Targa Resources Net Income vs. Gross Profit

TRGP Stock  USD 204.30  2.91  1.44%   
Based on Targa Resources' profitability indicators, Targa Resources is performing exceptionally good at this time. It has a great risk to showcase excellent profitability results in December. Profitability indicators assess Targa Resources' ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
2008-12-31
Previous Quarter
298.5 M
Current Value
387.4 M
Quarterly Volatility
274.8 M
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, Targa Resources' Price To Sales Ratio is relatively stable compared to the past year. As of 11/30/2024, EV To Sales is likely to grow to 2.12, while Days Of Sales Outstanding is likely to drop 24.71. At this time, Targa Resources' Non Operating Income Net Other is relatively stable compared to the past year. As of 11/30/2024, Net Income Per Share is likely to grow to 6.29, though Net Interest Income is likely to grow to (622.6 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.130.2524
Way Down
Slightly volatile
For Targa Resources profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Targa Resources to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Targa Resources utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Targa Resources's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Targa Resources over time as well as its relative position and ranking within its peers.
  

Targa Resources' Revenue Breakdown by Earning Segment

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To learn how to invest in Targa Stock, please use our How to Invest in Targa Resources guide.
Is Oil & Gas Storage & Transportation space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Targa Resources. If investors know Targa will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Targa Resources listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.804
Dividend Share
2.75
Earnings Share
5.54
Revenue Per Share
73.225
Quarterly Revenue Growth
(0.01)
The market value of Targa Resources is measured differently than its book value, which is the value of Targa that is recorded on the company's balance sheet. Investors also form their own opinion of Targa Resources' value that differs from its market value or its book value, called intrinsic value, which is Targa Resources' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Targa Resources' market value can be influenced by many factors that don't directly affect Targa Resources' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Targa Resources' value and its price as these two are different measures arrived at by different means. Investors typically determine if Targa Resources is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Targa Resources' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Targa Resources Gross Profit vs. Net Income Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Targa Resources's current stock value. Our valuation model uses many indicators to compare Targa Resources value to that of its competitors to determine the firm's financial worth.
Targa Resources is rated second in net income category among its peers. It also is rated second in gross profit category among its peers fabricating about  2.56  of Gross Profit per Net Income. At this time, Targa Resources' Net Income is relatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Targa Resources by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Targa Gross Profit vs. Net Income

Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

Targa Resources

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
1.58 B
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.

Targa Resources

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
4.05 B
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.

Targa Gross Profit Comparison

Targa Resources is currently under evaluation in gross profit category among its peers.

Targa Resources Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Targa Resources, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Targa Resources will eventually generate negative long term returns. The profitability progress is the general direction of Targa Resources' change in net profit over the period of time. It can combine multiple indicators of Targa Resources, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income85.6 M89.9 M
Operating Income2.6 B2.8 B
Income Before Tax1.9 BB
Total Other Income Expense Net-683.7 M-649.5 M
Net Income Applicable To Common Shares807.1 M847.5 M
Net Income1.6 B1.7 B
Income Tax Expense363.2 M381.4 M
Net Income From Continuing Ops1.6 B1.7 B
Non Operating Income Net Other494.4 M519.1 M
Interest Income343.6 M270.8 M
Net Interest Income-655.4 M-622.6 M
Change To Netincome106.1 M100.8 M
Net Income Per Share 5.99  6.29 
Income Quality 2.03  3.79 
Net Income Per E B T 0.69  0.73 

Targa Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Targa Resources. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Targa Resources position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Targa Resources' important profitability drivers and their relationship over time.

Use Targa Resources in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Targa Resources position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Targa Resources will appreciate offsetting losses from the drop in the long position's value.

Targa Resources Pair Trading

Targa Resources Pair Trading Analysis

The ability to find closely correlated positions to Targa Resources could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Targa Resources when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Targa Resources - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Targa Resources to buy it.
The correlation of Targa Resources is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Targa Resources moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Targa Resources moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Targa Resources can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

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Tips ETFs Theme
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Additional Tools for Targa Stock Analysis

When running Targa Resources' price analysis, check to measure Targa Resources' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Targa Resources is operating at the current time. Most of Targa Resources' value examination focuses on studying past and present price action to predict the probability of Targa Resources' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Targa Resources' price. Additionally, you may evaluate how the addition of Targa Resources to your portfolios can decrease your overall portfolio volatility.