Explain this page
Arphra AIPlain-English read on Targa Resources Corp.’s valuationRatios & metrics
Profitability, returns on capital, growth, and credit — all derived from the historical income statement, balance sheet, and cash flow rows in our data warehouse.
Valuation multiples
Price- and EV-based multiples plus shareholder yields. Snapshot at each fiscal year-end from key_metrics (FMP).
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Headline | |||||||||
| Market cap | — | — | — | — | — | — | — | — | — |
| Enterprise value | — | — | — | — | — | — | — | — | — |
| Multiples | |||||||||
| P / E | — | — | — | — | — | — | — | — | — |
| P / B | — | — | — | — | — | — | — | — | — |
| EV / EBITDA | — | — | — | — | — | — | — | — | — |
| EV / Sales | — | — | — | — | — | — | — | — | — |
| EV / FCF | — | — | — | — | — | — | — | — | — |
| Yields | |||||||||
| Earnings yield | — | — | — | — | — | — | — | — | — |
| Free cash flow yield | — | — | — | — | — | — | — | — | — |
| Dividend yield | — | — | — | — | — | — | — | — | — |
Profitability
Margin structure across the last 5 fiscal years
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Margins | |||||||||
| Gross margin | +12.00% | +12.88% | +16.23% | +20.00% | +26.51% | +20.81% | +21.18% | +20.56% | +21.50% |
| Operating margin | +10.44% | +11.45% | +14.00% | +17.71% | +20.11% | +17.45% | +17.16% | +16.80% | +17.34% |
| EBITDA margin | +9.74% | +14.80% | +25.39% | +24.89% | +28.33% | +26.12% | +26.05% | +25.49% | +25.46% |
| EBIT margin | +4.73% | +9.73% | +16.84% | +16.27% | +19.49% | +17.65% | +17.97% | +17.94% | +17.27% |
| Pre-tax margin | +2.51% | +7.67% | +12.44% | +11.66% | +14.51% | +12.73% | +12.92% | +12.77% | +13.00% |
| Net margin | +0.41% | +5.27% | +5.30% | +7.64% | +10.76% | +7.91% | +7.85% | +8.02% | +8.13% |
| Cost structure | |||||||||
| Cost of revenue / sales | +88.00% | +87.12% | +83.77% | +80.00% | +73.49% | +79.02% | +78.26% | +80.48% | +79.06% |
| R&D intensity | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| SG&A intensity | +1.57% | +1.43% | +2.23% | +2.31% | +2.37% | +2.35% | +2.37% | +2.31% | +2.32% |
| Effective tax rate | +3.39% | +7.92% | +18.70% | +19.84% | +21.30% | +20.69% | +20.22% | +19.68% | +19.32% |
Returns on capital
ROE / ROA / ROC / ROIC over the relevant capital base, plus the 3-step DuPont decomposition of ROE.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| Return on equity (ROE) | +1.37% | +22.93% | +17.97% | +28.73% | +57.67% | +32.24% | +30.59% | +31.88% | +31.76% |
| Return on assets (ROA) | +0.47% | +5.84% | +4.01% | +5.58% | +7.31% | +5.87% | +5.60% | +5.69% | +6.01% |
| Return on capital (ROC) | +15.41% | +15.01% | +12.41% | +15.76% | +16.62% | +15.45% | +14.68% | +14.28% | +14.75% |
| Return on invested capital (ROIC) | +0.60% | +6.90% | +4.70% | +6.79% | +8.89% | +7.00% | +6.72% | +6.82% | +6.92% |
| Asset turnover | +114.68% | +110.86% | +75.56% | +73.14% | +67.95% | +74.27% | +71.36% | +70.89% | +73.94% |
| DuPont · ROE decomposition | |||||||||
| Net margin | +0.41% | +5.27% | +5.30% | +7.64% | +10.76% | +7.91% | +7.85% | +8.02% | +8.13% |
| Asset turnover (× revenue / assets) | +114.68% | +110.86% | +75.56% | +73.14% | +67.95% | +74.27% | +71.36% | +70.89% | +73.94% |
