Targa Resources Corp. (TRGP) Stock Analysis — Fair Value, Risk & Moat Rating
NYQ · Energy · Oil & Gas Midstream
Is Targa Resources Corp. a safe investment right now?
Targa Resources Corp.'s Altman Z-Score of 2.57 places it in the gray zone. Our fair value estimate is $221.59 (Fairly Valued). Moat rating: 3.7/5 stars.
Could Targa Resources Corp. go bankrupt? Altman Z-Score analysis
Z-Score of 2.57 places the company in the gray zone (1.8-3.0), warranting closer scrutiny.
- Below 1.8 — Distress Zone (high bankruptcy risk)
- 1.8 to 3.0 — Gray Zone (elevated uncertainty)
- Above 3.0 — Safe Zone (financially healthy)
What drives TRGP's Z-Score?
| Component | Formula | Value | Weight | Contribution |
|---|---|---|---|---|
| A · Working Capital / Total Assets | WC / TA | -0.047 | 1.2 | -0.06 |
| B · Retained Earnings / Total Assets | RE / TA | 0.091 | 1.4 | 0.13 |
| C · EBIT / Total Assets | EBIT / TA | 0.1324 | 3.3 | 0.44 |
| D · Market Cap / Total Liabilities | MCap / TL | 2.3109 | 0.6 | 1.39 |
| E · Revenue / Total Assets | Rev / TA | 0.6752 | 1.0 | 0.68 |
How has TRGP's financial health changed over time?
| Year | Z-Score | Zone |
|---|---|---|
| 2022 | 3.43 | Safe |
| 2023 | 3.1 | Safe |
| 2024 | 2.81 | Gray |
| 2025 | 2.57 | Gray |
Source: Calculated from TRGP's latest 10-K filing on SEC EDGAR.
What is Targa Resources Corp. actually worth?
How we calculated this
| Input | Value | Source |
|---|---|---|
| Predicted EPS (α) | $9.35 | Proprietary blend of reported actuals + analyst consensus, weighted by α |
| Last Year EPS | $8.63 | Annual report (SEC EDGAR) |
| Analyst Consensus EPS (This Year) | $10.43 | 21 analysts consensus |
| Trailing P/E | 27.9x | Current market pricing |
| Fair P/E (β discount) | 23.7x | Trailing PE adjusted by value discount factor β, hard-capped |
| Earnings Trend (γ) | Growing | Directional signal: predicted vs trailing EPS |
Wall Street Reference: Analyst consensus target price is $264.24 (21 analysts). This is shown for reference only and is not used in our valuation model.
Source: Earnings data from SEC EDGAR filings. Market data via Yahoo Finance.
Does Targa Resources Corp. have a durable competitive advantage?
Moat rating: 3.7/5.
What makes up TRGP's moat score?
ROIC Stability
ROIC variability over the past decade. Score: 4/5.
Gross Margin Trend
Gross margin trajectory over the past decade. Score: 4/5.
Switching Costs
Estimated customer lock-in based on margin level. Score: 3/5.
How stable is TRGP's return on invested capital?
| Year | ROIC | Trend |
|---|---|---|
| 2022 | 15.1% | — |
| 2023 | 17.1% | Rising |
| 2024 | 16.4% | Stable |
| 2025 | 16.6% | Stable |
Source: ROIC calculated from SEC EDGAR filings.
Is Targa Resources Corp.'s dividend safe?
Can Targa Resources Corp. afford its dividend?
Payout ratio is 44.2%. FCF covers the dividend 2.8x. 16 consecutive years of payments.
Targa Resources Corp.'s key financial metrics
| Metric | Latest | 1Y Ago | 3Y Ago | Trend |
|---|---|---|---|---|
| Revenue | $17.0B | $16.4B | $20.9B | Declining |
| Net Income | $1.9B | $1.3B | $1.2B | Rising |
| Free Cash Flow | $0.6B | $0.7B | $1.0B | Declining |
| Gross Margin | 29.4% | 26.0% | 14.1% | Rising |
Recent events that affect our TRGP analysis
TRGP earnings report scheduled
Upcoming report. Consensus EPS estimate: $2.62. Revenue estimate: $4.81B. Our current Fair Value: $221.59 — a significant beat or miss could shift this estimate.
