Targa Resources Corp. (TRGP) Stock

Targa Resources Corp. trades at a P/E ratio of 25.01, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple. Looking ahead, the forward P/E of 19.30 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 1.10 indicates reasonable value when growth is considered.

With a beta of 1.21, Targa Resources Corp. is roughly as volatile as the market, moving in line with broad market trends. This moderate beta suggests the stock offers market-level returns without excessive volatility. The price-to-book ratio of 14.48 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Targa Resources Corp. achieves a profit margin of 9.59%, meaning it retains $9.59 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 24.30% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 50.40% and ROA at 8.39%, the company generates strong returns on invested capital.

Targa Resources Corp.'s revenue grew by 19.60% 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 115.80% 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 Corp. offers a dividend yield of 2.01%, paying $3.50 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 Jul 31, 2025.

The dividend sustainability can be assessed through the payout ratio - Targa Resources Corp. pays $3.50 per share in dividends against earnings of $6.76 per share, resulting in a payout ratio of 51.78%. 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 Aug 15, 2025.

Targa Resources Corp. has a market capitalization of $37.5B, 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 215.19M 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 Corp.'s book value per share is $12.01, while the current stock price is $151.38, resulting in a price-to-book (P/B) ratio of 12.60. 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.

21 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 $205.30 implies 35.6% upside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:5 Strong Buy, 15 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.