TARGET CORP (TGT) Fundamental Analysis & Valuation

NYSE:TGT • US87612E1064

Current stock price

114.47 USD
-0.58 (-0.5%)
At close:
114.911 USD
+0.44 (+0.39%)
After Hours:

This TGT fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. TGT Profitability Analysis

1.1 Basic Checks

  • TGT had positive earnings in the past year.
  • TGT had a positive operating cash flow in the past year.
  • Of the past 5 years TGT 4 years were profitable.
  • Of the past 5 years TGT 4 years had a positive operating cash flow.
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 0 2B 4B 6B 8B 10B

1.2 Ratios

  • TGT has a better Return On Assets (6.27%) than 68.42% of its industry peers.
  • TGT has a Return On Equity of 24.28%. This is in the better half of the industry: TGT outperforms 76.32% of its industry peers.
  • The Return On Invested Capital of TGT (12.98%) is better than 86.84% 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 29.52%.
  • 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 RankSector 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%
TGT Yearly ROA, ROE, ROICTGT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40 50

1.3 Margins

  • TGT has a Profit Margin of 3.58%. This is amongst the best in the industry. TGT outperforms 81.58% 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.
  • Looking at the Gross Margin, with a value of 27.74%, TGT is in the better half of the industry, outperforming 65.79% of the companies in the same industry.
  • TGT's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
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 10 20 30

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3

2. TGT Health Analysis

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.
  • There is no outstanding debt for TGT. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
TGT Yearly Shares OutstandingTGT Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 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 10B 20B 30B 40B 50B

2.2 Solvency

  • An Altman-Z score of 3.01 indicates that TGT is not in any danger for bankruptcy at the moment.
  • TGT's Altman-Z score of 3.01 is on the low side compared to the rest of the industry. TGT is outperformed by 60.53% 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 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.
  • 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 RankSector Rank
Debt/Equity 0.99
Debt/FCF 5.48
Altman-Z 3.01
ROIC/WACC1.73
WACC7.51%
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 0 5B 10B 15B

2.3 Liquidity

  • A Current Ratio of 0.97 indicates that TGT may have some problems paying its short term obligations.
  • The Current ratio of TGT (0.97) is worse than 68.42% of its industry peers.
  • A Quick Ratio of 0.27 indicates that TGT may have some problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 0.27, TGT is doing worse than 78.95% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.97
Quick Ratio 0.27
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 5B 10B 15B 20B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

2

3. TGT Growth Analysis

3.1 Past

  • The earnings per share for TGT have decreased strongly by -14.56% in the last year.
  • The Earnings Per Share has been decreasing by -4.30% on average over the past years.
EPS 1Y (TTM)-14.56%
EPS 3Y8%
EPS 5Y-4.3%
EPS Q2Q%1.24%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
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 3.02% on average per year.
EPS Next Y2.38%
EPS Next 2Y4.47%
EPS Next 3Y5.52%
EPS Next 5Y9.3%
Revenue Next Year1.76%
Revenue Next 2Y2.39%
Revenue Next 3Y2.73%
Revenue Next 5Y3.02%

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.
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

  • The Price/Earnings ratio is 15.12, which 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.
  • Compared to an average S&P500 Price/Earnings ratio of 25.73, TGT is valued a bit cheaper.
  • TGT is valuated correctly with a Price/Forward Earnings ratio of 14.77.
  • 71.05% of the companies in the same industry are more expensive than TGT, based on the Price/Forward Earnings ratio.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 23.72, TGT is valued a bit cheaper.
Industry RankSector Rank
PE 15.12
Fwd PE 14.77
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

  • Based on the Enterprise Value to EBITDA ratio, TGT is valued a bit cheaper than the industry average as 76.32% of the companies are valued more expensively.
  • 65.79% of the companies in the same industry are more expensive than TGT, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 17.23
EV/EBITDA 6.78
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)6.35
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 3.94%.
  • Compared to an average industry Dividend Yield of 0.70, TGT pays a better dividend. On top of this TGT pays more dividend than 100.00% of the companies listed in the same industry.
  • TGT's Dividend Yield is rather good when compared to the S&P500 average which is at 1.91.
Industry RankSector Rank
Dividend Yield 3.94%

5.2 History

  • On average, the dividend of TGT grows each year by 11.38%, 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)11.38%
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 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 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 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 (3/19/2026, 8:04:00 PM)

After market: 114.911 +0.44 (+0.39%)

114.47

-0.58 (-0.5%)

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 Change0.89%
Market Cap51.83B
Revenue(TTM)N/A
Net Income(TTM)3.76B
Analysts67.27
Price Target106.86 (-6.65%)
Short Float %4.37%
Short Ratio3.03
Dividend
Industry RankSector Rank
Dividend Yield 3.94%
Yearly Dividend4.46
Dividend Growth(5Y)11.38%
DP54.48%
Div Incr Years1
Div Non Decr Years1
Ex-Date02-11
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)3.01%
PT rev (3m)6.01%
EPS NQ rev (1m)0.7%
EPS NQ rev (3m)0.78%
EPS NY rev (1m)0.24%
EPS NY rev (3m)-0.06%
Revenue NQ rev (1m)-0.17%
Revenue NQ rev (3m)-0.14%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.04%
Valuation
Industry RankSector Rank
PE 15.12
Fwd PE 14.77
P/S 0.49
P/FCF 17.23
P/OCF 7.65
P/B 3.34
P/tB 3.34
EV/EBITDA 6.78
EPS(TTM)7.57
EY6.61%
EPS(NY)7.75
Fwd EY6.77%
FCF(TTM)6.65
FCFY5.81%
OCF(TTM)14.96
OCFY13.07%
SpS232.42
BVpS34.23
TBVpS34.23
PEG (NY)6.35
PEG (5Y)N/A
Graham Number76.36
Profitability
Industry RankSector 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 RankSector 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 3.01
F-Score5
WACC7.51%
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)-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)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-1.49%
Revenue Next Year1.76%
Revenue Next 2Y2.39%
Revenue Next 3Y2.73%
Revenue Next 5Y3.02%
EBIT growth 1Y7.49%
EBIT growth 3Y-14.56%
EBIT growth 5Y3.78%
EBIT Next Year41.33%
EBIT Next 3Y14.62%
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 Fundamental Analysis FAQ

What is the ChartMill fundamental rating of TARGET CORP (TGT) stock?

ChartMill assigns a fundamental rating of 4 / 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 6 / 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 54.48%.