TGTNEUTRAL

Return on Equity (ROE)

22.0%

Updated 320h ago

Sector Performance

70th percentile

TGT

22.0%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

A Return on Equity (ROE) of 22.0% means TGT generates $0.22 in profit for every dollar of shareholder equity, reflecting efficient use of investor capital.

This is well above the sector median of 13.9%, placing TGT in the 69th percentile among its peers—indicating above-average profitability relative to the industry. The year-over-year change is not available, but the quarter-over-quarter change shows a decline of -3.9% from the prior quarter’s 22.9%. While the current ROE level is strong, the sequential decrease suggests a recent erosion in profit generation from equity. This combination of a high level but a deteriorating trend introduces uncertainty: the stock remains profitable but may be losing momentum, creating a balanced risk-opportunity profile. The high ROE supports a positive view on profitability, but the recent drop aligns with the NEUTRAL verdict by tempering outright bullishness.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about TGT?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

Who are TGT's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: MRNA (-36.6%), FICO (-37.3%), XRAY (-37.7%), VRSN (-38.3%), MSCI (-45.3%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.