TARGET CORP (TGT) Fundamental Analysis & Valuation

NYSE:TGT • US87612E1064

Current stock price

117.88 USD
-4.01 (-3.29%)
At close:
117.943 USD
+0.06 (+0.05%)
After Hours:

This TGT fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. TGT Profitability Analysis

1.1 Basic Checks

  • In the past year TGT was profitable.
  • TGT had a positive operating cash flow in the past year.
  • In the past 5 years TGT has always been profitable.
  • Each year in the past 5 years TGT had a positive operating cash flow.
TGT Yearly Net Income VS EBIT VS OCF VS FCFTGT Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 2B 4B 6B 8B 10B

1.2 Ratios

  • With a decent Return On Assets value of 6.23%, TGT is doing good in the industry, outperforming 67.57% of the companies in the same industry.
  • The Return On Equity of TGT (22.92%) is better than 78.38% of its industry peers.
  • TGT has a Return On Invested Capital of 12.93%. This is amongst the best in the industry. TGT outperforms 86.49% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for TGT is significantly below the industry average of 34.77%.
  • The last Return On Invested Capital (12.93%) for TGT is above the 3 year average (11.34%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 6.23%
ROE 22.92%
ROIC 12.93%
ROA(3y)6.93%
ROA(5y)7.78%
ROE(3y)27.21%
ROE(5y)32.1%
ROIC(3y)11.34%
ROIC(5y)12.98%
TGT Yearly ROA, ROE, ROICTGT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 10 20 30 40 50

1.3 Margins

  • Looking at the Profit Margin, with a value of 3.54%, TGT is in the better half of the industry, outperforming 75.68% of the companies in the same industry.
  • In the last couple of years the Profit Margin of TGT has declined.
  • Looking at the Operating Margin, with a value of 6.07%, TGT belongs to the top of the industry, outperforming 86.49% of the companies in the same industry.
  • TGT's Operating Margin has declined in the last couple of years.
  • The Gross Margin of TGT (27.93%) is better than 64.86% of its industry peers.
  • In the last couple of years the Gross Margin of TGT has remained more or less at the same level.
Industry RankSector Rank
OM 6.07%
PM (TTM) 3.54%
GM 27.93%
OM growth 3Y8.34%
OM growth 5Y-8.97%
PM growth 3Y11.55%
PM growth 5Y-5.41%
GM growth 3Y4.27%
GM growth 5Y-1.09%
TGT Yearly Profit, Operating, Gross MarginsTGT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 10 20 30

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3

2. TGT Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TGT is creating some value.
  • Compared to 1 year ago, TGT has less shares outstanding
  • TGT has less shares outstanding than it did 5 years ago.
  • TGT has a worse debt/assets ratio than last year.
TGT Yearly Shares OutstandingTGT Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 200M 400M 600M
TGT Yearly Total Debt VS Total AssetsTGT Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 10B 20B 30B 40B 50B

2.2 Solvency

  • TGT has an Altman-Z score of 3.07. This indicates that TGT is financially healthy and has little risk of bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 3.07, TGT is doing worse than 64.86% of the companies in the same industry.
  • The Debt to FCF ratio of TGT is 5.80, which is a neutral value as it means it would take TGT, 5.80 years of fcf income to pay off all of its debts.
  • With a Debt to FCF ratio value of 5.80, TGT perfoms like the industry average, outperforming 45.95% of the companies in the same industry.
  • A Debt/Equity ratio of 0.89 indicates that TGT is somewhat dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.89, TGT is doing worse than 62.16% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.89
Debt/FCF 5.8
Altman-Z 3.07
ROIC/WACC1.71
WACC7.56%
TGT Yearly LT Debt VS Equity VS FCFTGT Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 5B 10B 15B

2.3 Liquidity

  • A Current Ratio of 0.94 indicates that TGT may have some problems paying its short term obligations.
  • TGT's Current ratio of 0.94 is on the low side compared to the rest of the industry. TGT is outperformed by 70.27% of its industry peers.
  • A Quick Ratio of 0.36 indicates that TGT may have some problems paying its short term obligations.
  • TGT has a worse Quick ratio (0.36) than 72.97% of its industry peers.
Industry RankSector Rank
Current Ratio 0.94
Quick Ratio 0.36
TGT Yearly Current Assets VS Current LiabilitesTGT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 5B 10B 15B 20B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. TGT Growth Analysis

3.1 Past

  • The earnings per share for TGT have decreased strongly by -14.56% in the last year.
  • The Earnings Per Share has been decreasing by -4.30% on average over the past years.
  • TGT shows a decrease in Revenue. In the last year, the revenue decreased by -1.68%.
  • The Revenue has been growing slightly by 2.29% on average over the past years.
EPS 1Y (TTM)-14.56%
EPS 3Y8%
EPS 5Y-4.3%
EPS Q2Q%1.24%
Revenue 1Y (TTM)-1.68%
Revenue growth 3Y-1.34%
Revenue growth 5Y2.29%
Sales Q2Q%-1.49%

