On our screens:Stocks that buy back more than they dilute
Is the business good?
How good a business is TGT?
Target Corporation earns 17% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
17%
Return on invested capital · cost of capital 9.0% · 8.1 points above what the capital costs: growth creates value
- Operating margin
- 5.6%
Operating margin · Discount Stores median 4.5% · 12 months to Q2 2026
- Cash conversion
- 1.01×
Cash conversion · 0.75× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- +0.22%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 7.0% |
| FY2021 | 8.4% |
| FY2022 | 3.5% |
| FY2023 | 5.3% |
| FY2024 | 5.2% |
| FY2025 | 4.9% |
Details›
- Gross margin12 months to Q2 2026
- 29%
- Operating margin12 months to Q2 2026
- 5.6%
- Net margin12 months to Q2 2026
- 4.1%
- Free cash flow margin
- 4.1%
- Revenue, trailing twelve months
- $107.7B
- Free cash flow, trailing twelve months
- $4.46B
- Net income, trailing twelve months
- $4.39B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 17%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.