TARGA RESOURCES CORP (TRGP) 75.19 +0.24 (+0.32%)
75.19 +0.24 (+0.32%)
US87612G1013 - Common Stock - After market: 75.19 0 (0%)
Fundamental Rating
We assign a fundamental rating of 4 out of 10 to TRGP. TRGP was compared to 391 industry peers in the Oil, Gas & Consumable Fuels industry. Both the profitability and financial health of TRGP have multiple concerns. TRGP shows excellent growth, but is valued quite expensive already.
Profitability
Profitability Rating
The Piotroski-F score of TRGP is 7.00. This is a strong score and indicates good health and profitability for TRGP.
TRGP's Return On Equity of 23.65% is in line with the rest of the industry. The industry average Return On Equity is 27.19%.
TRGP has a Return On Assets of 2.91%. This is below the industry average of 6.35%.
TRGP's Profit Margin of 2.58% is worse than the rest of the industry. The industry average Profit Margin is 21.81%.
VS Industry
ROA (2.91%) VS Industry: 38% outperformed.
-63,651.82
1,189.87
ROE (23.65%) VS Industry: 46% outperformed.
0.24
5,310.48
Profit Margin (2.58%) VS Industry: 25% outperformed.
-62,221.05
268.29
Valuation
Valuation Rating
TRGP's low PEG Ratio, which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The Price/Earnings Ratio is 24.90, which indicates a rather expensive current valuation of TRGP.
With a Forward Price/Earnings Ratio of 13.16, TRGP is valued correctly.
When comparing the current price to the book value of TRGP, we can conclude it is valued correctly. It is trading at 7.14 times its book value.
Compared to an average industry Price/Earning Ratio of 7.07, TRGP is valued more expensive than its industry peers. On top of this 93% of the companies listed in the same industry are cheaper than TRGP!
When comparing the price book ratio of TRGP to the average industry price book ratio of 1.73, TRGP is valued more expensive than its industry peers. 92% of the companies listed in the same industry are valued cheaper.
Compared to an average industry Enterprise Value to EBITDA ratio of 4.38, TRGP is valued more expensive than its industry peers. 84% of the companies listed in the same industry are valued cheaper.
VS Industry
Price/Earnings (24.9) VS Industry: 7% outperformed.
1,442.00
0.04
Price/Book (7.14) VS Industry: 8% outperformed.
2,988.88
0.02
Enterprise Value/ EBITDA (11.17) VS Industry: 16% outperformed.
197.07
0.04
Growth
Growth Rating
TRGP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 125.95%, which is quite impressive.
Measured over the past 5 years, TRGP shows a very strong growth in Earnings Per Share. The EPS has been growing by 295.08% on average per year.
TRGP is expected to show a strong growth in Earnings Per Share. In the coming 5 years, the EPS will grow by 34.77% yearly.
Looking at the last year, TRGP shows a very strong growth in Revenue. The Revenue has grown by 54.94%.
TRGP shows a strong growth in Revenue. Measured over the last 5 years, the Revenue has been growing by 20.43% yearly.
TRGP is expected to show quite a strong growth in Revenue. In the coming 5 years, the Revenue will grow by 15.35% yearly.
The Revenue growth is stable: in the next 5 years the growth will be about the same than in the last 5 years.
The EPS growth is decreasing: in the next 5 years the growth will be less than in the last years.
| Past | Future | ||||||
|---|---|---|---|---|---|---|---|
| 5Y | 3Y | 1Y | 1Y | 2Y | 3Y | 5Y | |
| EPS | N/A | 295.08% | 125.95% | 142.08% | 75.76% | 48.88% | 34.77% |
| Revenue | 20.43% | 17.37% | 54.94% | 48.98% | 33.67% | 20.57% | 15.35% |
Health
Health Rating
The Piotroski-F score of TRGP is 7.00. This is a strong score and indicates good health and profitability for TRGP.
TRGP has an Altman-Z score of 1.86. 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.
