TARGA RESOURCES CORP (TRGP) Stock Fundamental Analysis
USA - NYSE:TRGP - US87612G1013 - Common Stock
170.16 USD
+0.58 (+0.34%)
TRGP gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 210 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
In the past year TRGP was profitable.
TRGP had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: TRGP reported negative net income in multiple years.
TRGP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 6.68%, TRGP is doing good in the industry, outperforming 74.76% of the companies in the same industry.
TRGP has a Return On Equity of 59.68%. This is amongst the best in the industry. TRGP outperforms 95.24% of its industry peers.
The Return On Invested Capital of TRGP (11.84%) is better than 87.14% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TRGP is significantly below the industry average of 21.66%.
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 has a Profit Margin (9.30%) which is comparable to the rest of the industry.
Looking at the Operating Margin, with a value of 17.92%, TRGP is in line with its industry, outperforming 52.38% of the companies in the same industry.
In the last couple of years the Operating Margin of TRGP has grown nicely.
Looking at the Gross Margin, with a value of 36.00%, TRGP is in line with its industry, outperforming 46.19% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TRGP is still creating some value.
The number of shares outstanding for TRGP has been reduced compared to 1 year ago.
Compared to 5 years ago, TRGP has less shares outstanding
TRGP has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.25 indicates that TRGP is not a great score, but indicates only limited risk for bankruptcy at the moment.
TRGP has a better Altman-Z score (2.25) than 69.52% of its industry peers.
TRGP has a debt to FCF ratio of 27.12. This is a negative value and a sign of low solvency as TRGP would need 27.12 years to pay back of all of its debts.
The Debt to FCF ratio of TRGP (27.12) is comparable to the rest of the industry.
A Debt/Equity ratio of 6.19 is on the high side and indicates that TRGP has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 6.19, TRGP is doing worse than 90.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.19 | ||
| Debt/FCF | 27.12 | ||
| Altman-Z | 2.25 |
ROIC/WACC1.43
WACC8.3%
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.
The Current ratio of TRGP (0.77) is worse than 69.05% 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.
TRGP has a worse Quick ratio (0.61) than 70.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
TRGP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 33.99%, which is quite impressive.
The Earnings Per Share has been growing by 45.97% on average over the past years. This is a very strong growth
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
Based on estimates for the next years, TRGP will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.08% on average per year.
TRGP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.98% yearly.
EPS Next Y46.56%
EPS Next 2Y30.24%
EPS Next 3Y25.42%
EPS Next 5Y16.08%
Revenue Next Year10.84%
Revenue Next 2Y15.41%
Revenue Next 3Y11.28%
Revenue Next 5Y5.98%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
TRGP is valuated rather expensively with a Price/Earnings ratio of 22.87.
TRGP's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 25.47. TRGP is around the same levels.
TRGP is valuated rather expensively with a Price/Forward Earnings ratio of 17.43.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TRGP is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of TRGP to the average of the S&P500 Index (35.42), we can say TRGP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.87 | ||
| Fwd PE | 17.43 |
4.2 Price Multiples
60.48% of the companies in the same industry are cheaper than TRGP, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TRGP is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56.96 | ||
| EV/EBITDA | 11.68 |
4.3 Compensation for Growth
TRGP's 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.
TRGP's earnings are expected to grow with 25.42% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.49
PEG (5Y)N/A
EPS Next 2Y30.24%
EPS Next 3Y25.42%
5. Dividend
5.1 Amount
TRGP has a Yearly Dividend Yield of 2.36%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.90, TRGP has a dividend in line with its industry peers.
TRGP's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.36% |
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
TRGP pays out 47.51% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP47.51%
EPS Next 2Y30.24%
EPS Next 3Y25.42%
NYSE:TRGP (11/19/2025, 2:58:30 PM)
170.16
+0.58 (+0.34%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners93.16%
Inst Owner Change1.48%
Ins Owners1.39%
Ins Owner Change-2.47%
Market Cap36.62B
Revenue(TTM)17.38B
Net Income(TTM)1.62B
Analysts84.83
Price Target207.5 (21.94%)
Short Float %2.13%
Short Ratio2.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.36% |
Yearly Dividend2.8
Dividend Growth(5Y)-7.6%
DP47.51%
Div Incr Years3
Div Non Decr Years3
Ex-Date
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)0.04%
PT rev (3m)-0.66%
EPS NQ rev (1m)0.98%
EPS NQ rev (3m)1.49%
EPS NY rev (1m)2.15%
EPS NY rev (3m)8.63%
Revenue NQ rev (1m)-0.32%
Revenue NQ rev (3m)-7.11%
Revenue NY rev (1m)-0.79%
Revenue NY rev (3m)-9.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.87 | ||
| Fwd PE | 17.43 | ||
| P/S | 2.11 | ||
| P/FCF | 56.96 | ||
| P/OCF | 9.79 | ||
| P/B | 13.53 | ||
| P/tB | 37.6 | ||
| EV/EBITDA | 11.68 |
EPS(TTM)7.44
EY4.37%
EPS(NY)9.76
Fwd EY5.74%
FCF(TTM)2.99
FCFY1.76%
OCF(TTM)17.38
OCFY10.21%
SpS80.76
BVpS12.58
TBVpS4.53
PEG (NY)0.49
PEG (5Y)N/A
Graham Number45.89
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 | 2.25 |
F-Score7
WACC8.3%
ROIC/WACC1.43
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 Y46.56%
EPS Next 2Y30.24%
EPS Next 3Y25.42%
EPS Next 5Y16.08%
Revenue 1Y (TTM)7.17%
Revenue growth 3Y-1.13%
Revenue growth 5Y13.57%
Sales Q2Q%7.77%
Revenue Next Year10.84%
Revenue Next 2Y15.41%
Revenue Next 3Y11.28%
Revenue Next 5Y5.98%
EBIT growth 1Y18.41%
EBIT growth 3Y26.58%
EBIT growth 5Y39.68%
EBIT Next Year73.77%
EBIT Next 3Y27.6%
EBIT Next 5Y18.44%
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 of TARGA RESOURCES CORP (TRGP) stock?
ChartMill assigns a valuation rating of 5 / 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 is the earnings growth outlook for TARGA RESOURCES CORP?
The Earnings per Share (EPS) of TARGA RESOURCES CORP (TRGP) is expected to grow by 46.56% in the next year.
Is the dividend of TARGA RESOURCES CORP sustainable?
The dividend rating of TARGA RESOURCES CORP (TRGP) is 4 / 10 and the dividend payout ratio is 47.51%.