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Target Corporation

Discount Stores

$153.68
-0.70%
Market cap $69.8B

Target's start dates back to 1962, but now it is one of the largest discount retailers in the United States (where it derives all of its sales), operating just under 2,000 stores and generating over $104 billion in fiscal 2025 sales.

It is a $69.8B consumer staples company. Revenue shrank 16.0% over the last year, it keeps 4¢ of every dollar of sales as profit, and its net debt equals ~2.0 years of free cash flow. It trades at 15.9× earnings — around the middle of its own history.

Location
Minneapolis, MN
Employees
415 000
Sector
Consumer Defensive

Skills

Six independent scores, 0–100, built from reported numbers and valuation history. Click a row to see how it was scored.

Valuation87Growth12Profitability48Health61Quality70Moat61

Strong valuation; Growth and Profitability lag behind.

Valuation87
  • P/E vs own history43th pct · 12/25
  • FCF yield9.7% · 25/25
  • P/S0.6x · 25/25
  • EV/EBITDA9.2x · 25/25
Growth12
  • Revenue CAGR-1.0% · 0/25
  • Net income CAGR7.4% · 12/25
  • EPS CAGR ~5Y-11.5% · 0/25
  • Fwd implied growth-1.2% · 0/25
Profitability48
  • ROIC10.9% · 12/25
  • ROE26.7% · 25/25
  • Net margin4.2% · 6/25
  • Operating margin5.6% · 5/25
Health61
  • Altman Z2.21 · 18/25
  • Current ratio0.99 · 6/25
  • Interest coverage11.7x · 25/25
  • Net cash / debtD/A 23% · 12/25
Quality70
  • Piotroski F3/9 · 5/25
  • Beneish M-3.17 · 25/25
  • FCF conversion77% · 15/25
  • Margin stabilityσ 2.3% · 25/25
Moat61
  • ROIC >12% years11/12 yrs · 25/25
  • Median gross margin29.0% · 6/25
  • FCF-positive years11/12 yrs · 18/25
  • Worst-year net marginworst 3.1% · 12/25

How the scores work →

Experience

The company's career so far — founding, the IPO, landmark products and acquisitions, plus revenue milestones and insider buying.

  1. FY2023Financial
    Positive free cash flow every year since
    5-year streak
  2. FY2021Financial
    Best year on record
    $18.4B net income
  3. FY2016Financial
    Profitable every year on record
    12 consecutive profitable years in our data
  4. FY2016Financial
    Revenue already above $100B
    $167B in first reported year
  5. 2007Milestone
    Originally titled IFC Cinema Red, the promotion was rebranded on-air as The Spotlight in 2007
  6. 2005Product
    Target introduced a major revision of prescription bottles
  7. 2000Milestone
    Dayton's was renamed Target Corporation in 2000
  8. 1999Product
    After hiring architect Michael Graves to design the scaffolding used to renovate the Washington Monument and…
  9. 1962Product
    John Geisse and Douglas Dayton founded and launched Target stores for the Dayton Company
  10. 1962Milestone
    The first Target retail store was co-founded as a discount retailer by John Geisse and Douglas Dayton in 1962 for…

Achievements

Verifiable track record, straight from the reported numbers.

#13 largest of 41 Consumer Defensive companies by market cap
Dividend King — raised its dividend 50+ years in a row
$10 000 invested in 2021 would be worth ~$6 344 today — price return only
$77.4B revenue in FY2027
Profitable 12 years in a row
Positive free cash flow 5 years in a row
415 000 employees

Strengths & watch-outs

What a bull and a bear would each point to. Both lists come from the reported numbers, not opinions.

Strengths

  • Interest covered 11.7× by operating earnings

Watch-outs

  • Revenue shrinking 16.0% year over year

Qualifications

The basics a company should meet before you research it further. Each check uses the reported numbers.

10 of 11 checks passed
  • Revenue growing-16.0% YoY
  • Profitable$9.80B TTM
  • Profit growing+10.8% YoY
  • Generates cash$6.75B TTM
  • Debt under control~2.0y of cash flow to repay
  • Established company$69.8B market cap
  • Not printing shares-2.2% shares over ~5y
  • Proven track record12/12 profitable years
  • Financially stableAltman Z 2.2 — grey
  • Pays a dividendyield 2.96%
  • Valuation not extremeP/E 15.9
Peer comparisonTarget Corporation vs 6 largest consumer defensive peers — cap, P/E, growth and margin side by sideOpen ▾
CompanyMarket capP/ERevenue growthNet marginProfile
TGT this company$69.8B15.9-16.0%4.2%Solid
WMT Walmart Inc.$882.9B40.8+6.2%3.0%Strained
COST Costco Wholesale Corp$419.2B45.5+10.1%3.0%Mixed
KO Coca-Cola Company$379.3B26.5+6.5%28.6%Mixed
PG Procter & Gamble Company$351.2B21.9+3.3%18.4%Solid
PM Philip Morris International Inc.$313.6B28.8+8.9%25.6%Strained
PEP PepsiCo, Inc.$171.8B16.5+6.4%11.1%Strained

Head-to-head: TGT vs WMT · TGT vs COST · TGT vs KO

References

What covering analysts publish about the company — information only, not a recommendation.

Strong buy 7Buy 8Hold 25Sell 3

Appendix · Financial records

The full statements behind this CV, FY2016–FY2027. For readers who want to check the numbers.

Want the live picture — intraday moves, valuation history and full analysis?

Deeper analysis of TGT on PreMarketPrice

Figures are derived from company filings (quarterly values normalised from as-filed year-to-date data where applicable) and may be delayed, restated or incomplete. This page is information, not investment advice. Latest price $153.68 · market cap $69.8B.