TARGET CORP (TGT) Fundamental Analysis & Valuation

NYSE:TGT • US87612E1064

Current stock price

127.84 USD
+3.93 (+3.17%)
At close:
127.7 USD
-0.14 (-0.11%)
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

  • TGT had positive earnings in the past year.
  • TGT had a positive operating cash flow in the past year.
  • 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.
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

  • TGT has a better Return On Assets (6.23%) than 64.86% of its industry peers.
  • Looking at the Return On Equity, with a value of 22.92%, TGT belongs to the top of the industry, outperforming 81.08% of the companies in the same industry.
  • The Return On Invested Capital of TGT (12.93%) is better than 86.49% of its industry peers.
  • TGT had an Average Return On Invested Capital over the past 3 years of 11.34%. This is significantly below the industry average of 34.78%.
  • 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

  • The Profit Margin of TGT (3.54%) is better than 75.68% 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 86.49% of its industry peers.
  • In the last couple of years the Operating Margin of TGT has declined.
  • The Gross Margin of TGT (27.93%) is better than 64.86% of its industry peers.
  • TGT's Gross Margin has been stable in the last couple of years.
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

  • The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TGT is still creating some value.
  • Compared to 1 year ago, TGT has less shares outstanding
  • The number of shares outstanding for TGT has been reduced compared to 5 years ago.
  • The debt/assets ratio for TGT is higher compared to a year ago.
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 3.09. This indicates that TGT is financially healthy and has little risk of bankruptcy at the moment.
  • TGT has a worse Altman-Z score (3.09) than 64.86% 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.
  • A Debt/Equity ratio of 0.89 indicates that TGT is somewhat dependend on debt financing.
  • TGT's Debt to Equity ratio of 0.89 is on the low side compared to the rest of the industry. TGT is outperformed by 62.16% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.89
Debt/FCF 5.8
Altman-Z 3.09
ROIC/WACC1.7
WACC7.6%
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

  • TGT has a Current Ratio of 0.94. This is a bad value and indicates that TGT is not financially healthy enough and could expect problems in meeting 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.
  • TGT has a Quick Ratio of 0.94. This is a bad value and indicates that TGT is not financially healthy enough and could expect problems in meeting its short term obligations.
  • With a Quick ratio value of 0.36, TGT is not doing good in the industry: 72.97% of the companies in the same industry are doing better.
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

  • Based on estimates for the next years, TGT will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.30% on average per year.
  • TGT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.03% yearly.
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

  • 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

  • TGT is valuated correctly with a Price/Earnings ratio of 16.89.
  • Based on the Price/Earnings ratio, TGT is valued a bit cheaper than 70.27% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 27.87. TGT is valued slightly cheaper when compared to this.
  • The Price/Forward Earnings ratio is 15.77, which indicates a correct valuation of TGT.
  • TGT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TGT is cheaper than 62.16% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 38.51. TGT is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 16.89
Fwd PE 15.77
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

  • Based on the Enterprise Value to EBITDA ratio, TGT is valued cheaply inside the industry as 81.08% of the companies are valued more expensively.
  • 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 20.42
EV/EBITDA 7.06
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)2.39
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%. Purely for dividend investing, there may be better candidates out there.
  • TGT's Dividend Yield is rather good when compared to the industry average which is at 0.78. TGT pays more dividend than 97.30% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, TGT pays a better dividend.
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 paid a dividend for at least 10 years, which is 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.
  • TGT's earnings are growing slower than its dividend. 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 (4/17/2026, 8:04:00 PM)

After market: 127.7 -0.14 (-0.11%)

127.84

+3.93 (+3.17%)

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 Cap57.89B
Revenue(TTM)104.78B
Net Income(TTM)3.71B
Analysts68.84
Price Target127.41 (-0.34%)
Short Float %4.17%
Short Ratio3.02
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 16.89
Fwd PE 15.77
P/S 0.55
P/FCF 20.42
P/OCF 8.82
P/B 3.58
P/tB 3.73
EV/EBITDA 7.06
EPS(TTM)7.57
EY5.92%
EPS(NY)8.11
Fwd EY6.34%
FCF(TTM)6.26
FCFY4.9%
OCF(TTM)14.49
OCFY11.33%
SpS231.37
BVpS35.7
TBVpS34.3
PEG (NY)2.39
PEG (5Y)N/A
Graham Number77.9732 (-39.01%)
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 3.09
F-Score6
WACC7.6%
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 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 16.89 and the Price/Book (PB) ratio is 3.58.


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

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