PLAINS ALL AMER PIPELINE LP (PAA) Stock Fundamental Analysis
NASDAQ:PAA - US7265031051
17.69 USD
-0.31 (-1.72%)
17.75 USD
+0.06 (+0.34%)
We assign a fundamental rating of 3 out of 10 to PAA. PAA was compared to 209 industry peers in the Oil, Gas & Consumable Fuels industry. PAA has a bad profitability rating. Also its financial health evaluation is rather negative. PAA has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
PAA had positive earnings in the past year.
PAA had a positive operating cash flow in the past year.
Of the past 5 years PAA 4 years were profitable.
Each year in the past 5 years PAA had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 2.30%, PAA perfoms like the industry average, outperforming 43.54% of the companies in the same industry.
Looking at the Return On Equity, with a value of 6.43%, PAA is in line with its industry, outperforming 47.37% of the companies in the same industry.
PAA has a Return On Invested Capital (5.57%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for PAA is significantly below the industry average of 21.91%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.3% | ||
| ROE | 6.43% | ||
| ROIC | 5.57% |
ROA(3y)2.83%
ROA(5y)-0.31%
ROE(3y)7.62%
ROE(5y)-0.46%
ROIC(3y)5.79%
ROIC(5y)5.39%
1.3 Margins
The Profit Margin of PAA (1.31%) is worse than 61.24% of its industry peers.
In the last couple of years the Profit Margin of PAA has declined.
PAA has a Operating Margin of 2.92%. This is in the lower half of the industry: PAA underperforms 70.33% of its industry peers.
In the last couple of years the Operating Margin of PAA has declined.
PAA's Gross Margin of 5.82% is on the low side compared to the rest of the industry. PAA is outperformed by 74.64% of its industry peers.
PAA's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.92% | ||
| PM (TTM) | 1.31% | ||
| GM | 5.82% |
OM growth 3Y-7.98%
OM growth 5Y-14.9%
PM growth 3Y3.2%
PM growth 5Y-29.38%
GM growth 3Y-2.76%
GM growth 5Y-8.73%
2. Health
2.1 Basic Checks
PAA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, PAA has more shares outstanding
The number of shares outstanding for PAA has been reduced compared to 5 years ago.
PAA has a worse debt/assets ratio than last year.
2.2 Solvency
PAA has a debt to FCF ratio of 4.14. This is a neutral value as PAA would need 4.14 years to pay back of all of its debts.
PAA has a Debt to FCF ratio of 4.14. This is in the better half of the industry: PAA outperforms 70.33% of its industry peers.
PAA has a Debt/Equity ratio of 0.85. This is a neutral value indicating PAA is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.85, PAA is not doing good in the industry: 66.51% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 4.14 | ||
| Altman-Z | N/A |
ROIC/WACC0.62
WACC8.92%
2.3 Liquidity
A Current Ratio of 1.00 indicates that PAA should not have too much problems paying its short term obligations.
PAA's Current ratio of 1.00 is in line compared to the rest of the industry. PAA outperforms 44.98% of its industry peers.
A Quick Ratio of 0.97 indicates that PAA may have some problems paying its short term obligations.
PAA has a Quick ratio (0.97) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
PAA shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.36%.
The earnings per share for PAA have been decreasing by -10.57% on average. This is quite bad
Looking at the last year, PAA shows a decrease in Revenue. The Revenue has decreased by -3.82% in the last year.
PAA shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.26% yearly.
EPS 1Y (TTM)3.36%
EPS 3Y7.66%
EPS 5Y-10.57%
EPS Q2Q%16.13%
Revenue 1Y (TTM)-3.82%
Revenue growth 3Y5.97%
Revenue growth 5Y8.26%
Sales Q2Q%-17.71%
3.2 Future
The Earnings Per Share is expected to grow by 3.78% on average over the next years.
PAA is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -6.83% yearly.
EPS Next Y-5.84%
EPS Next 2Y-4.78%
EPS Next 3Y-2.18%
EPS Next 5Y3.78%
Revenue Next Year-7.43%
Revenue Next 2Y2.32%
Revenue Next 3Y0.63%
Revenue Next 5Y-6.83%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.49 indicates a reasonable valuation of PAA.
