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Targa Resources TRGP Free cash flow margin

Free cash flow margin at other companies

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6.4%-5.9pp
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4.7%-1.9pp
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4.2%-3.2pp
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Kinder MorganKMI
18.2%-0.1pp
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30.2%-9.4pp
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DT MidstreamDTM
36.6%-6.1pp

Other financials

Income statement

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Revenue$4.1B-10.2%
Gross profit$1.7B+30.4%
Operating income$846.9M+55.9%
Net income$479.6M+77.3%
EPS (diluted)$2.21+143%

Balance sheet

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Cash & equivalents$100.1M-33.9%
Total debt$346.5M+17.0%
Total equity$3.1B+27.9%
Total assets$27.1B+18.9%

Cash flow

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Operating cash flow$739.5M-22.5%
CapEx$899.5M+13.5%
Free cash flow-$160.0M-199%

Valuation

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Market cap$55.5B+23.5%
Enterprise value$55.75B+23.6%
P/E26×-8.4×
P/S3.4×+0.6×

Profitability

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Gross margin41.8%+7.3pp
Operating margin21.9%+6.1pp
Net margin12.9%+4.9pp

Returns & leverage

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Return on equity76.3%+25.6pp
Debt / equity0.1×0.0×
Current ratio0.7×+0.1×

Where this comes from

Calculated from Targa Resources’s reported figures.

Based on trailing twelve months.

The official record: Targa Resources’s 10-Q, filed August 3, 2023, on SEC EDGAR. View the filing →

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Questions, answered.

What is Targa Resources's free cash flow margin?
Targa Resources (TRGP) reported free cash flow margin of 4.8% in Q2 2023.
How has Targa Resources's free cash flow margin changed year-over-year?
Targa Resources's free cash flow margin decreased by 39.5% year-over-year, from 7.9% to 4.8%.
What does free cash flow margin mean?
How much real, spendable cash each sales dollar generates after reinvestment.
How do you interpret free cash flow margin?
A high and rising FCF margin is the hallmark of a cash-generative business. Persistent gaps between net margin and FCF margin warrant a look at working capital or capital intensity.
How does free cash flow margin compare across companies?
Strong cross-company quality signal; capital-light compounders post structurally higher FCF margins than asset-heavy peers.