Targa Resources Corp.

Natural Gas Transmission

TRGPStrained8 of 11 basics passed

$286.70

-0.62%

Market cap $61.5B

$286.70

-0.62%

Market cap $61.5B

Targa Resources Corp is a midstream firm that mainly operates gathering and processing assets with substantial positions in the Permian, Stack, Scoop, and Bakken plays. It has fractionation capacity at Mont Belvieu and operates a liquefied petroleum gas export terminal.

It is a $61.5B utility company. Revenue shrank 2.0% over the last year, it keeps 14¢ of every dollar of sales as profit, and its net debt equals ~22.3 years of free cash flow. It trades at 27.1× earnings — in the cheapest third of its own history.

Website: targaresources.com
Location: Houston, TX
Employees: 3 570
Sector: Utilities
Founded: 2005

Share price · 3 years

$83.20 → $286.70+244.6%

price only — dividends excluded

Key facts · TTM

Revenue: total sales; $16.7B
Profit: keeps 14¢ of every $1 sold; $2.27B
Free cash flow: cash left after running the business; $741M
Net debt: debt minus cash on hand; $16.5B
P/E: years of profit in the price; 27.1
EPS: earnings per share, TTM; $10.45
Dividend: pays out 41% of profit · 124% of FCF; 1.50%
Shares: up 40% since 2016 — dilution; 216.9M
Volatility: beta vs the market — under 1 swings less; 0.78

Revenue, last 10 years

52-week range

Low $146.30$286.70High $302.25

Today's price is 90% of the way from the year's low to its high.

P/E vs its history5y

27.2×median 31.2×

Higher than 24% of past days — in the cheapest third of its own history.

Valuation vs own history

P/E

27.2×

75%

P/S

3.7×

EV/EBITDA

21.0×

62%

P/B

16.2×

15%

FCF yield

1.2%

12%

Share of the last ~5 years that was pricier than today (pricier than usual). Based on the daily valuation record.

Insider activity · 90 days

-$2.13Mnet selling

Purchases$0

Sales$2.13M

Insiders trading, last 14d0 buy · 0 sell

Standing in Utilities

Size$61.5Btop 19%
Revenue growth-7%top 98%
Net margin14%top 60%
Return on equity72%top 1%
P/E27.1×top 90%
Dividend yield1.50%top 93%

Ranked against 44 Utilities companies with a full CV — for P/E, lower ranks higher.

Skills

Six independent scores, 0–100, built from reported numbers and valuation history. Click a row to see how it was scored.

Strong profitability; Growth, Health and Moat lag behind.

Valuation65

P/E vs own history24th pct · 20/25
FCF yield1.2% · 5/25
P/S3.7x · 20/25
EV/EBITDA14.7x · 20/25

Growth43

Revenue CAGR0.1% · 6/25
Net income CAGR128.0% · 25/25
EPS CAGR ~5Yn/a · 0/25
Fwd implied growth14.6% · 12/25

Profitability77

ROIC9.8% · 12/25
ROE72.2% · 25/25
Net margin13.5% · 20/25
Operating margin22.9% · 20/25

Health16

Altman Zn/a · 0/25
Current ratio0.77 · 6/25
Interest coverage4.0x · 10/25
Net cash / debtD/A 65% · 0/25

Quality54

Piotroski F6/9 · 15/25
Beneish M-2.96 · 25/25
FCF conversion33% · 8/25
Margin stabilityσ 24.0% · 6/25

Moat23

ROIC >12% years2/10 yrs · 0/25
Median gross margin31.5% · 13/25
FCF-positive years7/10 yrs · 10/25
Worst-year net marginworst -18.8% · 0/25

How the scores work →

Experience

The company's career so far — founding, the IPO, landmark products and acquisitions, plus revenue milestones and insider buying.

FY2025Financial
Best year on record
$1.92B net income
2022Acquisition
Targa acquired Southcross Energy Operating LLC for $200 million
FY2020Financial
Positive free cash flow every year since
6-year streak
FY2018Financial
Revenue crossed $1B
$10.5B for the year
FY2018Financial
Revenue crossed $10B
$10.5B for the year
FY2017Financial
Turned profitable
$54.0M net income after a loss year
2017Acquisition
Targa acquired Outrigger Delaware Operating, LLC, Outrigger Southern Delaware Operating, LLC and Outrigger…
2015Acquisition
Targa Resources acquired Oklahoma-based Atlas Pipeline Partners LP and Atlas Energy LP
Oct 27, 2005Founded
Targa Resources was founded on October 27, 2005, and is headquartered in Houston, Texas

Achievements

Verifiable track record, straight from the reported numbers.

#9 largest of 44 Utilities companies by market cap

$10 000 invested in 2021 would be worth ~$64 864 today — price return only

$17.0B revenue in FY2025

Profitable 5 years in a row

Positive free cash flow 6 years in a row

3 570 employees

Strengths & watch-outs

What a bull and a bear would each point to. Both lists come from the reported numbers, not opinions.

Strengths

High gross margin (43.2%)

Watch-outs

Revenue shrinking 2.0% year over year
Loss-making in 3 of the recent years
Net debt equals ~22.3 years of free cash flow

Qualifications

The basics a company should meet before you research it further. Each check uses the reported numbers.

