TARGET CORP (TGT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TGT - US87612E1064 - Common Stock
111.28 USD
+0.15 (+0.13%)
111.5 USD
+0.22 (+0.2%)
Overall TGT gets a fundamental rating of 5 out of 10. We evaluated TGT against 38 industry peers in the Consumer Staples Distribution & Retail industry. While TGT has a great profitability rating, there are quite some concerns on its financial health. TGT is valued correctly, but it does not seem to be growing. Finally 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.
- 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.
1.2 Ratios
- Looking at the Return On Assets, with a value of 6.27%, TGT is in the better half of the industry, outperforming 68.42% of the companies in the same industry.
- The Return On Equity of TGT (24.28%) is better than 76.32% of its industry peers.
- TGT has a better Return On Invested Capital (12.98%) than 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 last Return On Invested Capital (12.98%) for TGT is above the 3 year average (11.15%), which is a sign of increasing profitability.
| 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.
- Looking at the Operating Margin, with a value of 6.13%, 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 has a Gross Margin of 27.74%. This is in the better half of the industry: TGT outperforms 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
- The number of shares outstanding for TGT has been reduced compared to 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.
- TGT's Altman-Z score of 2.98 is on the low side compared to the rest of the industry. TGT is outperformed by 63.16% of its industry peers.
- TGT has a debt to FCF ratio of 5.48. This is a neutral value as TGT would need 5.48 years to pay back of all of its debts.
- TGT has a Debt to FCF ratio (5.48) which is in line with 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.
- The Debt to Equity ratio of TGT (0.99) is worse than 65.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 5.48 | ||
| Altman-Z | 2.98 |
ROIC/WACC1.74
WACC7.46%
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 has a worse Current ratio (0.97) than 71.05% of its industry peers.
- A Quick Ratio of 0.27 indicates that TGT may have some problems paying its short term obligations.
- TGT has a worse Quick ratio (0.27) 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.
- 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.
- Measured over the past years, TGT shows a small growth in Revenue. The Revenue has been growing by 6.41% on average per year.
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.
- Based on estimates for the next years, TGT will show a small growth in Revenue. The Revenue will grow by 1.93% on average per year.
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
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 14.76, which indicates a correct valuation of TGT.
- 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.
- TGT is valuated rather cheaply when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 14.19, which indicates a correct valuation of TGT.
- 71.05% of the companies in the same industry are more expensive than TGT, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of TGT to the average of the S&P500 Index (24.29), we can say TGT is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.76 | ||
| Fwd PE | 14.19 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, TGT is valued a bit cheaper than the industry average as 78.95% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, TGT is valued a bit cheaper than 73.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.75 | ||
| 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)2.2
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.
- TGT's Dividend Yield is rather good when compared to the industry average which is at 0.72. TGT pays more dividend than 100.00% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.85, TGT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.1% |
5.2 History
- On average, the dividend of TGT grows each year by 11.38%, which is quite nice.
- TGT has paid a dividend for at least 10 years, which is 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
- TGT pays out 54.48% 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.
DP54.48%
EPS Next 2Y-5.93%
EPS Next 3Y-1.77%
111.28
+0.15 (+0.13%)
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 Cap50.39B
Revenue(TTM)105.24B
Net Income(TTM)3.76B
Analysts65.58
Price Target101.18 (-9.08%)
Short Float %4.47%
Short Ratio2.73
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 | 14.76 | ||
| Fwd PE | 14.19 | ||
| P/S | 0.48 | ||
| P/FCF | 16.75 | ||
| P/OCF | 7.44 | ||
| P/B | 3.25 | ||
| P/tB | 3.25 | ||
| EV/EBITDA | 6.6 |
EPS(TTM)7.54
EY6.78%
EPS(NY)7.84
Fwd EY7.05%
FCF(TTM)6.65
FCFY5.97%
OCF(TTM)14.96
OCFY13.44%
SpS232.42
BVpS34.23
TBVpS34.23
PEG (NY)N/A
PEG (5Y)2.2
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
WACC7.46%
ROIC/WACC1.74
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%.