Targa Resources Inc (TRGP) Stock

Targa Resources Inc trades at a P/E ratio of 24.76, which is near the market average of approximately 20, suggesting the market views it as fairly valued relative to its earnings. Looking ahead, the forward P/E of 20.20 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 1.23 indicates reasonable value when growth is considered.

With a beta of 0.89, Targa Resources Inc is less volatile than the overall market. This means when the market moves up or down by 10%, this stock typically moves less than 10% in the same direction. Lower beta stocks are often preferred by conservative investors seeking stability. The price-to-book ratio of 14.73 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Targa Resources Inc achieves a profit margin of 9.95%, meaning it retains $9.95 from every $100 in revenue after all expenses. This represents a solid margin typical of well-run businesses, showing the company can effectively balance revenue generation with cost control. The operating margin of 20.20% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 49.80% and ROA at 8.45%, the company generates strong returns on invested capital.

Targa Resources Inc's revenue grew by 7.80% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings increased by 25.70% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against OIL & GAS MIDSTREAM industry averages for proper context.

Targa Resources Inc offers a dividend yield of 2.04%, paying $3.75 per share annually. This above-average yield of 2-4% provides meaningful income while still allowing the company to reinvest for growth. It compares favorably to the S&P 500 average and offers competitive returns versus bonds in the current rate environment. To receive the next dividend, shares must be purchased before the ex-dividend date of Oct 31, 2025.

The dividend sustainability can be assessed through the payout ratio - Targa Resources Inc pays $3.75 per share in dividends against earnings of $7.50 per share, resulting in a payout ratio of 50.00%. This balanced payout between 30-60% suggests a sustainable dividend policy that allows both shareholder returns and business reinvestment. The dividend appears well-covered by earnings. The next dividend payment is scheduled for Nov 17, 2025.

Targa Resources Inc has a market capitalization of $40.0B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 214.66M shares outstanding, the company's ownership is relatively concentrated. As a participant in the OIL & GAS MIDSTREAM industry, it competes with other firms in this sector.

Targa Resources Inc's book value per share is $12.60, while the current stock price is $182.30, resulting in a price-to-book (P/B) ratio of 14.47. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As a common stock, this represents equity ownership with voting rights.

22 analysts cover TRGP with 95% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The strong bullish consensus may already be priced in. The consensus target of $209.15 implies 14.7% upside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:5 Strong Buy, 16 Buy, 1 Hold, 00The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.