Forensic Analysis · Energy / Oil & Gas · as of Aug 11, 2026
Targa Resources Corp. (TRGP)
A forensic read on Targa Resources Corp. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
C · Mixed — selective
Forensic grade
Safe
Financial health
3.6
Distress distance
Clean
Earnings quality
4
Forensic signals
27.0
P / E (ttm)
62.7%
ROE
$56.9B
Market cap
1.86%
Dividend yield
3.9%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Targa Resources Corp. earns a C (Mixed — selective) forensic quality grade, and its balance-sheet distress test reads 3.6, placing it in the Safe zone. 4 forensic signals were flagged in its latest SEC filings, led by accruals ratio (% of noa).
What the filings flag
+18.7%
FY2024→FY2025
Accruals ratio (% of NOA).Net operating assets grew +18.7% relative to their own average in FY2025 — scaled by NOA itself, not total assets (see the Forensic Screens card's differently-scaled Sloan Accrual Ratio for that read). Accruals are building faster than is comfortable — part of profit is sitting in the balance sheet rather than turning to cash. The build is led by inventory up +28% against -2% in cost of sales and PP&E up +14% against revenue +4%. The cash-flow cross-check is more mixed: reported earnings ran behind operating cash by 11% of net operating assets, diverging from the balance-sheet accrual read.
12.2%
FY2025
Return on invested capital.Return on invested capital is 12.2% in the latest fiscal year and rising from 10% — a modest positive spread over its ~8% cost of capital — growth adds value, though not dramatically.
110% of FCF
FY2025
Shareholder returns.Returned $642M to shareholders (buybacks + dividends) in FY2025 — 110% of free cash flow. Right at the limit of what free cash flow covers — little room before it's funded by debt or the balance sheet. That ratio has been CLIMBING toward the limit — 21% of free cash flow a few years back — not just sitting there. Counting the $70M of stock-based comp paid out in shares on top of that, the combined claim on free cash flow is 122%.
-92%
FY2016→FY2017
Dividend — cut.The payout was CUT ~92% in FY2017 (from FY2016) and hasn't been restored since. It still returns some cash, but it is NOT the dependable, rising dividend an unbroken streak implies. Measured on total dividend dollars rather than per share: the reported share count steps sharply around FY2016, a stock-split seam between filing vintages rather than a change in the payout, and a split leaves the dollars paid untouched.
Key fundamentals
Latest Revenue$17.03B
Revenue Growth YoY+3.9%
Net Margin11.3%
Free Cash Flow$584.1M
Return on Equity62.7%
Debt / Equity5.43x
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Targa Resources Corp.'s actual 10-K/10-Q/8-K filings?