Forensic Analysis · Energy / Oil & Gas · as of Sep 25, 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
3.8
Distress distance
Clean
Earnings quality
3
Forensic signals
27.6
P / E (ttm)
62.7%
ROE
$60.7B
Market cap
2.28%
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, going concern, valuation). 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 3.8, placing it in the Safe zone. 3 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 by total assets, which is what the Forensic Screens card's own accrual row divides by. 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%. A cash-flow measure on the same base disagrees: reported earnings ran behind operating cash by 11% of net operating assets, against an accruals ratio of 18.7%. The two are computed differently: the accruals ratio is the change in net operating assets over average net operating assets, while the cash-flow figure is net income less operating cash flow over that same average. Read them as two results, not one.
12.2%
FY2025
Return on invested capital.Return on invested capital is 12.2% in the latest fiscal year and steady across FY2023–FY2025, inside a 1.1-point range. After-tax operating profit was $2.1B in FY2023 and $2.6B in FY2025, with operating income at 16.4% of revenue in FY2023, 16.5% in FY2024 and 19.6% in FY2025. The capital base behind it grew +21% across FY2023–FY2025, from $17.8B to $21.5B, and the return did not fall doing it, so the dollars added over that window earned at least the 12.0% the older base was already earning.
110% of FCF
FY2025
Shareholder returns.Returned $642M to shareholders (buybacks + dividends) in FY2025 — 110% of free cash flow. That is $58M (10%) more than free cash flow covered. New debt covered it: total debt rose $2.9B over FY2025, while cash rose $9M. That ratio has been CLIMBING past free cash flow — 45% of free cash flow two 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%.
Key fundamentals
Latest Revenue$17.03B
Revenue Growth YoY+3.9%
Revenue CAGR (2yr)+3.0%
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?