Targa ResourcesMEX:TRGP 74 Gross Margin % is 31.12% as of Mar. 2026, which is 93% above its 10-year median of 16.15. 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 872 Oil & Gas companies, Targa Resources ranks better than 59.29% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Targa Resources had a gross margin of 31.12% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Targa Resources Gross Margin % Related Terms
Targa Resources Gross Margin % Historical Data
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The historical data trend for Targa Resources's Gross Margin % 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: Gross Margin % Comparison
For the Oil & Gas Midstream subindustry, Targa Resources's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Targa Resources's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Targa Resources's Gross Margin % 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Targa Resources (MEX:TRGP) has a Gross Margin % of 31.12% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Targa Resources and its competitors. This is 93% above median its historical median of 16.15. Over the past decade, Targa Resources' Gross Margin % has ranged from 12.47 to 32.26. According to the industry distribution chart, Targa Resources ranks #355 out of 872 companies in the Oil & Gas industry, placing it in the top 40.7%.
Is Targa Resources' Gross Margin % too high?
Targa Resources' current Gross Margin % of 31.12% is 93% above median its 10-year median of 16.15. Over the past 10 years, this metric has ranged from a low of 12.47 to a high of 32.26. The Oil & Gas industry median Gross Margin % is 25.54. Targa Resources' value of 31.12% is 21.9% above this industry median. Based on the distribution chart, Targa Resources ranks #355 out of 872 companies in the Oil & Gas industry, which is above 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' Gross Margin % compare to MPLX and OKE?
According to the Oil & Gas industry distribution chart, Targa Resources ranks #355 out of 872 companies for Gross Margin %. This puts Targa Resources in the upper half of its industry. The industry median Gross Margin % is 25.54. Targa Resources' value of 31.12% is 21.9% above this benchmark. Historically, Targa Resources' own Gross Margin % has ranged from 12.47 to 32.26 over the past decade. While the company's 10-year median is 16.15 vs. the industry median of 25.54, Targa Resources has consistently been above 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 Gross Margin % for an Oil & Gas company?
The median Gross Margin % among Oil & Gas companies is 25.54, based on 872 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Targa Resources's current Gross Margin % of 31.12% is 21.9% above 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 Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Targa Resources and its competitors. For the Oil & Gas industry, the median Gross Margin % is 25.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Targa Resources's current Gross Margin % is 31.12%, which is 93% above median its own 10-year median of 16.15. 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 Gross Margin % of 31.12%. 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 Gross Margin % is 31.12%, which is 93% above median its 10-year median of 16.15 and 21.9% above the Oil & Gas industry median of 25.54. 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 Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Targa Resources (MEX:TRGP), the current Gross Margin % is 31.12% as of Mar. 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:
Gross Margin %: 31.12% (93% above median its 10-year median of 16.15)
GF Value™: MXN2,335.26 vs. price of MXN3,775.00 (61.7% above fair value)
Industry Position: 21.9% above the Oil & Gas median (#355 of 872)
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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