Targa Resources Corp. (TRGP)
Energy · Oil & Gas Storage & Transportation · US stock · S&P 500 component
$289.54
▼ -6.06 (2.05%)
Fair valueOvervalued
$209 −27.8% to fair value
$105fair band $178–$253$314
Day's range
$281.93 – $297.98
52-week range
$150.00 – $307.94
Red flags⚠ Dividend may be at risk⚠ Dividend may be at risk⚠ Dividend may be at risk⚠ Dividend may be at risk⚠ Dividend may be at risk
About Targa Resources Corp.
Targa Resources owns midstream infrastructure that gathers, processes and moves natural gas and natural gas liquids. Its pipelines and plants in the Permian Basin and other producing regions collect gas from producers, remove liquids such as ethane and propane, and deliver them to fractionation facilities, storage and export terminals. Customers are oil and gas producers, petrochemical companies, utilities and exporters.
Targa earns revenue mostly from fees for gathering, processing, transporting and fractionating, plus income from the gas and liquids it markets. The last twelve months produced $16.7 billion, though revenue growth over the last three years was -6.6% a year, a decline. The operating margin is 22.9%, and the business earns a profit of 13% on the capital invested in it. It has net debt of 3.4 times EBITDA. A dividend is paid, with a yield of 1.6%. On the site's X-Ray Score it receives 42 out of 100.
Price chart
52-wk range $150.00 – $307.94Volume 1,632,780Daily, split-adjusted
Vitals
Market cap$62.3B
52-week range$150.00 – $307.94
Volume (last day)1,632,780
P/E (TTM)27.6
EBIT / EV yield4.7%
Free-cash-flow yield1.2%
Dividend yield1.6%
Revenue (TTM)$16.7B
Net income (TTM)$2.3B
Operating margin22.9%
Return on capital13.4%
Debt incl. leases$19.0B
Cash & securities$132M
Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies that hold large long-term investments). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.
Fair value estimate
$209middle half of models $175 – $236
Overvalued
−27.8% to fair value
Average of the 14 valuation models that pass our checks: multiples, discounted cash flow, dividend discount and earnings power value. A model more than 100% above or 60% below the price is left out as unrealistic. Model uncertainty is High, based on how far apart the models are. Undervalued or Overvalued means the gap to fair value is more than 17.5%.
Peak-cycle earnings: the current operating margin is more than 1.5x its 7-year average, so multiples applied to today's profit may overstate value; model uncertainty is set to High
Price $290
Undervalued < $178Fair $178 – $253Overvalued > $253
P/E multiple
$285
P/B multiple
$210
P/S multiple
$224
EV/EBITDA multiple
$267
EV/EBIT multiple
$257
EV/revenue multiple
$240
10-year DCF, EBITDA exit
$161
5-year DCF, EBITDA exit
$201
10-year DCF, revenue exit
$160
5-year DCF, revenue exit
$194
10-year DCF, growth exit · not used
$112
5-year DCF, growth exit
$143
Dividend discount, stable
$168
Dividend discount, multi-stage
$217
Earnings power value
$198
Growth the price implies
12.3%/yr
A model estimate, not a price target or recommendation. Inputs: risk-free 5.13%, equity risk premium 4.30% (Damodaran). How it works.
What this means
Weak business, priced high
Our models put fair value below today's price, so a lot of good news may already be in the price. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.
Before you invest · decision checklist
Ticked boxes are filled in from our data; the rest are yours to answer.
The five-lens scan
Every score explained in one sentence, ranked against Energy peers. Open a lens to see the numbers behind it.
Strong: 70 to 100Fair: 50 to 69Weak: under 50No score: not enough data
Valuation
Weak
10/100
Expensive against its sector on earnings and cash flow.
See the numbers →
EBIT / EV yield4.7%
Free-cash-flow yield1.2%
Fair value vs price0.7×
Growth
Fair
60/100
Growing at a typical pace for its sector.