TRGP analyst consensus: 91% bullish (20 of 22 analysts)
5 Strong Buy, 15 Buy, 2 Hold, 0 Sell, 0 Strong Sell. Consensus target: $264.24 (11.6% upside). Compare with our independent Fair Value: $221.59.
TRGP filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
TRGP filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
TRGP beat EPS estimates by 12.1%
Reported EPS: $2.69 vs estimate $2.40. Earnings strength supports our Fair Value of $221.59 (6.4% below current price).
TRGP filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
TRGP filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
TRGP paid $1.0000/share dividend
Dividend Safety Grade: A. Payout ratio: 44.2%.
TRGP filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
TRGP filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
TRGP beat EPS estimates by 3.1%
Reported EPS: $2.20 vs estimate $2.13. Earnings strength supports our Fair Value of $221.59 (6.4% below current price).
TRGP filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
TRGP filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
TRGP paid $1.0000/share dividend
Dividend Safety Grade: A. Payout ratio: 44.2%.
TRGP beat EPS estimates by 2.2%
Reported EPS: $2.02 vs estimate $1.98. Earnings strength supports our Fair Value of $221.59 (6.4% below current price).
TRGP filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
TRGP filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
TRGP filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
TRGP paid $1.0000/share dividend
Dividend Safety Grade: A. Payout ratio: 44.2%.
TRGP filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
TRGP filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
TRGP filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
TRGP filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
TRGP missed EPS estimates by 7.6%
Reported EPS: $1.89 vs estimate $2.04. Our Fair Value of $221.59 may face downward pressure if the trend continues.
TRGP filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
TRGP filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
TRGP paid $1.0000/share dividend
Dividend Safety Grade: A. Payout ratio: 44.2%.
TRGP filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
TRGP filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
TRGP missed EPS estimates by 0.7%
Reported EPS: $1.82 vs estimate $1.83. Our Fair Value of $221.59 may face downward pressure if the trend continues.
TRGP filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
TRGP filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
TRGP filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
TRGP paid $0.7500/share dividend
Dividend Safety Grade: A. Payout ratio: 44.2%.
Common questions about Targa Resources Corp.
What is Targa Resources Corp. stock price today?
Targa Resources Corp. (TRGP) stock price is $236.73 as of the latest market close, traded on the NYSE exchange.
What does Targa Resources Corp. do?
Targa Resources Corp., together with its subsidiaries, owns, operates, acquires, and develops a portfolio of complementary domestic infrastructure assets in North America. It operates in two segments, Gathering and Processing, and Logistics and Transportation. It is involved in gathering, compressing, treating, processing, transporting, and selling natural gas; storing, fractionating, treating, transporting, and selling natural gas liquids (NGL) and NGL products, including services to liquefied petroleum gas exporters; and gathering, storing, terminaling, purchasing, and selling crude oil.
What is Targa Resources Corp. market cap?
Targa Resources Corp. has a market capitalization of $50.89B, classifying it as a large-cap stock in the Energy sector.
What sector and industry is TRGP in?
Targa Resources Corp. operates in the Energy sector, specifically within the Oil & Gas Midstream industry. It trades on the NYSE under the ticker symbol TRGP.
Is TRGP stock overvalued or undervalued?
Based on our valuation model, Targa Resources Corp. trades 6.8% above our fair value estimate — potentially overvalued.
- FairValueLabs Fair Value: $221.59
- Current Price: $236.73
- Valuation Zone: Fairly Valued
What is TRGP stock forecast and analyst target price?
Based on 21 Wall Street analysts, the consensus price target for Targa Resources Corp. is $264.24, implying upside of 11.6% from the current price.
- Analyst High Target: $327.00
- Analyst Low Target: $231.00
Note: Analyst targets are shown for reference and are not used in our valuation model.
Is Targa Resources Corp. revenue and earnings growing?