The Altman-Z score is in line with the industry averages, which is at 2.16.
TRGP has a Current Ratio of 0.74. This is a bad value and indicates that TRGP is not financially healthy enough and could expect problems in meeting its short term obligations.
When comparing the Current Ratio of TRGP to the average industry Current Ratio of 1.10, TRGP is less able to pay its short term obligations than its industry peers.
TRGP has a Quick Ratio of 0.74. This is a bad value and indicates that TRGP is not financially healthy enough and could expect problems in meeting its short term obligations.
Compared to an average industry Quick Ratio of 0.94, TRGP is worse placed to pay its short term obligations than its industry peers.
TRGP has one of the worst Debt to Equity ratios in its industry. 98% of its industry peers require less debt for financing their operations.
VS Industry
Debt/Equity (4.44) VS Industry: 2% outperformed.
31.33
0.00
Quick Ratio (0.6) VS Industry: 25% outperformed.
0.00
297.28
Current Ratio (0.74) VS Industry: 30% outperformed.
0.00
297.28
Altman-Z (1.86) VS Industry: 45% outperformed.
-110,323.97
956.17
Dividend
Dividend Rating
TRGP has been paying a dividend for at least 10 years, so it has a reliable track record.
TRGP has a Yearly Dividend Yield of 1.91%. Purely for dividend investing, there may be better candidates out there.
With a Dividend Yield of 1.91, TRGP pays less dividend than the industry average, which is at 4.99. 81% of the companies listed in the same industry pay a better dividend than TRGP!
TRGP's Dividend Yield is slightly below the S&P500 average, which is at 2.43.
The dividend of TRGP decreases each year by -52.10%.
TRGP pays out 61.38% of its income as dividend. This is not a sustainable payout ratio.
VS Industry
Dividend Yield (1.91%) VS Industry: 19% outperformed.
0.34
64.51
TARGA RESOURCES CORP75.19
NYSE:TRGP (12/2/2022, 7:06:29 PM)+0.24 (+0.32%)
| GICS Sector | Energy | ||
| GICS IndustryGroup | Energy | ||
| GICS Industry | Oil, Gas & Consumable Fuels | ||
| Earnings (Last) | 11-03 2022-11-03/bmo | Earnings (Next) | 02-22 2023-02-22 |
| Ins Owners | 0.91% | Inst Owners | 89.06% |
| Market Cap | 17.02B | Analysts | 86.4 |
| PE | 24.9 | Fwd PE | 13.16 |
| PEG (NY) | 0.18 | PEG (5Y) | N/A |
| P/S | 0.78 | P/B | 7.14 |
| EV/EBITDA | 11.17 | ||
| Dividend Yield | 1.91% | Dividend Growth | -52.1% |
| DP | 61.38% | Ex-Date | 10-28 2022-10-28 (0.35) |
| EPS 1Y | 125.95% | EPS 3Y | 295.08% |
| EPS 5Y | N/A | EPS growth Q2Q | 27.27% |
| EPS Next Y | 142.08% | EPS Next 2Y | 75.76% |
| EPS Next 3Y | 48.88% | EPS Next 5Y | 34.77% |
| Revenue growth 1Y | 54.94% | Revenue growth 3Y | 17.37% |
| Revenue growth 5Y | 20.43% | Revenue growth Q2Q | 20.19% |
| Revenue Next Year | 48.98% | Revenue Next 2Y | 33.67% |
| Revenue Next 3Y | 20.57% | Revenue Next 5Y | 15.35% |
| Current Ratio | 0.74 | Quick Ratio | 0.6 |
| Altman-Z | 1.86 | F-Score | 7 |
| Debt/Equity | 4.44 | WACC | 7.01% |
| ROIC/WACC | 1.34 | ||
| ROA | 2.91% | ROE | 23.65% |
| ROICexgc | 9.37% | ROIC | 7.6% |
| PM | 2.58% | OM | 7.05% |
| Asset Turnover | 1.13 | ||
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