TARGA RESOURCES CORP (TRGP) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:TRGP • US87612G1013
200.98 USD
-0.54 (-0.27%)
At close: Jan 30, 2026
199.5 USD
-1.48 (-0.74%)
After Hours: 1/30/2026, 8:21:49 PM
Overall TRGP gets a fundamental rating of 5 out of 10. We evaluated TRGP against 207 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 is not valued too expensively and it also shows a decent growth rate.
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.
- In the past 5 years TRGP always reported a positive cash flow from operatings.
1.2 Ratios
- TRGP has a better Return On Assets (6.68%) than 75.36% of its industry peers.
- TRGP has a better Return On Equity (59.68%) than 95.17% of its industry peers.
- TRGP has a better Return On Invested Capital (11.84%) than 88.89% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for TRGP is significantly below the industry average of 21.94%.
- The 3 year average ROIC (10.47%) for TRGP is below the current ROIC(11.84%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.68% | ||
| ROE | 59.68% | ||
| ROIC | 11.84% |
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
- The Profit Margin of TRGP (9.30%) is comparable to the rest of the industry.
- TRGP has a Operating Margin (17.92%) which 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 (36.00%) is comparable to the rest of the industry.
- TRGP's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.92% | ||
| PM (TTM) | 9.3% | ||
| GM | 36% |
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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TRGP is still creating some value.
- TRGP has less shares outstanding than it did 1 year ago.
- TRGP has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for TRGP has been reduced compared to a year ago.
2.2 Solvency
- TRGP has an Altman-Z score of 2.43. 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.
- Looking at the Altman-Z score, with a value of 2.43, TRGP is in the better half of the industry, outperforming 72.95% of the companies in the same industry.
- The Debt to FCF ratio of TRGP is 27.12, which is on the high side as it means it would take TRGP, 27.12 years of fcf income to pay off all of its debts.
- TRGP has a Debt to FCF ratio (27.12) which is in line with its industry peers.
- TRGP has a Debt/Equity ratio of 6.19. This is a high value indicating a heavy dependency on external financing.
- TRGP's Debt to Equity ratio of 6.19 is on the low side compared to the rest of the industry. TRGP is outperformed by 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.19 | ||
| Debt/FCF | 27.12 | ||
| Altman-Z | 2.43 |
ROIC/WACC1.41
WACC8.39%
2.3 Liquidity
- TRGP has a Current Ratio of 0.77. 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 (0.77) than 69.57% of its industry peers.
- TRGP has a Quick Ratio of 0.77. This is a bad value and indicates that TRGP is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of TRGP (0.61) is worse than 70.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
- TRGP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 33.99%, which is quite impressive.
- 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 7.17% 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)33.99%
EPS 3Y45.97%
EPS 5YN/A
EPS Q2Q%26.07%
Revenue 1Y (TTM)7.17%
Revenue growth 3Y-1.13%
Revenue growth 5Y13.57%
Sales Q2Q%7.77%
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.
- TRGP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.18% yearly.
EPS Next Y49.9%
EPS Next 2Y31.46%
EPS Next 3Y25.78%
EPS Next 5Y16.08%
Revenue Next Year3.59%
Revenue Next 2Y16.31%
Revenue Next 3Y12.3%
Revenue Next 5Y6.18%
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
- The Price/Earnings ratio is 27.01, which means the current valuation is very expensive for TRGP.
- TRGP's Price/Earnings ratio is in line with the industry average.
- TRGP is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.30, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 20.21, the valuation of TRGP can be described as rather expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of TRGP is on the same level as its industry peers.
- TRGP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.01 | ||
| Fwd PE | 20.21 |
4.2 Price Multiples
- 61.84% of the companies in the same industry are cheaper than TRGP, based on the Enterprise Value to EBITDA ratio.
- 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 | 67.12 | ||
| EV/EBITDA | 13.12 |
4.3 Compensation for Growth
- TRGP's 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.
- TRGP's earnings are expected to grow with 25.78% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.54
PEG (5Y)N/A
EPS Next 2Y31.46%
EPS Next 3Y25.78%
5. Dividend
5.1 Amount
- TRGP has a Yearly Dividend Yield of 1.98%. Purely for dividend investing, there may be better candidates out there.
- TRGP's Dividend Yield is comparable with the industry average which is at 3.64.
- Compared to an average S&P500 Dividend Yield of 1.83, TRGP has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.98% |
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
- TRGP pays out 47.51% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP47.51%
EPS Next 2Y31.46%
EPS Next 3Y25.78%
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 4 / 10 to TARGA RESOURCES CORP (TRGP). This can be considered as Fairly Valued.
Can you provide the profitability details for TARGA RESOURCES CORP?
TARGA RESOURCES CORP (TRGP) has a profitability rating of 6 / 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 27.01 and the Price/Book (PB) ratio is 15.94.
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 49.9% in the next year.