Targa Resources, Inc. — Earnings Quality Grade F
TRGP · Energy
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 32 days, change -4 days YoY
AR growth -8.9% vs revenue growth 3.9%
Revenue 3.9%, CFFO 7.3%. Cash follows revenue
Expense Quality
Inventory growth 28.4% far exceeds COGS -0.8%, margin rising. Fraud signal
CapEx growth 12.4% vs revenue 3.9%. Normal
SG&A/Gross Profit = 8.1%, excellent (<30%)
Gross margin 29.4%, change +3.4pp. Stable
Cash Flow Quality
CFFO/NI = 2.04. Profits backed by cash
FCF $0.6B, FCF/NI = 0.30
Accruals ratio = -7.9%. Low accruals
Cash $0.2B covers only 1% of debt $17.5B
Balance Sheet Health
No goodwill. Clean balance sheet
Debt/EBITDA = 3.6x. Healthy
Other assets grew 82.8% vs revenue 3.9%
No write-off data
Acquisition Risk
FCF after acquisitions positive
No goodwill
Manipulation Score
M-Score = -3.06 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-10