Target Corporation (TGT)

FairStock Score: 59/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Target is a large general-merchandise retailer, but the filed record is not one of steady compounding. In fiscal year 2025, the year ended 2026-01-31, revenue was $104.8B, net income $3.7B, and diluted EPS $8.13; that compares with revenue of $106.6B, net income of $4.1B, and EPS of $8.86 in fiscal year 2024, the year ended 2025-02-01, and revenue of $107.4B, net income of $4.1B, and EPS of $8.94 in fiscal year 2023, the year ended 2024-02-03. The latest filed quarter, fiscal Q2 2026 ended 2026-08-01, showed revenue of $26.5B, net income of $1.9B, and diluted EPS of $4.11, while fiscal Q1 2026 ended 2026-05-02 had revenue of $25.4B, net income of $781.0M, and EPS of $1.71. Its scale and brand are advantages, but discount retail is competitive and these numbers do not show a widening moat. FairStock’s Lynch category is Slow Grower — Shrinking, with profit -3.2% a year over five years and revenue 2.3%. At the 2026-10-26 close of $148.53, FairStock shows P/E 15.42, P/B 3.78, FCF yield 6.6%, EV/EBITDA 8.93, dividend yield 2.93%, ROE 26.41%, ROCE 5.69%, D/E 1.08, Piotroski 7/9, Altman Z 1.77, and a Graham Number of $92.26. The high ROE and $4.5B trailing FCF are real positives, but ROCE is modest and leverage is meaningful. My Graham instinct is that the price carries a -65.58% margin-of-safety gap to the Graham Number. I see a fair-to-full price for a challenged retailer, not a clear bargain.

In plain English: Target runs large discount stores selling clothes, home goods, food, and beauty products. The business still brings in large sales and profit—the latest filed quarter had $26.5B in sales and $1.9B in profit—but sales and profit have slipped over recent years. At $148.53 on 2026-10-26, the price looks fair to full compared with the company's earnings and asset value, not an obvious bargain.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-08-01) · fiscal Q1 2026 10-Q (period ended 2026-05-02) · fiscal Q4 2025 10-Q (period ended 2026-01-31) · fiscal Q3 2025 10-Q (period ended 2025-11-01) · FY2025 10-K (period ended 2026-01-31) · FY2024 10-K (period ended 2025-02-01) · FY2023 10-K (period ended 2024-02-03)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer