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Target Corporation TGT

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At $165.42 Target has doubled off an $83.44 low and still trades at 17.2x trailing earnings with a 6.1% free cash flow yield.

The contradiction the market has not resolved: margins are recovering fast while revenue has now fallen four years running, from $109.1B to $104.8B.

Key data

ItemValue
Price (2026-08-21)$165.42
Market capitalization$75.1B
FY2025 revenue$104.8B, down 1.7%
Diluted shares (FY2025)455.6M, from 464.7M four years ago
Book value per share$39.27, all tangible
Trailing P/E, diluted17.2x on $9.67 trailing EPS
Trailing free cash flow yield6.1% on $10.02 per share
Dividend yield2.77% at a 47.1% payout ratio

TGT · price with moving averages

Daily · 6MWeekly · 3Y
$78$105$131$158$185 Sep '23Apr '24Nov '24Jun '25Jan '26Sep '26 BID
EMAs82140

Source: market data.

The business

Target sells a curated version of nearly everything through roughly 2,000 stores, to households that could shop cheaper elsewhere and choose not to. The merchandise mix splits between the frequency categories that generate the trips, groceries, household essentials and beauty, and the discretionary categories that generate the profit, apparel, home and seasonal. The company gets paid on retail gross margin, $104.8B of revenue in fiscal 2025, down 1.7% from the prior year.

The economic engine is the owned brand portfolio, more than forty labels Target designs and sources itself, which is where both the differentiation and the margin sit. That engine broke between 2022 and 2025: pandemic overbuying became an inventory glut, discretionary demand faded, shrink rose, and operating margin bottomed at 3.5%. What changed is the repair. Gross margin has gone from 24.6% to a trailing 29.3%, and operating margin from 3.5% to 5.6%.

Inside the complete One Pager

  1. 01The business
  2. 02Things you might not know
  3. 03Fundamentals
  4. 04Valuation
  5. 05Management
  6. 06Compensation
  7. 07The linchpins
  8. 08Last word

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