TARGET CORP (TGT) Fundamental Analysis & Valuation

NYSE:TGT • US87612E1064

Current stock price

129.26 USD
-0.91 (-0.7%)
At close:
129.12 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

  • 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.
  • 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

  • The Return On Assets of TGT (6.23%) is better than 64.86% of its industry peers.
  • TGT has a better Return On Equity (22.92%) than 81.08% of its industry peers.
  • The Return On Invested Capital of TGT (12.93%) is better than 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 34.78%.
  • 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 has a better Operating Margin (6.07%) than 86.49% of its industry peers.
  • TGT's Operating Margin has declined in the last couple of years.
  • TGT's Gross Margin of 27.93% is fine compared to the rest of the industry. TGT outperforms 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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ROAROEROICOperating and Profit MarginShow most profitable peers

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.
  • The number of shares outstanding for TGT has been reduced compared to 1 year ago.
  • The number of shares outstanding for TGT has been reduced compared to 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 3.12. This indicates that TGT is financially healthy and has little risk of bankruptcy at the moment.
  • TGT has a worse Altman-Z score (3.12) than 62.16% 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 comparable to the rest of the industry.
  • 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 worse Debt to Equity ratio (0.89) than 62.16% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.89
Debt/FCF 5.8
Altman-Z 3.12
ROIC/WACC1.69
WACC7.65%
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 has a worse Current ratio (0.94) than 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's Quick ratio of 0.36 is on the low side compared to the rest of the industry. TGT is outperformed by 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.
  • TGT shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -4.30% yearly.
  • 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.
  • 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 Year1.88%
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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4

4. TGT Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 17.08, TGT is valued on the expensive side.
  • 70.27% of the companies in the same industry are more expensive than TGT, based on the Price/Earnings ratio.
  • When comparing the Price/Earnings ratio of TGT to the average of the S&P500 Index (27.42), we can say TGT is valued slightly cheaper.
  • A Price/Forward Earnings ratio of 15.95 indicates a correct valuation of TGT.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of TGT indicates a somewhat cheap valuation: TGT is cheaper than 62.16% of the companies listed in the same industry.
  • When comparing the Price/Forward Earnings ratio of TGT to the average of the S&P500 Index (22.24), we can say TGT is valued slightly cheaper.
Industry RankSector Rank
PE 17.08
Fwd PE 15.95
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

  • TGT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TGT is cheaper than 72.97% of the companies in the same industry.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as TGT.
Industry RankSector Rank
P/FCF 20.65
EV/EBITDA 7.36
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 an expensive valuation of the company.
  • TGT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.41
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

  • With a Yearly Dividend Yield of 3.50%, TGT has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 0.78, TGT pays a better dividend. On top of this TGT pays more dividend than 97.30% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.81, TGT pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.5%

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.
  • 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 (4/24/2026, 8:10:51 PM)

After market: 129.12 -0.14 (-0.11%)

129.26

-0.91 (-0.7%)

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 Change0.29%
Ins Owners0.27%
Ins Owner Change3.18%
Market Cap58.54B
Revenue(TTM)104.78B
Net Income(TTM)3.71B
Analysts68.84
Price Target127.41 (-1.43%)
Short Float %4.17%
Short Ratio3.02
Dividend
Industry RankSector Rank
Dividend Yield 3.5%
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)25.93%
EPS NQ rev (1m)0.02%
EPS NQ rev (3m)-10.2%
EPS NY rev (1m)4.58%
EPS NY rev (3m)3.37%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.25%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.11%
Valuation
Industry RankSector Rank
PE 17.08
Fwd PE 15.95
P/S 0.56
P/FCF 20.65
P/OCF 8.92
P/B 3.62
P/tB 3.77
EV/EBITDA 7.36
EPS(TTM)7.57
EY5.86%
EPS(NY)8.11
Fwd EY6.27%
FCF(TTM)6.26
FCFY4.84%
OCF(TTM)14.49
OCFY11.21%
SpS231.37
BVpS35.7
TBVpS34.3
PEG (NY)2.41
PEG (5Y)N/A
Graham Number77.9732 (-39.68%)
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 3.12
F-Score6
WACC7.65%
ROIC/WACC1.69
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 Year1.88%
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 4 / 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 17.08 and the Price/Book (PB) ratio is 3.62.


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

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