using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Target based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.

Currently Active Assets on Macroaxis

When determining whether Target is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Target Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Target Stock. Highlighted below are key reports to facilitate an investment decision about Target Stock:
Check out Target Piotroski F Score and Target Altman Z Score analysis.
For more information on how to buy Target Stock please use our How to Invest in Target guide.
Note that the Target information on this page should be used as a complementary analysis to other Target's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.

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Is Target's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Target. If investors know Target will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Target listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.574
Dividend Share
4.36
Earnings Share
8.94
Revenue Per Share
232.745
Quarterly Revenue Growth
0.017
The market value of Target is measured differently than its book value, which is the value of Target that is recorded on the company's balance sheet. Investors also form their own opinion of Target's value that differs from its market value or its book value, called intrinsic value, which is Target's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Target's market value can be influenced by many factors that don't directly affect Target's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Target's value and its price as these two are different measures arrived at by different means. Investors typically determine if Target is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Target's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.