TARGET CORP (TGT) Fundamental Analysis & Valuation

NYSE:TGT • US87612E1064

Current stock price

120.45 USD
0 (0%)
At close:
120.226 USD
-0.22 (-0.19%)
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.
  • Each year in the past 5 years TGT has been profitable.
  • TGT had a positive operating cash flow in each of the past 5 years.
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

  • Looking at the Return On Assets, with a value of 6.23%, TGT is in the better half of the industry, outperforming 68.42% of the companies in the same industry.
  • TGT has a better Return On Equity (22.92%) than 78.95% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 12.93%, TGT belongs to the top of the industry, outperforming 86.84% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for TGT is significantly below the industry average of 34.56%.
  • The 3 year average ROIC (11.34%) for TGT is below the current ROIC(12.93%), indicating increased profibility in the last year.
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

  • TGT's Profit Margin of 3.54% is fine compared to the rest of the industry. TGT outperforms 76.32% of its industry peers.
  • TGT's Profit Margin has declined in the last couple of years.
  • TGT's Operating Margin of 6.07% is amongst the best of the industry. TGT outperforms 86.84% of its industry peers.
  • In the last couple of years the Operating Margin of TGT has declined.
  • Looking at the Gross Margin, with a value of 27.93%, TGT is in the better half of the industry, outperforming 65.79% of the companies in the same industry.
  • 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

  • TGT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
  • TGT has less shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, TGT has less shares outstanding
  • Compared to 1 year ago, TGT has a worse debt to assets ratio.
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 3.06. This indicates that TGT is financially healthy and has little risk of bankruptcy at the moment.
  • TGT has a worse Altman-Z score (3.06) than 63.16% of its industry peers.
  • 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.
  • TGT has a Debt to FCF ratio (5.80) which is in line with its industry peers.
  • TGT has a Debt/Equity ratio of 0.89. This is a neutral value indicating TGT is somewhat dependend on debt financing.
  • TGT has a Debt to Equity ratio of 0.89. This is in the lower half of the industry: TGT underperforms 65.79% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.89
Debt/FCF 5.8
Altman-Z 3.06
ROIC/WACC1.7
WACC7.61%
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 has a worse Current ratio (0.94) than 68.42% 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 Quick ratio of 0.36. This is in the lower half of the industry: TGT underperforms 73.68% 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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4

3. TGT Growth Analysis

3.1 Past

  • TGT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -14.56%.
  • Measured over the past years, TGT shows a decrease in Earnings Per Share. The EPS has been decreasing by -4.30% on average per year.
  • TGT shows a decrease in Revenue. In the last year, the revenue decreased by -1.68%.
  • Measured over the past years, TGT shows a small growth in Revenue. The Revenue has been growing by 2.29% on average per year.
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.
  • Based on estimates for the next years, TGT will show a small growth in Revenue. The Revenue will grow by 3.03% on average per year.
EPS Next Y2.38%
EPS Next 2Y4.47%
EPS Next 3Y5.52%
EPS Next 5Y9.3%
Revenue Next Year1.92%
Revenue Next 2Y2.29%
Revenue Next 3Y2.48%
Revenue Next 5Y3.03%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
  • 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

  • Based on the Price/Earnings ratio of 15.91, the valuation of TGT can be described as correct.
  • Based on the Price/Earnings ratio, TGT is valued a bit cheaper than 71.05% of the companies in the same industry.
  • TGT is valuated rather cheaply when we compare the Price/Earnings ratio to 25.60, which is the current average of the S&P500 Index.
  • TGT is valuated correctly with a Price/Forward Earnings ratio of 15.54.
  • Based on the Price/Forward Earnings ratio, TGT is valued a bit cheaper than the industry average as 68.42% of the companies are valued more expensively.
  • TGT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.84.
Industry RankSector Rank
PE 15.91
Fwd PE 15.54
TGT Price Earnings VS Forward Price EarningsTGT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, TGT is valued a bit cheaper than the industry average as 78.95% of the companies are valued more expensively.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of TGT indicates a somewhat cheap valuation: TGT is cheaper than 65.79% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 19.24
EV/EBITDA 6.9
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.
  • TGT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)6.68
PEG (5Y)N/A
EPS Next 2Y4.47%
EPS Next 3Y5.52%

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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 3.81%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 0.71, 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 1.88.
Industry RankSector Rank
Dividend Yield 3.81%

5.2 History

  • On average, the dividend of TGT grows each year by 11.08%, which is quite nice.
  • TGT has paid a dividend for at least 10 years, which is a reliable track record.
  • TGT has decreased its dividend recently.
Dividend Growth(5Y)11.08%
Div Incr Years1
Div Non Decr Years1
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

  • TGT pays out 55.41% of its income as dividend. This is a bit on the high side, but may be sustainable.
  • TGT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP55.41%
EPS Next 2Y4.47%
EPS Next 3Y5.52%
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 (4/2/2026, 8:04:00 PM)

After market: 120.226 -0.22 (-0.19%)

120.45

0 (0%)

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 Owners86.02%
Inst Owner Change1.03%
Ins Owners0.22%
Ins Owner Change0.72%
Market Cap54.55B
Revenue(TTM)104.78B
Net Income(TTM)3.71B
Analysts68.84
Price Target127.88 (6.17%)
Short Float %4.09%
Short Ratio2.84
Dividend
Industry RankSector Rank
Dividend Yield 3.81%
Yearly Dividend4.52
Dividend Growth(5Y)11.08%
DP55.41%
Div Incr Years1
Div Non Decr Years1
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)19.67%
PT rev (3m)26.74%
EPS NQ rev (1m)-11.34%
EPS NQ rev (3m)-10.25%
EPS NY rev (1m)-0.43%
EPS NY rev (3m)-1.16%
Revenue NQ rev (1m)-0.18%
Revenue NQ rev (3m)-0.15%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.06%
Valuation
Industry RankSector Rank
PE 15.91
Fwd PE 15.54
P/S 0.52
P/FCF 19.24
P/OCF 8.31
P/B 3.37
P/tB 3.51
EV/EBITDA 6.9
EPS(TTM)7.57
EY6.28%
EPS(NY)7.75
Fwd EY6.43%
FCF(TTM)6.26
FCFY5.2%
OCF(TTM)14.49
OCFY12.03%
SpS231.37
BVpS35.7
TBVpS34.3
PEG (NY)6.68
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 3.06
F-Score6
WACC7.61%
ROIC/WACC1.7
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 Y2.38%
EPS Next 2Y4.47%
EPS Next 3Y5.52%
EPS Next 5Y9.3%
Revenue 1Y (TTM)-1.68%
Revenue growth 3Y-1.34%
Revenue growth 5Y2.29%
Sales Q2Q%-1.49%
Revenue Next Year1.92%
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 Year69.74%
EBIT Next 3Y22.86%
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 15.91 and the Price/Book (PB) ratio is 3.37.


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

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