Targa ResourcesMEX:TRGP 74 FCF Yield % is 0.45 as of Jun. 27, 2026, which is 73% below its 10-year median of 1.65. GuruFocus rates MEX:TRGP with a GF Score™ of 74/100 and a GF Value™ of MXN2,335.26. The stock has 9 warning signs investors should review. Among 1,013 Oil & Gas companies, Targa Resources ranks worse than 54.29% on this metric.
FCF Yield % is calculated as Free Cash Flow divided by Market Capitalization. It is a financial solvency ratio that compares the free cash flow a company is expected to earn against its market value.
Similar to Earnings Yield %, FCF Yield % is financial solvency ratio. A lower ratio suggests a less attractive investment, indicating that investors might not receive substantial returns in proportion to their investment. Conversely, a high free cash flow yield signals that a company generates sufficient cash to comfortably meet its debts, obligations, and dividend payments, making it a promising investment choice.
Targa Resources FCF Yield % Related Terms
Targa Resources FCF Yield % Historical Data
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The historical data trend for Targa Resources's FCF Yield % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MEX:TRGP vs MPLX, OKE, LNG: FCF Yield % Comparison
For the Oil & Gas Midstream subindustry, Targa Resources's FCF Yield %, along with its competitors' market caps and FCF Yield % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Targa Resources FCF Yield % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Targa Resources's FCF Yield % distribution charts can be found below:
* The bar in red indicates where Targa Resources's FCF Yield % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Targa Resources (MEX:TRGP) has a FCF Yield % of 0.45 as of Jun. 27, 2026. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on Targa Resources and its competitors. This is 73% below median its historical median of 1.65. According to the industry distribution chart, Targa Resources ranks #550 out of 1013 companies in the Oil & Gas industry, placing it in the top 54.3%.
Is Targa Resources' FCF Yield % too high?
Targa Resources' current FCF Yield % of 0.45 is 73% below median its 10-year median of 1.65. The Oil & Gas industry median FCF Yield % is 1.80. Targa Resources' value of 0.45 is 75% below this industry median. Based on the distribution chart, Targa Resources ranks #550 out of 1013 companies in the Oil & Gas industry, which is below the industry midpoint. Overall, Targa Resources has a GF Score™ of 74/100, reflecting its overall financial health beyond just this single metric.
How does Targa Resources' FCF Yield % compare to MPLX and OKE?
According to the Oil & Gas industry distribution chart, Targa Resources ranks #550 out of 1013 companies for FCF Yield %. This places Targa Resources in the lower half of its industry. The industry median FCF Yield % is 1.80. Targa Resources' value of 0.45 is 75% below this benchmark. While the company's 10-year median is 1.65 vs. the industry median of 1.80, Targa Resources has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good FCF Yield % for an Oil & Gas company?
The median FCF Yield % among Oil & Gas companies is 1.80, based on 1,013 companies in the industry. Companies in the top quartile (top 25%) have a FCF Yield % significantly above this median, while those in the bottom quartile fall well below. However, FCF Yield % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Targa Resources's current FCF Yield % of 0.45 is 75% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high FCF Yield % mean?
A high FCF Yield % can signal that a stock is expensive relative to its fundamentals. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on Targa Resources and its competitors. For the Oil & Gas industry, the median FCF Yield % is 1.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Targa Resources's current FCF Yield % is 0.45, which is 73% below median its own 10-year median of 1.65. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Targa Resources stock overvalued right now?
Targa Resources (MEX:TRGP) has a current FCF Yield % of 0.45. The stock's GF Value™ is MXN2,335.26, compared to a current price of MXN3,775.00 — trading 61.7% above its estimated fair value. The current FCF Yield % is 0.45, which is 73% below median its 10-year median of 1.65 and 75% below the Oil & Gas industry median of 1.80. Targa Resources' overall GF Score™ is 74/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is FCF Yield % calculated?
FCF Yield % is calculated from a company's financial statements. For Targa Resources (MEX:TRGP), the current FCF Yield % is 0.45 as of Jun. 27, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Targa Resources (MEX:TRGP) Overvalued in 2026?
Based on GuruFocus' analysis, Targa Resources stock appears to be overvalued.
The current stock price of MXN3,775.00 is trading 61.7% above its estimated GF Value™ of MXN2,335.26.
Key valuation signals for MEX:TRGP:
FCF Yield %: 0.45 (73% below median its 10-year median of 1.65)
GF Value™: MXN2,335.26 vs. price of MXN3,775.00 (61.7% above fair value)
Industry Position: 75% below the Oil & Gas median (#550 of 1013)
No single metric tells the full story. See the MEX:TRGP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Targa Resources Corp is a midstream firm that mainly operates gathering and processing assets with substantial positions in the Permian, Stack, Scoop, and Bakken plays. It has fractionation capacity at Mont Belvieu and operates a liquefied petroleum gas export terminal. The Grand Prix natural gas liquids pipeline is another important asset. It has two operating segments: Gathering and Processing, and, Logistics and Transportation (also referred to as the Downstream Business).
74GF Score
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