TARGA RESOURCES CORP (TRGP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TRGP - US87612G1013 - Common Stock
190.06 USD
+4.99 (+2.7%)
190.06 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to TRGP. TRGP was compared to 207 industry peers in the Oil, Gas & Consumable Fuels industry. While TRGP is still in line with the averages on profitability rating, there are concerns on its financial health. TRGP is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- TRGP had positive earnings in the past year.
- In the past year TRGP had a positive cash flow from operations.
- In multiple years TRGP reported negative net income over the last 5 years.
- Each year in the past 5 years TRGP had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of TRGP (6.68%) is better than 75.36% of its industry peers.
- TRGP has a Return On Equity of 59.68%. This is amongst the best in the industry. TRGP outperforms 95.17% of its industry peers.
- TRGP's Return On Invested Capital of 11.84% is amongst the best of the industry. TRGP outperforms 88.89% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for TRGP is significantly below the industry average of 21.94%.
- The last Return On Invested Capital (11.84%) for TRGP is above the 3 year average (10.47%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.68% | ||
| ROE | 59.68% | ||
| ROIC | 11.84% |
ROA(3y)4.73%
ROA(5y)0.69%
ROE(3y)37.62%
ROE(5y)11.05%
ROIC(3y)10.47%
ROIC(5y)9.38%
1.3 Margins
- TRGP's Profit Margin of 9.30% is in line compared to the rest of the industry. TRGP outperforms 55.56% of its industry peers.
- TRGP's Operating Margin of 17.92% is in line compared to the rest of the industry. TRGP outperforms 53.62% of its industry peers.
- In the last couple of years the Operating Margin of TRGP has grown nicely.
- TRGP has a Gross Margin (36.00%) which is in line with its industry peers.
- In the last couple of years the Gross Margin of TRGP has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.92% | ||
| PM (TTM) | 9.3% | ||
| GM | 36% |
OM growth 3Y28.03%
OM growth 5Y22.99%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y22.2%
GM growth 5Y3.32%
2. Health
2.1 Basic Checks
- TRGP has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, TRGP has less shares outstanding
- TRGP has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for TRGP has been reduced compared to a year ago.
2.2 Solvency
- TRGP has an Altman-Z score of 2.34. This is not the best score and indicates that TRGP is in the grey zone with still only limited risk for bankruptcy at the moment.
- TRGP has a better Altman-Z score (2.34) than 71.98% of its industry peers.
- The Debt to FCF ratio of TRGP is 27.12, which is on the high side as it means it would take TRGP, 27.12 years of fcf income to pay off all of its debts.
- TRGP has a Debt to FCF ratio of 27.12. This is comparable to the rest of the industry: TRGP outperforms 43.00% of its industry peers.
- A Debt/Equity ratio of 6.19 is on the high side and indicates that TRGP has dependencies on debt financing.
- TRGP has a worse Debt to Equity ratio (6.19) than 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.19 | ||
| Debt/FCF | 27.12 | ||
| Altman-Z | 2.34 |
ROIC/WACC1.44
WACC8.21%
2.3 Liquidity
- TRGP has a Current Ratio of 0.77. This is a bad value and indicates that TRGP is not financially healthy enough and could expect problems in meeting its short term obligations.
- TRGP has a worse Current ratio (0.77) than 69.57% of its industry peers.
- TRGP has a Quick Ratio of 0.77. This is a bad value and indicates that TRGP is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.61, TRGP is doing worse than 70.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 33.99% over the past year.
- Measured over the past years, TRGP shows a very strong growth in Earnings Per Share. The EPS has been growing by 45.97% on average per year.
- Looking at the last year, TRGP shows a small growth in Revenue. The Revenue has grown by 7.17% in the last year.
- The Revenue has been growing by 13.57% on average over the past years. This is quite good.
EPS 1Y (TTM)33.99%
EPS 3Y45.97%
EPS 5YN/A
EPS Q2Q%26.07%
Revenue 1Y (TTM)7.17%
Revenue growth 3Y-1.13%
Revenue growth 5Y13.57%
Sales Q2Q%7.77%
3.2 Future
- TRGP is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.08% yearly.