See the numbers →
Revenue growth (3y)-6.6%
EPS growth (3y)29.8%
Growth consistency60%
Profitability
Fair
57/100
Returns on capital are typical for its sector.
See the numbers →
Return on invested capital13.4%
Operating margin22.9%
Gross profitability25.4%
Financial health
Weak
43/100
Balance sheet is more stretched than most peers.
See the numbers →
Piotroski F-Score6 / 9
Net debt / EBITDA3.4×
Interest coverNo interest cost
Dividends
Weak
45/100
Dividend is modest or less certain than peers.
See the numbers →
Dividend yield1.6%
Dividends vs free cash flow131%
Dividend growth36.8%
Quarterly results: last 6 quarters
0.0%
Mar '25
+19.6%
Jun '25
+7.8%
Sep '25
-7.9%
Dec '25
-10.2%
Mar '26
+4.2%
Jun '26
Revenue against the same quarter a year earlier. Latest quarter revenue $4.4B, diluted EPS $3.54.
Compare with peers
OKE Oneok Inc52 KMI Kinder Morgan, Inc.43 WMB Williams Companies, In...38Other Oil & Gas Storage & Transportation companies by X-Ray Score.
SWOT analysis: Targa Resources Corp.
Strengthsinside the company
- Return on invested capital is 13.4%, against a median of 8.1% for industry peers.
- Earnings per share have compounded at 29.8% a year over three years.
- Operating profit covers interest 50x, so debt costs are a small drag.
Weaknessesinside the company
- Revenue has fallen 6.6% a year over three years (median -4.1% for industry peers).
- Altman Z-score of 1.2 is in the zone linked with financial distress in past studies.
- Dividends (1.6% yield) are larger than free cash flow (payout 131% of it).
Opportunitiesvaluation and setting
- Our Market Compass rates the backdrop for Energy as favourable.
- Price momentum is strong on the weekly and monthly signals (trends can reverse).
Threatsvaluation and setting
- The price is 28% above our fair value estimate, so there is little room for disappointment.
- Valuation uncertainty is high: the models give widely different values, so the fair value range is wide.
- Our checks raised: Dividend may be at risk; Dividend may be at risk.
Written by fixed rules from the figures on this page and the peer table below: filings, our fair value, the sector climate and the price trend. It summarises the data, it is not a forecast or advice.
Compare TRGP with peers and sector
Medians of 3 Oil & Gas Storage & Transportation peers and of 19 Energy stocks in our universe.
Largest peers (X-Ray Score): WMB 38, KMI 43, OKE 52.
| Metric | TRGP | Peers | Sector |
|---|---|---|---|
| X-Ray Score (out of 100) | 42 | 43 | 50 |
| Valuation | 10 | 24 | 60 |
| Growth | 60 | 70 | 52 |
| Profitability | 57 | 32 | 49 |
| Financial health | 43 | 26 | 55 |
| Dividends | 45 | 68 | 55 |
Sector leaders: highest X-Ray Score in Energy
TRGP ranks #16 of 20 in Energy and #3 of 4 in Oil & Gas Storage & Transportation by X-Ray Score. A higher score is stronger on our five pillars; it is a ranking of facts, not a forecast.
Green means better than the peer median, red worse (only where a higher or lower figure is clearly better). A dash means too few companies report the figure. P/E, EV/EBITDA and price changes are not graded: a different level is not good or bad by itself.
Factor ratings for TRGP
Each factor is rated by where TRGP stands among the 20 Energy stocks in our universe.
Rating against the sector
Goodthe top third of these stocks
Averagethe middle third of these stocks
Badthe bottom third of these stocks
"Beats" is the share of those stocks it is ahead of.
Against its own history
The last columns set today's figure against the company's own median of its last five financial years:
▲ Betterbetter than its usual level
▼ Worseworse than its usual level
≈ In linewithin its usual range
For valuation factors Good means cheaper than most of the sector and Better means cheaper than usual for this company, which is not the same as a bargain.
