Aureus
FRed Flag

Targa Resources, Inc.(TRGP)

F

Financial data as of Dec 31, 2024Improving · Energy

FCF Margin4.2%Free Cash Flow / Revenue
Cash Conversion278.2%Operating CF / Net Income
Free Cash Flow$683.9M
Revenue$16.4B
Net Cash-$14.1BNet debt position
Debt / FCF20.9xElevated debt burden
Current Ratio0.72Tight short-term liquidity
YoY FCF Growth+74.8%2 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseD
→
-2Extreme debt-to-FCF ratio (20.9x)
→
-1Current ratio below 1.0 (0.72)
→
+1Strong YoY FCF growth (74.8% YoY)
→
-1Only 2 positive quarters recently
→
-0.5Highly volatile FCF (consistency: 4.24)
→
FinalF

Analysis Summary

Strengths

  • Excellent cash conversion (278%)
  • Strong YoY FCF growth (+74.8%)
  • FCF trend is improving

Concerns

  • Low FCF margin (4.2%)
  • Heavy debt position ($14.1B)
  • High debt-to-FCF ratio (20.9x)
  • Current ratio below 1.0 — tight short-term liquidity
  • Only 2 positive FCF quarters recently
  • Highly volatile quarterly FCF
Heavy CapEx — Operating cash flow is strong (22% margin) but most is reinvested

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin4.2%
Net Margin8.0%
Operating CF Margin22.3%
CapEx Ratio18.1%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$14.1BNet debt position
Debt / FCF20.9xElevated debt burden
Current Ratio0.72Tight liquidity
Debt / Equity5.50High leverage

Quarterly FCF Trend

+74.8% YoYImproving (+74.8%)

Free cash flow per quarter

Sector Comparison — Energy

FCF Margin ranked against sector peers

View all →

Detailed Metrics

Company NameTarga Resources, Inc.
SectorEnergy
Free Cash Flow$683.9M
Revenue$16.4B
Net Income$1.3B
Operating Cash Flow$3.6B
Capital Expenditure$3.0B
FCF Margin4.2%
Cash Conversion Rate278.2%
Net Margin8.0%
Total Debt$14.3B
Total Cash$157.3M
Net Cash-$14.1B
Current Ratio0.72
Debt / Equity5.50
Debt / FCF20.9x
YoY FCF Growth+74.8%
Positive Quarters2 of 5
Trend DirectionImproving
Report DateDec 31, 2024
GradeF
Data SourceYahoo Finance