Targa Resources (TRGP)
Energy · $62.0B market cap · SEC CIK 0001389170
fundamentals score out of 100
Next reports on Nov 3, 2026, before the open, with analysts expecting $2.74 in earnings per share.
The case for TRGP
- Earns 72% on shareholder equity, a figure flattered by a small equity base.
- Earnings per share up 40.4%.
- A PEG of 0.68: a P/E of 27.4× is low for EPS growing 40%.
- Has compounded revenue at 15.6% a year over five years.
- Moves less than the market (beta 0.78).
- Pays a modest 2.3% dividend.
The case against
- Revenue was flat on the year (-2.0%).
- Only 30% of FY2025's $1.9B profit arrived as free cash.
- Current liabilities exceed current assets (ratio 0.77).
- Free cash flow is only 0.9% of its market value, a thin cash return for the price.
- Long-term debt of $17.4B against $166M of cash.
- P/E of 27.4× is higher than 85% of Energy companies.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Energy companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 25 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 56 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 58 |
| Momentumhow the price has behaved lately | 83 |
| Stabilityhow violently it moves, what it owes and what it pays you | 30 |
- Each factor except momentum is half fixed thresholds, half rank among the 21 Energy companies.
Key numbers
| Price / earnings | 27.4× |
|---|---|
| Price / book | 15.74× |
| Price / sales | 3.7× |
| Revenue growth (YoY) | -2.0% |
| EPS growth (YoY) | +40.4% |
| Gross margin | 43% |
| Operating margin | 23% |
| Net margin | 14% |
| Return on equity | 72% |
| Debt / equity | 5.35× |
| Current ratio | 0.77 |
| Dividend yield | 2.28% |
| Beta | 0.78 |
| 52-week range | $144.14 – $307.94 |
| Position in that range | 84% of the way up |
| 3-month return | +11.9% |
| 1-year return | +76.0% |
Five years of financials, as filed
Pulled from Targa Resources's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $17.0B | $14.1B | $13.5B | $19.8B | $16.1B |
| Operating income | $3.3B | $2.7B | $2.6B | $1.7B | $865M |
| Net income | $1.9B | $1.3B | $1.3B | $1.2B | $71.2M |
| Operating cash flow | $3.9B | $3.6B | $3.2B | $2.4B | $2.3B |
| Capital expenditure | $3.3B | $3.0B | $2.4B | $1.3B | $505M |
| Total assets | $25.2B | $22.7B | $20.7B | $19.6B | $15.2B |
| Shareholder equity | $3.1B | $2.6B | $2.7B | $2.7B | $2.0B |
| Cash | $166M | $157M | $142M | $219M | $159M |
| Long-term debt | $17.4B | $14.2B | $13.0B | $11.5B | $6.6B |
| Free cash flow | $584M | $684M | $826M | $1.0B | $1.8B |
| Operating margin | 19.6% | 19.1% | 19.4% | 8.7% | 5.4% |
| Net margin | 11.3% | 9.3% | 10.0% | 6.0% | 0.4% |
| Diluted shares | 217M | 221M | 226M | 231M | 229M |
Share count is down 5.1% over 4 years. Buybacks have been shrinking the pie.
What Targa Resources says it does
—Our Business Operations." (6) Badlands natural gas inlet represents the total wellhead volume and includes the Targa volumes processed at the LM4 plant. (7) Average realized prices, net of fees, include the effect of realized commodity hedge gain/loss attributable to our equity volumes. The price is calculated using total commodity sales plus the hedge gain/loss as the numerator and total sales volume as the denominator, net of fees. The following table presents the realized commodity hedge gain (loss) attributable to our equity volumes that are included in the adjusted operating margin of the Gathering and Processing segment: Year Ended December 31, 2025 Year Ended December 31, 2024 (In millions, except volumetric data and price amounts) Volume Settled Price Spread (1) Gain (Loss) Volume Settled Price Spread (1) Gain (Loss) Natural gas (BBtu) 30.1 $ 1.711 $ 51.5 43.7 $ 1.924 $ 84.1 NGL (MMgal) 304.9 (0.005 ) (1.5 ) 449.8 0.035 15.8…
Risk factors TRGP lists in its 10-K
- Volumes and Demand for our Services
- Contract Terms, Contract Mix and the Impact of Commodity Prices
- Impact of Our Commodity Price Hedging Activities
- Volatile Capital Markets and Competition
- Throughput Volumes, Facility Efficiencies and Fuel Consumption
- from Operations and Adjusted Free Cash Flow
- Reconciliation of Net income (loss) attributable to Targa Resources Corp. to Adjusted EBITDA, Adjusted Cash Flow from Operations and Adjusted Free Cash Flow
- Results of Operations—By Reportable Segment
- (In millions, except operating statistics and price amounts)
- (In millions, except volumetric data and price amounts)
- Logistics and Transportation Segment
- (In millions, except operating statistics)
- Our Liquidity and Capital Resources
- Cash Flows from Operating Activities