TARGA RESOURCES CORP (TRGP) Fundamental Analysis & Valuation

NYSE:TRGP • US87612G1013

Current stock price

239.91 USD
+3.18 (+1.34%)
At close:
239.91 USD
0 (0%)
After Hours:

This TRGP fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. TRGP Profitability Analysis

1.1 Basic Checks

  • TRGP had positive earnings in the past year.
  • TRGP had a positive operating cash flow in the past year.
  • TRGP had positive earnings in 4 of the past 5 years.
  • TRGP had a positive operating cash flow in each of the past 5 years.
TRGP Yearly Net Income VS EBIT VS OCF VS FCFTRGP Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B -1B 2B 3B

1.2 Ratios

  • With a decent Return On Assets value of 7.30%, TRGP is doing good in the industry, outperforming 77.03% of the companies in the same industry.
  • The Return On Equity of TRGP (60.02%) is better than 93.78% of its industry peers.
  • TRGP has a Return On Invested Capital of 12.21%. This is amongst the best in the industry. TRGP outperforms 89.95% of its industry peers.
  • TRGP had an Average Return On Invested Capital over the past 3 years of 11.60%. This is significantly below the industry average of 22.73%.
  • The 3 year average ROIC (11.60%) for TRGP is below the current ROIC(12.21%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 7.3%
ROE 60.02%
ROIC 12.21%
ROA(3y)5.63%
ROA(5y)4.27%
ROE(3y)46.41%
ROE(5y)34.46%
ROIC(3y)11.6%
ROIC(5y)10.26%
TRGP Yearly ROA, ROE, ROICTRGP Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40 -40 60

1.3 Margins

  • Looking at the Profit Margin, with a value of 10.81%, TRGP is in line with its industry, outperforming 56.94% of the companies in the same industry.
  • TRGP's Profit Margin has improved in the last couple of years.
  • TRGP has a Operating Margin (19.56%) which is in line with its industry peers.
  • TRGP's Operating Margin has improved in the last couple of years.
  • TRGP has a Gross Margin (38.29%) which is comparable to the rest of the industry.
  • In the last couple of years the Gross Margin of TRGP has remained more or less at the same level.
Industry RankSector Rank
OM 19.56%
PM (TTM) 10.81%
GM 38.29%
OM growth 3Y33.29%
OM growth 5Y5.22%
PM growth 3Y36.14%
PM growth 5YN/A
GM growth 3Y25.57%
GM growth 5Y0.05%
TRGP Yearly Profit, Operating, Gross MarginsTRGP Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 20 -20 30

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3

2. TRGP Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TRGP is creating some value.
  • Compared to 1 year ago, TRGP has less shares outstanding
  • The number of shares outstanding for TRGP has been reduced compared to 5 years ago.
  • Compared to 1 year ago, TRGP has a worse debt to assets ratio.
TRGP Yearly Shares OutstandingTRGP Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M 200M
TRGP Yearly Total Debt VS Total AssetsTRGP Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B 25B

2.2 Solvency

  • An Altman-Z score of 2.58 indicates that TRGP is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • TRGP's Altman-Z score of 2.58 is fine compared to the rest of the industry. TRGP outperforms 72.73% of its industry peers.
  • TRGP has a debt to FCF ratio of 35.30. This is a negative value and a sign of low solvency as TRGP would need 35.30 years to pay back of all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 35.30, TRGP is in line with its industry, outperforming 43.54% of the companies in the same industry.
  • A Debt/Equity ratio of 5.43 is on the high side and indicates that TRGP has dependencies on debt financing.
  • TRGP has a Debt to Equity ratio of 5.43. This is amonst the worse of the industry: TRGP underperforms 86.60% of its industry peers.
Industry RankSector Rank
Debt/Equity 5.43
Debt/FCF 35.3
Altman-Z 2.58
ROIC/WACC1.57
WACC7.78%
TRGP Yearly LT Debt VS Equity VS FCFTRGP Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B 10B 15B

2.3 Liquidity

  • A Current Ratio of 0.67 indicates that TRGP may have some problems paying its short term obligations.
  • TRGP has a worse Current ratio (0.67) than 75.12% of its industry peers.
  • A Quick Ratio of 0.55 indicates that TRGP may have some problems paying its short term obligations.
  • The Quick ratio of TRGP (0.55) is worse than 78.47% of its industry peers.
Industry RankSector Rank
Current Ratio 0.67
Quick Ratio 0.55
TRGP Yearly Current Assets VS Current LiabilitesTRGP Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. TRGP Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 47.90% over the past year.
  • The Earnings Per Share has been growing by 21.18% on average over the past years. This is a very strong growth
  • TRGP shows a small growth in Revenue. In the last year, the Revenue has grown by 3.95%.
  • Measured over the past years, TRGP shows a quite strong growth in Revenue. The Revenue has been growing by 15.57% on average per year.
EPS 1Y (TTM)47.9%
EPS 3Y29.78%
EPS 5Y21.18%
EPS Q2Q%73.44%
Revenue 1Y (TTM)3.95%
Revenue growth 3Y-6.65%
Revenue growth 5Y15.57%
Sales Q2Q%-7.94%

