TARGA RESOURCES CORP (TRGP) Fundamental Analysis & Valuation

NYSE:TRGP • US87612G1013

Current stock price

239.57 USD
+2.16 (+0.91%)
Last:

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

  • In the past year TRGP was profitable.
  • In the past year TRGP had a positive cash flow from operations.
  • TRGP had positive earnings in 4 of the past 5 years.
  • Each year in the past 5 years TRGP had a positive operating cash flow.
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

  • TRGP has a Return On Assets of 7.30%. This is in the better half of the industry: TRGP outperforms 77.51% of its industry peers.
  • TRGP's Return On Equity of 60.02% is amongst the best of the industry. TRGP outperforms 93.78% of its industry peers.
  • TRGP has a better Return On Invested Capital (12.21%) than 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 23.05%.
  • The last Return On Invested Capital (12.21%) for TRGP is above the 3 year average (11.60%), which is a sign of increasing profitability.
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

  • With a Profit Margin value of 10.81%, TRGP perfoms like the industry average, outperforming 56.46% of the companies in the same industry.
  • TRGP's Profit Margin has improved in the last couple of years.
  • The Operating Margin of TRGP (19.56%) is comparable to the rest of the industry.
  • TRGP's Operating Margin has improved in the last couple of years.
  • Looking at the Gross Margin, with a value of 38.29%, TRGP is in line with its industry, outperforming 47.37% of the companies in the same 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
  • Compared to 5 years ago, TRGP has less shares outstanding
  • TRGP has a worse debt/assets ratio than last year.
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

  • TRGP has an Altman-Z score of 2.56. 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.
  • With a decent Altman-Z score value of 2.56, TRGP is doing good in the industry, outperforming 73.21% of the companies in the same industry.
  • 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.
  • TRGP's Debt to FCF ratio of 35.30 is in line compared to the rest of the industry. TRGP outperforms 42.58% of its industry peers.
  • 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 2.56
ROIC/WACC1.56
WACC7.84%
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 Current ratio of 0.67. This is in the lower half of the industry: TRGP underperforms 76.08% of its industry peers.
  • A Quick Ratio of 0.55 indicates that TRGP may have some problems paying its short term obligations.
  • TRGP's Quick ratio of 0.55 is on the low side compared to the rest of the industry. TRGP is outperformed by 77.03% 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

  • TRGP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 47.90%, which is quite impressive.
  • TRGP shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 21.18% yearly.
  • The Revenue has been growing slightly by 3.95% in the past year.
  • TRGP shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.57% yearly.
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

  • Based on estimates for the next years, TRGP will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.26% on average per year.
  • The Revenue is expected to grow by 6.11% on average over the next years.
EPS Next Y20.14%
EPS Next 2Y17%
EPS Next 3Y15.33%
EPS Next 5Y9.26%
Revenue Next Year23.99%
Revenue Next 2Y14.5%
Revenue Next 3Y11.79%
Revenue Next 5Y6.11%

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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.
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 25B
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

  • Based on the Price/Earnings ratio of 28.15, the valuation of TRGP can be described as expensive.
  • 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 25.23.
  • Based on the Price/Forward Earnings ratio of 23.43, the valuation of TRGP can be described as rather expensive.
  • The rest of the industry has a similar Price/Forward Earnings ratio as TRGP.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.42, TRGP is valued at the same level.
Industry RankSector Rank
PE 28.15
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

  • TRGP's Enterprise Value to EBITDA ratio is in line with the industry average.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as TRGP.
Industry RankSector Rank
P/FCF 104.28
EV/EBITDA 14.09
TRGP Per share dataTRGP EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

  • TRGP's 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.
  • TRGP's earnings are expected to grow with 15.33% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.4
PEG (5Y)1.33
EPS Next 2Y17%
EPS Next 3Y15.33%

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

5

5. TRGP Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 1.67%, TRGP has a reasonable but not impressive dividend return.
  • TRGP's Dividend Yield is comparable with the industry average which is at 3.29.
  • TRGP's Dividend Yield is comparable with the S&P500 average which is at 1.89.
Industry RankSector Rank
Dividend Yield 1.67%

5.2 History

  • The dividend of TRGP is nicely growing with an annual growth rate of 17.12%!
  • 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 Years3
Div Non Decr Years3
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.
  • TRGP's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP44.44%
EPS Next 2Y17%
EPS Next 3Y15.33%
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 (3/23/2026, 12:25:46 PM)

239.57

+2.16 (+0.91%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)02-19
Earnings (Next)04-29
Inst Owners95.51%
Inst Owner Change0.86%
Ins Owners1.37%
Ins Owner Change0.84%
Market Cap51.50B
Revenue(TTM)17.03B
Net Income(TTM)1.84B
Analysts84.14
Price Target233.17 (-2.67%)
Short Float %2.15%
Short Ratio3.15
Dividend
Industry RankSector Rank
Dividend Yield 1.67%
Yearly Dividend3.78
Dividend Growth(5Y)17.12%
DP44.44%
Div Incr Years3
Div Non Decr Years3
Ex-Date01-30
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)7.48%
PT rev (3m)9.73%
EPS NQ rev (1m)4.08%
EPS NQ rev (3m)8.62%
EPS NY rev (1m)1.37%
EPS NY rev (3m)2.98%
Revenue NQ rev (1m)-10.57%
Revenue NQ rev (3m)-7.92%
Revenue NY rev (1m)-5.61%
Revenue NY rev (3m)-6.52%
Valuation
Industry RankSector Rank
PE 28.15
Fwd PE 23.43
P/S 3.02
P/FCF 104.28
P/OCF 13.15
P/B 16.79
P/tB 36.35
EV/EBITDA 14.09
EPS(TTM)8.51
EY3.55%
EPS(NY)10.22
Fwd EY4.27%
FCF(TTM)2.3
FCFY0.96%
OCF(TTM)18.22
OCFY7.61%
SpS79.22
BVpS14.27
TBVpS6.59
PEG (NY)1.4
PEG (5Y)1.33
Graham Number52.28
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 2.56
F-Score6
WACC7.84%
ROIC/WACC1.56
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 Y20.14%
EPS Next 2Y17%
EPS Next 3Y15.33%
EPS Next 5Y9.26%
Revenue 1Y (TTM)3.95%
Revenue growth 3Y-6.65%
Revenue growth 5Y15.57%
Sales Q2Q%-7.94%
Revenue Next Year23.99%
Revenue Next 2Y14.5%
Revenue Next 3Y11.79%
Revenue Next 5Y6.11%
EBIT growth 1Y23.59%
EBIT growth 3Y24.43%
EBIT growth 5Y21.6%
EBIT Next Year67.8%
EBIT Next 3Y26.62%
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.


Can you provide the profitability details for TARGA RESOURCES CORP?

TARGA RESOURCES CORP (TRGP) has a profitability rating of 7 / 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 28.15 and the Price/Book (PB) ratio is 16.79.


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 20.14% in the next year.