TARGET CORP (TGT) Factsheet

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TARGET CORP (TGT) Stock Analysis

Analysis from 10-Q filed 2026-08-28. Data as of Q3 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 12.6%. FCF margin 4.1%. D/E 0.9x. Source: 10-Q filed 2026-08-28.

Metric Value Context
ROIC 12.6% Solid returns
FCF Margin 4.1% Cash flow pressure
Debt/Equity 0.9x Moderate leverage

ROIC 12.6% — Top 50% of sector peers. FCF margin 4.1% — Top 50%.

Explore TARGET CORP: Earnings History | Overview

Programmatic access: Available via MCP at mcp.metricduck.com. Tools for TGT: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_section, get_metric_history, compare_companies, screen_filing_signals.


Profitability: TARGET CORP earns 12.6% ROIC, Top 50% in Consumer Discretionary

ROIC TTM 12.6%, sector median 6.8%, Top 50%. DuPont: NOPAT margin 4.3% × asset turnover 1.8x. Gross margin 29.3%. Operating margin 5.6%. Source: 10-Q filed 2026-08-28.

Metric TGT Rating Context
Return on Invested Capital (ROIC) 12.6% Good Above sector median of 6.8%
Return on Equity (ROE) 27.2% Excellent Efficient use of shareholder equity
Gross Margin 29.3% Adequate Competitive pricing environment
Operating Margin 5.6% Adequate Moderate operational efficiency

Cash Flow: TARGET CORP generates $4.5B FCF at 4.1% margin, positive NaN/8 quarters

FCF TTM $4.5B. FCF margin 4.1%, Top 50%. OCF/Net income 2.0x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2026-08-28.

Metric TGT Rating Context
Free Cash Flow Margin 4.1% Warning Thin cash margins
Free Cash Flow (TTM) $4.5B Good Positive cash generation
OCF/Net Income 2.0x Excellent High earnings quality
FCF Consistency (8Q) N/A Warning Variable cash flow

Balance Sheet: TARGET CORP at 0.9x leverage, 14.0x interest coverage

Debt/Equity 0.9x. Total debt $15.4B, cash & investments $5.4B. Interest coverage 14.0x. Source: 10-Q filed 2026-08-28.

Metric TGT Rating Context
Debt to Equity 0.9x Adequate Moderate leverage
Net Cash Position $-9.9B Warning Net debt position
Interest Coverage 14.0x Excellent Comfortable debt service

Valuation: TARGET CORP trades at 16.6x earnings

P/E 16.6x. EV/Sales 0.8x. FCF yield 6.1%. Dividend yield 2.8%. Source: 10-Q filed 2026-08-28.

Metric TGT Rating Context
P/E Ratio 16.6x Adequate Reasonable valuation
EV/Sales 0.8x Excellent Attractive revenue multiple
FCF Yield 6.1% Good Attractive cash return
Dividend Yield 2.8% Adequate Growth focus over income

Capital Allocation: TARGET CORP returns 3.1% shareholder yield, reducing shares 0.0% YoY

Total shareholder yield 3.1% (div 2.8% + buyback 0.2%). Share count -0.0% YoY. Capital returned $2.3B TTM. Source: 10-Q filed 2026-08-28.

Metric TGT Rating Context
Total Shareholder Yield 3.1% Good Dividend + buyback yield combined
Buyback Yield 0.2% Adequate Minimal buyback activity
Share Count Change (YoY) -0.0% Adequate Net share reduction (accretive)
Total Capital Returned (TTM) $2.3B Good Dividends + buybacks returned to shareholders

Sector Rankings

Metric Value Percentile vs Median
Return on Invested Capital (ROIC) 12.6% Top 50% 1.8x above
Free Cash Flow Margin 4.1% Top 50% 1.3x above
Gross Margin 29.3% Bottom 50% 0.8x below
Operating Margin 5.6% Top 50% 1.3x above
Return on Equity (ROE) 27.2% Top 50% 2.4x above
P/E Ratio 16.6x N/A -

Financial Scorecard

Metric TGT Rating Sector Context
Return on Invested Capital (ROIC) 12.6% Good Top 50% of sector (median: 6.8%)
Free Cash Flow Margin 4.1% Warning Top 50% of sector (median: 3.2%)
Gross Margin 29.3% Adequate Bottom 50% of sector (median: 38.1%)
Debt to Equity Ratio 86.1% Adequate Elevated but manageable
P/E Ratio (Price-to-Earnings) 16.6x Adequate Fair value
Free Cash Flow Yield 6.1% Good Solid cash yield

Frequently Asked Questions

Q: What is TARGET CORP's Return on Invested Capital (ROIC)?

TARGET CORP (TGT) has a trailing twelve-month Return on Invested Capital (ROIC) of 12.6%. The 8-quarter median ROIC is 11.5% with a improving trend. Sector median 6.8%. Source: 10-Q filed 2026-08-28.

Q: What is TARGET CORP's Free Cash Flow Margin?

TARGET CORP (TGT) has a free cash flow margin of 4.1%, generating $4.5 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2026-08-28.

Q: What is TARGET CORP's P/E ratio and how does it compare to peers?

TARGET CORP (TGT) trades at a P/E ratio of 16.6x, which is above the sector median of N/A. EV/Sales 0.8x. FCF yield 6.1%. Source: 10-Q filed 2026-08-28.

Q: Does TARGET CORP pay a dividend?

TARGET CORP (TGT) currently pays a dividend yield of 2.8%. Total shareholder yield (dividend + buybacks) 3.1%. Source: 10-Q filed 2026-08-28.

Q: How much debt does TARGET CORP have?

TARGET CORP (TGT) has a debt-to-equity ratio of 0.9x with total debt of $15.4 billion. Interest coverage 14.0x. Net debt $9.9 billion. Source: 10-Q filed 2026-08-28.

Q: What is TARGET CORP's revenue and earnings growth?

TARGET CORP (TGT) grew revenue by 2.0% year-over-year. EPS +12.4% YoY. Source: 10-Q filed 2026-08-28.

Q: Is TARGET CORP buying back stock?

TARGET CORP (TGT) repurchased $153.0 million of stock over the trailing twelve months. This represents a buyback yield of 0.2%. Share count -0.0% YoY. Source: 10-Q filed 2026-08-28.

Q: How does TARGET CORP compare to competitors in Consumer Discretionary?

Compared to other companies in Consumer Discretionary, TARGET CORP (TGT) shows: ROIC 12.6%, sector median 6.8% (Top 50%). FCF margin 4.1%, sector median 3.2% (Top 50%). Gross margin 29.3%, 8.8pp below sector median. These rankings are based on MetricDuck's analysis of all Consumer Discretionary companies with available SEC filings.

Q: What warning signs should I watch for with TARGET CORP?

Quantitative warning flags for TARGET CORP (TGT): 1) FCF margin 4.1% (below 5%). Source: 10-Q filed 2026-08-28.


Data Source: Data sourced from 10-Q filed 2026-08-28. TTM metrics as of Q3 2026.

Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.

Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.

This analysis is for informational purposes only and does not constitute investment advice.

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