(TRGP) Targa Resources - Overview
Sector: Energy | Industry: Oil & Gas Midstream | Exchange: NYSE (USA) | Market Cap: 58.102m USD | Total Return: 77.9% in 12m
Avg Turnover: 305M
EPS Trend: 98.9%
Qual. Beats: 2
Rev. Trend: 42.0%
Qual. Beats: -4
Warnings
No concerns identified
Tailwinds
Leader, Tailwind, Confidence
Targa Resources Corp. (TRGP) is a midstream energy infrastructure company headquartered in Houston, Texas. The company operates two primary segments: Gathering and Processing, and Logistics and Transportation. Its core business involves the collection, treatment, and distribution of natural gas, natural gas liquids (NGLs), and crude oil across North America.
The midstream sector functions as the essential link between upstream production and downstream consumption, utilizing a fee-based model that often mitigates direct exposure to commodity price volatility. Targa’s integrated asset map includes fractionation facilities and export terminals, which are critical for converting raw NGL streams into marketable products like propane and butane for global distribution.
In addition to pipeline operations, the company maintains a logistics fleet consisting of railcars, pressurized barges, and trucks to service refineries and petrochemical clients. For a deeper look at how these infrastructure assets impact long-term valuation, consider exploring the data available on ValueRay. Targa remains a key player in the Gulf Coast energy corridor, providing balancing and storage services essential to regional energy security.
- Permian Basin natural gas production volumes drive gathering and processing revenue
- NGL fractionation capacity expansion increases logistics and transportation segment margins
- Global demand for LPG exports influences Gulf Coast terminal throughput volumes
- Fluctuations in energy commodity prices impact realized marketing and midstream spreads
- Capital expenditure requirements for infrastructure projects affect free cash flow and dividends
| Net Income: 2.13b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.01 > 0.02 and ΔFCF/TA -1.84 > 1.0 |
| NWC/Revenue: -5.85% < 20% (prev -6.69%; Δ 0.85% < -1%) |
| CFO/TA 0.14 > 3% & CFO 3.70b > Net Income 2.13b |
| Net Debt (19.4b) to EBITDA (5.21b): 3.72 < 3 |
| Current Ratio: 0.72 > 1.5 & < 3 |
| Outstanding Shares: last quarter (215.0m) vs 12m ago -1.69% < -2% |
| Gross Margin: 29.88% > 18% (prev 0.22%; Δ 2.97k% > 0.5%) |
| Asset Turnover: 65.63% > 50% (prev 73.52%; Δ -7.89% > 0%) |
| Interest Coverage Ratio: 4.12 > 6 (EBITDA TTM 5.21b / Interest Expense TTM 883.3m) |
| A: -0.04 (Total Current Assets 2.44b - Total Current Liabilities 3.40b) / Total Assets 27.1b |
| B: 0.09 (Retained Earnings 2.56b / Total Assets 27.1b) |
| C: 0.15 (EBIT TTM 3.64b / Avg Total Assets 25.0b) |
| D: 0.11 (Book Value of Equity 2.54b / Total Liabilities 23.8b) |
| Altman-Z'' = 1.17 = BB |
| DSRI: 1.23 (Receivables 1.69b/1.40b, Revenue 16.4b/16.8b) |
| GMI: 0.73 (GM 29.88% / 21.92%) |
| AQI: 1.05 (AQ_t 0.11 / AQ_t-1 0.10) |
| SGI: 0.98 (Revenue 16.4b / 16.8b) |
| TATA: -0.06 (NI 2.13b - CFO 3.70b) / TA 27.1b) |
| Beneish M = -3.12 (Cap -4..+1) = AA |
As of May 23, 2026, the stock is trading at USD 270.24 with a total of 1,242,461 shares traded.
Over the past week, the price has changed by +1.75%,
over one month by +17.49%,
over three months by +19.96% and
over the past year by +77.93%.
Targa Resources has received a consensus analysts rating of 4.59. Therefore, it is recommended to buy TRGP.
