One-glance verdict
Not enough data
Fair value unavailable
Not enough cash-flow history to value this one with our method.
Fundamentals snapshot
Target Corporation
TGT · NYQ · Consumer Defensive · Discount Stores
Current price
$149.35
52-week range
$83.44 - $150.07
Market cap
—
Balance sheet
Watch
11.50x Adequate
Net debt $15.74B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 1.5% last year.
- Reward Returns 22.0% on equity, ahead of 33% of its peers.
- Risk Stock trades 8.3% above its 5-year average P/E.
- Risk Insider ownership is only 0.3% (peer median: 0.3%).
What this company does
Target Corporation
Target is a well-known "one-stop-shop" retailer in the U.S. that sells a wide variety of items like groceries, clothing, and electronics in its stores and online. The company makes money on the price difference for each product it sells, meaning its success depends on attracting a large number of customers and carefully managing its operating margins (the portion of each dollar in sales left after paying for the products themselves and the costs of running the stores).
How the company got here
Target's story begins in 1902 with a company called Dayton Dry Goods. The first Target store, envisioned as an 'upscale discount retailer,' opened in Minnesota in 1962. Over the years, the company grew by acquiring other retail chains and expanding across the United States. By 2000, the discount stores were so successful that the parent company renamed itself Target Corporation. This focus on offering trendy, stylish products at affordable prices helped it become one of the largest retailers in the U.S.
What it actually does
Target is a large retail company that sells a wide variety of items directly to shoppers in the United States. You'll find everything from clothing and beauty products to groceries, electronics, and home decor in their stores and on their website. The company is known for its 'cheap-chic' image, offering fashionable items and well-known brands at budget-friendly prices. Many stores also have a grocery section, a pharmacy, and popular coffee shop brands inside.
Apparel & Accessories
This category includes clothing for women, men, and children, as well as shoes, jewelry, and other accessories. Target designs many of its own clothing lines, like Cat & Jack for kids, which allows it to control the style and price. This part of the business is a significant contributor to sales, making up a notable portion of what the company sells each year.
Food & Beverage
This is Target's largest category by sales, bringing in the most revenue (the total money earned from sales). It includes fresh groceries like produce and meat, as well as packaged foods, snacks, and drinks. Target has focused on growing this area, especially with its own popular food brand, Good & Gather, which is now a multi-billion dollar business. The goal is to make Target a convenient one-stop shop for customers doing their weekly grocery runs.
Beauty & Household Essentials
This segment combines everyday necessities with personal care items. It includes things like cleaning supplies, paper towels, and over-the-counter medicine, alongside cosmetics, skin care, and hair products. This is a very large part of Target's business, making up the second biggest slice of its sales. By offering both essential items and popular beauty brands, Target encourages shoppers to visit frequently.
Hardlines
This is a retail term for durable goods, which are products that last a long time. For Target, this category includes electronics, video games, toys, sporting goods, and luggage. It represents a significant portion of the company's sales. This segment is important for attracting families and shoppers during key seasons like holidays and back-to-school.
Home Furnishings & Decor
This area covers everything you'd use to decorate and furnish a home, such as bedding, bath items, furniture, and kitchenware. Target is well-known for its stylish and affordable home goods, including its popular owned brand, Threshold. This category is a major part of Target's identity and a substantial source of its revenue.
What management is betting on now
Target's leadership is focused on making the shopping experience better, both in stores and online. They are investing billions of dollars to remodel existing stores, open over 300 new ones, and improve technology to make shopping easier and more personalized. The company is also expanding its own successful brands, like Good & Gather, and growing its online marketplace, Target Plus, where other brands can sell their products. Another key focus is improving their fast delivery services, like Drive Up and same-day delivery, which are very popular with customers.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q3
$1.60B
FY2025 Q4
$84.00M
FY2026 Q1
$2.37B
FY2026 Q2
$-515.00M
FY2026 Q3
$1.01B
FY2026 Q4
$149.00M
FY2027 Q2
$-319.00M
Revenue
$25.44B
Net income
$781.00M
Diluted EPS
1.71
Operating cash flow
$716.00M
Free cash flow
$-319.00M
Fetching…
Sources
Revenue
$25.27B
Net income
$689.00M
Diluted EPS
1.51
Operating cash flow
$1.13B
Free cash flow
$149.00M
Fetching…
Sources
Revenue
$25.21B
Net income
$935.00M
Diluted EPS
2.05
Operating cash flow
$2.08B
Free cash flow
$1.01B
Fetching…
Sources
Revenue
$23.85B
Net income
$1.04B
Diluted EPS
2.27
Operating cash flow
$275.00M
Free cash flow
$-515.00M
Fetching…
Sources
Revenue
$30.91B
Net income
$1.10B
Diluted EPS
2.41
Operating cash flow
$3.29B
Free cash flow
$2.37B
Fetching…
Sources
Revenue
$25.67B
Net income
$854.00M
Diluted EPS
1.85
Operating cash flow
$739.00M
Free cash flow
$84.00M
Fetching…
Sources
Revenue
$25.45B
Net income
$1.19B
Diluted EPS
2.57
Operating cash flow
$2.24B
Free cash flow
$1.60B
Fetching…
Sources
Is it cheap or expensive?
Fair value — vs current price $149.35
We couldn't calculate a fair value right now.
Is it drowning in debt?
Watch
Net debt $15.7B. Interest coverage 11.5x.
Net debt
$15.74B
Interest coverage
11.50x
Target Corporation's profit covers its interest bill about 11.5 times over. which is stronger than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
TGT
BASELINE
Target Corporation
Total debt $19.27B Interest coverage 11.50x This is the baseline the peer rows are being compared against.
Total debt $75.55B Interest coverage 10.66x -7% vs TGT Has roughly the same debt cushion as TGT.
Total debt $10.23B Interest coverage 67.42x +486% vs TGT Carries about 5.9x more debt cushion than TGT.
Total debt $24.19B Interest coverage 2.96x -74% vs TGT Carries about 3.9x less debt cushion than TGT.
Total debt $15.80B Interest coverage 9.56x -17% vs TGT Carries about 1.2x less debt cushion than TGT.
Total debt $7.59B Interest coverage 19.33x +68% vs TGT Carries about 1.7x more debt cushion than TGT.
What you should know
The case for and against TGT
3 Rewards
2 Risks
Rewards
-
Revenue grew 1.5% last year.
-
Returns 22.0% on equity, ahead of 33% of its peers.
-
Free cash flow was positive in 9/10 years.
Risks
-
Stock trades 8.3% above its 5-year average P/E.
-
Insider ownership is only 0.3% (peer median: 0.3%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
19.73x
Forward P/E
16.67x
P/B
4.14x
P/S
—
EV/EBITDA
9.75x
PEG ratio
2.68x
Profitability
How much profit each dollar creates
Gross margin
28.1%
Operating margin
4.5%
Net margin
3.2%
ROE
22.0%
ROA
5.7%
Health
Liquidity and balance-sheet strength
Debt / equity
1.18x
Current ratio
0.93x
Quick ratio
0.18x
Total debt
$19.27B
Total cash
$3.53B
Growth
How the business has been compounding
Revenue TTM
$106.38B
Revenue 5Y CAGR
-0.3%
EPS TTM
7.57
EPS 5Y CAGR
10.8%
Cash flow
How much cash the business throws off
Operating CF TTM
$7.00B
Free CF TTM
$2.83B
FCF margin
2.7%
Dividend
Shareholder payout
Yield
3.2%
Payout ratio
60.0%
Last ex-div date
2026-08-12