TARGA RESOURCES CORP (TRGP) Fundamental Analysis & Valuation

NYSE:TRGP • US87612G1013

Current stock price

232.65 USD
+1.14 (+0.49%)
At close:
232.65 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.
  • In the past 5 years TRGP always reported a positive cash flow from operatings.
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 77.51% of the companies in the same industry.
  • 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 Return On Invested Capital of 12.21%. This is amongst the best in the industry. TRGP outperforms 90.43% 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

  • TRGP's Profit Margin of 10.81% is in line compared to the rest of the industry. TRGP outperforms 56.94% of its industry peers.
  • In the last couple of years the Profit Margin of TRGP has grown nicely.
  • TRGP has a Operating Margin (19.56%) which is comparable to the rest of the industry.
  • TRGP's Operating Margin has improved in the last couple of years.
  • TRGP has a Gross Margin of 38.29%. This is comparable to the rest of the industry: TRGP outperforms 47.37% of 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.
  • 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.
  • 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

  • An Altman-Z score of 2.54 indicates that TRGP is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 2.54, TRGP is in the better half of 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.
  • With a Debt to FCF ratio value of 35.30, TRGP perfoms like the industry average, 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's Debt to Equity ratio of 5.43 is on the low side compared to the rest of the industry. TRGP is outperformed by 86.60% of its industry peers.
Industry RankSector Rank
Debt/Equity 5.43
Debt/FCF 35.3
Altman-Z 2.54
ROIC/WACC1.58
WACC7.72%
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 worse Current ratio (0.67) than 76.08% of its industry peers.
  • A Quick Ratio of 0.55 indicates that TRGP may have some problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 0.55, TRGP is doing worse than 78.47% of the companies in the same industry.
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.
  • TRGP shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 21.18% yearly.
  • TRGP shows a small growth in Revenue. In the last year, the Revenue has grown by 3.95%.
  • 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

  • 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

  • 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
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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4

4. TRGP Valuation Analysis

4.1 Price/Earnings Ratio

  • TRGP is valuated quite expensively with a Price/Earnings ratio of 27.34.
  • Compared to the rest of the industry, the Price/Earnings ratio of TRGP is on the same level as its industry peers.
  • Compared to an average S&P500 Price/Earnings ratio of 27.66, TRGP is valued at the same level.
  • The Price/Forward Earnings ratio is 22.72, 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 valuation a bit cheaper than the S&P500 average which is at 38.00.
Industry RankSector Rank
PE 27.34
Fwd PE 22.72
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.
  • TRGP's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 101.2
EV/EBITDA 13.87
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.
  • TRGP's earnings are expected to grow with 16.43% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.34
PEG (5Y)1.29
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

  • 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 3.26.
  • TRGP's Dividend Yield is comparable with the S&P500 average which is at 1.81.
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 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

  • 44.44% of the earnings are spent on dividend by TRGP. 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 (4/21/2026, 8:15:48 PM)

After market: 232.65 0 (0%)

232.65

+1.14 (+0.49%)

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 Cap49.97B
Revenue(TTM)17.03B
Net Income(TTM)1.84B
Analysts82.67
Price Target263.12 (13.1%)
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 27.34
Fwd PE 22.72
P/S 2.93
P/FCF 101.2
P/OCF 12.76
P/B 16.29
P/tB 35.28
EV/EBITDA 13.87
EPS(TTM)8.51
EY3.66%
EPS(NY)10.24
Fwd EY4.4%
FCF(TTM)2.3
FCFY0.99%
OCF(TTM)18.24
OCFY7.84%
SpS79.28
BVpS14.28
TBVpS6.59
PEG (NY)1.34
PEG (5Y)1.29
Graham Number52.2949 (-77.52%)
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 2.54
F-Score6
WACC7.72%
ROIC/WACC1.58
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%.