In total: 5 Good · 10 Average · 8 Bad of 23
Growth: 1 · 2 · 0
Profitability: 2 · 3 · 0
Financial strength: 1 · 1 · 2
Valuation: 0 · 0 · 5
Cash flow: 0 · 3 · 1
Efficiency: 1 · 1 · 0
| Factor | TRGP | Rating | Sector median | Own 5-year median | Against own history |
|---|---|---|---|---|---|
| Growth | |||||
| Revenue growth, 3 years a year | −6.6% | Average beats 45% | −5.7% | – | – |
| Revenue growth, last year | +3.9% | Average beats 50% | +3.9% | +3.9% | ≈ In line |
| EPS growth, 3 years a year | +29.8% | Good beats 97% | −22.6% | – | – |
| Profitability | |||||
| Gross margin | 43.2% | Average beats 44% | 47.1% | 33.5% | ▲ Better |
| Operating margin | 22.9% | Average beats 47% | 23.0% | 16.4% | ▲ Better |
| Net margin | 13.5% | Average beats 50% | 13.5% | 8.0% | ▲ Better |
| Return on invested capital | 13.4% | Good beats 71% | 12.3% | – | – |
| Return on equity | 62.0% | Good beats 98% | 15.2% | 49.1% | ▲ Better |
| Financial strength | |||||
| Net debt / EBITDA | 3.4x | Bad beats 19% | 1.1x | 3.4x | ≈ In line |
| Interest cover | 50.0x | Good beats 76% | 22.5x | – | – |
| Current ratio | 0.77 | Bad beats 33% | 1.19 | 0.77 | ≈ In line |
| Piotroski F-score | 6 / 9 | Average beats 57% | 6 / 9 | – | – |
| Valuation | |||||
| P/E ratio | 27.5x | Bad beats 18% | 17.4x | 20.8x | ▼ Worse |
| Price / book | 17.0x | Bad beats 3% | 2.6x | 7.2x | ▼ Worse |
| Price / sales | 3.7x | Bad beats 18% | 2.3x | 1.2x | ▼ Worse |
| EV / EBITDA | 14.8x | Bad beats 13% | 9.4x | 10.6x | ▼ Worse |
| Free cash flow yield | 1.2% | Bad beats 12% | 6.2% | 4.2% | ▼ Worse |
| Cash flow | |||||
| Free cash flow margin | 4.4% | Bad beats 8% | 13.2% | 5.0% | ≈ In line |
| Cash from operations / net income | 1.89 | Average beats 38% | 1.95 | 2.39 | ▼ Worse |
| Free cash flow growth, 3 years a year | −17.7% | Average beats 50% | −17.7% | – | – |
| Accruals (lower is better) | −7.1% | Average beats 53% | −6.6% | – | – |
| Efficiency | |||||
| Inventory turnover | 30.5x | Good beats 94% | 4.2x | 32.0x | ≈ In line |
| Days sales outstanding | 43 days | Average beats 50% | 43 days | 32 days | ▼ Worse |
These ratings compare companies with each other and describe the past; they are not a forecast, a recommendation or part of the X-Ray Score. A factor is left out when its data is missing or meaningless (for example a P/E on negative earnings). A dash in the history columns means fewer than three usable years.
Fundamentals checklist
● 4 Good · ● 6 Average · ● 6 BadCash quality
Earnings backed by cashAverage
Free-cash-flow yieldBad
Risk models
Altman Z''Bad
Piotroski F-ScoreAverage
Growth
EPS growth (3y)Good
Free-cash-flow growth (3y)Average
Revenue growth (3y)Average
Growth consistencyAverage
Balance sheet
Current ratioBad
Net debt / EBITDABad
Interest coverGood
Valuation
Fair value vs priceBad
EBIT / EV yieldBad
Profitability
Return on invested capitalGood
Operating marginAverage
Gross profitabilityGood
Each check is graded against the company's sector, not a fixed number. Checklist score 44/100.