Here are the analyst consensus growth estimates for Targa Resources Corp.:
- Revenue growth (current year est.): 24.4%
- EPS growth (current year est.): 16.0%
- Revenue growth (next year est.): 11.0%
- EPS growth (next year est.): 10.5%
What are Targa Resources Corp.'s key financial metrics?
| Metric | Latest | Trend |
|---|---|---|
| Revenue | $17.0B | Declining |
| Net Income | $1.9B | Rising |
| Free Cash Flow | $0.6B | Declining |
| Gross Margin | 29.4% | Rising |
What is TRGP's P/E ratio?
The price-to-earnings ratio measures how much investors pay per dollar of earnings:
- Trailing P/E (last 12 months): 27.9x
- Forward P/E (next 12 months est.): 20.5x
- FairValueLabs Fair P/E: 23.7x
How volatile is TRGP stock?
Targa Resources Corp. has a beta of 0.81, meaning it is less volatile than the broader market. A beta above 1.0 indicates higher price swings relative to the S&P 500, while below 1.0 suggests more stability.
How much cash and debt does Targa Resources Corp. have?
Targa Resources Corp.'s balance sheet shows:
- Total Cash: $166.1M
- Total Debt: $17.55B
- Net Cash Position: $-17.38B
A positive net cash position means the company holds more cash than debt, reducing financial risk.
What is Targa Resources Corp.'s free cash flow?
Targa Resources Corp. generated $-264.4M in trailing twelve-month free cash flow (from $3.92B in operating cash flow). Free cash flow represents the cash available for dividends, buybacks, and debt reduction after all capital expenditures.
Does Targa Resources Corp. pay a dividend, and is it safe?
Yes, Targa Resources Corp. pays a regular dividend. Here are the key metrics:
- Dividend Yield: 1.7%
- Payout Ratio: 44.2%
- Consecutive Years Paid: 16
- 5-Year Dividend Growth: 20.1%
- FairValueLabs Safety Grade: A
Is Targa Resources Corp. at risk of going bankrupt?
Targa Resources Corp.'s Altman Z-Score is 2.57, placing it in the gray zone (1.8–3.0) — some financial uncertainty. The Z-Score uses five balance sheet ratios to predict bankruptcy probability within two years.
Does Targa Resources Corp. have a durable competitive advantage?
Targa Resources Corp. scores 3.7/5 stars (Solid moat · eroding) in our moat analysis:
- ROIC Stability: 4/5
- Gross Margin Trend: 4/5
- Switching Costs: 3/5
A score above 3.5 suggests meaningful pricing power and a defensible market position.
What is TRGP's return on equity (ROE)?
Targa Resources Corp.'s return on equity is 51.4%. ROE measures how efficiently a company generates profits from shareholder equity. An ROE above 15% is generally considered strong, while below 10% may signal inefficiency.
How do I buy TRGP stock?
TRGP shares can be purchased through any brokerage account that provides access to the NYSE. Common steps:
- Open an account with a broker (e.g., Fidelity, Schwab, Interactive Brokers)
- Search for ticker symbol TRGP
- Place a market or limit order for your desired number of shares
This is not investment advice. Always do your own research before buying any stock.
Is TRGP a value stock or speculative?
FairValueLabs classifies Targa Resources Corp. as Value Investment. It exhibits consistent profitability, reasonable valuation, and financial stability — characteristics of a traditional value investment.
Who is the CEO of Targa Resources Corp.?
The current CEO of Targa Resources Corp. is Mr. Matthew J. Meloy.
What is TRGP's earnings per share (EPS)?
Earnings per share measures the company's profit allocated to each outstanding share:
- Trailing EPS (last 12 months): $8.50
- Forward EPS (next 12 months est.): $11.53
- Analyst consensus EPS (this year): $10.43
- Analyst consensus EPS (next year): $11.53
Other Energy companies analyzed by FairValueLabs
FairValueLabs Disclaimer
All valuations, scores, ratings, and classifications on this page are produced by the FairValueLabs internal valuation system. They do not represent actual market value, guaranteed outcomes, or professional investment advice. These are analytical estimates for educational and research purposes only.
This is not financial advice. All data is sourced from SEC EDGAR public filings. Always consult a qualified financial advisor before making investment decisions.
Last updated: Apr 22, 2026. Data sources: SEC EDGAR (financial statements), Yahoo Finance (market data, analyst consensus). Data may not reflect the most recent quarter.
TRGP analysis methodology: How we calculate fair value, Z-Scores, and moat ratings