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Targa Resources Corp. (NYSE: TRGP) is a publicly traded Delaware corporation formed in October 2005. Targa is a leading provider of midstream services and is one of the largest independent infrastructure companies in North America.
$269.89
$6.86 (-2.48%)
Price from 10 days ago
19.56% operating margin is respectable but not wide. ROIC at 14.69%. Suggests the business covers its cost of capital, but doesn't point to a wide moat.
Revenue grew 3.9%, steady but not accelerating. Free cash flow declined 15% despite revenue growth, conversion is weakening.
At 28x earnings, the current multiple leaves limited room for execution misses or growth deceleration. Free cash flow declined 15% versus the prior year, cash generation momentum has weakened.
27.6x earnings, 222.1x FCF. Not cheap, the quality is already reflected in the price. Upside from here requires either margin expansion or growth re-acceleration, not just continuation.
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$16.56B
▲ +3.9% YoY
Net Income (TTM)
$2.13B
▲ +46.6% YoY
Op. Margin
21.95%
▲ +3.1pp YoY
ROIC
14.57%
▲ +0.8pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$262M
▼ -14.6% YoY
Op. Cash Flow (TTM)
$3.70B
▲ +7.3% YoY
Net Debt
$19.38B
Cash & Equiv.
$100M
5Y CAGR: +15.6%
5Y CAGR: -5.9%
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