Financials
| FY21 | FY22 | FY23 | FY24 | FY25 | |
|---|---|---|---|---|---|
| Revenue | $16.9B | $20.9B | $16.1B | $16.4B | $17.0B |
| Operating income | $865M | $1.7B | $2.6B | $2.7B | $3.3B |
| Net income | $71M | $1.2B | $1.3B | $1.3B | $1.9B |
| Operating cash flow | $2.3B | $2.4B | $3.2B | $3.6B | $3.9B |
| Operating margin | 5.1% | 8.3% | 16.4% | 16.5% | 19.6% |
| Free cash flow | $1.8B | $1.0B | $826M | $684M | $584M |
| Diluted EPS | $-0.07 | $3.88 | $3.66 | $5.74 | $8.49 |
Fiscal years, from SEC filings.
Technical summary
Daily
Bullish
10 bullish · 4 neutral · 2 bearish
Weekly
Strongly bullish
11 bullish · 1 neutral · 0 bearish
Monthly
Strongly bullish
7 bullish · 0 neutral · 1 bearish
Moving averages (daily)
| SMA 10 | 290.9 | Bearish |
| EMA 10 | 290.5 | Bearish |
| SMA 20 | 285.7 | Bullish |
| EMA 20 | 288.5 | Bullish |
| SMA 50 | 287.8 | Bullish |
| EMA 50 | 284.8 | Bullish |
| SMA 100 | 278.1 | Bullish |
| EMA 100 | 275.9 | Bullish |
| SMA 200 | 254.4 | Bullish |
| EMA 200 | 254.9 | Bullish |
Oscillators (daily)
| RSI (14) | 51.87 | Neutral |
| MACD (12, 26) | 2.22 | Bullish |
| Momentum (12) | 1.34 | Bullish |
| Stochastic %K (14) | 59.52 | Neutral |
| Williams %R (14) | -40.48 | Neutral |
| CCI (20) | 46.21 | Neutral |
Pivot points (classic, last session)
S3 265.6 | S2 273.8 | S1 281.7 | Pivot 289.8 | R1 297.7 | R2 305.9 | R3 313.8 |
Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.
Dividends
Paid, last 12 months
4.50 USD
Yield on today's price
1.55%
Frequency
Quarterly
Next ex-dividend date
30 Oct 2026
| Ex-dividend date | Amount per share |
|---|---|
| (upcoming) | 1.2500 |
| 1.2500 | |
| 1.2500 | |
| 1.0000 | |
| 1.0000 | |
| 1.0000 | |
| 1.0000 | |
| 0.7500 | |
| 0.7500 | |
| 0.7500 | |
| 0.7500 | |
| 0.5000 |
Ex-dividend dates and amounts from EODHD. Shown as declared, before tax.
ETFs that hold TRGP
| ETF | Share of the fund |
|---|---|
| MLPX Global X MLP & Energy Infrastructure | 4.98% |
| XLE Energy Select Sector SPDR | 3.45% |
| ERX Direxion Daily Energy Bull 2X | 2.55% |
| IYE iShares U.S. Energy | 2.52% |
| VDE Vanguard Energy | 2.30% |
| FENY Fidelity MSCI Energy Index | 2.29% |
| IGF iShares Global Infrastructure | 1.93% |
| IXC iShares Global Energy | 1.79% |
The eight funds with the largest weight in TRGP among the ETFs we cover, from each fund's latest SEC Form N-PORT (quarter-end positions, so they can be months old). All ETFs.
TRGP SEC filings
8-KSEC EDGAR
Director or officer change
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Results of operations; Regulation FD disclosure
8-KSEC EDGAR
Director or officer change
8-KSEC EDGAR
Entered a material agreement
8-KSEC EDGAR
Shareholder vote results
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Results of operations; Regulation FD disclosure
Where the numbers come from
Statements SEC EDGAR filings (10-K, 10-Q), quarters derived from year-to-date figures.
Prices end-of-day closes, split-adjusted.
Industry inputs beta, multiples and equity risk premium from Damodaran Online (NYU Stern).
StocksXray is for education only and is not financial advice. Scores and fair values are model estimates from public filings and carry uncertainty.