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TRGP

S&P 500
Neutral · 51/100

Targa Resources

Energy
Oil & Gas Storage & Transportation

$264.51

2.3%

Updated Today 7:15 PM ET

Price — Past Year

▲ Up 52.7% over the last 12 months

Price 50-day average 200-day averageSource: Yahoo Finance · refreshed daily
Key Metrics

Market Cap

$55.50B

P/E

26.3x

Forward P/E (est.)

18.78x

ROE

74.2%

Revenue Growth

1.1%

EPS Growth

65.9%

Profit Margin

12.9%

FCF Yield

5.0%

Debt / Equity

5.68x

ROIC

12.0%

Interest Coverage

24.84x

Current Ratio

0.72x

Dividend Yield

1.9%

Implied Growth (rev. DCF)

7.9%

Rating Score

51/100

Technical Analysis (Educational)
Research

Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what TRGP's chart says today, with each tool explained.

Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. TRGP trades near $264.51, above its 50-day average ($256.05) and 200-day average ($206.45). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.

Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 49 it is in neutral territory — neither stretched nor washed out.

MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently negative — short-term momentum is fading.

Volatility — ATR. Average True Range is the typical daily move. TRGP's is $7.04 (~2.7% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.

Support & resistance. Over the last month TRGP found buyers near $252.97 (support) and sellers near $280.00 (resistance); its 52-week range is $144.14–$280.00. A decisive break beyond either edge often marks the next move.

Volume. The latest session traded 1.1× the 20-day average — about normal. Rising volume on up-days suggests real buying; on down-days, real selling.

Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.

Business Overview
Research

Targa Resources (TRGP) is a large-cap company in the Oil & Gas Storage & Transportation industry, part of the Energy sector of the S&P 500, with a market value around $55.50B.

In its latest reported year it generated about $17.03B in revenue and $1.92B in net profit.

Our model rates TRGP Neutral (51/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.

Revenue Growth
Research

4Y CAGR

0.1%

Revenue moved from $16.95B in 2021 to $17.03B in 2025, a 0.1% compound annual growth rate. The most recent year was roughly flat (1.1%) year over year. Slower, mature growth is common for established businesses.

Profitability
Research

Gross Margin

41.8%

Operating Margin

19.6%

Net Margin

11.3%

ROE

74.2%

Targa Resources keeps about 12.9% of each sales dollar as net profit, with a 41.8% gross margin and 19.6% operating margin. Return on equity is 74.2% and return on invested capital about 12.0%. Margins are moderate — typical of a competitive but profitable business.

Debt Analysis
Research

Total Debt

$19.13B

Net Debt

$19.03B

Net Debt / EBITDA

5.71x

Debt / Equity

5.68x

Leverage: debt-to-equity is 5.7x, and operating profit covers interest about 24.8x, with a current ratio of 0.7x. That is elevated leverage, which raises risk if earnings or rates move against it. It carries roughly $19.13B of total debt against $100.10M of cash.

Cash Flow Analysis
Research

Operating CF

$3.92B

Free Cash Flow

$584.10M

FCF Margin

3.4%

In the latest year Targa Resources produced about $3.92B of operating cash flow and $584.10M of free cash flow after capital spending. That is a free-cash-flow yield of about 5.0% on today's price. Strong cash generation funds dividends, buybacks, and reinvestment.

Valuation Analysis
Research

P/E

26.3x

P/S

3.31x

P/B

12.85x

EV / EBITDA

15.43x

TRGP trades at 26.3x trailing earnings (about 18.8x on estimated forward earnings), 3.3x sales, and 12.9x book value. Reverse-engineering today's price implies the market expects roughly 7.9% long-term free-cash-flow growth. That is a premium multiple that needs growth to justify it.

Metrics vs. Typical Range

Where this stock sits versus what most companies trade at.

TTM P/E
26.3xExpensive
Forward P/E
18.8xFair
P/S ratio
3.3xExpensive
Revenue growth
1.1%Weak
EPS growth
65.9%Strong
Gross margin
41.8%Average
Net margin
12.9%Strong
ROE
74.2%Strong

Typical ranges are general references (e.g., many stocks trade at ~18–26x earnings), not hard rules. Context only — not investment advice.

Sector Peer Comparison

How TRGP stacks up against its Energy peers — valuation, profitability, and growth versus the sector median.

In the Energy sector (21 S&P 500 companies), TRGP ranks #14 of 21 by our overall rating. It trades at a premium versus the sector on earnings (26.3x P/E vs. 18.9x median) with a higher return on equity (74.2% vs. 14.8%) and faster revenue growth (1.1% vs. -0.4%).

P/E vs sector

26.3x

median 18.9x

ROE vs sector

74.2%

median 14.8%

Growth vs sector

1.1%

median -0.4%

Sector rank

#14

of 21 by rating

CompanyP/ERev Gr.Rating
TRGPThis stock26.3x1.1%Neutral· 51
OKE15.1x-14.7%Neutral· 42
KMI21.2x13.1%Favorable· 68
WMB32x10.7%Favorable· 59
BKR18.9x0.2%Neutral· 53
FANG180.5x18.1%Weak· 37
OXY10.9x-8.0%Favorable· 65
DVN21.4x-1.5%Neutral· 50
Energy median18.9x-0.4%53/100

Valuation vs. quality map

sector medianOKEKMIWMBBKRFANGOXYDVNTRGPP/E — cheaper ←→ pricierROE — more profitable ↑

The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.

Compare side by side

Peers are the closest Energy companies by sub-industry and size. Sector median is across all 21 S&P 500 names in the sector. Educational, not a recommendation.

5-Year Projection Model

Project revenue → earnings → price. Edit the assumptions to build your own case.

2030 price target (Base Case)

$161.86$263.03

vs. $264.51 today · expected CAGR -9%-0%

Metric20262027202820292030
Revenue$17.54B$18.07B$18.61B$19.17B$19.74B
Net income$1.93B$1.99B$2.05B$2.11B$2.17B
EPS$8.99$9.26$9.54$9.82$10.12
Share price (low)$143.81$148.13$152.57$157.15$161.86
Share price (high)$233.70$240.71$247.93$255.37$263.03
CAGR (low–high)-46% / -12%-25% / -5%-17% / -2%-12% / -1%-9% / -0%

Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.

Bull Case

The case for TRGP:

  • Strong return on equity (74.2%) shows capital is put to work well.
  • Healthy free-cash-flow yield (~5.0%) funds buybacks and dividends.
Bear Case

The case against TRGP:

  • Revenue growth is slow (1.1%), limiting the upside engine.
  • Elevated leverage (debt/equity 5.7x) adds financial risk.
Key Risks
Research

Balance-sheet risk — debt/equity of 5.7x magnifies the impact of higher rates or weaker earnings.

Growth risk — sluggish revenue (1.1%) leaves little margin for execution missteps.

Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.

Investment Thesis
Research

On balance, the picture is mixed: Targa Resources is a large-cap energy business growing at a mature pace, with solid profitability, and a heavier debt load to watch. It trades at 26.3x earnings, which our model scores Neutral (51/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.

Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.

Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.