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 9.26% yearly.
  • Based on estimates for the next years, TRGP will show a small growth in Revenue. The Revenue will grow by 6.11% on average per year.
EPS Next Y20.34%
EPS Next 2Y16.64%
EPS Next 3Y16.43%
EPS Next 5Y9.26%
Revenue Next Year21.31%
Revenue Next 2Y13.69%
Revenue Next 3Y10.37%
Revenue Next 5Y6.11%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
  • 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.
TRGP Yearly Revenue VS EstimatesTRGP Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5B 10B 15B 20B
TRGP Yearly EPS VS EstimatesTRGP Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 0 5 -5 10

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3

4. TRGP Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 28.19 indicates a quite expensive valuation of TRGP.
  • TRGP's Price/Earnings is on the same level as the industry average.
  • TRGP's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.47.
  • The Price/Forward Earnings ratio is 23.43, which indicates a rather expensive current valuation of TRGP.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of TRGP is on the same level as its industry peers.
  • TRGP's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.62.
Industry RankSector Rank
PE 28.19
Fwd PE 23.43
TRGP Price Earnings VS Forward Price EarningsTRGP Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, TRGP is valued a bit more expensive than the industry average as 60.29% of the companies are valued more cheaply.
  • TRGP's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 104.36
EV/EBITDA 14.2
TRGP Per share dataTRGP EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

  • The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • TRGP has a very decent profitability rating, which may justify a higher PE ratio.
  • A more expensive valuation may be justified as TRGP's earnings are expected to grow with 16.43% in the coming years.
PEG (NY)1.39
PEG (5Y)1.33
EPS Next 2Y16.64%
EPS Next 3Y16.43%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. TRGP Dividend Analysis

5.1 Amount

  • TRGP has a Yearly Dividend Yield of 1.67%. Purely for dividend investing, there may be better candidates out there.
  • TRGP's Dividend Yield is comparable with the industry average which is at 3.26.
  • Compared to an average S&P500 Dividend Yield of 1.81, TRGP has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 1.67%

5.2 History

  • On average, the dividend of TRGP grows each year by 17.12%, which is quite nice.
  • 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)17.12%
Div Incr Years4
Div Non Decr Years4
TRGP Yearly Dividends per shareTRGP Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3

5.3 Sustainability

  • TRGP pays out 44.44% of its income as dividend. This is a bit on the high side, but may be sustainable.
  • The dividend of TRGP is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP44.44%
EPS Next 2Y16.64%
EPS Next 3Y16.43%
TRGP Yearly Income VS Free CF VS DividendTRGP Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B -1B
TRGP Dividend Payout.TRGP Dividend Payout, showing the Payout Ratio.TRGP Dividend Payout.PayoutRetained Earnings

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TRGP Fundamentals: All Metrics, Ratios and Statistics

TARGA RESOURCES CORP

NYSE:TRGP (4/23/2026, 8:04:00 PM)

After market: 239.91 0 (0%)