| Equity multiplier (× assets / equity) | +293.67% | +392.60% | +448.41% | +514.56% | +788.52% | +549.11% | +545.93% | +560.79% | +528.20% |
Activity & efficiency
Turnover ratios and days-outstanding — how efficiently the business converts assets and working capital into sales and cash.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Turnover | |||||||||
| Asset turnover | 1.15 | 1.11 | 0.76 | 0.73 | 0.68 | 0.74 | 0.71 | 0.71 | 0.74 |
| Fixed-asset turnover | 1.49 | 1.53 | 0.99 | 0.92 | 0.83 | — | — | — | — |
| Inventory turnover | 100.05 | 47.97 | 35.22 | 39.79 | 29.33 | — | — | — | — |
| Receivables turnover | 13.09 | 15.40 | 10.62 | 10.27 | 11.62 | — | — | — | — |
| Payables turnover | 10.94 | 13.04 | 8.31 | 6.61 | 6.72 | — | — | — | — |
| Days outstanding | |||||||||
| Days sales outstanding (DSO) | 27.87 | 23.71 | 34.38 | 35.53 | 31.41 | — | — | — | — |
| Days inventory outstanding (DIO) | 3.65 | 7.61 | 10.36 | 9.17 | 12.44 | — | — | — | — |
| Days payables outstanding (DPO) | 33.35 | 27.99 | 43.93 | 55.22 | 54.29 | — | — | — | — |
| Cash conversion cycle | -1.83 | 3.32 | 0.80 | -10.52 | -10.43 | — | — | — | — |
Cash flow quality
How well reported earnings translate into operating and free cash flow, plus reinvestment intensity.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Operating CF / Net income | 32.34 | 2.08 | 3.88 | 2.87 | 2.12 | 2.82 | 2.71 | 2.70 | 2.66 |
| FCF / Net income | 25.25 | 0.92 | 1.00 | 0.54 | 0.32 | 0.53 | 0.54 | 0.54 | 0.53 |
| FCF margin | +10.31% | +4.83% | +5.29% | +4.11% | +3.41% | +4.20% | +4.23% | +4.32% | +4.29% |
| OCF margin | +13.20% | +10.98% | +20.56% | +21.95% | +22.86% | +22.31% | +21.27% | +21.67% | +21.63% |
| CapEx / Revenue | +2.90% | +6.15% | +15.27% | +17.84% | +19.45% | +17.51% | +17.75% | +17.62% | +17.64% |
| CapEx / D&A | 0.58 | 1.22 | 1.79 | 2.08 | 2.19 | — | — | — | — |
| Stock-based comp / Revenue | +0.34% | +0.27% | +0.40% | +0.38% | 0.00% | — | — | — | — |
Per-share & shareholder yield
EPS, book value, sales, cash flow and dividends per share — plus payout / retention.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| EPS · diluted | -0.07 | 3.88 | 3.66 | 5.74 | 8.52 | 10.83 | 12.26 | 14.25 | 15.63 |
| EPS · basic | -0.07 | 3.95 | 3.69 | 5.77 | 8.54 | 10.90 | 12.49 | 14.40 | 15.69 |
| Book value / share | 22.65 | 21.56 | 20.40 | 19.96 | 14.88 | 22.63 | 27.02 | 28.99 | 28.29 |
| Tangible BV / share | 17.86 | 9.73 | 10.00 | 11.03 | 6.67 | 22.63 | 27.02 | 28.99 | 28.29 |
| Sales / share | 76.29 | 93.83 | 69.11 | 75.13 | 79.70 | 92.30 | 105.25 | 115.27 | 110.48 |
| Operating CF / share | 10.07 | 10.30 | 14.21 | 16.49 | 18.22 | 20.60 | 22.39 | 24.98 | 23.90 |
| Free cash flow / share | 7.86 | 4.53 | 3.66 | 3.09 | 2.72 | 3.88 | 4.45 | 4.98 | 4.74 |
| Dividends / share | 0.82 | 1.64 | 1.89 | 2.78 | 3.81 | 3.36 | 3.86 | 4.30 | 4.04 |
| Payout ratio | +263.34% | +33.24% | +51.59% | +48.48% | +44.37% | +45.98% | +46.69% | +46.52% | +44.98% |
| Retention ratio | -163.34% | +66.76% | +48.41% | +51.52% | +55.63% | +54.02% | +53.31% | +53.48% | +55.02% |
Growth
Year-over-year change for headline P&L lines, plus through-cycle CAGR
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E | 8y CAGR |
|---|---|---|---|---|---|---|---|---|---|---|
