10Y annualized return is
positive but below market average
at 5.4% per year
TRGP has met or exceeded earnings expectations in
all
recent quarters (2/2)
Strong Return on Equity
Solid Gross and Operating Margins
Strong Interest Coverage
🏗️ Strong Infrastructure Development
💪 Competitive Market Position
🚀 Significant Growth Outlook
🔄 Flexibility and Strategic Investments
High Price-to-Earnings Ratio
Elevated Price-to-Cash Flow Ratio
Low Net Profit Margin
High Debt Levels
Weak Liquidity Ratios
Targa Resources is exhibiting strong business quality through its robust infrastructure, competitive positioning, and significant growth prospects. The company is strategically investing in its operations while ensuring returns to shareholders, setting a positive outlook for future performance.
Analysis Date: February 20, 2025
Last Updated: March 12, 2025
Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
Targa Resources Corp. is a company that helps move and process natural gas and oil. They own a large network of pipelines and facilities that gather, store, and transport these energy resources across North America. In simple terms, they make sure that natural gas and oil get from where they are found to where they are needed, including homes and businesses. They also work with products like propane and natural gas liquids, helping to supply these to retailers and other companies.
Streams of revenue
Geographic Distribution
Core Products
Business Type
Business to Business
Competitive Advantages
Key Business Risks
Latest News
HOUSTON, April 10, 2025 (GLOBE NEWSWIRE) -- Targa Resources Corp. (NYSE: TRGP) ("Targa" or the "Company") announced today that its board of directors ...
Targa Resources (TRGP) saw its shares surge in the last session with trading volume being higher than average. The latest trend in earnings estimate r...
The market is crashing—but these 3 CEFs offer high yields, deep discounts, and recession resistance. Falling interest rates and rising uncertainty? Th...
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$229.41
Current Market Price: $159.28
IV/P Ratio: 1.44x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
31.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for TRGP
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (27.05)
P/B ratio ≤ 1.5 (13.69)
Current ratio ≥ 2.0 (0.72x)
Long-term debt < Net current assets (-15.84x)
Margin of safety (31.0%)
TRGP does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
50.77%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-25)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
21.11%
Higher values indicate better efficiency in production
TTM (as of 2025-04-25)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
7.97%
Higher values indicate better overall profitability
TTM (as of 2025-04-25)
The gross profit margin is 21.11%, and the operating profit margin is 16.92%, reflecting good control over costs and efficiency in operations.
The net profit margin is only 7.97%, indicating that a smaller portion of revenue is converted into profit after all expenses.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
3.23x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
0.72x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2024
The interest coverage ratio is 3.63, suggesting the company can comfortably meet its interest obligations, indicating good financial stability.
With a debt-to-equity ratio of 5.50 and debt-to-assets of 62.75%, the company is heavily leveraged, which could pose risks in adverse market conditions.
Current ratio at 0.72 and quick ratio at 0.62 suggest that the company may struggle to cover short-term liabilities as they come due.
Meeting Expectations
Higher values indicate better execution and credibility
Recent Results
EPS
Targa Resources demonstrated a solid track record of adding highly utilized infrastructure, with significant investments in processing plants and pipelines that support growth in NGL capacity. The company has successfully brought new facilities online, such as two processing plants and two NGL fractionators.
Targa is well-positioned in the Permian Basin with dedicated acreage on high-quality rock, which has resulted in robust volume growth. The company’s competitive advantages include strong contract renewals and a focus on optimizing existing assets.
The company expects continued strong volume growth in the Permian Basin, with projections indicating that 2026 could surpass 2025 in growth. New projects like the Delaware Express pipeline and additional fractionators are set to enhance capacity and support future demand.
Targa is committed to returning capital to shareholders while maintaining a strong balance sheet, with plans for opportunistic share repurchases and increasing dividends. The company has also made strategic acquisitions, such as the full ownership of Badlands, which enhances its fee-based cash flow.