239.91

+3.18 (+1.34%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)02-19
Earnings (Next)04-30
Inst Owners95.67%
Inst Owner Change0.14%
Ins Owners1.39%
Ins Owner Change0.85%
Market Cap51.53B
Revenue(TTM)17.03B
Net Income(TTM)1.84B
Analysts82.67
Price Target263.12 (9.67%)
Short Float %2.16%
Short Ratio2.96
Dividend
Industry RankSector Rank
Dividend Yield 1.67%
Yearly Dividend3.78
Dividend Growth(5Y)17.12%
DP44.44%
Div Incr Years4
Div Non Decr Years4
Ex-Date04-30
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.53%
Min EPS beat(2)3.1%
Max EPS beat(2)7.96%
EPS beat(4)3
Avg EPS beat(4)1.71%
Min EPS beat(4)-54.87%
Max EPS beat(4)50.64%
EPS beat(8)5
Avg EPS beat(8)-1.72%
EPS beat(12)6
Avg EPS beat(12)-11.17%
EPS beat(16)7
Avg EPS beat(16)-14.41%
Revenue beat(2)0
Avg Revenue beat(2)-12.74%
Min Revenue beat(2)-14.67%
Max Revenue beat(2)-10.8%
Revenue beat(4)0
Avg Revenue beat(4)-11.97%
Min Revenue beat(4)-14.67%
Max Revenue beat(4)-8.72%
Revenue beat(8)1
Avg Revenue beat(8)-9.52%
Revenue beat(12)2
Avg Revenue beat(12)-10.42%
Revenue beat(16)3
Avg Revenue beat(16)-11.21%
PT rev (1m)12.85%
PT rev (3m)23.5%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)3.11%
EPS NY rev (1m)0.17%
EPS NY rev (3m)2.48%
Revenue NQ rev (1m)-5.8%
Revenue NQ rev (3m)-15.75%
Revenue NY rev (1m)-2.16%
Revenue NY rev (3m)-7.65%
Valuation
Industry RankSector Rank
PE 28.19
Fwd PE 23.43
P/S 3.03
P/FCF 104.36
P/OCF 13.15
P/B 16.8
P/tB 36.38
EV/EBITDA 14.2
EPS(TTM)8.51
EY3.55%
EPS(NY)10.24
Fwd EY4.27%
FCF(TTM)2.3
FCFY0.96%
OCF(TTM)18.24
OCFY7.6%
SpS79.28
BVpS14.28
TBVpS6.59
PEG (NY)1.39
PEG (5Y)1.33
Graham Number52.2949 (-78.2%)
Profitability
Industry RankSector Rank
ROA 7.3%
ROE 60.02%
ROCE 15.37%
ROIC 12.21%
ROICexc 12.3%
ROICexgc 13.33%
OM 19.56%
PM (TTM) 10.81%
GM 38.29%
FCFM 2.9%
ROA(3y)5.63%
ROA(5y)4.27%
ROE(3y)46.41%
ROE(5y)34.46%
ROIC(3y)11.6%
ROIC(5y)10.26%
ROICexc(3y)11.69%
ROICexc(5y)10.36%
ROICexgc(3y)13.1%
ROICexgc(5y)11.71%
ROCE(3y)14.6%
ROCE(5y)12.92%
ROICexgc growth 3Y9.61%
ROICexgc growth 5Y10.85%
ROICexc growth 3Y13.39%
ROICexc growth 5Y11.36%
OM growth 3Y33.29%
OM growth 5Y5.22%
PM growth 3Y36.14%
PM growth 5YN/A
GM growth 3Y25.57%
GM growth 5Y0.05%
F-Score6
Asset Turnover0.68
Health
Industry RankSector Rank
Debt/Equity 5.43
Debt/FCF 35.3
Debt/EBITDA 3.44
Cap/Depr 225.94%
Cap/Sales 20.11%
Interest Coverage 4.2
Cash Conversion 80.83%
Profit Quality 26.82%
Current Ratio 0.67
Quick Ratio 0.55
Altman-Z 2.58
F-Score6
WACC7.78%
ROIC/WACC1.57
Cap/Depr(3y)204.59%
Cap/Depr(5y)162.45%
Cap/Sales(3y)17.69%
Cap/Sales(5y)12.68%
Profit Quality(3y)60.15%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)47.9%
EPS 3Y29.78%
EPS 5Y21.18%
EPS Q2Q%73.44%
EPS Next Y20.34%
EPS Next 2Y16.64%
EPS Next 3Y16.43%
EPS Next 5Y9.26%
Revenue 1Y (TTM)3.95%
Revenue growth 3Y-6.65%
Revenue growth 5Y15.57%
Sales Q2Q%-7.94%
Revenue Next Year21.31%
Revenue Next 2Y13.69%
Revenue Next 3Y10.37%
Revenue Next 5Y6.11%
EBIT growth 1Y23.59%
EBIT growth 3Y24.43%
EBIT growth 5Y21.6%
EBIT Next Year68.07%
EBIT Next 3Y26.55%
EBIT Next 5Y18.27%
FCF growth 1Y-27.8%
FCF growth 3Y-16.27%
FCF growth 5Y-9.04%
OCF growth 1Y7.33%
OCF growth 3Y18.06%
OCF growth 5Y17.56%

TARGA RESOURCES CORP / TRGP Fundamental Analysis 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 3 / 10 to TARGA RESOURCES CORP (TRGP). This can be considered as Overvalued.


What is the profitability of TRGP stock?

TARGA RESOURCES CORP (TRGP) has a profitability rating of 7 / 10.


What is the financial health of TARGA RESOURCES CORP (TRGP) stock?

The financial health rating of TARGA RESOURCES CORP (TRGP) is 3 / 10.


Can you provide the dividend sustainability for TRGP stock?

The dividend rating of TARGA RESOURCES CORP (TRGP) is 5 / 10 and the dividend payout ratio is 44.44%.