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
- In the past year TGT was profitable.
- TGT had a positive operating cash flow in the past year.
- In the past 5 years TGT has always been profitable.
- 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.
- With a decent Return On Equity value of 24.28%, TGT is doing good in the industry, outperforming 76.32% of the companies in the same industry.
- TGT has a Return On Invested Capital of 12.98%. This is amongst the best in the industry. TGT outperforms 89.47% of its industry peers.
- The Average Return On Invested Capital over the past 3 years 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's Profit Margin of 3.58% is amongst the best of the industry. TGT outperforms 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.
- In the last couple of years the Operating Margin of TGT has declined.
- TGT has a better Gross Margin (27.74%) than 65.79% of its industry peers.
- TGT's Gross Margin has been stable in the last couple of years.
| 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.
- TGT has less shares outstanding than it did 1 year ago.
- 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
- TGT has an Altman-Z score of 2.98. 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.
- Looking at the Altman-Z score, with a value of 2.98, TGT is doing worse than 63.16% of the companies in the same industry.
- 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 of 5.48. This is comparable to the rest of the industry: TGT outperforms 52.63% of its industry peers.
- A Debt/Equity ratio of 0.99 indicates that TGT is somewhat dependend on debt financing.
- TGT has a worse Debt to Equity ratio (0.99) 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.
- The Current ratio of TGT (0.97) is worse 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 Quick ratio of 0.27. This is in the lower half of the industry: TGT underperforms 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.
- 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.
- 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
- The Price/Earnings ratio is 14.76, which indicates a correct valuation of TGT.
- Based on the Price/Earnings ratio, TGT is valued a bit cheaper than the industry average as 73.68% of the companies are valued more expensively.
- TGT's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.38.
- Based on the Price/Forward Earnings ratio of 14.19, the valuation of TGT can be described as correct.
- Based on the Price/Forward Earnings ratio, TGT is valued a bit cheaper than 71.05% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.29. TGT is valued slightly cheaper when compared to this.
| 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.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of TGT indicates a somewhat cheap valuation: TGT is cheaper than 73.68% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.75 | ||
| EV/EBITDA | 6.6 |
4.3 Compensation for Growth
- The decent profitability rating of TGT 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
- 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-5.93%
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%.