A Business at a Glance
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TARGET CORP
TGT
$62.3B
Mkt Cap
$136.78
+1.71%
TARGET CORP (TGT) has a current P/E ratio of 16.6, compared to its historical median P/E of 13.4. The stock is currently considered Fair based on its historical valuation range.
TARGET CORP (TGT) has a 5-year average return on invested capital (ROIC) of 23.5%. This indicates strong capital allocation and a potential competitive advantage.
TARGET CORP (TGT) has a market capitalization of $62.3B. It is classified as a large-cap stock.
Yes, TARGET CORP (TGT) pays a dividend with a trailing twelve-month yield of 3.29%. The company also returns capital through share buybacks, with a buyback yield of 0.65%.
Based on historical P/E analysis, TARGET CORP (TGT) appears fair. The current P/E of 16.6 is 24% above its historical median of 13.4. The estimated fair value CAGR (P/E method) is 4.1%.
TARGET CORP (TGT) operates in the Retail-Variety Stores industry, within the Consumer Defensive sector.
TARGET CORP (TGT) reported annual revenue of $104.8 billion in its most recent fiscal year, based on SEC EDGAR filings.
Target Corporation operates as a single-segment omnichannel retailer offering fashionable, differentiated merchandise and everyday essentials at discounted prices to guests across the United States through stores and digital channels. The company generates revenue primarily through merchandise sales across six core categories—apparel and accessories, household essentials, food and beverage, home furnishings and décor, hardlines (electronics, toys, sporting goods), and baby and kids—with approximately 30 percent of merchandise sales derived from owned and exclusive brands such as Cat & Jack, Good & Gather, and Threshold. Target's business model leverages stores as fulfillment hubs, with stores fulfilling more than 97 percent of total merchandise sales, enabling reduced fulfillment costs and same-day fulfillment options including Order Pickup, Drive Up, and Same-Day Delivery. The company generates additional revenue from high-margin sources including Roundel advertising services, Target Plus third-party marketplace, Target Circle loyalty program membership fees, and credit card profit-sharing income. Target's competitive differentiation rests on design-led curation, trend-forward assortment, value positioning, and an omnichannel experience combining destination-worthy stores with digital discovery and fulfillment capabilities, supported by a loyalty program with over 3 times higher spending among members and 7 times higher spending among Target Circle 360 subscribers.
【Strategic repositioning underway】 Management is executing a refreshed four-priority strategy centered on merchandising authority, elevated guest experience, technology acceleration, and team and community strengthening to return Target to sustainable growth. The company is making structural investments in key categories including a Target Beauty Studio launch in over 600 stores, expansion of food assortment with thousands of new items, and transformation of hardlines into Fun 101 to drive cultural relevance and traffic. Management expects continued investment in larger-format stores and store remodels, with capital expenditure plans increasing to approximately $6 billion for fiscal 2026 to bring the latest Target experience to new and existing markets. The company is leveraging artificial intelligence and advanced data analytics, including a new Target Trend Brain platform, to accelerate trend identification, inventory forecasting, and product development, while maintaining disciplined cost management and focusing on improving in-stock availability and operational execution across the supply chain.
| Metric | Target | Period |
|---|---|---|
| Net sales increase | around 4% | Full year (FY2027) |
| Gross margin rate benefit from shrink improvements | approximately 80-90 basis points | Full year (FY2027) |
Net sales increase (Full year (FY2027)): “For the full year, we are now planning for a net sales increase in a range centered around 4%.”
Gross margin rate benefit from shrink improvements (Full year (FY2027)): “Regarding our outlook for inventory shrink, consistent with our prior commentary, we expect that shrink improvements will account for approximately 80-90 basis points of gross margin rate favorability for the full year.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2027 Earnings Call, Q3 FY2027 Earnings Call, Q2 FY2027 Earnings Call, Q1 FY2027 Earnings Call
| Metric | TTM | FY2026 | FY2025 | FY2024 | FY2023 | FY2022 |
|---|---|---|---|---|---|---|
| Revenue | 104.8B | 104.8B | 106.6B | 107.4B | 109.1B | 106.0B |
| Net Income | 3.7B | 3.7B | 4.1B | 4.1B | 2.8B | 6.9B |
| EPS | $8.13 | $8.13 | $8.86 | $8.94 | $5.98 | $14.10 |
| Free Cash Flow | 2.8B | 2.8B | 4.5B | 3.8B | -1.5B | 5.1B |
| ROIC | 14.6% | 17.1% | 19.1% | 19.4% | 15.5% | 46.1% |
| Gross Margin | 27.9% | 27.9% | 28.2% | 27.5% | 24.6% | 29.3% |
| Debt/Equity | 1.02 | 1.02 | 1.06 | 1.28 | 1.27 | 0.92 |
| Dividends/Share | $4.50 | $4.54 | $4.46 | $4.46 | $4.14 | $3.38 |
| Operating Income | 5.1B | 5.1B | 5.6B | 5.7B | 3.8B | 8.9B |
| Operating Margin | 4.9% | 4.9% | 5.2% | 5.3% | 3.5% | 8.4% |
| ROE | 22.9% | 24.0% | 29.1% | 30.8% | 23.1% | 50.9% |
| Shares Outstanding | 456M | 456M | 462M | 463M | 465M | 493M |
TARGET CORP passes 4 of 9 quality checks, suggesting mixed fundamentals.
TARGET CORP trades at 16.6x trailing earnings, compared to its 15-year median P/E of 13.4x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 20.6x vs a median of 11.6x. The company's 5-year average ROIC is 23.5% with a gross margin of 27.5%. Total shareholder yield (dividends + buybacks) is 3.9%. At current prices, the estimated annualized return to fair value is -4.4%.
TARGET CORP (TGT) has a net profit margin of 3.5%. This is a modest margin.
TARGET CORP (TGT) generated $2.8 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
TARGET CORP (TGT) has a debt-to-equity ratio of 1.02. This indicates moderate leverage.
TARGET CORP (TGT) reported earnings per share (EPS) of $8.13 in its most recent fiscal year.
TARGET CORP (TGT) has a return on equity (ROE) of 24.0%. This indicates the company generates strong returns for shareholders.
TARGET CORP (TGT) has a 5-year average gross margin of 27.5%. This lower margin is typical of capital-intensive or commodity businesses.
The Ledger Terminal provides 19 years of financial data for TARGET CORP (TGT), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
TARGET CORP (TGT) has a book value per share of $35.47, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management is executing a refreshed four-priority strategy centered on merchandising authority, elevated guest experience, technology acceleration, and team and community strengthening to return Target to sustainable growth. The company is making structural investments in key categories including a Target Beauty Studio launch in over 600 stores, expansion of food assortment with thousands of new items, and transformation of hardlines into Fun 101 to drive cultural relevance and traffic. Management expects continued investment in larger-format stores and store remodels, with capital expenditure plans increasing to approximately $6 billion for fiscal 2026 to bring the latest Target experience to new and existing markets. The company is leveraging artificial intelligence and advanced data analytics, including a new Target Trend Brain platform, to accelerate trend identification, inventory forecasting, and product development, while maintaining disciplined cost management and focusing on improving in-stock availability and operational execution across the supply chain.
Based on recent SEC filings and earnings calls, TARGET CORP (TGT) has provided the following forward guidance: Net sales increase: around 4% (Full year (FY2027)); Gross margin rate benefit from shrink improvements: approximately 80-90 basis points (Full year (FY2027)).