Target Operating Margin vs. Return On Equity
| TGTB34 Stock | BRL 797.50 7.56 0.94% |
For Target profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Target to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Target utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Target's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Target over time as well as its relative position and ranking within its peers.
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Target Return On Equity vs. Operating Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Target's current stock value. Our valuation model uses many indicators to compare Target value to that of its competitors to determine the firm's financial worth. Target is rated below average in operating margin category among its peers. It is rated below average in return on equity category among its peers reporting about 6.19 of Return On Equity per Operating Margin. Comparative valuation analysis is a catch-all model that can be used if you cannot value Target by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Target's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.Target Return On Equity vs. Operating Margin
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
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| = | 0.04 % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
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| = | 0.28 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Target Return On Equity Comparison
Target is rated below average in return on equity category among its peers.
Target Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Target, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Target will eventually generate negative long term returns. The profitability progress is the general direction of Target's change in net profit over the period of time. It can combine multiple indicators of Target, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Target Corporation operates as a general merchandise retailer in the United States. Target Corporation was founded in 1902 and is headquartered in Minneapolis, Minnesota. TARGET CORP operates under Discount Stores classification in Brazil and is traded on Sao Paolo Stock Exchange. It employs 409000 people.
Target Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Target. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Target position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Target's important profitability drivers and their relationship over time.
Use Target in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Target position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Target will appreciate offsetting losses from the drop in the long position's value.Target Pair Trading
Target Pair Trading Analysis
The ability to find closely correlated positions to Target could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Target when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Target - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Target to buy it.
The correlation of Target is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Target moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Target moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Target can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Target position
In addition to having Target in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Processed Foods Thematic Idea Now
Processed Foods
Companies producing and distributing processed foods to retail sectors. The Processed Foods theme has 45 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Processed Foods Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Target Stock
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 World Market Map. For information on how to trade Target Stock refer to our How to Trade Target Stock guide.You can also try the Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
To fully project Target's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Target at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Target's income statement, its balance sheet, and the statement of cash flows.