TARGET CORP (TGT) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:TGT • US87612E1064
114.21 USD
+2.91 (+2.61%)
Last: Feb 4, 2026, 11:01 AM
We assign a fundamental rating of 5 out of 10 to TGT. TGT was compared to 38 industry peers in the Consumer Staples Distribution & Retail industry. TGT has an excellent profitability rating, but there are concerns on its financial health. TGT has a valuation in line with the averages, but on the other hand it scores bad on growth. TGT also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- TGT had positive earnings in the past year.
- In the past year TGT had a positive cash flow from operations.
- TGT had positive earnings in each of the past 5 years.
- TGT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- TGT's Return On Assets of 6.27% is fine compared to the rest of the industry. TGT outperforms 68.42% of its industry peers.
- Looking at the Return On Equity, with a value of 24.28%, TGT is in the better half of the industry, outperforming 76.32% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 12.98%, TGT belongs to the best of the industry, outperforming 89.47% 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 28.25%.
- The 3 year average ROIC (11.15%) for TGT is below the current ROIC(12.98%), indicating increased profibility in the last year.
| 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
- With an excellent Profit Margin value of 3.58%, TGT belongs to the best of the industry, outperforming 84.21% of the companies in the same industry.
- TGT's Profit Margin has declined in the last couple of years.
- TGT's Operating Margin of 6.13% is amongst the best of the industry. TGT outperforms 86.84% of its industry peers.
- TGT's Operating Margin has declined in the last couple of years.
- The Gross Margin of TGT (27.74%) is better 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
- TGT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, TGT has less shares outstanding
- TGT has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for TGT has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.98 indicates that TGT is not a great score, but indicates only limited risk for bankruptcy at the moment.
- With a Altman-Z score value of 2.98, TGT is not doing good in the industry: 63.16% of the companies in the same industry are doing better.
- 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's Debt to FCF ratio of 5.48 is in line compared to the rest of the industry. TGT outperforms 52.63% of its industry peers.
- TGT has a Debt/Equity ratio of 0.99. This is a neutral value indicating 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 | 2.98 |
ROIC/WACC1.73
WACC7.5%
2.3 Liquidity
- TGT has a Current 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.
- 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.
- A Quick Ratio of 0.27 indicates that TGT may have some problems paying its short term obligations.
- The Quick ratio of TGT (0.27) is worse than 76.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.27 |
3. Growth
3.1 Past
- The earnings per share for TGT have decreased strongly by -20.04% in the last year.
- TGT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.72% yearly.
- Looking at the last year, TGT shows a decrease in Revenue. The Revenue has decreased by -2.16% in the last year.
- TGT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.41% yearly.
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
- The Earnings Per Share is expected to grow by 2.64% on average over the next years.
- TGT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.93% yearly.
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
- A Price/Earnings ratio of 15.15 indicates a correct valuation of TGT.
- 73.68% 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 (28.18), we can say TGT is valued slightly cheaper.
- TGT is valuated correctly with a Price/Forward Earnings ratio of 14.54.
- Based on the Price/Forward Earnings ratio, TGT is valued a bit cheaper than the industry average as 73.68% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.51, TGT is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.15 | ||
| Fwd PE | 14.54 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TGT indicates a rather cheap valuation: TGT is cheaper than 81.58% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, TGT is valued a bit cheaper than the industry average as 71.05% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.19 | ||
| EV/EBITDA | 6.6 |
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)2.25
EPS Next 2Y-5.84%
EPS Next 3Y-1.8%
5. Dividend
5.1 Amount
- TGT has a Yearly Dividend Yield of 4.43%, which is a nice return.
- TGT's Dividend Yield is rather good when compared to the industry average which is at 0.74. TGT pays more dividend than 100.00% of the companies in the same industry.
- TGT's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.43% |
5.2 History
- The dividend of TGT is nicely growing with an annual growth rate of 11.38%!
- TGT has been paying a dividend for at least 10 years, so it has a reliable track record.