8 of 11 checks passed

Revenue growing — the company sells more than a year ago-2.0% YoY
Profitable — makes more than it spends$2.27B TTM
Profit growing — earnings are higher than last year+19.6% YoY
Generates cash — cash left after running and investing$741M TTM
Debt under control — could handle its obligations~22.3y of cash flow to repay
Established company — not a micro-cap — lower blow-up risk$61.5B market cap
Not printing shares — share count not ballooning — you keep your slice-6.6% shares over ~5y
Proven track record — years of profitability behind it7/10 profitable years
Financially stable — balance sheet not near distresshealth score 16/100
Pays a dividend — returns cash to shareholdersyield 1.50%
Valuation not extreme — price not wildly above earningsP/E 27.1

Peer comparisonTarga Resources Corp. vs 6 largest utilities peers — cap, P/E, growth and margin side by sideOpen ▾

Company	Market cap	P/E	Revenue growth	Net margin	Profile
TRGP this company	$61.5B	27.1	-2.0%	13.5%	Strained
NEE NextEra Energy, Inc.	$161.3B	17.4	+10.8%	32.4%	Strained
CEG Constellation Energy Corporation	$105.8B	30.5	+26.0%	11.1%	Strained
SO The Southern Company	$99.1B	21.3	+6.4%	15.4%	Strained
DUK Duke Energy Corporation	$90.9B	17.3	+6.3%	15.8%	Strained
WMB Williams Companies Inc.	$89.2B	29.0	+8.7%	25.2%	Strained
KMI Kinder Morgan, Inc.	$72.4B	20.9	+12.5%	19.3%	Strained

Head-to-head: TRGP vs NEE · TRGP vs CEG · TRGP vs SO

References

What covering analysts publish about the company — information only, not a recommendation.

Strong buy 9Buy 17Hold 5

Appendix · Financial records

The full statements behind this CV, FY2016–FY2025. For readers who want to check the numbers.

Profit & lossRevenue $16.7B · net income $2.27B (TTM)Open ▾

Profit & loss

Revenue and profit over the company's career — the income statement, visualised.

How FY2025 revenue flows to profit

RevenueNet income

Revenue (TTM)

$16.7B

YoY -2.0%

Net income (TTM)

$2.27B

Margin 13.5%

Gross margin

43.2%

Operating margin

22.9%

P/E ratio

27.1

Dividend yield

1.50%

Income statement — full detail

Figures in USD billions · EPS in USD

	2020	2021	2022	2023	2024	2025
Revenue	8.3	16.9	20.9	16.1	16.4	17.0
Gross profit	3.2	3.2	4.0	5.4	5.7	6.5
Operating income (EBIT)	-1.3	0.9	1.7	2.6	2.7	3.3
Net income	-1.6	0.1	0.9	0.8	1.3	1.9
EPS (diluted)	-6.69	0.31	3.97	3.72	5.93	8.87

Cash flowFree cash flow $741M · operating cash flow $4.29B (TTM)Open ▾

Cash flow statement

Cash generated by the business and what is left after investment — year by year.

Operating cash flowFree cash flow

Free cash flow (TTM)

$741M

Margin 4.4%

Operating cash flow (TTM)

$4.29B

FCF margin

4.4%

Cash flow statement — full detail

Figures in USD billions

	2020	2021	2022	2023	2024	2025
Operating cash flow	1.7	2.3	2.4	3.2	3.6	3.9
Capital expenditure	-1.0	-0.5	-1.3	-2.4	-3.0	-3.3
Free cash flow	0.8	1.8	1.0	0.8	0.7	0.6
FCF margin	9.6%	10.6%	5.0%	5.1%	4.2%	3.4%

Balance sheetAssets $25.2B · net debt $16.5B (FY2025)Open ▾

Balance sheet

How the balance sheet is built — what it owns versus how it is financed.

How $25.2B of assets is financed

88%

Liabilities $22.2B — borrowed moneyEquity $3.07B — owners' stake

Cash vs debt

Total debt $16.7B − cash $166M = net debt $16.5B

Cash on hand covers 1% of debt.

Debt repayment

0.0 yrs

Years of free cash flow to clear net debt

Interest coverage

4.0x

EBIT ÷ interest expense

ROE

72.2%

Profit per $1 of equity

Balance sheet — full detail

Figures in USD billions

	2020	2021	2022	2023	2024	2025
Cash & equivalents	0.2	0.2	0.2	0.1	0.2	0.2
Total assets	15.9	15.2	19.6	20.7	22.7	25.2
Total liabilities	13.2	13.2	14.6	16.1	20.1	22.2
Total debt	7.4	6.4	11.6	13.0	13.8	16.7
Equity	2.7	2.0	5.0	4.6	2.6	3.1
Net debt	7.1	6.3	11.4	12.9	13.6	16.5

Want the live picture — intraday moves, valuation history and full analysis?

Deeper analysis of TRGP on PreMarketPrice

Figures are derived from company filings (quarterly values normalised from as-filed year-to-date data where applicable) and may be delayed, restated or incomplete. This page is information, not investment advice. Latest price $286.70 · market cap $61.5B.