TRGPTarga Resources
Is the business good?
The checks split: earnings fully cash-backed (1.4×) and margins widening, but returns that lean on debt.
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Operating margin has widened over the past few years, the business is getting more profitable per dollar of sales.
Leverage-amplified, a high assets-to-equity ratio does much of the work. ROE 64% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is TRGP?
Targa Resources earns 13% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 4.4 points above what the capital costs: growth creates value
- Operating margin
- 23%
Operating margin · Oil & Gas Midstream median 30% · 12 months to Q2 2026
- Cash conversion
- 1.42×
Cash conversion · 1.54× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −0.97%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | −16% |
| FY2021 | 5.1% |
| FY2022 | 8.3% |
| FY2023 | 16% |
| FY2024 | 16% |
| FY2025 | 20% |
Details›
- Gross margin12 months to Q2 2026
- 43%
- Operating margin12 months to Q2 2026
- 23%
- Net margin12 months to Q2 2026
- 14%
- Free cash flow margin
- 4.4%
- Revenue, trailing twelve months
- $16.7B
- Free cash flow, trailing twelve months
- $741M
- Net income, trailing twelve months
- $2.27B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 13%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Customers and suppliers
Who buys from TRGP and who it buys from, as the companies report it.
None disclosed.
- SDSandridge Energy Inc33%
TRGP is 33% of its revenue · FY2025 10-K
A company has to disclose every customer behind 10% or more of its revenue. Each share comes from the latest annual report of the company that states it and shows on both companies’ pages; TRGP’s own figures are from its FY2025 10-K. Smaller customers and suppliers go unreported.
Oil & Gas Midstream
The closest names by size in the same industry