QualityDipStocks / Utilities · Natural Gas Distribution
Targa Resources TRGP
Outside our quality screen, so we don’t track its dips. It’s at its 52-week high.
Outside our quality screen, 9% over its Market Value. No fair value estimate for now: a capital-spending surge is squeezing its free cash flow.
- Fair value est.
- n/a
- Market Value
- $288.68price +9%
- Off 52-wk high
- at the high
- Risk vs market
- Lowbeta −0.33
5 bullish · 5 bearish See why
Key levels
Every level vs today’s $314.99
- 52-wk lowlowest close, 1 year$151.52−51.9%
- Market Valueavg paid since Aug 6$288.68−8.4%
- 52-wk highhighest close, 1 year$314.99at the price
- PriceFri Oct 30 close$314.99you are here
Fair value estimate
Estimate unreliable for TRGP: free cash flow is squeezed by a capital-spending surge (capex is 83% of operating cash flow over the last 12 months, vs 56% in FY2022), so a DCF on today's free cash flow would understate the business. We’d rather show nothing than a made-up number.
Risk vs market
How risk vs market is measured
One year of daily returns (Oct 30 to Oct 30, 252 sessions). Beta = how much TRGP moved for each 1% move in the S&P 500 (SPY); 1.0 moves with the market. Volatility is the yearly standard deviation of daily returns. Past behavior, not a forecast.
Has moved mostly independently of the market, but its own price swings are 2.2× the S&P 500’s (it moves on its own news).
- Beta vs S&P 500
- -0.33
- Volatility
- 28% vs 13% SPY
- Correlation SPY
- −0.15
- Correlation QQQ
- −0.18
Bull vs bear
Rule-based from the data on this page, strongest first. Not advice.
Top bullish points 5 of 5
ProfitabilityReturn on equity of 73% over the last 12 months, up 30 points in two years.
Cash returnsFree cash flow grew 73% over the last 12 months vs the 12 months before.
GrowthDiluted EPS grew 48% to $8.49 in FY2025.
ProfitabilityGross margin widened to 38.3% in FY2025 from 33.5% in FY2023 (SEC filings).
ProfitabilityOperating margin widened to 19.6% in FY2025 from 16.4% in FY2023 (SEC filings).
Top bearish points 5 of 5
Balance sheetDebt is 5.4× shareholders’ equity.
Balance sheetDebt rose 35% to $17.4B from FY2023 to FY2025.
GrowthSales shrank 7% a year from FY2022 to FY2025.
QualityDoesn’t pass our quality screen: net debt 3.5× EBITDA (limit 3×).
ValuationTrades 9.1% above its Market Value of $288.68, the average price paid since the Aug 6 filing.
Who’s talking about it
Notable investors, executives, analysts and public figures on Targa Resources in the last 48 hours. Headlines as published, each linked. Their words, not ours.
No notable mentions in the last 48 hours. Checked Nov 1, 9:09 PM ET.
Compare with peers
Closest in size in Natural Gas Distribution
All fundamentals
P/E 29.5 · FCF yield 1.1% · ROE 73%
Valuation
- P/E
- 29.5×Utilities median 21.2×
- Price / FCF
- 90.4×
- FCF yield
- 1.1%
- EV / EBITDA
- 15.7×
- Price / sales
- 4.00×
- Price / book
- 18.32×
- Market cap
- $67.0Blisted
- Enterprise value
- $86.4B
Growth
- Revenue, 12 months
- $16.7B
- Sales growth, 12 months
- −2.0%vs the 12 months before
- Sales growth, 3 yrs
- −6.6%/yrfrom FY2022
- Diluted EPS, 12 months
- $10.46
- EPS growth, last FY
- +47.9%
- Net income, 12 months
- $2.3B
- Net income growth
- +48%12 months vs before
Profitability
- Gross margin
- 43.2%
- Operating margin
- 22.9%
- Net margin
- 13.5%
- FCF margin
- 4.4%
- Return on equity
- 73%
- Return on invested capital
- 13%
Balance sheet
- Cash & short-term inv.
- $132M
- Total debt
- $19.6B
- Net cash
- −$19.4B
- Debt / equity
- 5.35×
- Interest coverage
- n/ainterest expense not tagged in SEC data
Cash flow & returns
- Free cash flow, 12 months
- $741M
- FCF growth, 12 months
- +73%
- Dividend yield
- n/ano dividend payments tagged
- Payout ratio
- n/anot reported in its SEC filings
- Buybacks, 12 months
- n/anot reported in its SEC filings
- Share count, 1 year
- −1.0%diluted shares vs a year ago
- Stock-based comp
- $76M
Trailing 12 months to Jun 30, 2026; balance sheet at Jun 30, 2026. From Targa Resources’s SEC filings. Sparklines show up to six fiscal years. n/a means we don’t hold that number, with the reason. How each is computed.
Valuation details
MV $288.68
Setup & signals
No setup armed
No setup armed, so there’s no trigger or stop to track yet. Reversal signal rules only run on companies that pass our quality screen.
Momentum & 52-week range
RSI 68 · 5 days +4.2%
The business
FCF $0.7B · Sales +4%
- Free cash flow, 12 months$0.7B
- Free-cash-flow yield1.1%
- Free-cash-flow margin4%
- Gross margin33%
- Operating margin23%
- Return on invested capital14%
- Return on equity75%
- Sales growth (latest quarter vs year-ago quarter)+4%
- Net debt / EBITDA3.5×
Next report
Nov 5
- DateThu Nov 5, before the open
- Consensus EPS$2.74
- Year-ago EPS$2.20
- QuarterSep/2026
From Nasdaq’s earnings calendar. A report resets Market Value.
Information only, not investment advice. Fair value estimates and talking points are rule-based model output from public data and can be wrong; stop levels are reference points, not orders. How every number is computed.
TRGP is outside our quality screen
One text when a published rule fires on one of the 333 quality companies we track: the ticker, the price, the stop and a link to the numbers. Nothing else.