Does TARGA RESOURCES CORP. have an economic moat?

Based on its FY2025 SEC filings, the Moat Index scores TARGA RESOURCES CORP. (TRGP) 33.3 out of 100 — below the Shallow-moat bar, so no moat. The four filters behind that score (each 0–100): pricing power 15, returns on capital 21, balance-sheet safety 53, capital discipline 60.

Is TRGP stock trading below its intrinsic value?

Against a deliberately conservative owner-earnings model (9% discount rate, 4% assumed growth, capped at 4%), estimated intrinsic value is $110.01 per share versus a recent price of $282.91 — 157% above value. This is an educational estimate computed from primary SEC filings, not investment advice.

How has TRGP's Moat Score changed over time?

The record logs 3 readings since Jul 17, 2026; the latest reads 33.3 out of 100 (no moat). No tier changes on record yet. The history is append-only — readings are only ever added, never rewritten.

The Moat Index

TARGA RESOURCES CORP.

TRGP · Utilities · $60.7B mkt cap · FY2025 filings · No moat ·

Doesn't clear the bar

No moat

The four filters

Pricing power15

Median gross margin 24.4% over 10y, variable.

Returns on capital21

Median ROIC 5.8%, above the 9% hurdle in 50% of years.

Balance-sheet safety53

Net debt/EBITDA 3.4x, no material interest expense disclosed.

Capital discipline60

Owner earnings +83.1%/yr, share count growing (dilution).

Margin of safety

Above valueOn sale

157% above value

Owner earnings (normalized): $1.3B
Est. intrinsic value / share: $110.01
Recent price: $282.91
Discount to value: 157% above value

Conservative model: 9% discount rate, 4% assumed growth (capped at 4%), maintenance capex ≈ min(capex, D&A).

18 years of fundamentals

The business, in plain English

TARGA RESOURCES CORP. booked $17.0B of revenue in FY2025 in the Utilities sector and kept 38.3% of it as gross profit — a solid-margin business by that measure. After every other cost, 11.3% of each revenue dollar reached the bottom line.

Across the filed record, revenue grew from $6.7B (FY2016) to $17.0B (FY2025) — about 10.9% a year compounded over 9 years.

It earned 13.4% on invested capital in FY2025, with a median of 9.9% across 17 filed years. The Returns on Capital filter above scores it 21/100.

The balance sheet carried $16.7B of total debt in FY2025 against $1.9B of owner earnings — roughly 8.7 years of owner earnings to retire it all. Balance-Sheet Safety scores it 53/100.

The share count rose 407.6% between FY2010 and FY2025 — existing owners have been diluted over the record. Capital Discipline scores it 60/100.

Put together: Capital Discipline is the strongest of the four filters (60/100) and Pricing Power the weakest (15/100), which is how TRGP lands at 33/100 — a None moat.

This breakdown is generated from the filed numbers and sub-scores above — no outside narrative, no estimates. Where a filing doesn’t disclose an input, the sentence that would need it is omitted instead of guessed.

RevenueSales, as filed$17.0B FY2025

Gross marginRevenue kept after cost of goods38.3% FY2025

Return on invested capitalOperating profit on the capital employed13.4% FY2025

Owner earningsCash an owner could take out$1.9B FY2025

Gaps in a line mean that item isn’t in TRGP’s filings for that year — the series is never interpolated or estimated. The Table view lists every filed value, including operating and net margins, total debt, and share count.

Moat Score history

Moat Score over timeLast scored reading of each day, on the 0–100 scale33.3 / 100

Score history begins Jul 17, 2026 — the record builds from here and can’t be backfilled.

Tier changesSame-methodology crossings of the Wide / Narrow / Shallow bars

None yet — TRGP has read No moat for every logged capture since Jul 17, 2026.

Scores are logged append-only and never overwritten — this record can’t be backfilled, which is exactly why it’s worth keeping.

Utilities context

#27 of 48 scored Utilities companies, ranked by Moat Score.

Nearest peers by Moat Score

#25CWST CASELLA WASTE SYSTEMS, INC.34.4 out of 100, No moatNo moat
#26CNP CENTERPOINT ENERGY INC34.3 out of 100, No moatNo moat
#28SR Spire Inc.33.1 out of 100, No moatNo moat
#29OGS ONE Gas, Inc.33.1 out of 100, No moatNo moat

Compare TRGP with its nearest peers →All Utilities companies on the Index →

Common questions about TRGP

Does TARGA RESOURCES CORP. have an economic moat?: Based on its FY2025 SEC filings, the Moat Index scores TARGA RESOURCES CORP. (TRGP) 33.3 out of 100 — below the Shallow-moat bar, so no moat. The four filters behind that score (each 0–100): pricing power 15, returns on capital 21, balance-sheet safety 53, capital discipline 60.
Is TRGP stock trading below its intrinsic value?: Against a deliberately conservative owner-earnings model (9% discount rate, 4% assumed growth, capped at 4%), estimated intrinsic value is $110.01 per share versus a recent price of $282.91 — 157% above value. This is an educational estimate computed from primary SEC filings, not investment advice.
How has TRGP's Moat Score changed over time?: The record logs 3 readings since Jul 17, 2026; the latest reads 33.3 out of 100 (no moat). No tier changes on record yet. The history is append-only — readings are only ever added, never rewritten.

Embed this score on your site

One iframe, no script. The badge shows TRGP’s live Moat Score, updates itself as new filings are scored, and links back here. How it works.

<iframe
  src="https://buylikebuffett.com/embed/TRGP"
  width="340" height="150" style="border:0"
  title="TRGP Moat Score — The Moat Index"
  loading="lazy"></iframe>

Scored from primary SEC filings via the public methodology. Educational only — not a recommendation to buy or sell TRGP. See the disclaimer.