3.2 Future

  • The Earnings Per Share is expected to grow by 9.30% on average over the next years. This is quite good.
  • The Revenue is expected to grow by 3.03% on average over the next years.
EPS Next Y7.07%
EPS Next 2Y6.83%
EPS Next 3Y7.33%
EPS Next 5Y9.3%
Revenue Next Year1.87%
Revenue Next 2Y2.29%
Revenue Next 3Y2.48%
Revenue Next 5Y3.03%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
TGT Yearly Revenue VS EstimatesTGT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 20B 40B 60B 80B 100B
TGT Yearly EPS VS EstimatesTGT Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5 10 15

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5

4. TGT Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 15.57, which indicates a correct valuation of TGT.
  • 70.27% of the companies in the same industry are more expensive than TGT, based on the Price/Earnings ratio.
  • TGT's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.18.
  • The Price/Forward Earnings ratio is 14.54, which indicates a correct valuation of TGT.
  • 64.86% of the companies in the same industry are more expensive than TGT, based on the Price/Forward Earnings ratio.
  • The average S&P500 Price/Forward Earnings ratio is at 37.96. TGT is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 15.57
Fwd PE 14.54
TGT Price Earnings VS Forward Price EarningsTGT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TGT indicates a rather cheap valuation: TGT is cheaper than 81.08% of the companies listed in the same industry.
  • TGT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TGT is cheaper than 62.16% of the companies in the same industry.
Industry RankSector Rank
P/FCF 18.83
EV/EBITDA 6.97
TGT Per share dataTGT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 50 100 150 200

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TGT does not grow enough to justify the current Price/Earnings ratio.
  • The decent profitability rating of TGT may justify a higher PE ratio.
PEG (NY)2.2
PEG (5Y)N/A
EPS Next 2Y6.83%
EPS Next 3Y7.33%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. TGT Dividend Analysis

5.1 Amount

  • TGT has a Yearly Dividend Yield of 3.68%.
  • Compared to an average industry Dividend Yield of 0.76, TGT pays a better dividend. On top of this TGT pays more dividend than 100.00% of the companies listed in the same industry.
  • TGT's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 3.68%

5.2 History

  • On average, the dividend of TGT grows each year by 11.08%, which is quite nice.
  • TGT has been paying a dividend for at least 10 years, so it has a reliable track record.
  • The dividend of TGT decreased in the last 3 years.
Dividend Growth(5Y)11.08%
Div Incr Years2
Div Non Decr Years2
TGT Yearly Dividends per shareTGT Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3 4 5

5.3 Sustainability

  • 55.41% of the earnings are spent on dividend by TGT. This is a bit on the high side, but may be sustainable.
  • The dividend of TGT is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP55.41%
EPS Next 2Y6.83%
EPS Next 3Y7.33%
TGT Yearly Income VS Free CF VS DividendTGT Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 2B 4B 6B
TGT Dividend Payout.TGT Dividend Payout, showing the Payout Ratio.TGT Dividend Payout.PayoutRetained Earnings

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TGT Fundamentals: All Metrics, Ratios and Statistics

TARGET CORP

NYSE:TGT (4/13/2026, 6:40:00 PM)

After market: 117.943 +0.06 (+0.05%)

