TARGET CORP (TGT) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:TGT • US87612E1064
105.47 USD
+2.63 (+2.56%)
At close: Jan 30, 2026
104.461 USD
-1.01 (-0.96%)
After Hours: 1/30/2026, 8:21:07 PM
Overall TGT gets a fundamental rating of 5 out of 10. We evaluated TGT against 38 industry peers in the Consumer Staples Distribution & Retail industry. While TGT belongs to the best of the industry regarding profitability, there are concerns on its financial health. TGT has a valuation in line with the averages, but it does not seem to be growing. Finally TGT also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year TGT was profitable.
- In the past year TGT had a positive cash flow from operations.
- TGT had positive earnings in each of the past 5 years.
- In the past 5 years TGT always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of TGT (6.27%) is better than 68.42% of its industry peers.
- With a decent Return On Equity value of 24.28%, TGT is doing good in the industry, outperforming 76.32% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 12.98%, TGT belongs to the top of the industry, outperforming 89.47% of the companies in the same industry.
- TGT had an Average Return On Invested Capital over the past 3 years of 11.15%. This is significantly below the industry average of 28.24%.
- The last Return On Invested Capital (12.98%) for TGT is above the 3 year average (11.15%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.27% | ||
| ROE | 24.28% | ||
| ROIC | 12.98% |
ROA(3y)6.59%
ROA(5y)8.24%
ROE(3y)27.82%
ROE(5y)33.57%
ROIC(3y)11.15%
ROIC(5y)14.5%
1.3 Margins
- TGT has a better Profit Margin (3.58%) than 84.21% of its industry peers.
- TGT's Profit Margin has declined in the last couple of years.
- The Operating Margin of TGT (6.13%) is better than 86.84% of its industry peers.
- TGT's Operating Margin has declined in the last couple of years.
- TGT has a better Gross Margin (27.74%) than 65.79% 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.13% | ||
| PM (TTM) | 3.58% | ||
| GM | 27.74% |
OM growth 3Y-14.71%
OM growth 5Y-2.48%
PM growth 3Y-16.32%
PM growth 5Y-1.78%
GM growth 3Y-1.24%
GM growth 5Y-1.06%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TGT is creating some value.
- TGT has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for TGT has been reduced compared to 5 years ago.
- Compared to 1 year ago, TGT has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.93 indicates that TGT is not a great score, but indicates only limited risk for bankruptcy at the moment.
- TGT has a Altman-Z score of 2.93. This is in the lower half of the industry: TGT underperforms 63.16% of its industry peers.
- The Debt to FCF ratio of TGT is 5.48, which is a neutral value as it means it would take TGT, 5.48 years of fcf income to pay off all of its debts.
- TGT has a Debt to FCF ratio (5.48) which is in line with its industry peers.
- A Debt/Equity ratio of 0.99 indicates that TGT is somewhat dependend on debt financing.
- TGT's Debt to Equity ratio of 0.99 is on the low side compared to the rest of the industry. TGT is outperformed by 65.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 5.48 | ||
| Altman-Z | 2.93 |
ROIC/WACC1.75
WACC7.42%
2.3 Liquidity
- A Current Ratio of 0.97 indicates that TGT may have some problems paying its short term obligations.
- TGT's Current ratio of 0.97 is on the low side compared to the rest of the industry. TGT is outperformed by 71.05% of its industry peers.
- TGT has a Quick Ratio of 0.97. This is a bad value and indicates that TGT is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.27, TGT is doing worse than 76.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.27 |
3. Growth
3.1 Past
- TGT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -20.04%.
- The Earnings Per Share has been growing slightly by 6.72% on average over the past years.
- The Revenue has decreased by -2.16% in the past year.
- Measured over the past years, TGT shows a small growth in Revenue. The Revenue has been growing by 6.41% on average per year.
EPS 1Y (TTM)-20.04%
EPS 3Y-13.2%
EPS 5Y6.72%
EPS Q2Q%-3.78%
Revenue 1Y (TTM)-2.16%
Revenue growth 3Y0.18%
Revenue growth 5Y6.41%
Sales Q2Q%-1.55%
3.2 Future
- TGT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.64% yearly.
- The Revenue is expected to grow by 1.93% on average over the next years.
EPS Next Y-16.77%
EPS Next 2Y-5.84%
EPS Next 3Y-1.8%
EPS Next 5Y2.64%
Revenue Next Year-1.49%
Revenue Next 2Y0.14%
Revenue Next 3Y1%
Revenue Next 5Y1.93%
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 decreasing.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 13.99, which indicates a correct valuation of TGT.
- TGT's Price/Earnings ratio is a bit cheaper when compared to the industry. TGT is cheaper than 76.32% of the companies in the same industry.
- TGT's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.30.
- TGT is valuated correctly with a Price/Forward Earnings ratio of 13.43.
- TGT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TGT is cheaper than 76.32% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, TGT is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.99 | ||
| Fwd PE | 13.43 |
4.2 Price Multiples
- TGT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TGT is cheaper than 81.58% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of TGT indicates a somewhat cheap valuation: TGT is cheaper than 71.05% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.87 | ||
| EV/EBITDA | 6.2 |
4.3 Compensation for Growth
- TGT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.08
EPS Next 2Y-5.84%
EPS Next 3Y-1.8%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.43%, TGT is a good candidate for dividend investing.
- TGT's Dividend Yield is rather good when compared to the industry average which is at 0.73. TGT pays more dividend than 100.00% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, TGT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.43% |
5.2 History
- On average, the dividend of TGT grows each year by 11.38%, which is quite nice.
- TGT has been paying a dividend for at least 10 years, so it has a reliable track record.
- TGT has decreased its dividend recently.
Dividend Growth(5Y)11.38%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- 54.48% 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.
DP54.48%
EPS Next 2Y-5.84%
EPS Next 3Y-1.8%
TARGET CORP / TGT 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.
How profitable is TARGET CORP (TGT) stock?
TARGET CORP (TGT) has a profitability rating of 7 / 10.
What is the earnings growth outlook for TARGET CORP?
The Earnings per Share (EPS) of TARGET CORP (TGT) is expected to decline by -16.77% in the next year.
Can you provide the dividend sustainability for TGT stock?
The dividend rating of TARGET CORP (TGT) is 7 / 10 and the dividend payout ratio is 54.48%.