Targa Resources Stock Analysis, Valuation (NYSE:TRGP)

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$46.79 $0.5 (1.06%) TRGP stock closing price May 25, 2018 (Closing)
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Targa Resources
Updated on : May 25, 2018
previous close
TRGP 46.8 (0%)
S&P 500 2721.3 (0%)
Closing Price On: May 25, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Oil Refining and Marketing MLP
Sector :
Oils-Energy
5 Quarter Revenue
Revenue Growth
2018-Q1
$billion
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
-1%
Sector Average:
5.4%
5 Quarter Net Profit
Net Margins
2018-Q1
%
LTM Margin
Compared to the industry
Cash Flow
Operating cash flow:
$354.4M
Net Income:
$22.9M
Dividend Yield
TRGP dividend yield:
7.78%
PROS      CONS
Cash Flow
High Dividend Yield
PS Valuation
Operating Margins
FCF Margin
PE Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
PE: N/A
TRGP PS :
1.1
Industry PS :
1.6
Sector:   Oils-Energy.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
0.9%
Return on Equity:
2.4%
Free Cash Flow Margin:
-9.8%
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Targa Resources Stock Analysis

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View the Targa Resources stock analysis video on Amigobulls. Our analyst opinion covering the buy and sell arguments for TRGP stock is shown in the video.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Targa Resources Corp Stock Rating 2.3/5

Amigobulls TRGP stock analysis uses latest quarter 2018 Q1 financial data like Targa Resources revenue growth, profit margins and cash flows. We compare Targa Resources valuation with its sector peers to gauge relative attractiveness of TRGP stock. Targa Resources stock rating is our opinion about the business fundamentals of the company.

Should you buy TRGP stock?

  • The company has an operating cash flow which is 15.5 times the net income.
  • The lower PS ratio 1.1 for TRGP stock versus Oil Refining and Marketing MLP industry average of 1.6 is a positive for the company.
  • Targa Resources's dividend yield of 7.78% is attractive.

Should you sell TRGP stock?

  • Targa Resources registered a negative operating margin of -1% (average) over the Trailing Twelve Months (TTM).
  • The lack of profits renders the PE ratio useless for TRGP stock.
  • The company has negative Free Cash Flows (FCF), with a negative FCF margin of -9.8%.

Comments on this video and Targa Resources stock

Investors can use Amigobulls Targa Resources stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. Fundamentals of a company give detailed information which helps in making invesment decisions.

While doing a study of the company financials, Targa Resources revenue growth and profit or net income are two main metrics which help in identifying whether TRGP stock is overvalued or undervalued. Along with fundamentals, investors can utilize technical analysis to get a better idea about the price trend of Targa Resources stock.