Targa Resources Partners (NYSE: NGLS) shares currently have a dividend yield of 5.60%. Targa Resources Partners LP provides midstream natural gas, natural gas liquid (NGL), terminaling, and crude oil gathering services in the United States. The company operates in two divisions, Gathering and Processing, and Logistics and Marketing. The company has a P/E ratio of 65.44 The average volume for Targa Resources Partners has been 426,800 shares per day over the past 30 days Targa Resources Partners has a market cap of $5.1 billion and is part of the energy industry Shares are up 35% year to date as of the close of trading on Friday TheStreet Ratings rates Targa Resources Partners as a buy. The company's strengths can be seen in multiple areas, such as its good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share. Highlights from the ratings report include:
- Net operating cash flow has increased to $171.70 million or 17.04% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -24.27%.
- Compared to its closing price of one year ago, NGLS's share price has jumped by 39.20%, exceeding the performance of the broader market during that same time frame. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
- NGLS, with its decline in revenue, slightly underperformed the industry average of 13.3%. Since the same quarter one year prior, revenues fell by 15.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The gross profit margin for TARGA RESOURCES PARTNERS LP is currently extremely low, coming in at 12.50%. Regardless of NGLS's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 2.78% trails the industry average.
- The debt-to-equity ratio of 1.40 is relatively high when compared with the industry average, suggesting a need for better debt level management. Along with the unfavorable debt-to-equity ratio, NGLS maintains a poor quick ratio of 0.82, which illustrates the inability to avoid short-term cash problems.
- You can view the full Targa Resources Partners Ratings Report.
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