Is the business good?
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.
13%
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 36% · 12 months to Q2 2026
- Cash conversion
- 0.33×
Cash conversion · 0.26× a year ago · some of the reported profit has not turned into cash yet
- 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 from the cash flow statement.
Oil & Gas Midstream
Ranks #16 of 27 by Smart Score