TARGET CORP (TGT) Fundamental Analysis & Valuation
NYSE:TGT • US87612E1064
Current stock price
128.89 USD
-0.86 (-0.66%)
At close:
128.91 USD
+0.02 (+0.02%)
After Hours:
This TGT fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. TGT Profitability Analysis
1.1 Basic Checks
- TGT had positive earnings in the past year.
- In the past year TGT had a positive cash flow from operations.
- Each year in the past 5 years TGT has been profitable.
- Each year in the past 5 years TGT had a positive operating cash flow.
1.2 Ratios
- With a decent Return On Assets value of 6.23%, TGT is doing good in the industry, outperforming 64.86% of the companies in the same industry.
- TGT has a Return On Equity of 22.92%. This is amongst the best in the industry. TGT outperforms 81.08% of its industry peers.
- TGT has a better Return On Invested Capital (12.93%) 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 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 Rank | Sector 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%
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.
- In the last couple of years the Operating Margin of TGT has declined.
- 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 Rank | Sector 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%
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.
- TGT has less shares outstanding than it did 1 year ago.
- TGT has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for TGT is higher compared to a year ago.
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 Altman-Z score of 3.12. This is in the lower half of the industry: TGT underperforms 62.16% of its industry peers.
- TGT has a debt to FCF ratio of 5.80. This is a neutral value as TGT would need 5.80 years to pay back of all of its debts.
- With a Debt to FCF ratio value of 5.80, TGT perfoms like the industry average, outperforming 51.35% of the companies in the same 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 Debt to Equity ratio of 0.89. This is in the lower half of the industry: TGT underperforms 64.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 5.8 | ||
| Altman-Z | 3.12 |
ROIC/WACC1.68
WACC7.71%
2.3 Liquidity
- A Current Ratio of 0.94 indicates that TGT may have some problems paying its short term obligations.
- With a Current ratio value of 0.94, TGT is not doing good in the industry: 67.57% of the companies in the same industry are doing better.
- 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.
- TGT has a worse Quick ratio (0.36) than 70.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.36 |
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%.
- TGT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.29% yearly.
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
- TGT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.00% yearly.
- The Revenue is expected to grow by 2.83% on average over the next years.
EPS Next Y7.07%
EPS Next 2Y6.83%
EPS Next 3Y7.73%
EPS Next 5Y8%
Revenue Next Year1.88%
Revenue Next 2Y2.29%
Revenue Next 3Y2.52%
Revenue Next 5Y2.83%
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.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. TGT Valuation Analysis
4.1 Price/Earnings Ratio
- TGT is valuated rather expensively with a Price/Earnings ratio of 17.03.
- Compared to the rest of the industry, the Price/Earnings ratio of TGT indicates a somewhat cheap valuation: TGT is cheaper than 67.57% of the companies listed in the same industry.
- TGT's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.64.
- TGT is valuated correctly with a Price/Forward Earnings ratio of 15.90.
- 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 (21.36), we can say TGT is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.03 | ||
| Fwd PE | 15.9 |
4.2 Price Multiples
- 75.68% of the companies in the same industry are more expensive than TGT, based on the Enterprise Value to EBITDA ratio.
- TGT's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.59 | ||
| EV/EBITDA | 7.34 |
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)2.41
PEG (5Y)N/A
EPS Next 2Y6.83%
EPS Next 3Y7.73%
5. TGT Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 3.51%, TGT has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 0.74, 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 1.80, TGT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.51% |
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.
- TGT has decreased its dividend in the last 3 years.
Dividend Growth(5Y)11.08%
Div Incr Years2
Div Non Decr Years2
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 3Y7.73%
TGT Fundamentals: All Metrics, Ratios and Statistics
128.89
-0.86 (-0.66%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Industry Strength73.29
Industry Growth49.69
Earnings (Last)03-03 2026-03-03/bmo
Earnings (Next)05-19 2026-05-19
Inst Owners86.48%
Inst Owner Change0.21%
Ins Owners0.27%
Ins Owner Change3.18%
Market Cap58.37B
Revenue(TTM)104.78B
Net Income(TTM)3.71B
Analysts68.84
Price Target128.16 (-0.57%)
Short Float %3.61%
Short Ratio2.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.51% |
Yearly Dividend4.52
Dividend Growth(5Y)11.08%
DP55.41%
Div Incr Years2
Div Non Decr Years2
Ex-Date05-13 2026-05-13 (1.14)
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%
EPS NQ rev (3m)-9.82%
EPS NY rev (1m)4.58%
EPS NY rev (3m)3.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.19%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.03 | ||
| Fwd PE | 15.9 | ||
| P/S | 0.56 | ||
| P/FCF | 20.59 | ||
| P/OCF | 8.9 | ||
| P/B | 3.61 | ||
| P/tB | 3.76 | ||
| EV/EBITDA | 7.34 |
EPS(TTM)7.57
EY5.87%
EPS(NY)8.11
Fwd EY6.29%
FCF(TTM)6.26
FCFY4.86%
OCF(TTM)14.49
OCFY11.24%
SpS231.37
BVpS35.7
TBVpS34.3
PEG (NY)2.41
PEG (5Y)N/A
Graham Number77.9732 (-39.5%)
Profitability
| Industry Rank | Sector 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 Rank | Sector 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
WACC7.71%
ROIC/WACC1.68
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 3Y7.73%
EPS Next 5Y8%
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 3Y2.52%
Revenue Next 5Y2.83%
EBIT growth 1Y12.92%
EBIT growth 3Y6.88%
EBIT growth 5Y-6.88%
EBIT Next Year73.48%
EBIT Next 3Y24.16%
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 17.03 and the Price/Book (PB) ratio is 3.61.
What is the financial health of TARGET CORP (TGT) stock?
The financial health rating of TARGET CORP (TGT) is 3 / 10.