TARGET CORP (TGT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TGT - US87612E1064 - Common Stock
107.46 USD
-1.88 (-1.72%)
TGT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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. Finally TGT also has an excellent dividend rating.
1. Profitability
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.
- TGT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of TGT (6.27%) is better than 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.
- TGT's Return On Invested Capital of 12.98% is amongst the best of the industry. TGT outperforms 89.47% 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 28.30%.
- 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
- TGT has a better Profit Margin (3.58%) than 84.21% of its industry peers.
- In the last couple of years the Profit Margin of TGT has declined.
- 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.
- With a decent Gross Margin value of 27.74%, TGT is doing good in the industry, outperforming 65.79% of the companies in the same industry.
- 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
- 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
- Compared to 5 years ago, TGT has less shares outstanding
- The debt/assets ratio for TGT has been reduced compared to a year ago.
2.2 Solvency
- TGT has an Altman-Z score of 2.97. This is not the best score and indicates that TGT is in the grey zone with still only limited risk for bankruptcy at the moment.
- The Altman-Z score of TGT (2.97) is worse than 63.16% of its industry peers.
- 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 has a Debt to FCF ratio (5.48) which is comparable to the rest of the industry.
- A Debt/Equity ratio of 0.99 indicates that TGT is somewhat dependend on debt financing.
- TGT has a Debt to Equity ratio of 0.99. This is in the lower half of the industry: TGT underperforms 65.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 5.48 | ||
| Altman-Z | 2.97 |
ROIC/WACC1.75
WACC7.44%
2.3 Liquidity
- A Current Ratio of 0.97 indicates that TGT may have some problems paying 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.
- TGT has a Quick 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.
- With a Quick ratio value of 0.27, TGT is not doing good in the industry: 76.32% of the companies in the same industry are doing better.
| 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.
- Measured over the past 5 years, TGT shows a small growth in Earnings Per Share. The EPS has been growing by 6.72% on average per year.
- The Revenue has decreased by -2.16% in the past 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
- Based on estimates for the next years, TGT will show a small growth in Earnings Per Share. The EPS will grow by 2.64% on average per year.
- 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-16.75%
EPS Next 2Y-5.93%
EPS Next 3Y-1.77%
EPS Next 5Y2.64%
Revenue Next Year-1.49%
Revenue Next 2Y0.15%
Revenue Next 3Y1.01%
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 14.25 indicates a correct valuation of TGT.
- 71.05% of the companies in the same industry are more expensive than TGT, based on the Price/Earnings ratio.
- TGT's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.94.
- With a Price/Forward Earnings ratio of 13.70, TGT is valued correctly.
- Based on the Price/Forward Earnings ratio, TGT is valued a bit cheaper than 71.05% 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 23.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.25 | ||
| Fwd PE | 13.7 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TGT indicates a somewhat cheap valuation: TGT is cheaper than 78.95% of the companies listed in the same industry.
- 73.68% of the companies in the same industry are more expensive than TGT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.17 | ||
| EV/EBITDA | 6.51 |
4.3 Compensation for Growth
- The decent profitability rating of TGT may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.12
EPS Next 2Y-5.93%
EPS Next 3Y-1.77%
5. Dividend
5.1 Amount
- TGT has a Yearly Dividend Yield of 4.10%, which is a nice return.
- Compared to an average industry Dividend Yield of 0.72, TGT pays a better dividend. On top of this TGT pays more dividend than 100.00% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.83, TGT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.1% |
5.2 History
- The dividend of TGT is nicely growing with an annual growth rate of 11.38%!
- TGT has paid a dividend for at least 10 years, which is a reliable track record.
- TGT has decreased its dividend recently.
Dividend Growth(5Y)11.38%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- TGT pays out 54.48% of its income as dividend. 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.
DP54.48%
EPS Next 2Y-5.93%
EPS Next 3Y-1.77%
NYSE:TGT (1/21/2026, 11:47:05 AM)
107.46
-1.88 (-1.72%)
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 Change0.1%
Ins Owners0.22%
Ins Owner Change-0.38%
Market Cap48.66B
Revenue(TTM)105.24B
Net Income(TTM)3.76B
Analysts65.58
Price Target101.18 (-5.84%)
Short Float %4.46%
Short Ratio2.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.1% |
Yearly Dividend4.46
Dividend Growth(5Y)11.38%
DP54.48%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.31%
Min EPS beat(2)-0.01%
Max EPS beat(2)2.64%
EPS beat(4)2
Avg EPS beat(4)-3.01%
Min EPS beat(4)-19.93%
Max EPS beat(4)5.26%
EPS beat(8)4
Avg EPS beat(8)0.5%
EPS beat(12)8
Avg EPS beat(12)10.21%
EPS beat(16)9
Avg EPS beat(16)1.84%
Revenue beat(2)1
Avg Revenue beat(2)-0.54%
Min Revenue beat(2)-1.19%
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)-0.89%
Revenue beat(16)3
Avg Revenue beat(16)-0.78%
PT rev (1m)0.37%
PT rev (3m)-4.51%
EPS NQ rev (1m)-0.12%
EPS NQ rev (3m)-2.71%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)-0.92%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)-0.54%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)-0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.25 | ||
| Fwd PE | 13.7 | ||
| P/S | 0.46 | ||
| P/FCF | 16.17 | ||
| P/OCF | 7.18 | ||
| P/B | 3.14 | ||
| P/tB | 3.14 | ||
| EV/EBITDA | 6.51 |
EPS(TTM)7.54
EY7.02%
EPS(NY)7.84
Fwd EY7.3%
FCF(TTM)6.65
FCFY6.18%
OCF(TTM)14.96
OCFY13.92%
SpS232.42
BVpS34.23
TBVpS34.23
PEG (NY)N/A
PEG (5Y)2.12
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 | 2.97 |
F-Score5
WACC7.44%
ROIC/WACC1.75
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-16.75%
EPS Next 2Y-5.93%
EPS Next 3Y-1.77%
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 2Y0.15%
Revenue Next 3Y1.01%
Revenue Next 5Y1.93%
EBIT growth 1Y7.49%
EBIT growth 3Y-14.56%
EBIT growth 5Y3.78%
EBIT Next Year40.99%
EBIT Next 3Y14.91%
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 -16.75% 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%.