- TRGP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.18% yearly.
EPS Next Y49.02%
EPS Next 2Y31.78%
EPS Next 3Y26.23%
EPS Next 5Y16.08%
Revenue Next Year3.59%
Revenue Next 2Y16.31%
Revenue Next 3Y12.3%
Revenue Next 5Y6.18%
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 25.55 indicates a quite expensive valuation of TRGP.
- TRGP's Price/Earnings ratio is in line with the industry average.
- TRGP's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.32.
- Based on the Price/Forward Earnings ratio of 19.02, the valuation of TRGP can be described as rather expensive.
- TRGP's Price/Forward Earnings ratio is in line with the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 24.30. TRGP is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.55 | ||
| Fwd PE | 19.02 |
4.2 Price Multiples
- 62.32% of the companies in the same industry are cheaper than TRGP, based on the Enterprise Value to EBITDA ratio.
- TRGP's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 63.47 | ||
| EV/EBITDA | 12.35 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The decent profitability rating of TRGP may justify a higher PE ratio.
- A more expensive valuation may be justified as TRGP's earnings are expected to grow with 26.23% in the coming years.
PEG (NY)0.52
PEG (5Y)N/A
EPS Next 2Y31.78%
EPS Next 3Y26.23%
5. Dividend
5.1 Amount
- TRGP has a Yearly Dividend Yield of 2.20%.
- TRGP's Dividend Yield is comparable with the industry average which is at 3.75.
- TRGP's Dividend Yield is comparable with the S&P500 average which is at 1.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.2% |
5.2 History
- The dividend of TRGP decreases each year by -7.60%.
- TRGP has been paying a dividend for at least 10 years, so it has a reliable track record.
- TRGP has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-7.6%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
- 47.51% of the earnings are spent on dividend by TRGP. This is a bit on the high side, but may be sustainable.
DP47.51%
EPS Next 2Y31.78%
EPS Next 3Y26.23%
190.06
+4.99 (+2.7%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)11-05 2025-11-05/bmo
Earnings (Next)02-19 2026-02-19/amc
Inst Owners94.43%
Inst Owner Change0.17%
Ins Owners1.31%
Ins Owner Change-1.52%
Market Cap40.80B
Revenue(TTM)17.38B
Net Income(TTM)1.62B
Analysts84.83
Price Target213.05 (12.1%)
Short Float %2.35%
Short Ratio3.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.2% |
Yearly Dividend2.8
Dividend Growth(5Y)-7.6%
DP47.51%
Div Incr Years3
Div Non Decr Years3
Ex-Date01-30 2026-01-30 (1)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)26.87%
Min EPS beat(2)3.1%
Max EPS beat(2)50.64%
EPS beat(4)2
Avg EPS beat(4)-6.61%
Min EPS beat(4)-54.87%
Max EPS beat(4)50.64%
EPS beat(8)4
Avg EPS beat(8)-4.7%
EPS beat(12)5
Avg EPS beat(12)-11.96%
EPS beat(16)6
Avg EPS beat(16)-16.4%
Revenue beat(2)0
Avg Revenue beat(2)-12.24%
Min Revenue beat(2)-13.68%
Max Revenue beat(2)-10.8%
Revenue beat(4)0
Avg Revenue beat(4)-9.17%
Min Revenue beat(4)-13.68%
Max Revenue beat(4)-3.5%
Revenue beat(8)2
Avg Revenue beat(8)-6.69%
Revenue beat(12)2
Avg Revenue beat(12)-11.29%
