One-glance verdict
Within fair range
$168.71 our estimate vs market $164.44
Wall Street consensus: $161.91 (-4.0% lower than our fair-value estimate)
3% below our estimate
Fundamentals snapshot
Target Corporation
TGT · NYQ · Consumer Defensive · Discount Stores
Current price
$164.44
52-week range
$83.44 - $170.75
Market cap
$74.70B
Balance sheet
Watch
11.50x Adequate
Net debt $13.79B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 2.8% last year.
- Reward Returns 26.4% on equity, ahead of 40% of its peers.
- Reward Free cash flow was positive in 9/10 years.
- Risk Forward P/E (17.3x) is higher than trailing (17.1x) - earnings are expected to drop.
What this company does
Target Corporation
Target is a one-stop-shop retailer in the U.S. where customers can buy a wide variety of items, from groceries and clothing to electronics and home goods. The company makes money from the small profit, or margin (the difference between what it costs to get an item and what it sells for), on each of the billions of items it sells through its physical stores and website. This business model means its success depends on attracting a huge number of shoppers and running its operations very efficiently.
How the company got here
Target's story begins in 1902 with George Dayton's dry goods company in Minneapolis. The first Target store, aimed at offering discounted prices in a more upscale environment, opened in a Minnesota suburb in 1962. The company grew, merged with another department store company to become Dayton-Hudson Corporation, and eventually focused entirely on its successful Target brand, officially renaming itself Target Corporation in 2000. Over the years, it became known for its trendy, affordable merchandise and designer collaborations, establishing itself as a major U.S. retailer.
What it actually does
Target is a large retail store that sells a wide variety of items directly to shoppers in the United States. You can walk into one of their nearly 2,000 stores or shop on their website and app for everything from groceries and clothing to electronics and home decor. They sell well-known national brands alongside their own exclusive product lines, which you can only find at Target. The company makes shopping convenient through in-store purchasing, home delivery, or letting you order online and pick up your items at a local store, sometimes without even leaving your car.
Apparel & Accessories
This category includes clothing, shoes, and accessories for women, men, and children. Target designs and sells its own exclusive clothing brands, like Cat & Jack for kids and Goodfellow & Co for men, which are a significant part of this business. This segment attracts shoppers looking for stylish and affordable fashion. It makes up a significant portion of sales, representing about 16% of the company's total revenue (the money it brings in from sales).
Beauty & Household Essentials
This is Target's largest product category, bringing in roughly a quarter of its total revenue. It covers everything from cosmetics, skin care, and toiletries to cleaning supplies, paper products, and basic health items. Shoppers come to Target for both popular national brands and Target's own brands, like Up & Up. This part of the business is important because it includes everyday necessities that people need to buy regularly, encouraging frequent trips to the store.
Food & Beverage
This segment includes a wide range of groceries, from fresh produce, meat, and dairy to packaged foods, snacks, and drinks. Target has focused on growing this area, and it now accounts for over 20% of the company's total sales. The company's own food brand, Good & Gather, is a key part of this business, offering a variety of food items to customers. Selling groceries is a way to get customers to visit stores more often for their weekly shopping.
Home Furnishings & Décor
This part of the business offers a wide variety of products for the home, including furniture, bedding, bath items, kitchenware, and decorative accessories. Target is known for its stylish and affordable home goods, often featuring exclusive collections from well-known designers. This segment, which includes popular owned brands like Threshold, makes up a substantial portion of Target's sales, at around 15-19%.
Hardlines
This is a broad category that includes electronics, toys, sporting goods, and seasonal items like patio furniture or holiday decorations. It makes up about 15% of the company's revenue. This segment is a key traffic driver during holidays and back-to-school seasons. Customers pay for a mix of popular national brands and products from Target's exclusive lines.
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 in remodeling stores, improving their website and app, and using technology like artificial intelligence (AI) to offer more personalized suggestions to shoppers. The company is also heavily promoting its own exclusive brands, which are more profitable, and expanding its convenient same-day delivery and drive-up pickup services. The main goal is to be the place where customers enjoy shopping for stylish, affordable products with great convenience.
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 Q4
$84.00M
FY2026 Q1
$2.37B
FY2026 Q2
$-515.00M
FY2026 Q3
$1.01B
FY2026 Q4
$149.00M
FY2027 Q2
$-319.00M
FY2027 Q3
$2.43B
Revenue
$26.54B
Net income
$1.88B
Diluted EPS
4.11
Operating cash flow
$3.80B
Free cash flow
$2.43B
Fetching…
Sources
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
Is it cheap or expensive?
Fair value $168.71 vs current price $164.44
Wall Street consensus is the average analyst price target: $161.91 (-4.0% lower than our fair-value estimate).
Our most-likely fair value is $168.71 a share — about 2.6% away from today's price of $164.44, so the stock currently looks fairly priced.
Is it drowning in debt?
Watch
Net debt $13.8B. Interest coverage 11.5x.
Net debt
$13.79B
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 $19.20B Interest coverage 11.50x This is the baseline the peer rows are being compared against.
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 $15.77B Interest coverage 9.56x -17% vs TGT Carries about 1.2x less debt cushion than TGT.
Total debt $7.67B 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
1 Risk
Rewards
-
Revenue grew 2.8% last year.
-
Returns 26.4% on equity, ahead of 40% of its peers.
-
Free cash flow was positive in 9/10 years.
Risks
-
Forward P/E (17.3x) is higher than trailing (17.1x) - earnings are expected to drop.
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)
17.06x
Forward P/E
17.26x
P/B
4.19x
P/S
0.69x
EV/EBITDA
10.30x
PEG ratio
2.58x
Profitability
How much profit each dollar creates
Gross margin
28.4%
Operating margin
6.0%
Net margin
4.1%
ROE
26.4%
ROA
5.7%
Health
Liquidity and balance-sheet strength
Debt / equity
1.08x
Current ratio
0.99x
Quick ratio
0.26x
Total debt
$19.20B
Total cash
$5.41B
Growth
How the business has been compounding
Revenue TTM
$107.70B
Revenue 5Y CAGR
-0.3%
EPS TTM
9.64
EPS 5Y CAGR
10.8%
Cash flow
How much cash the business throws off
Operating CF TTM
$8.72B
Free CF TTM
$2.83B
FCF margin
2.6%
Dividend
Shareholder payout
Yield
2.8%
Payout ratio
47.3%
Last ex-div date
2026-08-12