TARGA RESOURCES CORP (TRGP) Stock Fundamental Analysis
USA - NYSE:TRGP - US87612G1013 - Common Stock
168.74 USD
+2.22 (+1.33%)
Overall TRGP gets a fundamental rating of 5 out of 10. We evaluated TRGP against 210 industry peers in the Oil, Gas & Consumable Fuels industry. TRGP has a medium profitability rating, but doesn't score so well on its financial health evaluation. TRGP has a decent growth rate and is not valued too expensively.
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
With a decent Return On Assets value of 6.48%, TRGP is doing good in the industry, outperforming 69.52% of the companies in the same industry.
Looking at the Return On Equity, with a value of 58.90%, TRGP belongs to the top of the industry, outperforming 95.24% of the companies in the same industry.
TRGP's Return On Invested Capital of 11.93% is amongst the best of the industry. TRGP outperforms 86.19% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TRGP is significantly below the industry average of 21.76%.
The 3 year average ROIC (10.47%) for TRGP is below the current ROIC(11.93%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.48% | ||
| ROE | 58.9% | ||
| ROIC | 11.93% |
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 8.93% is in line compared to the rest of the industry. TRGP outperforms 52.38% of its industry peers.
The Operating Margin of TRGP (17.60%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of TRGP has grown nicely.
The Gross Margin of TRGP (35.70%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of TRGP has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.6% | ||
| PM (TTM) | 8.93% | ||
| GM | 35.7% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TRGP is creating some value.
TRGP has less shares outstanding than it did 1 year ago.
The number of shares outstanding for TRGP has been reduced compared to 5 years ago.
The debt/assets ratio for TRGP has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.23 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 (2.23) than 70.95% of its industry peers.
TRGP has a debt to FCF ratio of 39.42. This is a negative value and a sign of low solvency as TRGP would need 39.42 years to pay back of all of its debts.
With a Debt to FCF ratio value of 39.42, TRGP perfoms like the industry average, outperforming 40.95% of the companies in the same industry.
TRGP has a Debt/Equity ratio of 6.21. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 6.21, TRGP is doing worse than 90.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.21 | ||
| Debt/FCF | 39.42 | ||
| Altman-Z | 2.23 |
ROIC/WACC1.45
WACC8.24%
2.3 Liquidity
A Current Ratio of 0.69 indicates that TRGP may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.69, TRGP is doing worse than 76.67% of the companies in the same industry.
TRGP has a Quick Ratio of 0.69. This is a bad value and indicates that TRGP is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.56, TRGP is not doing good in the industry: 78.10% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 46.21% over the past year.
The Earnings Per Share has been growing by 45.97% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 5.03% in the past year.
The Revenue has been growing by 13.57% on average over the past years. This is quite good.
EPS 1Y (TTM)46.21%
EPS 3Y45.97%
EPS 5YN/A
EPS Q2Q%115.79%
Revenue 1Y (TTM)5.03%
Revenue growth 3Y-1.13%
Revenue growth 5Y13.57%
Sales Q2Q%19.6%
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.
The Revenue is expected to grow by 5.89% on average over the next years.
EPS Next Y40.75%
EPS Next 2Y32.24%
EPS Next 3Y27.22%
EPS Next 5Y16.08%
Revenue Next Year12.99%
Revenue Next 2Y17.41%
Revenue Next 3Y12.37%
Revenue Next 5Y5.89%
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.
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 24.17 indicates a rather expensive valuation of TRGP.
TRGP's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.20, TRGP is valued at the same level.
With a Price/Forward Earnings ratio of 16.77, TRGP is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as TRGP.
TRGP's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.17 | ||
| Fwd PE | 16.77 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TRGP is on the same level as its industry peers.
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 | 84.94 | ||
| EV/EBITDA | 11.73 |
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 27.22% in the coming years.
PEG (NY)0.59
PEG (5Y)N/A
EPS Next 2Y32.24%
EPS Next 3Y27.22%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.42%, TRGP has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.18, TRGP has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, TRGP has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.42% |
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
47.03% of the earnings are spent on dividend by TRGP. This is a bit on the high side, but may be sustainable.
