Targa Resources Inc. (TRGP) exhibits 38.3% gross margins and 33.0% return on invested capital within Energy (Natural Gas Distribution), balanced against a 11.7x enterprise multiple and 6.9% implied options volatility.
Sustained 38.3% gross profitability converts into 19.6% operating margin and 33.0% ROIC, outpacing sector cost of capital.
ROIC: 33.0% // GM: 38.3%YoY revenue trajectory of +20.5% paired with 0.87% free cash flow yield supports self-funded R&D and capital return.
REV YOY: +20.5% // FCF YLD: 0.87%Altman Z-Score of 4.50 and Piotroski F-Score of 7/9 indicate low near-term refinancing stress.
ALTMAN Z: 4.50 // F-SCORE: 7/9Trading at 34.8x trailing P/E (29.2x Fwd P/E) leaves valuation vulnerable if real 10Y TIPS yields spike.
P/E: 34.8x // EV/EBITDA: 11.7xOptions market prices a ±6.9% implied move with a 0.74 put/call ratio around $306.00 max pain.
IMPL MOVE: ±6.9% // P/C: 0.74Elevated industry capital intensity and customer concentration in Natural Gas Distribution require continuous execution to defend 11.3% net margins.
NET MARGIN: 11.3% // D/E: 1.66x| FILER | SIDE | $ VALUE |
|---|---|---|
| INSPECT FULL OWNERSHIP LEDGER IN OWN <GO> | ||
| STRIKE / EXP | TYPE | PREMIUM |
|---|---|---|
| INSPECT GEX & CHAIN IN OPT <GO> | ||
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