📊 TRGP Key Takeaways
Is Targa Resources Corp. (TRGP) a Good Investment?
Despite strong profitability margins (20.7% operating margin) and solid operating cash flow of $739.5M, Targa Resources is severely overleveraged with a 6.1x debt-to-equity ratio and generates negative free cash flow of -$160M, indicating the company cannot self-fund its $899.5M capital expenditures. Weak liquidity ratios (0.72x current ratio) with only $100.1M cash against $19.1B debt create significant refinancing risk.
Targa Resources Corp. Key Strengths (TRGP)
- Strong profitability with 62.3% gross margin and 11.7% net margin
- Generates substantial operating cash flow of $739.5M from core business
- Adequate interest coverage ratio of 8.0x provides debt service cushion
- Steady revenue growth of 3.9% YoY demonstrates business stability in natural gas transmission sector
TRGP Stock Risks: Targa Resources Corp. Investment Risks
- Extreme leverage at 6.10x debt-to-equity ratio creates financial fragility and refinancing exposure
- Negative free cash flow of -$160M reveals company spends more on capex than operating cash generation
- Critical liquidity deficit with current ratio of 0.72x and minimal cash reserves relative to $19.1B debt load
- Capital-intensive infrastructure model requires continuous large capex exceeding organic cash generation
- Limited financial flexibility to weather operational disruptions or market downturns given debt burden
Key Metrics to Watch
- Free cash flow trajectory - must turn positive for financial viability
- Debt-to-equity ratio - needs substantial reduction from current 6.10x
- Capex as percentage of operating cash flow - monitor sustainability of investment levels
- Cash position and refinancing activity - critical given $19.1B debt maturity profile
- Operating cash flow growth rate - must exceed capex growth to improve financial position
Targa Resources Corp. (TRGP) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
TRGP Profit Margin, ROE & Profitability Analysis
TRGP vs Energy Sector: How Targa Resources Corp. Compares
How Targa Resources Corp. compares to Energy sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Targa Resources Corp. Stock Overvalued? TRGP Valuation Analysis 2026
Based on fundamental analysis, Targa Resources Corp. has mixed fundamental signals relative to the Energy sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Targa Resources Corp. Balance Sheet: TRGP Debt, Cash & Liquidity
TRGP Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Targa Resources Corp.'s revenue has grown significantly by 112% over the 5-year period, indicating strong business expansion. The most recent EPS of $3.66 reflects profitable operations.
TRGP Revenue Growth, EPS Growth & YoY Performance
TRGP Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2024 | $2.7B | $298.5M | $1.33 |
| Q1 2024 | $3.8B | $275.2M | $0.03 |
| Q3 2023 | $3.4B | $193.1M | $0.84 |
| Q2 2023 | $2.7B | $329.3M | $1.44 |
| Q1 2023 | $3.8B | $88.0M | $0.03 |
| Q3 2022 | $4.2B | $182.2M | $0.66 |
| Q2 2022 | $3.2B | $56.2M | $0.15 |
| Q1 2022 | $3.5B | $88.0M | $0.06 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Targa Resources Corp. Dividends, Buybacks & Capital Allocation
TRGP SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Targa Resources Corp. (CIK: 0001389170)
📋 Recent SEC Filings
❓ Frequently Asked Questions about TRGP
What is the AI rating for TRGP?
Targa Resources Corp. (TRGP) has an AI grade of C with 65% confidence, based on fundamental analysis of SEC EDGAR filings.
What are TRGP's key strengths?
Claude: Strong profitability with 62.3% gross margin and 11.7% net margin. Generates substantial operating cash flow of $739.5M from core business.
What are the risks of investing in TRGP?
Claude: Extreme leverage at 6.10x debt-to-equity ratio creates financial fragility and refinancing exposure. Negative free cash flow of -$160M reveals company spends more on capex than operating cash generation.
What is TRGP's revenue and growth?
Targa Resources Corp. reported revenue of $4.1B.
Does TRGP pay dividends?
Targa Resources Corp. pays dividends, with $51.4M distributed to shareholders in the trailing twelve months.
Where can I find TRGP SEC filings?
Official SEC filings for Targa Resources Corp. (CIK: 0001389170) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is TRGP's EPS?
Targa Resources Corp. has a diluted EPS of $2.21.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is TRGP's fundamental grade?
Based on our AI fundamental analysis in June 2026, Targa Resources Corp. has a C grade with 65% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is TRGP stock overvalued or undervalued?
Valuation metrics for TRGP: ROE of 15.3% (sector avg: 14%), net margin of 11.7% (sector avg: 12%). Higher ROE suggests strong returns relative to peers.
What is TRGP's AI grade for 2026?
Our dual AI analysis gives Targa Resources Corp. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is TRGP's free cash flow?
Targa Resources Corp.'s operating cash flow is $739.5M, with capital expenditures of $899.5M. FCF margin is -3.9%.
How does TRGP compare to other Energy stocks?
Vs Energy sector averages: Net margin 11.7% (avg: 12%), ROE 15.3% (avg: 14%), current ratio 0.72 (avg: 1.3).
Is Targa Resources Corp. carrying too much debt?
TRGP has a debt-to-equity ratio of 6.10x, which is above the Energy sector average of 0.6x. Combined with a current ratio below 1, this warrants careful monitoring of the balance sheet.