- StrongBuy: 14
- Buy: 7
- Hold: 1
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 274.1 | 1.4% |
P/E Forward = 25.2525
P/S = 3.5083
P/B = 18.9015
P/EG = 1.2282
Revenue TTM = 16.4b USD
EBIT TTM = 3.64b USD
EBITDA TTM = 5.21b USD
Long Term Debt = 18.2b USD (from longTermDebt, last quarter)
Short Term Debt = 696.9m USD (from shortTermDebt, last quarter)
Debt = 19.5b USD (from shortLongTermDebtTotal, last quarter) + Leases 346.5m
Net Debt = 19.4b USD (calculated: Debt 19.5b - CCE 100.1m)
Enterprise Value = 77.5b USD (58.1b + Debt 19.5b - CCE 100.1m)
Interest Coverage Ratio = 4.12 (Ebit TTM 3.64b / Interest Expense TTM 883.3m)
EV/FCF = 295.8x (Enterprise Value 77.5b / FCF TTM 261.9m)
FCF Yield = 0.34% (FCF TTM 261.9m / Enterprise Value 77.5b)
FCF Margin = 1.60% (FCF TTM 261.9m / Revenue TTM 16.4b)
Net Margin = 12.98% (Net Income TTM 2.13b / Revenue TTM 16.4b)
Gross Margin = 29.88% ((Revenue TTM 16.4b - Cost of Revenue TTM 11.5b) / Revenue TTM)
Gross Margin QoQ = 31.12% (prev 43.10%)
Tobins Q-Ratio = 2.86 (Enterprise Value 77.5b / Total Assets 27.1b)
Interest Expense / Debt = 4.53% (Interest Expense 883.3m / Debt 19.5b)
Taxrate = 20.27% (123.9m / 611.3m)
NOPAT = 2.90b (EBIT 3.64b * (1 - 20.27%))
Current Ratio = 0.72 (Total Current Assets 2.44b / Total Current Liabilities 3.40b)
Debt / Equity = 6.21 (Debt 19.5b / totalStockholderEquity, last quarter 3.14b)
Debt / EBITDA = 3.72 (Net Debt 19.4b / EBITDA 5.21b)
Debt / FCF = 73.99 (Net Debt 19.4b / FCF TTM 261.9m)
Total Stockholder Equity = 2.87b (last 4 quarters mean from totalStockholderEquity)
RoA = 8.52% (Net Income 2.13b / Total Assets 27.1b)
RoE = 73.92% (Net Income TTM 2.13b / Total Stockholder Equity 2.87b)
RoCE = 17.27% (EBIT 3.64b / Capital Employed (Equity 2.87b + L.T.Debt 18.2b))
RoIC = 11.88% (NOPAT 2.90b / Invested Capital 24.4b)
WACC = 7.33% (E(58.1b)/V(77.6b) * Re(8.58%) + D(19.5b)/V(77.6b) * Rd(4.53%) * (1-Tc(0.20)))
Discount Rate = 8.58% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -89.89 | Cagr: -1.53%
[DCF] Terminal Value 73.10% ; FCFF base≈412.9m ; Y1≈362.1m ; Y5≈292.6m
[DCF] Fair Price = N/A (negative equity: EV 4.70b - Net Debt 19.4b = -14.7b; debt exceeds intrinsic value)
EPS Correlation: 98.89 | EPS CAGR: 43.89% | SUE: 2.06 | # QB: 2
Revenue Correlation: 41.96 | Revenue CAGR: 1.76% | SUE: -1.35 | # QB: -4
EPS current Quarter (2026-06-30): EPS=2.77 | Chg30d=+15.84% | Revisions=+43% | Analysts=4
EPS next Quarter (2026-09-30): EPS=2.89 | Chg30d=+14.02% | Revisions=+43% | Analysts=4
EPS current Year (2026-12-31): EPS=11.32 | Chg30d=+8.62% | Revisions=+56% | GrowthEPS=+25.9% | GrowthRev=+18.5%
EPS next Year (2027-12-31): EPS=11.95 | Chg30d=+3.84% | Revisions=+33% | GrowthEPS=+5.5% | GrowthRev=+12.4%
[Analyst] Revisions Ratio: +56%