DP47.03%
EPS Next 2Y32.24%
EPS Next 3Y27.22%
NYSE:TRGP (9/18/2025, 9:30:53 AM)
168.74
+2.22 (+1.33%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners92.5%
Inst Owner Change-1.77%
Ins Owners1.43%
Ins Owner Change-1.45%
Market Cap36.31B
Analysts84.83
Price Target209.38 (24.08%)
Short Float %1.75%
Short Ratio2.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.42% |
Yearly Dividend2.8
Dividend Growth(5Y)-7.6%
DP47.03%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.11%
Min EPS beat(2)-54.87%
Max EPS beat(2)50.64%
EPS beat(4)2
Avg EPS beat(4)-4.88%
Min EPS beat(4)-54.87%
Max EPS beat(4)50.64%
EPS beat(8)3
Avg EPS beat(8)-7.66%
EPS beat(12)4
Avg EPS beat(12)-14.81%
EPS beat(16)6
Avg EPS beat(16)-15.21%
Revenue beat(2)0
Avg Revenue beat(2)-11.2%
Min Revenue beat(2)-13.68%
Max Revenue beat(2)-8.72%
Revenue beat(4)0
Avg Revenue beat(4)-8.22%
Min Revenue beat(4)-13.68%
Max Revenue beat(4)-3.5%
Revenue beat(8)2
Avg Revenue beat(8)-7.46%
Revenue beat(12)2
Avg Revenue beat(12)-12.35%
Revenue beat(16)5
Avg Revenue beat(16)-6.31%
PT rev (1m)0.24%
PT rev (3m)0.66%
EPS NQ rev (1m)-0.44%
EPS NQ rev (3m)1.27%
EPS NY rev (1m)4.32%
EPS NY rev (3m)1.24%
Revenue NQ rev (1m)-3.36%
Revenue NQ rev (3m)-7.14%
Revenue NY rev (1m)-8.05%
Revenue NY rev (3m)-9.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.17 | ||
| Fwd PE | 16.77 | ||
| P/S | 2.13 | ||
| P/FCF | 84.94 | ||
| P/OCF | 9.86 | ||
| P/B | 14.03 | ||
| P/tB | 46.93 | ||
| EV/EBITDA | 11.73 |
EPS(TTM)6.98
EY4.14%
EPS(NY)10.06
Fwd EY5.96%
FCF(TTM)1.99
FCFY1.18%
OCF(TTM)17.11
OCFY10.14%
SpS79.37
BVpS12.03
TBVpS3.6
PEG (NY)0.59
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.48% | ||
| ROE | 58.9% | ||
| ROCE | 14.78% | ||
| ROIC | 11.93% | ||
| ROICexc | 12% | ||
| ROICexgc | 13.18% | ||
| OM | 17.6% | ||
| PM (TTM) | 8.93% | ||
| GM | 35.7% | ||
| FCFM | 2.5% |
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%
ROICexcg growth 3Y10.65%
ROICexcg 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 Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.21 | ||
| Debt/FCF | 39.42 | ||
| Debt/EBITDA | 3.59 | ||
| Cap/Depr | 220.58% | ||
| Cap/Sales | 19.05% | ||
| Interest Coverage | 4.31 | ||
| Cash Conversion | 82.16% | ||
| Profit Quality | 28.05% | ||
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 2.23 |
F-Score7
WACC8.24%
ROIC/WACC1.45
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)46.21%
EPS 3Y45.97%
EPS 5YN/A
EPS Q2Q%115.79%
EPS Next Y40.75%
EPS Next 2Y32.24%
EPS Next 3Y27.22%
EPS Next 5Y16.08%
Revenue 1Y (TTM)5.03%
Revenue growth 3Y-1.13%
Revenue growth 5Y13.57%
Sales Q2Q%19.6%
Revenue Next Year12.99%
Revenue Next 2Y17.41%
Revenue Next 3Y12.37%
Revenue Next 5Y5.89%
EBIT growth 1Y24.87%
EBIT growth 3Y26.58%
EBIT growth 5Y39.68%
EBIT Next Year73.59%
EBIT Next 3Y27.5%
EBIT Next 5Y18.22%
FCF growth 1Y-49.92%
FCF growth 3Y-27.54%
FCF growth 5YN/A
OCF growth 1Y29.46%
OCF growth 3Y16.59%
OCF growth 5Y21.3%