Target Corporation (TGT)
Consumer Staples · $72.5B market cap · SEC CIK 0000027419
ahead of 42% of the S&P 500 · #22 of 36 in Consumer Staples
Next reports on Nov 18, 2026, with analysts expecting $2.07 in earnings per share.
52-week range $83.44 to $170.75. 5% below its 52-week high and 94% above its low.
The case for TGT
- Earns 27% back on shareholder equity.
- Pays a 3.3% dividend while you wait.
- Up 81.8% over the past year.
The case against
- Current liabilities exceed current assets (ratio 0.99).
- Revenue grew only 1.9%, roughly the pace of inflation.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Consumer Staples companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings and cash, against the growth you get | 49 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 41 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 47 |
| Momentumhow the price has behaved lately | 84 |
| Stabilityhow violently it moves, what it owes and what it pays you | 52 |
- Each factor except momentum is half fixed thresholds, half rank among the 36 Consumer Staples companies.
The financials
Revenue growth
Is the business growing? Slowly
| Last 12 months | +1.9% |
|---|---|
| Over 5 years | +2.3% a year |
| FY2025 revenue | $105B (−2%) |
Free cash flow
Is it generating real cash? A little
| FY2025 free cash flow | $2.8B |
|---|---|
| Of revenue | 3% |
| Of profit | 77% |
Profit margins
Is profitability improving? Holding steady
| Gross margin | 29% |
|---|---|
| Operating margin | 6% |
| Net margin, FY24 → FY25 → now | 3.8% → 3.5% → 4.1% |
Debt vs. cash
Is the balance sheet healthy? Yes, the debt is manageable
| Cash | $5.5B |
|---|---|
| Long-term debt | $14.4B |
| Net debt | $8.9B |
| Years to repay | 2.2 yrs |
Valuation
Is the stock price reasonable? A bit pricey
| P/E | 16.5× |
|---|---|
| Fair P/E for its growth | 15× |
| P/FCF | 25.6× |
| Forward P/E | 15.7× |
| EV / EBITDA | 9.5× |
At 16.5× earnings it trades close to the 15× that 1% a year of growth plus a 3.3% dividend would justify. At 25.6× free cash flow it trades well above that same mark.
The financials, five years deep
Pulled from Target Corporation's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue growth | |||||
| Revenue | $105B | $107B | $107B | $109B | $106B |
| Change on the year | −2% | −1% | −2% | +3% | — |
| Free cash flow | |||||
| Free cash flow | $2.8B | $4.5B | $3.8B | −$1.5B | $5.1B |
| Of revenue | 3% | 4% | 4% | −1% | 5% |
| Profit margins | |||||
| Operating margin | 4.9% | 5.2% | 5.3% | 3.5% | 8.4% |
| Net margin | 3.5% | 3.8% | 3.9% | 2.5% | 6.6% |
| Debt vs. cash | |||||
| Cash | $5.5B | $4.8B | $3.8B | $2.2B | $5.9B |
| Long-term debt | $14.4B | $13.9B | $14.2B | $14.1B | $11.6B |
| Net cash (debt) | −$8.9B | −$9.1B | −$10.3B | −$11.9B | −$5.7B |
What Target Corporation says it does
Target Corporation was incorporated in Minnesota in 1902. Our corporate purpose is to help all families discover the joy of everyday life. We offer our customers, referred to as "guests," fashionable, differentiated merchandise and everyday essentials at discounted prices. We operate as a single segment designed to enable guests to purchase products seamlessly in stores or through our digital channels. Since 1946, we have given 5 percent of our profit to communities. When used in this report, the terms "we," "our," "us," "Target," and the "Corporation" mean Target Corporation and its subsidiaries, collectively, unless the context otherwise requires or indicates. Strategy Target’s strategy is grounded in our purpose to help all families discover the joy of everyday life and our ambition to be the most delightful experience in retail. We differentiate through design, style, and value, and a curated multi-category assortment delivered…