Stock AnalysisUpdated July 14, 2026 · 7 min read

Is Target Stock Halal? The Discount Retailer Islamic Screen

Target is one of America's most popular retailers — apparel, electronics, groceries, and home goods under one roof. Like all general retailers, it sells some haram products. Does that disqualify TGT for Muslim investors?

Time-sensitive screening snapshot: financial ratios and business mix can change after each filing. This is educational research, not a fatwa or investment advice. Verify the latest filing and your preferred Sharia standard before acting.

Quick Verdict

Target (TGT) is doubtful on ZakatInvest's current record. General retail is permissible in principle, but Target sells alcohol, tobacco and lottery products and does not disclose a reproducible consolidated prohibited-revenue percentage. This is a research screen, not a fatwa or investment recommendation.

Current quantitative Sharia screen

Based on 10-Q figures for the period ended 2026-05-02; calculated 2026-07-14.

USD · millions
Interest-bearing debt / assets
26.57%Within limit
Below 33.333% under FTSE Yasaar

15,415 / 58,010

Cash + interest-bearing securities / assets
6.09%Within limit
Below 33.333% under FTSE Yasaar

3,534 / 58,010

Receivables + cash / assets
6.09%Within limit
Below 50% under FTSE Yasaar

3,534 / 58,010

FTSE Yasaar
v4.6, February 2026
Financial
Incomplete
Overall
Incomplete

Debt is 26.57%, liquidity is 6.09%, and receivables plus cash is 6.09%; the financial ratios pass the examined limits, but income is unavailable and the mixed merchandise business is not quantified.

MSCI Islamic (total-assets series)
October 2024 methodology
Financial
Pass
Overall
Incomplete

Debt, liquidity and receivables plus cash are below the examined total-assets limits. This is not an index-membership claim; business-activity revenue remains undisclosed.

Malaysia SAC financial ratios
single 5% activity benchmark adopted November 2025
Financial
Pass
Overall
Incomplete

Debt and identifiable liquidity are below 33% of total assets. This is a calculation against SAC ratios, not an official classification; screened business revenue remains unavailable.

Market-cap denominator methods
MSCI M-Series, S&P and Dow Jones methods differ
Financial
Not calculated
Overall
Not calculated

A properly licensed and reproducible 24- or 36-month issuer market-cap history is not stored, so market-cap methods are not estimated from a current spot price.

Business-activity disclosure

Target operates general merchandise stores and digital retail channels. General retail is mixed and the filing does not quantify the revenue attributable to alcohol, tobacco, lottery or other categories that different scholars may treat differently.

Limitation: Broad merchandise categories and other-current-asset balances cannot be converted into a reproducible prohibited-revenue numerator without unsupported estimates.

Purification

Target does not separately disclose gross interest income or screened product revenue, so no purification percentage is inferred.

Inputs, assumptions and primary sources
  • Debt combines $1,133 million of current debt and $14,282 million of long-term debt and other borrowings.
  • Target reports $3,534 million of cash and cash equivalents, including $2,544 million of short-term investments; the combined balance is used as the cash input and no additional securities amount is added.
  • Target's retail balance sheet does not report trade receivables as a separate line; accounts receivable is recorded as zero rather than inferred from other current assets.
  • Quarterly net sales are $25,443 million. The filing does not separately disclose alcohol, tobacco, lottery or gross interest-income revenue.

This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.

Target's Revenue Mix

Target is primarily a discretionary and essential goods retailer:

  • Apparel & accessories: 16% of merchandise sales ($3,846 million)
  • Beauty: 14% ($3,398 million)
  • Food & beverage: 25% ($6,263 million), including categories that require product-level review
  • Hardlines: 14% ($3,522 million)
  • Home furnishings & décor: 13% ($3,239 million)
  • Household essentials: 18% ($4,570 million)

Target reports broad merchandise categories rather than a consolidated alcohol, tobacco or lottery revenue line. Its filing also reports advertising and credit-card profit-sharing revenue, which require separate contract-level review.

Financial Screening

  • Debt / total assets: 26.57% (May 2, 2026 filing)
  • Liquidity / total assets: 6.09%
  • Receivables plus cash / total assets: 6.09%; trade receivables are not separately reported
  • Prohibited-revenue numerator: Not disclosed; no unsupported percentage is invented

Screening Agencies' Verdict

  • Methodologies differ on business-activity definitions and denominators.
  • The asset-based financial ratios pass the examined MSCI and Malaysia thresholds; FTSE remains incomplete because gross interest income is unavailable.
  • This page does not claim index membership, adviser approval or a universal scholar consensus.

Bottom Line

Target remains a mixed retail business with unresolved product and revenue classification. Readers should apply the methodology and scholar they follow, review the next filing, and avoid treating this page as a universal halal or haram certification.

🔍 Screen Any Stock Instantly

Use our free halal checker to screen TGT and thousands of other stocks.

Open Halal Checker →
TGT verdict card: DOUBTFUL — methodologies differ — screening summary, concerns & similar assetsView →
⏭ Up Next
What Makes a Stock Halal?

How do Islamic scholars determine if a stock is halal? Learn the 4 Sharia screening criteria used by major Islamic indices and how to apply them yours...

Read it now
💰
Already know you want to invest halal?
Get 50% off Islamicly — comprehensive halal screening + digital gold + portfolios.
Use code:ZAKAT50→ 50% OFF
Use Code ZAKAT50 →
📋

Get the Free 5-Minute Halal Stock Checklist

The 4 screens scholars use, with thresholds — plus occasional halal investing insights. No spam. Unsubscribe anytime.