TARGA RESOURCES CORP (TRGP) Fundamental Analysis & Valuation

NYSE:TRGP • US87612G1013

239.01 USD
-4.04 (-1.66%)
At close: Mar 5, 2026
239.01 USD
0 (0%)
After Hours: 3/5/2026, 4:10:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

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

Fundamental Rating

5

TRGP gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 207 industry peers in the Oil, Gas & Consumable Fuels industry. While TRGP has a great profitability rating, there are quite some concerns on its financial health. TRGP is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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.
  • Of the past 5 years TRGP 4 years were profitable.
  • 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 78.26% of the companies in the same industry.
  • The Return On Equity of TRGP (60.02%) is better than 94.20% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 12.21%, TRGP belongs to the top of the industry, outperforming 89.37% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for TRGP is significantly below the industry average of 22.19%.
  • 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

  • TRGP has a Profit Margin (10.81%) which is comparable to the rest of the industry.
  • TRGP's Profit Margin has improved in the last couple of years.
  • With a Operating Margin value of 19.56%, TRGP perfoms like the industry average, outperforming 57.00% of the companies in the same industry.
  • In the last couple of years the Operating Margin of TRGP has grown nicely.
  • TRGP has a Gross Margin (38.29%) which is in line with its industry peers.
  • 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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ROAROEROICOperating and Profit MarginShow most profitable peers

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
  • TRGP has less shares outstanding than it did 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 2.60 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 (2.60) than 74.88% 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.
  • TRGP's Debt to FCF ratio of 35.30 is in line compared to the rest of the industry. TRGP outperforms 42.51% of its industry peers.
  • TRGP has a Debt/Equity ratio of 5.43. This is a high value indicating a heavy dependency on external financing.
  • TRGP has a worse Debt to Equity ratio (5.43) than 88.41% of its industry peers.
Industry RankSector Rank
Debt/Equity 5.43
Debt/FCF 35.3
Altman-Z 2.6
ROIC/WACC1.61
WACC7.6%
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

  • TRGP has a Current Ratio of 0.67. 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 Current ratio of 0.67. This is in the lower half of the industry: TRGP underperforms 75.36% of its industry peers.
  • TRGP has a Quick Ratio of 0.67. 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 0.55, TRGP is not doing good in the industry: 76.33% of the companies in the same industry are doing better.
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.
  • Measured over the past years, TRGP shows a very strong growth in Earnings Per Share. The EPS has been growing by 21.18% on average per year.
  • Looking at the last year, TRGP shows a small growth in Revenue. The Revenue has grown by 3.95% in the last year.
  • The Revenue has been growing by 15.57% on average over the past years. This is quite good.
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.
  • Based on estimates for the next years, TRGP will show a small growth in Revenue. The Revenue will grow by 5.99% on average per year.
EPS Next Y18.51%
EPS Next 2Y17.25%
EPS Next 3Y14%
EPS Next 5Y9.26%
Revenue Next Year30.6%
Revenue Next 2Y17%
Revenue Next 3Y5.42%
Revenue Next 5Y5.99%

3.3 Evolution

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

  • A Price/Earnings ratio of 28.09 indicates a quite expensive valuation of TRGP.
  • Compared to the rest of the industry, the Price/Earnings ratio of TRGP is on the same level as its industry peers.
  • TRGP is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.03, which is the current average of the S&P500 Index.
  • TRGP is valuated rather expensively with a Price/Forward Earnings ratio of 23.70.
  • TRGP's Price/Forward Earnings is on the same level as the industry average.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 25.11, TRGP is valued at the same level.
Industry RankSector Rank
PE 28.09
Fwd PE 23.7
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

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TRGP indicates a slightly more expensive valuation: TRGP is more expensive than 60.87% of the companies listed in the same industry.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as TRGP.
Industry RankSector Rank
P/FCF 103.9
EV/EBITDA 14.33
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.
  • The decent profitability rating of TRGP may justify a higher PE ratio.
  • TRGP's earnings are expected to grow with 14.00% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.52
PEG (5Y)1.33
EPS Next 2Y17.25%
EPS Next 3Y14%

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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 1.79%. Purely for dividend investing, there may be better candidates out there.
  • TRGP's Dividend Yield is comparable with the industry average which is at 3.47.
  • Compared to an average S&P500 Dividend Yield of 1.82, TRGP has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 1.79%

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

  • 44.44% of the earnings are spent on dividend by TRGP. 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 2Y17.25%
EPS Next 3Y14%
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 (3/5/2026, 4:10:00 PM)

After market: 239.01 0 (0%)

239.01

-4.04 (-1.66%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)02-19
Earnings (Next)04-29
Inst Owners94.43%
Inst Owner Change0.83%
Ins Owners1.31%
Ins Owner Change2.83%
Market Cap51.31B
Revenue(TTM)17.03B
Net Income(TTM)1.84B
Analysts84.83
Price Target233.17 (-2.44%)
Short Float %2.53%
Short Ratio3.86
Dividend
Industry RankSector Rank
Dividend Yield 1.79%
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)9.44%
PT rev (3m)11.75%
EPS NQ rev (1m)1.77%
EPS NQ rev (3m)6%
EPS NY rev (1m)1.43%
EPS NY rev (3m)3.33%
Revenue NQ rev (1m)-8.24%
Revenue NQ rev (3m)-5.52%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.57%
Valuation
Industry RankSector Rank
PE 28.09
Fwd PE 23.7
P/S 3.01
P/FCF 103.9
P/OCF 13.1
P/B 16.72
P/tB 36.22
EV/EBITDA 14.33
EPS(TTM)8.51
EY3.56%
EPS(NY)10.08
Fwd EY4.22%
FCF(TTM)2.3
FCFY0.96%
OCF(TTM)18.25
OCFY7.64%
SpS79.33
BVpS14.29
TBVpS6.6
PEG (NY)1.52
PEG (5Y)1.33
Graham Number52.31
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 2.6
F-Score6
WACC7.6%
ROIC/WACC1.61
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 Y18.51%
EPS Next 2Y17.25%
EPS Next 3Y14%
EPS Next 5Y9.26%
Revenue 1Y (TTM)3.95%
Revenue growth 3Y-6.65%
Revenue growth 5Y15.57%
Sales Q2Q%-7.94%
Revenue Next Year30.6%
Revenue Next 2Y17%
Revenue Next 3Y5.42%
Revenue Next 5Y5.99%
EBIT growth 1Y23.59%
EBIT growth 3Y24.43%
EBIT growth 5Y21.6%
EBIT Next Year67.05%
EBIT Next 3Y26.63%
EBIT Next 5Y16.9%
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 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 28.09 and the Price/Book (PB) ratio is 16.72.


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 18.51% in the next year.