TARGA RESOURCES CORP (TRGP) Stock Fundamental Analysis
USA - NYSE:TRGP - US87612G1013 - Common Stock
169.79 USD
+1.47 (+0.87%)
TRGP gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 210 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year TRGP was profitable.
In the past year TRGP had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: TRGP reported negative net income in multiple years.
TRGP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TRGP has a better Return On Assets (6.68%) than 74.76% of its industry peers.
TRGP has a better Return On Equity (59.68%) than 95.24% of its industry peers.
With an excellent Return On Invested Capital value of 11.84%, TRGP belongs to the best of the industry, outperforming 86.67% 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 21.71%.
The last Return On Invested Capital (11.84%) for TRGP is above the 3 year average (10.47%), which is a sign of increasing profitability.
| 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
TRGP has a Profit Margin of 9.30%. This is comparable to the rest of the industry: TRGP outperforms 54.76% of its industry peers.
TRGP has a Operating Margin (17.92%) which is comparable to the rest of the industry.
TRGP's Operating Margin has improved in the last couple of years.
The Gross Margin of TRGP (36.00%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of TRGP has grown nicely.
| 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
TRGP has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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.
TRGP has a better debt/assets ratio than last year.
2.2 Solvency
TRGP has an Altman-Z score of 2.24. 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 of TRGP (2.24) is better than 69.52% of its industry peers.
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 comparable to the rest of the industry.
A Debt/Equity ratio of 6.19 is on the high side and indicates that TRGP has dependencies on debt financing.
The Debt to Equity ratio of TRGP (6.19) is worse than 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.19 | ||
| Debt/FCF | 27.12 | ||
| Altman-Z | 2.24 |
ROIC/WACC1.43
WACC8.3%
2.3 Liquidity
A Current Ratio of 0.77 indicates that TRGP may have some problems paying its short term obligations.
TRGP has a Current ratio of 0.77. This is in the lower half of the industry: TRGP underperforms 69.52% 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.
With a Quick ratio value of 0.61, TRGP is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
| 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.
TRGP shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 45.97% yearly.
TRGP shows a small growth in Revenue. In the last year, the Revenue has grown by 7.17%.
Measured over the past years, TRGP shows a quite strong growth in Revenue. The Revenue has been growing by 13.57% on average per year.
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
The Earnings Per Share is expected to grow by 16.08% on average over the next years. This is quite good.
Based on estimates for the next years, TRGP will show a small growth in Revenue. The Revenue will grow by 5.98% on average per year.
EPS Next Y46.56%
EPS Next 2Y30.24%
EPS Next 3Y25.42%
EPS Next 5Y16.08%
Revenue Next Year10.84%
Revenue Next 2Y15.41%
Revenue Next 3Y11.28%
Revenue Next 5Y5.98%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 22.82, which indicates a rather expensive current valuation of TRGP.
TRGP's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of TRGP to the average of the S&P500 Index (25.56), we can say TRGP is valued inline with the index average.
The Price/Forward Earnings ratio is 17.40, which indicates a rather expensive current valuation of TRGP.
The rest of the industry has a similar Price/Forward Earnings ratio as TRGP.
The average S&P500 Price/Forward Earnings ratio is at 34.62. TRGP is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.82 | ||
| Fwd PE | 17.4 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TRGP is on the same level as its industry peers.
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 | 56.84 | ||
| EV/EBITDA | 11.59 |
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.
TRGP has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as TRGP's earnings are expected to grow with 25.42% in the coming years.
PEG (NY)0.49
PEG (5Y)N/A
EPS Next 2Y30.24%
EPS Next 3Y25.42%
5. Dividend
5.1 Amount
TRGP has a Yearly Dividend Yield of 2.36%.
TRGP's Dividend Yield is comparable with the industry average which is at 5.86.
