TARGET CORP (TGT) Fundamental Analysis & Valuation

NYSE:TGT • US87612E1064

Current stock price

115.48 USD
+0.55 (+0.48%)
Last:

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.
  • Each year in the past 5 years TGT has been profitable.
  • 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

  • Looking at the Return On Assets, with a value of 6.23%, TGT is in the better half of the industry, outperforming 65.79% of the companies in the same industry.
  • TGT has a better Return On Equity (22.92%) than 76.32% of its industry peers.
  • TGT has a better Return On Invested Capital (12.93%) than 86.84% 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 29.50%.
  • 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 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

  • Looking at the Profit Margin, with a value of 3.54%, TGT is in the better half of the industry, outperforming 76.32% of the companies in the same industry.
  • TGT's Profit Margin has declined in the last couple of years.
  • Looking at the Operating Margin, with a value of 6.07%, TGT belongs to the top of the industry, outperforming 86.84% of the companies in the same industry.
  • 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 65.79% 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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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.
  • TGT has less shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, TGT has less shares outstanding
  • 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

  • An Altman-Z score of 3.03 indicates that TGT is not in any danger for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 3.03, TGT is doing worse than 63.16% of the companies in the same industry.
  • 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.
  • The Debt to FCF ratio of TGT (5.80) 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's Debt to Equity ratio of 0.89 is on the low side compared to the rest of the industry. TGT is outperformed by 63.16% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.89
Debt/FCF 5.8
Altman-Z 3.03
ROIC/WACC1.7
WACC7.59%
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.
  • Looking at the Current ratio, with a value of 0.94, TGT is doing worse than 71.05% of the companies in the same industry.
  • A Quick Ratio of 0.36 indicates that TGT may have some problems paying its short term obligations.
  • The Quick ratio of TGT (0.36) is worse than 73.68% 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.
  • 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.
  • Looking at the last year, TGT shows a decrease in Revenue. The Revenue has decreased by -1.68% in the last year.
  • 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

  • The Earnings Per Share is expected to grow by 9.30% on average over the next years. This is quite good.
  • Based on estimates for the next years, TGT will show a small growth in Revenue. The Revenue will grow by 3.03% on average per year.
EPS Next Y2.38%
EPS Next 2Y4.47%
EPS Next 3Y5.52%
EPS Next 5Y9.3%
Revenue Next Year1.92%
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.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
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 15.25.
  • TGT's Price/Earnings ratio is a bit cheaper when compared to the industry. TGT is cheaper than 73.68% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 25.54, TGT is valued a bit cheaper.
  • TGT is valuated correctly with a Price/Forward Earnings ratio of 14.90.
  • TGT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TGT is cheaper than 68.42% of the companies in the same industry.
  • TGT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.70.
Industry RankSector Rank
PE 15.25
Fwd PE 14.9
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 78.95% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, TGT is valued a bit cheaper than the industry average as 68.42% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 18.45
EV/EBITDA 6.64
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)6.41
PEG (5Y)N/A
EPS Next 2Y4.47%
EPS Next 3Y5.52%

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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 3.98%. 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 0.71. TGT pays more dividend than 100.00% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.89, TGT pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.98%

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 recently.
Dividend Growth(5Y)11.08%
Div Incr Years1
Div Non Decr Years1
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

  • TGT pays out 55.41% of its income as dividend. 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.
DP55.41%
EPS Next 2Y4.47%
EPS Next 3Y5.52%
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 (3/24/2026, 10:28:03 AM)

115.48

+0.55 (+0.48%)

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 Owners86.02%
Inst Owner Change1.03%
Ins Owners0.22%
Ins Owner Change0.72%
Market Cap52.30B
Revenue(TTM)104.78B
Net Income(TTM)3.71B
Analysts67.27
Price Target106.86 (-7.46%)
Short Float %4.37%
Short Ratio3.03
Dividend
Industry RankSector Rank
Dividend Yield 3.98%
Yearly Dividend4.52
Dividend Growth(5Y)11.08%
DP55.41%
Div Incr Years1
Div Non Decr Years1
Ex-Date02-11
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)3.01%
PT rev (3m)6.01%
EPS NQ rev (1m)-9.84%
EPS NQ rev (3m)-10.62%
EPS NY rev (1m)-0.43%
EPS NY rev (3m)-0.87%
Revenue NQ rev (1m)-0.19%
Revenue NQ rev (3m)-0.15%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.05%
Valuation
Industry RankSector Rank
PE 15.25
Fwd PE 14.9
P/S 0.5
P/FCF 18.45
P/OCF 7.97
P/B 3.24
P/tB 3.37
EV/EBITDA 6.64
EPS(TTM)7.57
EY6.56%
EPS(NY)7.75
Fwd EY6.71%
FCF(TTM)6.26
FCFY5.42%
OCF(TTM)14.49
OCFY12.55%
SpS231.37
BVpS35.7
TBVpS34.3
PEG (NY)6.41
PEG (5Y)N/A
Graham Number77.97
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 3.03
F-Score6
WACC7.59%
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 Y2.38%
EPS Next 2Y4.47%
EPS Next 3Y5.52%
EPS Next 5Y9.3%
Revenue 1Y (TTM)-1.68%
Revenue growth 3Y-1.34%
Revenue growth 5Y2.29%
Sales Q2Q%-1.49%
Revenue Next Year1.92%
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 Year69.74%
EBIT Next 3Y22.86%
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.


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 grow by 2.38% in the next year.


Can you provide the dividend sustainability for TGT stock?

The dividend rating of TARGET CORP (TGT) is 6 / 10 and the dividend payout ratio is 55.41%.