NYSE
TRGP
Last Price
US $258.88
KEY FIGURES
MKT CAP
$58.5B
EPS
TTM
$9.88
PEG
TTM
0.34x
P/E
TTM
27.65x
P/S
TTM
3.41x
YIELD
1.56%
GROWTH
Revenue Y/Y
Valuation
Financial
Performance
Financial risk - Cash flow debt coverage.
Targa Resources Corp. cash flow to debt ratio of 22.33% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.
Financial risk - Healthy cash flow growth.
Targa Resources Corp.'s free cash flow has decreased -14.59% from $683.90M last year to $584.10M, signaling decreasing performance
Financial risk - Healthy debt to equity ratio.
Targa Resources Corp.'s debt to equity ratio is 6.10, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy
Financial risk - Healthy debt to equity ratio development.
Targa Resources Corp.'s debt has increased relative to shareholder equity from 5.50 last year to 6.10 today, signaling weakened financials
Financial risk - Net debt/EBITDA.
Targa Resources Corp. has a net debt to EBITDA ratio of 3.58x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk
Financial stability - ICR.
Targa Resources Corp.'s interest coverage ratio of 5.27 indicates that earnings with good margin can cover interest payments on company debt
Financial stability - Profit margin growth.
Targa Resources Corp.'s profit margin has increased (69.95%) in the last year from 7.64% to 12.98%, signaling increasing performance
Financial risk - Short term assets vs short term liabilities.
Targa Resources Corp.'s short-term liabilities of $3.55G exceed its short-term assets of $2.36G, signaling financial risk
Increasing performance - ROA.
Targa Resources Corp.'s return on assets of 7.84% is higher than the 5.00% threshold, indicating efficient asset utilization
Increasing performance - Absolute return on equity.
Targa Resources Corp.'s return on equity of 73.92%, is higher than 15.00%, indicating good performance
Increasing performance - Earnings quality.
Targa Resources Corp.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Increasing performance - Earnings stability.
Targa Resources Corp. had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings
Increasing performance - Free cash flow.
Targa Resources Corp. has positive free cash flow, indicating the company generates cash after capital expenditures
Decreasing performance - FCF yield.
Targa Resources Corp. has a free cash flow yield of 1.00%, which is below the 2.00% threshold, indicating limited cash return relative to market value
Increasing performance - Healthy earnings growth.
Targa Resources Corp.'s yearly earnings has increased 45.29% since last year from $1.27G to $1.84G, signaling increasing performance
Increasing performance - Healthy revenue growth.
Targa Resources Corp.'s yearly revenue has increased 3.06% since last year from $16.63G to $17.14G, signaling increasing performance
Increasing performance - ROIC.
ROIC 11.17% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.
Decreasing performance - 3-year revenue CAGR.
Targa Resources Corp.'s 3-year revenue CAGR of -7.55% is negative, indicating declining revenue over the past 3 years
Increasing performance - Revenue consistency.
Targa Resources Corp. had revenue growth in 4.00 out of 5 years, indicating consistent revenue performance
Increasing performance - ROE consistency.
Targa Resources Corp. had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity
Overvalued - DCF valuation.
Targa Resources Corp. has insufficient data to evaluate this check.
Overvalued - Earnings yield.
Targa Resources Corp. has an earnings yield of 3.63%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings
Overvalued - EBITDA valuation.
Targa Resources Corp. is overvalued relative to its fair value price of 77.24 based on EBITDA multiple model
Undervalued - EV/EBITDA.
Targa Resources Corp. has an EV/EBITDA ratio of 15.59x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
Undervalued - PEG ratio value.
Targa Resources Corp. has a PEG-ratio under 1 which is considered undervalued
Overvalued - P/B ratio.
Targa Resources Corp. has a price-to-book ratio of 18.69x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value
Undervalued - P/S ratio.
Targa Resources Corp. has a price-to-sales ratio of 3.57x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue
Profit margin
Current Ratio
Capital Returns
73.92%
Return on equity
ROIC: 11.17%
Valuation History
27.6X
Price to Earnings
EV/EBITDA: 15.6X
Cash flow
Profit margin
15.68%
(FY vs FY)
EBITDA Y/Y
-
(FY vs FY)
Cash flow Y/Y
-5.93%
(FY vs FY)
Cash Flow (DCF)
Fair Value
Market $258.88
—
Default assumptions
EBITDA Multiple
Fair Value
Market $258.88
-70.16%
Default assumptions
Base valuations use default assumptions. Customize in the Valuator.