Targa Resources Corp (TRGP)
OvervaluedFundamental
65
Price
$270.31
Market Cap
$59.49B
Part 1 · What the company is worth
Overview
Targa Resources Corp., together with its subsidiaries, owns, operates, acquires, and develops a portfolio of complementary domestic infrastructure assets in North America. It operates in two segments, Gathering and Processing, and Logistics and Transportation. The company is involved in gathering, compressing, treating, processing, transporting, and selling natural gas; storing, fractionating, treating, transporting, and selling natural gas liquids (NGL) and NGL products, including services to liquefied petroleum gas exporters; and gathering, storing, terminaling, purchasing, and selling crude oil. It is involved in the purchase and resale of NGL products; and sale of propane, as well as provision of related logistics services to multi-state retailers, independent retailers, and other end-users. In addition, the company offers NGL balancing services; and transportation services to refineries and petrochemical companies in the Gulf Coast area, as well as purchases, markets, and resells natural gas. The company also leased and owned railcars, tractors, vacuum trucks and pressurized NGL barges. Targa Resources Corp. was incorporated in 2005 and is headquartered in Houston, Texas.
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Direct competitors
Who this company fights with for the same customers
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No competitor list for this company yet.
Balance Sheet & Liquidity
Revenue
$16.74B
Trailing 12 months (through 6/30/2026)
Net Income
$2.27B
Trailing 12 months (through 6/30/2026)
Free Cash Flow
$584M
Total Equity
$3.07B
Total Liabilities
$22.02B
Current Ratio
0.77
Interest Coverage
-
Debt/EBITDA
3.92
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$168.71
Current Price
$270.31
Margin of Safety
-60.2%
Fair Value Range
$109.66 - $227.75
Spread across the valuation methods used, not a statistically calibrated confidence interval.
Estimation Methods
Valuation Metrics
P/E Ratio
25.84
ROE
62.7%
P/B Ratio
15.85
P/FCF
78.23
Gross Margin
43.2%
ROIC
12.1%
Profitability Radar
Value Creation (Economic Moat)
ROIC
12.1%
WACC
6.7%
ROIC − WACC
+5.4 pp
ROIC exceeds the cost of capital — the company is creating value for shareholders.
Fundamental Analysis Criteria
Passed (18)
- EPS shows upward trend
- Price CAGR 17.87%
- ROIC 12.1%
- Gross Margin 43.2%
- Operating Margin 22.9%
- Positive Free Cash Flow
- Current Ratio
- Debt/EBITDA
- Return on Tangible Assets
- Low reliance on intangibles
- ROE 72.2%
- Revenue Growth 5Y 15.6%
- Analyst Consensus 84% Buy
- Earnings Surprise avg 6.3%
- Earnings Quality (OCF/NI) 1.89
- Share Dilution -0.9%
- Net Margin Trend 13.5% vs 10.3%
- Piotroski F-Score 7/9
Failed (6)
- P/FCF 78.23
- P/B Ratio 15.85
- Debt/Equity ratio
- CapEx intensity
- Price below Graham Number
- DCF valuation (Overvalued)
Unavailable (3)
- Dividend Payout NaN%
- Interest Coverage
- PEG Ratio (need PE > 0 and growth > 0)
Piotroski F-Score
Strong financial health
Earnings Quality
High quality: earnings backed by cash
Share Dilution
Buying back shares. Shareholder friendly
Institutional Holdings
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. Matthew J. Meloy | CEO & Director | 47 |
| Ms. Jennifer R. Kneale | President | 46 |
| Mr. Patrick J. McDonie | President of Gathering & Processing | 64 |
| Mr. Robert M. Muraro | Chief Commercial Officer | 48 |
| Mr. William A. Byers | Executive Officer | 48 |
| Mr. Benjamin J. Branstetter | Chief Financial Officer | 40 |
| Mr. John Christopher Eklof | Senior VP & Chief Accounting Officer | 55 |
| Mr. Tristan James Richardson | VP of Investor Relations & Fundamentals | - |
| Mr. Gerald R. Shrader | Executive VP, General Counsel & Secretary | 65 |
| Mr. Denny Latham | Executive Vice President of Permian | - |
Audit Risk
3
Board Risk
2
Compensation Risk
4
Shareholder Rights Risk
9
Part 2 · The price and when to enter
This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Documents
- View document
Annual Report (10-K)
A yearly overview of the business, its financial results, and the risks it faces.
Filed on 2026-02-19
- View document
Quarterly Report (10-Q)
A snapshot of financial performance for the most recent three-month period.
Filed on 2026-08-06
- View document
Current Report (8-K)
An announcement of a major event, such as a leadership change or big news.
Filed on 2026-08-25
via SEC EDGAR
Income History
via SEC EDGAR
Latest News
Recent headlines for TRGP, sourced from Markets Gazette.
- 5/25/2026POSITIVEIf You Invested $1000 In Targa Resources Stock 5 Years Ago, You Would Have This Much Today
An investment of $1000 in Targa Resources Inc. (TRGP) five years ago would have yielded a significant return, illustrating the company's strong performance in the energy infrastructure sector. While specific figures are not provided in the prompt, the implication of a substantial increase suggests robust operational growth and favorable market conditions for midstream energy companies. Targa Resources, involved in gathering, processing, and transporting natural gas and NGLs, has likely benefited from increased energy demand and strategic expansions. Investors considering TRGP should note its historical performance as an indicator of potential future gains, alongside current market dynamics and company-specific developments.
- 2/23/2026NEUTRALIf You Invested $100 In Targa Resources Stock 10 Years Ago, You Would Have This Much Today
A retrospective analysis of Targa Resources' (TRGP) performance highlights the value generated for long-term investors. Articles of this nature, which calculate the return on an initial investment over a ten-year horizon, are often indicative of solid past growth and effective company management. Targa Resources, a key player in the US midstream energy sector, has evidently rewarded its patient shareholders. Although past performance is no guarantee of future results, this type of evaluation serves to contextualize the stock's trajectory and bolster its market reputation. For investors, it is a reminder of the potential of buy-and-hold strategies in companies with strong fundamentals, but it does not constitute new information capable of altering current valuations.
via Markets Gazette