Revenue beat(16)4
Avg Revenue beat(16)-8.59%
PT rev (1m)1.67%
PT rev (3m)2.71%
EPS NQ rev (1m)2.63%
EPS NQ rev (3m)6.38%
EPS NY rev (1m)0.05%
EPS NY rev (3m)3.87%
Revenue NQ rev (1m)1.12%
Revenue NQ rev (3m)-4.2%
Revenue NY rev (1m)-0.35%
Revenue NY rev (3m)-7.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.55 | ||
| Fwd PE | 19.02 | ||
| P/S | 2.35 | ||
| P/FCF | 63.47 | ||
| P/OCF | 10.91 | ||
| P/B | 15.07 | ||
| P/tB | 41.89 | ||
| EV/EBITDA | 12.35 |
EPS(TTM)7.44
EY3.91%
EPS(NY)9.99
Fwd EY5.26%
FCF(TTM)2.99
FCFY1.58%
OCF(TTM)17.42
OCFY9.17%
SpS80.96
BVpS12.61
TBVpS4.54
PEG (NY)0.52
PEG (5Y)N/A
Graham Number45.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.68% | ||
| ROE | 59.68% | ||
| ROCE | 14.67% | ||
| ROIC | 11.84% | ||
| ROICexc | 11.91% | ||
| ROICexgc | 12.98% | ||
| OM | 17.92% | ||
| PM (TTM) | 9.3% | ||
| GM | 36% | ||
| FCFM | 3.7% |
ROA(3y)4.73%
ROA(5y)0.69%
ROE(3y)37.62%
ROE(5y)11.05%
ROIC(3y)10.47%
ROIC(5y)9.38%
ROICexc(3y)10.57%
ROICexc(5y)9.49%
ROICexgc(3y)12.22%
ROICexgc(5y)10.81%
ROCE(3y)12.98%
ROCE(5y)11.62%
ROICexgc growth 3Y10.65%
ROICexgc growth 5Y35.31%
ROICexc growth 3Y10.05%
ROICexc growth 5Y35.4%
OM growth 3Y28.03%
OM growth 5Y22.99%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y22.2%
GM growth 5Y3.32%
F-Score7
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.19 | ||
| Debt/FCF | 27.12 | ||
| Debt/EBITDA | 3.63 | ||
| Cap/Depr | 206.01% | ||
| Cap/Sales | 17.82% | ||
| Interest Coverage | 4.11 | ||
| Cash Conversion | 80.99% | ||
| Profit Quality | 39.79% | ||
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z | 2.34 |
F-Score7
WACC8.21%
ROIC/WACC1.44
Cap/Depr(3y)176.1%
Cap/Depr(5y)139.26%
Cap/Sales(3y)13.44%
Cap/Sales(5y)10.96%
Profit Quality(3y)82.47%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)33.99%
EPS 3Y45.97%
EPS 5YN/A
EPS Q2Q%26.07%
EPS Next Y49.02%
EPS Next 2Y31.78%
EPS Next 3Y26.23%
EPS Next 5Y16.08%
Revenue 1Y (TTM)7.17%
Revenue growth 3Y-1.13%
Revenue growth 5Y13.57%
Sales Q2Q%7.77%
Revenue Next Year3.59%
Revenue Next 2Y16.31%
Revenue Next 3Y12.3%
Revenue Next 5Y6.18%
EBIT growth 1Y18.41%
EBIT growth 3Y26.58%
EBIT growth 5Y39.68%
EBIT Next Year71.74%
EBIT Next 3Y28.98%
EBIT Next 5Y19%
FCF growth 1Y6.14%
FCF growth 3Y-27.54%
FCF growth 5YN/A
OCF growth 1Y33.98%
OCF growth 3Y16.59%
OCF growth 5Y21.3%
TARGA RESOURCES CORP / TRGP FAQ
Can you provide the ChartMill fundamental rating for TARGA RESOURCES CORP?
ChartMill assigns a fundamental rating of 5 / 10 to TRGP.
What is the valuation status for TRGP stock?
ChartMill assigns a valuation rating of 4 / 10 to TARGA RESOURCES CORP (TRGP). This can be considered as Fairly Valued.
Can you provide the profitability details for TARGA RESOURCES CORP?
TARGA RESOURCES CORP (TRGP) has a profitability rating of 6 / 10.
What are the PE and PB ratios of TARGA RESOURCES CORP (TRGP) stock?
The Price/Earnings (PE) ratio for TARGA RESOURCES CORP (TRGP) is 25.55 and the Price/Book (PB) ratio is 15.07.
What is the expected EPS growth for TARGA RESOURCES CORP (TRGP) stock?
The Earnings per Share (EPS) of TARGA RESOURCES CORP (TRGP) is expected to grow by 49.02% in the next year.