|TGT Overview
TGT

TARGET CORP

Consumer Discretionary • CIK: 0000027419

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Market Cap
$42.19B
P/E (TTM)
11.2x
Rev Growth (TTM)
-2.2%
Net Margin (TTM)
3.6%
FCF Yield (TTM)
7.1%
FCF Margin (TTM)
2.9%

LATEST EARNINGS

Q4 FY2025
2 days ago
View source
Revenue
Net Income
EPS
  • Confirms Q4 FY2025 sales and full-year GAAP EPS and Adjusted EPS in line with prior guidance.
  • Appoints new executive vice presidents to oversee key functions reporting directly to the CEO, including Chief Merchandising Officer and Chief Operating Officer.
  • New CEO Michael Fiddelke emphasizes strengthening merchandising authority and elevating the guest experience as key priorities.

Cash Flow Health

Free Cash Flow7/8 positive
TTM$3.0B
Q3 '26
$149M-85%
Q2 '26
$1.0B+296%
FCF Margin
TTM2.9%
Q3 '260.6%-85%
Sector: 4.9%Below Avg
OCF Margin6.4%
OCF/NI1.80x
CapEx Coverage1.8x
FCF Yield7.1%
FCF Growth (2Y)
Cash Conversion Cycle
3 days
DSO: 0+DIO: 65DPO: 61

Capital Allocation & Returns

Shareholder Friendly
Total Shareholder YieldTTM
TTM7.0%
Div Yield4.9%
+
Buyback (TTM)2.2%

Strong capital returns to shareholders

Dividend & Payout Metrics
Dividend Yield (TTM)4.9%
FCF Payout Ratio68.4%
Free Cash Flow (TTM)$3.0B
Stock Repurchases (TTM)$909.0M
Capital Return / FCF98.3%
Est. Dividends Paid (TTM)$2.1B
Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM
15.6%
Stable
-0.2% YoY-8.6%
P25MedianP75
75th pctl (med: 0.2%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
3.8%
8Q: 4.1%
Asset Turnover
1.82x
8Q: 1.78x
Leverage (1+D/E)
1.99x
D/E: 0.99x
DuPont: 13.9%15.6% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
3.16x
8Q:3.05x
-84.9%
Invested Cap Turn
4.08x
8Q:4.09x
-132.1%
CapEx Intensity
14.6%
8Q:13.1%
CapEx/Depreciation
1.22x
Asset-based ROIC formula

QUARTERLY TRENDS

Last 8 quarters + TTM

MetricTTMQ3 2026Q2 2026Q1 2026Q4 2025Q3 2025Q2 2025Q1 2025Q4 2025
Revenue
$105.2B
$25.3B0.2%
$25.2B5.7%
$23.8B22.9%
$30.9B20.4%
$25.7B0.8%
$25.5B3.8%
$24.5B23.1%
$31.9B
Operating Income
$5.2B
$948.0M28.0%
$1.3B10.5%
$1.5B0.3%
$1.5B25.6%
$1.2B28.6%
$1.6B26.2%
$1.3B30.5%
$1.9B
Net Income
$3.8B
$689.0M26.3%
$935.0M9.7%
$1.0B6.1%
$1.1B29.2%
$854.0M28.4%
$1.2B26.5%
$942.0M31.8%
$1.4B
Operating Cash Flow
$6.8B
$1.1B45.9%
$2.1B657.5%
$275.0M91.6%
$3.3B345.1%
$739.0M67.0%
$2.2B103.3%
$1.1B66.5%
$3.3B
Free Cash Flow
$3.0B
$149.0M85.2%
$1.0B295.9%
$-515.0M121.8%
$2.4B2716.7%
$84.0M94.7%
$1.6B274.5%
$427.0M82.5%
$2.4B
Total Equity
N/A

Valuation Analysis

Fair Value
Price-to-EarningsTTM
11.2x
Valuation Lenses
Earnings
11.2x
vs sector
Cash Flow
20.9x
EV/FCF vs
Growth-Adj
PEG
N/A
Quality-Adj
0.7P/E per %ROIC
ROIC: 15.6%
Shareholder Returns
Dividend
4.9%
Buyback
2.2%
Total Yield
7.0%
Market Cap$42.19B
EV
Multi-angle valuation analysis with sector context

Business Quality & Moat

Overall Quality Score
96/100
Exceptional

Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)

Returns on Capital

Return on Equity (ROE)Above Avg
25.1%
8Q:
Return on Invested Capital (ROIC)Top 25%
15.6%
8Q:
-8.6%
vs Sector:0.2%

DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)

NOPAT Margin: 3.8%
Asset Turnover: 1.82x

Earnings Quality

Cash Conversion

1.80x

OCF / Net Income

FCF Consistency

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin27.8%

Capital Efficiency

Invested Capital Turnover4.08x

Working Capital

Cash Conversion Cycle3 days

Growth Quality & Momentum

Low Quality
Growth Quality Score
48/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%

Growth Rates

Revenue Growth YoY
-2.2%
OpInc Growth YoY
-18.8%
EPS Growth YoY
-12.6%
FCF 3Y CAGR
N/A

Growth Quality Analysis

Sustainability Index: 3.0/10 - Growth sustainability concerns

Margin Quality & Sustainability

Moderate
Profitability Cascade
Gross
27.8%
Operating
4.9%
Below Avg in sector
Net
3.6%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
FCF vs Net Gap
-0.7 pts
FCF: 2.9% | Net: 3.6%

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Adequate
Net Debt / EBITDA
Net Debt: $11.54B
Interest Coverage
Leverage Metrics
Debt-to-Equity
0.99x
Balance sheet risk & solvency analysis