ScoreWhy is Targa Resources Corp. ?
1
Healthy long term growth as Net Sales has grown by an annual rate of 17.31% and Operating profit at 34.11%
2
The company has declared Positive results for the last 5 consecutive quarters
- OPERATING CASH FLOW(Y) Highest at USD 3,681.5 MM
- ROCE(HY) Highest at 60.3%
- DIVIDEND PER SHARE(HY) Highest at USD 13.17
3
With ROCE of 17.06%, it has a very expensive valuation with a 2.92 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -10.86%, its profits have risen by 51% ; the PEG ratio of the company is 0.4
4
Underperformed the market in the last 1 year
- Even though the market (S&P 500) has generated returns of 12.94% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -10.86% returns
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Targa Resources Corp. should be less than 10%
- Overall Portfolio exposure to Gas should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Gas)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Targa Resources Corp. for you?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
Targa Resources Corp.
-7.89%
1.28
36.23%
S&P 500
13.22%
0.64
20.20%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
17.31%
EBIT Growth (5y)
34.11%
EBIT to Interest (avg)
4.21
Debt to EBITDA (avg)
3.12
Net Debt to Equity (avg)
6.42
Sales to Capital Employed (avg)
1.05
Tax Ratio
19.95%
Dividend Payout Ratio
47.94%
Pledged Shares
0
Institutional Holding
94.31%
ROCE (avg)
16.98%
ROE (avg)
54.05%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
19
Industry P/E
Price to Book Value
15.27
EV to EBIT
17.14
EV to EBITDA
11.66
EV to Capital Employed
2.92
EV to Sales
3.15
PEG Ratio
0.35
Dividend Yield
1.93%
ROCE (Latest)
17.06%
ROE (Latest)
79.53%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
No Trend
Mildly Bearish
OBV
No Trend
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend11What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 3,681.5 MM
ROCE(HY)
Highest at 60.3%
DIVIDEND PER SHARE(HY)
Highest at USD 13.17
RAW MATERIAL COST(Y)
Fallen by -2.77% (YoY
OPERATING PROFIT MARGIN(Q)
Highest at 29.37 %
NET PROFIT(Q)
Highest at USD 472.57 MM
EPS(Q)
Highest at USD 2.88
-4What is not working for the Company
INTEREST COVERAGE RATIO(Q)
Lowest at 541.35
DEBT-EQUITY RATIO
(HY)
Highest at 643.68 %
INTEREST(Q)
Highest at USD 218.4 MM
Here's what is working for Targa Resources Corp.
Operating Cash Flow
Highest at USD 3,681.5 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Dividend per share
Highest at USD 13.17 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Operating Profit Margin
Highest at 29.37 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Net Profit
Highest at USD 472.57 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
EPS
Highest at USD 2.88
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Raw Material Cost
Fallen by -2.77% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Targa Resources Corp.
Interest Coverage Ratio
Lowest at 541.35
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest
Highest at USD 218.4 MM
in the last five periods and Increased by 10.81% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Debt-Equity Ratio
Highest at 643.68 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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