117.88

-4.01 (-3.29%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)03-03
Earnings (Next)05-19
Inst Owners86.48%
Inst Owner Change0.01%
Ins Owners0.27%
Ins Owner Change3.18%
Market Cap53.38B
Revenue(TTM)104.78B
Net Income(TTM)3.71B
Analysts68.84
Price Target127.41 (8.08%)
Short Float %4.09%
Short Ratio2.84
Dividend
Industry RankSector Rank
Dividend Yield 3.68%
Yearly Dividend4.52
Dividend Growth(5Y)11.08%
DP55.41%
Div Incr Years2
Div Non Decr Years2
Ex-Date05-13
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.32%
Min EPS beat(2)2.55%
Max EPS beat(2)12.08%
EPS beat(4)2
Avg EPS beat(4)-1.53%
Min EPS beat(4)-19.93%
Max EPS beat(4)12.08%
EPS beat(8)4
Avg EPS beat(8)-0.87%
EPS beat(12)8
Avg EPS beat(12)8.33%
EPS beat(16)9
Avg EPS beat(16)1.88%
Revenue beat(2)0
Avg Revenue beat(2)-1.13%
Min Revenue beat(2)-1.18%
Max Revenue beat(2)-1.08%
Revenue beat(4)1
Avg Revenue beat(4)-1.22%
Min Revenue beat(4)-2.72%
Max Revenue beat(4)0.11%
Revenue beat(8)1
Avg Revenue beat(8)-1.06%
Revenue beat(12)1
Avg Revenue beat(12)-1.07%
Revenue beat(16)3
Avg Revenue beat(16)-0.71%
PT rev (1m)19.23%
PT rev (3m)26.28%
EPS NQ rev (1m)0.15%
EPS NQ rev (3m)-10.25%
EPS NY rev (1m)4.58%
EPS NY rev (3m)3.37%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.15%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)-0.1%
Valuation
Industry RankSector Rank
PE 15.57
Fwd PE 14.54
P/S 0.51
P/FCF 18.83
P/OCF 8.14
P/B 3.3
P/tB 3.44
EV/EBITDA 6.97
EPS(TTM)7.57
EY6.42%
EPS(NY)8.11
Fwd EY6.88%
FCF(TTM)6.26
FCFY5.31%
OCF(TTM)14.49
OCFY12.29%
SpS231.37
BVpS35.7
TBVpS34.3
PEG (NY)2.2
PEG (5Y)N/A
Graham Number77.97
Profitability
Industry RankSector Rank
ROA 6.23%
ROE 22.92%
ROCE 16.63%
ROIC 12.93%
ROICexc 15.09%
ROICexgc 15.39%
OM 6.07%
PM (TTM) 3.54%
GM 27.93%
FCFM 2.71%
ROA(3y)6.93%
ROA(5y)7.78%
ROE(3y)27.21%
ROE(5y)32.1%
ROIC(3y)11.34%
ROIC(5y)12.98%
ROICexc(3y)12.88%
ROICexc(5y)16.38%
ROICexgc(3y)13.14%
ROICexgc(5y)16.79%
ROCE(3y)14.61%
ROCE(5y)16.72%
ROICexgc growth 3Y3.1%
ROICexgc growth 5Y-21.22%
ROICexc growth 3Y3.19%
ROICexc growth 5Y-20.8%
OM growth 3Y8.34%
OM growth 5Y-8.97%
PM growth 3Y11.55%
PM growth 5Y-5.41%
GM growth 3Y4.27%
GM growth 5Y-1.09%
F-Score6
Asset Turnover1.76
Health
Industry RankSector Rank
Debt/Equity 0.89
Debt/FCF 5.8
Debt/EBITDA 1.51
Cap/Depr 118.92%
Cap/Sales 3.56%
Interest Coverage 10.11
Cash Conversion 69.1%
Profit Quality 76.52%
Current Ratio 0.94
Quick Ratio 0.36
Altman-Z 3.07
F-Score6
WACC7.56%
ROIC/WACC1.71
Cap/Depr(3y)129.16%
Cap/Depr(5y)145.27%
Cap/Sales(3y)3.58%
Cap/Sales(5y)3.83%
Profit Quality(3y)92.71%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-14.56%
EPS 3Y8%
EPS 5Y-4.3%
EPS Q2Q%1.24%
EPS Next Y7.07%
EPS Next 2Y6.83%
EPS Next 3Y7.33%
EPS Next 5Y9.3%
Revenue 1Y (TTM)-1.68%
Revenue growth 3Y-1.34%
Revenue growth 5Y2.29%
Sales Q2Q%-1.49%
Revenue Next Year1.87%
Revenue Next 2Y2.29%
Revenue Next 3Y2.48%
Revenue Next 5Y3.03%
EBIT growth 1Y12.92%
EBIT growth 3Y6.88%
EBIT growth 5Y-6.88%
EBIT Next Year73.48%
EBIT Next 3Y23.87%
EBIT Next 5Y16.06%
FCF growth 1Y-36.66%
FCF growth 3YN/A
FCF growth 5Y-18.48%
OCF growth 1Y-10.93%
OCF growth 3Y17.76%
OCF growth 5Y-9.02%

TARGET CORP / TGT Fundamental Analysis FAQ

What is the ChartMill fundamental rating of TARGET CORP (TGT) stock?

ChartMill assigns a fundamental rating of 5 / 10 to TGT.


What is the valuation status for TGT stock?

ChartMill assigns a valuation rating of 5 / 10 to TARGET CORP (TGT). This can be considered as Fairly Valued.


Can you provide the profitability details for TARGET CORP?

TARGET CORP (TGT) has a profitability rating of 7 / 10.


Can you provide the PE and PB ratios for TGT stock?

The Price/Earnings (PE) ratio for TARGET CORP (TGT) is 15.57 and the Price/Book (PB) ratio is 3.3.


What is the financial health of TARGET CORP (TGT) stock?

The financial health rating of TARGET CORP (TGT) is 3 / 10.