Compared to an average S&P500 Dividend Yield of 2.44, TRGP has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.36% |
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 2Y30.24%
EPS Next 3Y25.42%
NYSE:TRGP (11/18/2025, 12:45:29 PM)
169.79
+1.47 (+0.87%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners93.16%
Inst Owner Change1.48%
Ins Owners1.39%
Ins Owner Change-2.47%
Market Cap36.54B
Revenue(TTM)17.38B
Net Income(TTM)1.62B
Analysts84.83
Price Target207.5 (22.21%)
Short Float %2.13%
Short Ratio2.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.36% |
Yearly Dividend2.8
Dividend Growth(5Y)-7.6%
DP47.51%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)26.87%
Min EPS beat(2)3.1%
Max EPS beat(2)50.64%
EPS beat(4)2
Avg EPS beat(4)-6.61%
Min EPS beat(4)-54.87%
Max EPS beat(4)50.64%
EPS beat(8)4
Avg EPS beat(8)-4.7%
EPS beat(12)5
Avg EPS beat(12)-11.96%
EPS beat(16)6
Avg EPS beat(16)-16.4%
Revenue beat(2)0
Avg Revenue beat(2)-12.24%
Min Revenue beat(2)-13.68%
Max Revenue beat(2)-10.8%
Revenue beat(4)0
Avg Revenue beat(4)-9.17%
Min Revenue beat(4)-13.68%
Max Revenue beat(4)-3.5%
Revenue beat(8)2
Avg Revenue beat(8)-6.69%
Revenue beat(12)2
Avg Revenue beat(12)-11.29%
Revenue beat(16)4
Avg Revenue beat(16)-8.59%
PT rev (1m)0.04%
PT rev (3m)-0.66%
EPS NQ rev (1m)0.98%
EPS NQ rev (3m)1.49%
EPS NY rev (1m)2.15%
EPS NY rev (3m)8.63%
Revenue NQ rev (1m)-0.32%
Revenue NQ rev (3m)-7.11%
Revenue NY rev (1m)-0.79%
Revenue NY rev (3m)-9.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.82 | ||
| Fwd PE | 17.4 | ||
| P/S | 2.1 | ||
| P/FCF | 56.84 | ||
| P/OCF | 9.77 | ||
| P/B | 13.5 | ||
| P/tB | 37.52 | ||
| EV/EBITDA | 11.59 |
EPS(TTM)7.44
EY4.38%
EPS(NY)9.76
Fwd EY5.75%
FCF(TTM)2.99
FCFY1.76%
OCF(TTM)17.38
OCFY10.24%
SpS80.76
BVpS12.58
TBVpS4.53
PEG (NY)0.49
PEG (5Y)N/A
Graham Number45.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.68% | ||
| ROE | 59.68% | ||
| ROCE | 14.67% | ||
| ROIC | 11.84% | ||
| ROICexc | 11.91% | ||
| ROICexgc | 12.98% | ||
| OM | 17.92% | ||
| PM (TTM) | 9.3% | ||
| GM | 36% | ||
| FCFM | 3.7% |
ROA(3y)4.73%
ROA(5y)0.69%
ROE(3y)37.62%
ROE(5y)11.05%
ROIC(3y)10.47%
ROIC(5y)9.38%
ROICexc(3y)10.57%
ROICexc(5y)9.49%
ROICexgc(3y)12.22%
ROICexgc(5y)10.81%
ROCE(3y)12.98%
ROCE(5y)11.62%
ROICexgc growth 3Y10.65%
ROICexgc growth 5Y35.31%
ROICexc growth 3Y10.05%
ROICexc growth 5Y35.4%
OM growth 3Y28.03%
OM growth 5Y22.99%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y22.2%
GM growth 5Y3.32%
F-Score7
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.19 | ||
| Debt/FCF | 27.12 | ||
| Debt/EBITDA | 3.63 | ||
| Cap/Depr | 206.01% | ||
| Cap/Sales | 17.82% | ||
| Interest Coverage | 4.11 | ||
| Cash Conversion | 80.99% | ||
| Profit Quality | 39.79% | ||
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z | 2.24 |
F-Score7
WACC8.3%
ROIC/WACC1.43
Cap/Depr(3y)176.1%
Cap/Depr(5y)139.26%
Cap/Sales(3y)13.44%
Cap/Sales(5y)10.96%
Profit Quality(3y)82.47%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)33.99%
EPS 3Y45.97%
EPS 5YN/A
EPS Q2Q%26.07%
EPS Next Y46.56%
EPS Next 2Y30.24%
EPS Next 3Y25.42%
EPS Next 5Y16.08%
Revenue 1Y (TTM)7.17%
Revenue growth 3Y-1.13%
Revenue growth 5Y13.57%
Sales Q2Q%7.77%
Revenue Next Year10.84%
Revenue Next 2Y15.41%
Revenue Next 3Y11.28%
Revenue Next 5Y5.98%
EBIT growth 1Y18.41%
EBIT growth 3Y26.58%
EBIT growth 5Y39.68%
EBIT Next Year73.77%
EBIT Next 3Y27.6%
EBIT Next 5Y18.44%
FCF growth 1Y6.14%
FCF growth 3Y-27.54%
FCF growth 5YN/A
OCF growth 1Y33.98%
OCF growth 3Y16.59%
OCF growth 5Y21.3%
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 of TARGA RESOURCES CORP (TRGP) stock?
ChartMill assigns a valuation rating of 5 / 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 is the earnings growth outlook for TARGA RESOURCES CORP?
The Earnings per Share (EPS) of TARGA RESOURCES CORP (TRGP) is expected to grow by 46.56% in the next year.
Is the dividend of TARGA RESOURCES CORP sustainable?
The dividend rating of TARGA RESOURCES CORP (TRGP) is 4 / 10 and the dividend payout ratio is 47.51%.