TARGET CORP (TGT) Stock Analysis

Analysis from 10-Q filed 2025-11-26. Data as of Q2 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 10.2%. FCF margin 2.8%. D/E 0.9x. Source: 10-Q filed 2025-11-26.

Metric	Value	Context
ROIC	10.2%	Near cost of capital
FCF Margin	2.8%	Cash flow pressure
Debt/Equity	0.9x	Moderate leverage

ROIC 10.2% — Top 50% of sector peers. FCF margin 2.8% — Top 50%.

Explore TARGET CORP: Earnings History | Filings

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_changes, get_metric_history, compare_companies, screen_filing_signals.

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Profitability: TARGET CORP earns 10.2% ROIC, Top 50% in Consumer Discretionary

ROIC TTM 10.2%, sector median 7.7%, Top 50%. DuPont: NOPAT margin 3.5% × asset turnover 1.8x. Gross margin 28.1%. Operating margin 4.5%. Source: 10-Q filed 2025-11-26.

Metric	TGT	Rating	Context
Return on Invested Capital (ROIC)	10.2%	Adequate	Above sector median of 7.7%
Return on Equity (ROE)	22.0%	Excellent	Efficient use of shareholder equity
Gross Margin	28.1%	Adequate	Competitive pricing environment
Operating Margin	4.5%	Warning	Moderate operational efficiency

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Cash Flow: TARGET CORP generates $3.0B FCF at 2.8% margin, positive NaN/8 quarters

FCF TTM $3.0B. FCF margin 2.8%, Top 50%. OCF/Net income 2.0x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-11-26.

Metric	TGT	Rating	Context
Free Cash Flow Margin	2.8%	Warning	Thin cash margins
Free Cash Flow (TTM)	$3.0B	Good	Positive cash generation
OCF/Net Income	2.0x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

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Balance Sheet: TARGET CORP at 0.9x leverage

Debt/Equity 0.9x. Total debt $15.4B, cash & investments $3.5B. Source: 10-Q filed 2025-11-26.

Metric	TGT	Rating	Context
Debt to Equity	0.9x	Adequate	Moderate leverage
Net Cash Position	$-11.9B	Warning	Net debt position

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Valuation: TARGET CORP trades at 16.9x earnings

P/E 16.9x. EV/Sales 0.7x. FCF yield 5.2%. Dividend yield 3.5%. Source: 10-Q filed 2025-11-26.

Metric	TGT	Rating	Context
P/E Ratio	16.9x	Adequate	Reasonable valuation
EV/Sales	0.7x	Excellent	Attractive revenue multiple
FCF Yield	5.2%	Good	Attractive cash return
Dividend Yield	3.5%	Adequate	Meaningful income

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Capital Allocation: TARGET CORP returns 3.8% shareholder yield

Total shareholder yield 3.8% (div 3.5% + buyback 0.3%). Capital returned $2.3B TTM. Source: 10-Q filed 2025-11-26.

Metric	TGT	Rating	Context
Total Shareholder Yield	3.8%	Good	Dividend + buyback yield combined
Buyback Yield	0.3%	Adequate	Minimal buyback activity
Total Capital Returned (TTM)	$2.3B	Good	Dividends + buybacks returned to shareholders

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Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	10.2%	Top 50%	1.3x above
Free Cash Flow Margin	2.8%	Top 50%	1.3x above
Gross Margin	28.1%	Bottom 50%	0.7x below
Operating Margin	4.5%	Top 50%	1.1x above
Return on Equity (ROE)	22.0%	Top 50%	2.1x above
P/E Ratio	16.9x	N/A	-

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Financial Scorecard

Metric	TGT	Rating	Sector Context
Return on Invested Capital (ROIC)	10.2%	Adequate	Top 50% of sector (median: 7.7%)
Free Cash Flow Margin	2.8%	Warning	Top 50% of sector (median: 2.3%)
Gross Margin	28.1%	Adequate	Bottom 50% of sector (median: 38.7%)
Debt to Equity Ratio	94.0%	Adequate	Elevated but manageable
P/E Ratio (Price-to-Earnings)	16.9x	Adequate	Fair value
Free Cash Flow Yield	5.2%	Good	Solid cash yield

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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 10.2%. Sector median 7.7%. Source: 10-Q filed 2025-11-26.

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

TARGET CORP (TGT) has a free cash flow margin of 2.8%, generating $3.0 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-11-26.

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 16.9x, which is above the sector median of N/A. EV/Sales 0.7x. FCF yield 5.2%. Source: 10-Q filed 2025-11-26.

Q: Does TARGET CORP pay a dividend?

TARGET CORP (TGT) currently pays a dividend yield of 3.5%. Total shareholder yield (dividend + buybacks) 3.8%. Source: 10-Q filed 2025-11-26.

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. Net debt $11.9 billion. Source: 10-Q filed 2025-11-26.

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

TARGET CORP (TGT) grew revenue by 0.5% year-over-year. EPS -16.7% YoY. Source: 10-Q filed 2025-11-26.

Q: Is TARGET CORP buying back stock?

TARGET CORP (TGT) repurchased $158.0 million of stock over the trailing twelve months. This represents a buyback yield of 0.3%. Source: 10-Q filed 2025-11-26.

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

Compared to other companies in Consumer Discretionary, TARGET CORP (TGT) shows: ROIC 10.2%, sector median 7.7% (Top 50%). FCF margin 2.8%, sector median 2.3% (Top 50%). Gross margin 28.1%, 10.6pp 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 2.8% (below 5%); 2) ROIC declining -3.8% over 8 quarters. Source: 10-Q filed 2025-11-26.

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Data Source: Data sourced from 10-Q filed 2025-11-26. TTM metrics as of Q2 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.