- The dividend of TGT decreased 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%
NYSE:TGT (2/4/2026, 11:01:10 AM)
114.21
+2.91 (+2.61%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)11-19 2025-11-19/bmo
Earnings (Next)05-19 2026-05-19
Inst Owners85%
Inst Owner Change-2.63%
Ins Owners0.22%
Ins Owner Change-0.38%
Market Cap51.72B
Revenue(TTM)105.24B
Net Income(TTM)3.76B
Analysts65.58
Price Target101.18 (-11.41%)
Short Float %4.04%
Short Ratio2.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.43% |
Yearly Dividend4.46
Dividend Growth(5Y)11.38%
DP54.48%
Div Incr Years1
Div Non Decr Years1
Ex-Date02-11 2026-02-11 (1.14)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.86%
Min EPS beat(2)-0.83%
Max EPS beat(2)2.55%
EPS beat(4)2
Avg EPS beat(4)-3.24%
Min EPS beat(4)-19.93%
Max EPS beat(4)5.26%
EPS beat(8)4
Avg EPS beat(8)0.39%
EPS beat(12)8
Avg EPS beat(12)10.14%
EPS beat(16)9
Avg EPS beat(16)1.78%
Revenue beat(2)1
Avg Revenue beat(2)-0.53%
Min Revenue beat(2)-1.18%
Max Revenue beat(2)0.11%
Revenue beat(4)1
Avg Revenue beat(4)-1.14%
Min Revenue beat(4)-2.72%
Max Revenue beat(4)0.11%
Revenue beat(8)1
Avg Revenue beat(8)-1.01%
Revenue beat(12)2
Avg Revenue beat(12)-0.88%
Revenue beat(16)3
Avg Revenue beat(16)-0.78%
PT rev (1m)0.28%
PT rev (3m)-3.82%
EPS NQ rev (1m)0.09%
EPS NQ rev (3m)-2.86%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)-1.34%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)-0.46%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.15 | ||
| Fwd PE | 14.54 | ||
| P/S | 0.49 | ||
| P/FCF | 17.19 | ||
| P/OCF | 7.63 | ||
| P/B | 3.34 | ||
| P/tB | 3.34 | ||
| EV/EBITDA | 6.6 |
EPS(TTM)7.54
EY6.6%
EPS(NY)7.86
Fwd EY6.88%
FCF(TTM)6.65
FCFY5.82%
OCF(TTM)14.96
OCFY13.1%
SpS232.42
BVpS34.23
TBVpS34.23
PEG (NY)N/A
PEG (5Y)2.25
Graham Number76.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.27% | ||
| ROE | 24.28% | ||
| ROCE | 16.66% | ||
| ROIC | 12.98% | ||
| ROICexc | 14.4% | ||
| ROICexgc | 14.4% | ||
| OM | 6.13% | ||
| PM (TTM) | 3.58% | ||
| GM | 27.74% | ||
| FCFM | 2.86% |
ROA(3y)6.59%
ROA(5y)8.24%
ROE(3y)27.82%
ROE(5y)33.57%
ROIC(3y)11.15%
ROIC(5y)14.5%
ROICexc(3y)12.58%
ROICexc(5y)21.31%
ROICexgc(3y)12.84%
ROICexgc(5y)22.01%
ROCE(3y)14.31%
ROCE(5y)18.61%
ROICexgc growth 3Y-26%
ROICexgc growth 5Y-2.41%
ROICexc growth 3Y-25.72%
ROICexc growth 5Y-2.23%
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%
F-Score5
Asset Turnover1.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 5.48 | ||
| Debt/EBITDA | 1.61 | ||
| Cap/Depr | 121.57% | ||
| Cap/Sales | 3.58% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 70.92% | ||
| Profit Quality | 79.96% | ||
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.27 | ||
| Altman-Z | 2.98 |
F-Score5
WACC7.5%
ROIC/WACC1.73
Cap/Depr(3y)157.77%
Cap/Depr(5y)142.81%
Cap/Sales(3y)4.08%
Cap/Sales(5y)3.69%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-20.04%
EPS 3Y-13.2%
EPS 5Y6.72%
EPS Q2Q%-3.78%
EPS Next Y-16.77%
EPS Next 2Y-5.84%
EPS Next 3Y-1.8%
EPS Next 5Y2.64%
Revenue 1Y (TTM)-2.16%
Revenue growth 3Y0.18%
Revenue growth 5Y6.41%
Sales Q2Q%-1.55%
Revenue Next Year-1.49%
Revenue Next 2Y0.14%
Revenue Next 3Y1%
Revenue Next 5Y1.93%
EBIT growth 1Y7.49%
EBIT growth 3Y-14.56%
EBIT growth 5Y3.78%
EBIT Next Year41.19%
EBIT Next 3Y14.74%
EBIT Next 5Y11.37%
FCF growth 1Y-17.36%
FCF growth 3Y-4.14%
FCF growth 5Y1.82%
OCF growth 1Y-23.01%
OCF growth 3Y-5.12%
OCF growth 5Y0.69%
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%.