TARGA RESOURCES CORP (TRGP) Fundamental Analysis & Valuation

NYSE:TRGP • US87612G1013

Current stock price

250 USD
+1.63 (+0.66%)
Last:

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.
  • In the past year TRGP had a positive cash flow from operations.
  • 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

  • The Return On Assets of TRGP (7.30%) is better than 77.03% of its industry peers.
  • TRGP's Return On Equity of 60.02% is amongst the best of the industry. TRGP outperforms 93.78% of its industry peers.
  • With an excellent Return On Invested Capital value of 12.21%, TRGP belongs to the best of the industry, outperforming 89.95% of the companies in the same industry.
  • TRGP had an Average Return On Invested Capital over the past 3 years of 11.60%. This is significantly below the industry average of 22.52%.
  • 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

  • With a Profit Margin value of 10.81%, TRGP perfoms like the industry average, outperforming 57.89% of the companies in the same industry.
  • In the last couple of years the Profit Margin of TRGP has grown nicely.
  • TRGP has a Operating Margin of 19.56%. This is comparable to the rest of the industry: TRGP outperforms 56.94% of its industry peers.
  • In the last couple of years the Operating Margin of TRGP has grown nicely.
  • TRGP has a Gross Margin (38.29%) which is comparable to the rest of the industry.
  • 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

  • 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.
  • Compared to 5 years ago, TRGP has less shares outstanding
  • The debt/assets ratio for TRGP is higher compared to a year ago.
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

  • TRGP has an Altman-Z score of 2.63. 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.
  • TRGP has a better Altman-Z score (2.63) than 71.77% of its industry peers.
  • The Debt to FCF ratio of TRGP is 35.30, which is on the high side as it means it would take TRGP, 35.30 years of fcf income to pay off 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 43.06% of its industry peers.
  • A Debt/Equity ratio of 5.43 is on the high side and indicates that TRGP has dependencies on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 5.43, TRGP is doing worse than 88.04% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 5.43
Debt/FCF 35.3
Altman-Z 2.63
ROIC/WACC1.56
WACC7.85%
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 76.08% 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.
  • TRGP has a Quick ratio of 0.55. This is in the lower half of the industry: TRGP underperforms 79.90% of its industry peers.
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.
  • TRGP shows a small growth in Revenue. In the last year, the Revenue has grown by 3.95%.
  • Measured over the past years, TRGP shows a quite strong growth in Revenue. The Revenue has been growing by 15.57% on average per year.
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.
  • The Revenue is expected to grow by 6.11% on average over the next years.
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

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
  • 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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3

4. TRGP Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 29.38, the valuation of TRGP can be described as expensive.
  • Compared to the rest of the industry, the Price/Earnings ratio of TRGP is on the same level as its industry peers.
  • TRGP's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.91.
  • The Price/Forward Earnings ratio is 24.41, which indicates a rather expensive current valuation of TRGP.
  • TRGP's Price/Forward Earnings ratio is in line with the industry average.
  • When comparing the Price/Forward Earnings ratio of TRGP to the average of the S&P500 Index (21.99), we can say TRGP is valued inline with the index average.
Industry RankSector Rank
PE 29.38
Fwd PE 24.41
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

  • Based on the Enterprise Value to EBITDA ratio, TRGP is valued a bit more expensive than the industry average as 61.24% of the companies are valued more cheaply.
  • TRGP's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 108.75
EV/EBITDA 14.57
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.
  • The decent profitability rating of TRGP 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)1.44
PEG (5Y)1.39
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

  • TRGP has a Yearly Dividend Yield of 2.08%.
  • Compared to an average industry Dividend Yield of 3.22, TRGP has a dividend in line with its industry peers.
  • 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 2.08%

5.2 History

  • On average, the dividend of TRGP grows each year by 17.12%, which is quite nice.
  • TRGP has paid a dividend for at least 10 years, which is 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.
  • TRGP's earnings are growing slower than its dividend. 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

More info and screens

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TRGP Fundamentals: All Metrics, Ratios and Statistics

TARGA RESOURCES CORP

NYSE:TRGP (4/29/2026, 10:20:27 AM)

250

+1.63 (+0.66%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Industry Strength73.29
Industry Growth84.47
Earnings (Last)02-19
Earnings (Next)05-07
Inst Owners95.67%
Inst Owner Change0.25%
Ins Owners1.39%
Ins Owner Change0.85%
Market Cap53.70B
Revenue(TTM)17.03B
Net Income(TTM)1.84B
Analysts82.67
Price Target263.12 (5.25%)
Short Float %2.2%
Short Ratio3.08
Dividend
Industry RankSector Rank
Dividend Yield 2.08%
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)0.27%
EPS NQ rev (3m)4.03%
EPS NY rev (1m)0.17%
EPS NY rev (3m)3%
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 29.38
Fwd PE 24.41
P/S 3.15
P/FCF 108.75
P/OCF 13.71
P/B 17.5
P/tB 37.91
EV/EBITDA 14.57
EPS(TTM)8.51
EY3.4%
EPS(NY)10.24
Fwd EY4.1%
FCF(TTM)2.3
FCFY0.92%
OCF(TTM)18.24
OCFY7.29%
SpS79.28
BVpS14.28
TBVpS6.59
PEG (NY)1.44
PEG (5Y)1.39
Graham Number52.2949 (-79.08%)
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 2.63
F-Score6
WACC7.85%
ROIC/WACC1.56
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 5Y18.51%
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%.