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 -0.30%, 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 14.11% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -0.30% 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.
22.21%
1.52
36.13%
S&P 500
16.41%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
15.75%
EBIT Growth (5y)
22.55%
EBIT to Interest (avg)
4.21
Debt to EBITDA (avg)
3.12
Net Debt to Equity (avg)
6.42
Sales to Capital Employed (avg)
0.97
Tax Ratio
19.95%
Dividend Payout Ratio
44.17%
Pledged Shares
0
Institutional Holding
98.72%
ROCE (avg)
16.98%
ROE (avg)
54.05%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
25
Industry P/E
Price to Book Value
17.31
EV to EBIT
19.99
EV to EBITDA
13.95
EV to Capital Employed
3.51
EV to Sales
4.07
PEG Ratio
1.11
Dividend Yield
1.64%
ROCE (Latest)
17.57%
ROE (Latest)
70.52%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
Mildly Bearish
Bullish
OBV
Mildly Bearish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend13What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 3,917.4 MM
ROCE(HY)
Highest at 65.06%
DIVIDEND PER SHARE(HY)
Highest at USD 11.11
NET PROFIT(Q)
Highest at USD 625.66 MM
RAW MATERIAL COST(Y)
Fallen by -30.12% (YoY
OPERATING PROFIT(Q)
Highest at USD 1,360.3 MM
OPERATING PROFIT MARGIN(Q)
Highest at 33.11 %
PRE-TAX PROFIT(Q)
Highest at USD 796.9 MM
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Here's what is working for Targa Resources Corp.
Operating Cash Flow
Highest at USD 3,917.4 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)
Net Profit
Highest at USD 625.66 MM and Grown
In each period in the last five periodsMOJO Watch
Near term Net Profit trend is very positive
Net Profit (USD MM)
Dividend per share
Highest at USD 11.11 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Operating Profit
Highest at USD 1,360.3 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Operating Profit Margin
Highest at 33.11 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at USD 796.9 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Raw Material Cost
Fallen by -30.12% (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
Depreciation
Highest at USD 390.5 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
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