| Top-line | ||||||||||
| Revenue · YoY | — | +24.33% | -27.97% | +6.45% | +3.06% | +14.74% | +15.76% | +9.30% | -5.03% | +3.87% |
| Gross profit · YoY | — | +33.45% | -9.25% | +31.16% | +36.62% | -9.93% | +17.83% | +6.09% | -0.69% | +11.72% |
| Profit | ||||||||||
| Operating income · YoY | — | +36.48% | -11.97% | +34.63% | +17.08% | -0.44% | +13.81% | +6.99% | -1.95% | +10.67% |
| EBITDA · YoY | — | +88.90% | +23.54% | +4.36% | +17.29% | +5.80% | +15.43% | +6.97% | -5.16% | +17.12% |
| Net income · YoY | — | +1504.35% | -27.50% | +53.28% | +45.29% | -15.73% | +15.00% | +11.62% | -3.70% | +50.97% |
| Operating | ||||||||||
| EBIT · YoY | — | +155.73% | +24.70% | +2.85% | +23.44% | +3.90% | +17.89% | +9.13% | -8.58% | +22.12% |
| R&D · YoY | — | — | — | — | — | — | — | — | — | — |
| Per-share | ||||||||||
| EPS · diluted · YoY | — | +5612.22% | -5.57% | +56.63% | +48.43% | +27.11% | +13.20% | +16.26% | +9.64% | — |
| EPS · basic · YoY | — | +5704.26% | -6.54% | +56.48% | +48.01% | +27.69% | +14.55% | +15.28% | +8.93% | — |
Credit & leverage
Balance-sheet health + interest coverage + liquidity. Coverage ratios use period-end debt and trailing interest expense.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Leverage | |||||||||
| Total debt | $6.63B | $11.57B | $13.01B | $14.27B | $17.55B | $17.39B | $20.76B | $23B | $21.72B |
| Net debt | $6.47B | $11.35B | $12.87B | $14.11B | $17.38B | $17.2B | $20.55B | $22.76B | $21.5B |
| Net debt / EBITDA | 3.81 | 3.53 | 3.24 | 3.41 | 3.58 | 3.35 | 3.47 | 3.59 | 3.57 |
| Debt / equity | 1.28 | 2.32 | 2.82 | 3.23 | 5.49 | 3.61 | 3.55 | 3.67 | 3.59 |
| Debt / assets | +43.61% | +59.13% | +62.94% | +62.75% | +69.58% | +65.68% | +65.08% | +65.53% | +67.97% |
| Equity / assets | +34.05% | +25.47% | +22.30% | +19.43% | +12.68% | +18.21% | +18.32% | +17.83% | +18.93% |
| Coverage | |||||||||
| EBITDA / interest expense | 4.38 | 7.20 | 5.77 | 5.39 | 5.69 | 5.56 | 5.72 | 5.43 | 5.34 |
| Operating income / interest | 4.69 | 5.57 | 3.18 | 3.84 | 4.04 | 3.72 | 3.77 | 3.58 | 3.64 |
| Interest expense | $387.9M | $446.1M | $687.8M | $767.2M | $852.8M | $923.31M | $1.04B | $1.17B | $1.13B |
| Liquidity | |||||||||
| Current ratio | 0.77 | 0.77 | 0.79 | 0.72 | 0.67 | — | — | — | — |
| Quick ratio | 0.65 | 0.53 | 0.58 | 0.56 | 0.46 | — | — | — | — |
| Cash ratio | 0.07 | 0.07 | 0.05 | 0.05 | 0.05 | — | — | — | — |
| Working capital | -$528.7M | -$710.1M | -$566.3M | -$876.3M | -$1.18B | — | — | — | — |
| Working capital / revenue | -3.03% | -3.27% | -3.63% | -5.27% | -6.91% | — | — | — | — |
Methodology. ROE / ROA / ROC use period-end balance-sheet denominators (no average-of- period smoothing). ROIC = Operating Income × (1 − inferred effective tax rate) over invested capital, with the effective tax inferred from net-to-operating income when both are positive and a 25% default otherwise. Net debt / EBITDA, debt ratios, and interest-coverage ratios are calculated point-in-time at each fiscal year-end. TTM = trailing 4 quarters (income / cash flow summed, balance sheet = most-recent quarterly snapshot). Through-cycle CAGR in the Growth panel uses the geometric mean of first-to-last period growth across the window (positive values only).