Based on the Price/Earnings ratio, PAA is valued a bit cheaper than 69.86% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.90, PAA is valued rather cheaply.
The Price/Forward Earnings ratio is 12.92, which indicates a correct valuation of PAA.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PAA is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of PAA to the average of the S&P500 Index (22.52), we can say PAA is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.49 | ||
| Fwd PE | 12.92 |
4.2 Price Multiples
PAA's Enterprise Value to EBITDA is on the same level as the industry average.
PAA's Price/Free Cash Flow ratio is rather cheap when compared to the industry. PAA is cheaper than 89.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.94 | ||
| EV/EBITDA | 8.78 |
4.3 Compensation for Growth
A cheap valuation may be justified as PAA's earnings are expected to decrease with -2.18% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-4.78%
EPS Next 3Y-2.18%
5. Dividend
5.1 Amount
PAA has a Yearly Dividend Yield of 8.50%, which is a nice return.
Compared to an average industry Dividend Yield of 6.05, PAA pays a better dividend. On top of this PAA pays more dividend than 85.17% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, PAA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.5% |
5.2 History
The dividend of PAA decreases each year by -0.28%.
PAA has paid a dividend for at least 10 years, which is a reliable track record.
PAA has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-0.28%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
PAA pays out 196.31% of its income as dividend. This is not a sustainable payout ratio.
DP196.31%
EPS Next 2Y-4.78%
EPS Next 3Y-2.18%
17.69
-0.31 (-1.72%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners41.22%
Inst Owner Change-1.78%
Ins Owners0.73%
Ins Owner Change9.35%
Market Cap12.44B
Analysts70.43
Price Target21.5 (21.54%)
Short Float %2.87%
Short Ratio4.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.5% |
Yearly Dividend1.63
Dividend Growth(5Y)-0.28%
DP196.31%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.03%
Min EPS beat(2)-10.05%
Max EPS beat(2)22.11%
EPS beat(4)3
Avg EPS beat(4)8.5%
Min EPS beat(4)-10.05%
Max EPS beat(4)22.11%
EPS beat(8)6
Avg EPS beat(8)10.4%
EPS beat(12)9
Avg EPS beat(12)9.97%
EPS beat(16)11
Avg EPS beat(16)9.76%
Revenue beat(2)0
Avg Revenue beat(2)-18.58%
Min Revenue beat(2)-21.26%
Max Revenue beat(2)-15.89%
Revenue beat(4)0
Avg Revenue beat(4)-12.88%
Min Revenue beat(4)-21.26%
Max Revenue beat(4)-3.59%
Revenue beat(8)0
Avg Revenue beat(8)-11.23%
Revenue beat(12)0
Avg Revenue beat(12)-13%
Revenue beat(16)4
Avg Revenue beat(16)-4.16%
PT rev (1m)0.58%
PT rev (3m)-2.35%
EPS NQ rev (1m)10%
EPS NQ rev (3m)-5.17%
EPS NY rev (1m)-3.31%
EPS NY rev (3m)-1.31%
Revenue NQ rev (1m)-1.64%
Revenue NQ rev (3m)-5.41%
Revenue NY rev (1m)2.05%
Revenue NY rev (3m)-8.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.49 | ||
| Fwd PE | 12.92 | ||
| P/S | 0.26 | ||
| P/FCF | 5.94 | ||
| P/OCF | 4.52 | ||
| P/B | 1.28 | ||
| P/tB | 1.54 | ||
| EV/EBITDA | 8.78 |
EPS(TTM)1.54
EY8.71%
EPS(NY)1.37
Fwd EY7.74%
FCF(TTM)2.98
FCFY16.85%
OCF(TTM)3.91
OCFY22.11%
SpS67.96
BVpS13.8
TBVpS11.47
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.3% | ||
| ROE | 6.43% | ||
| ROCE | 6.21% | ||
| ROIC | 5.57% | ||
| ROICexc | 5.69% | ||
| ROICexgc | 6.15% | ||
| OM | 2.92% | ||
| PM (TTM) | 1.31% | ||
| GM | 5.82% | ||
| FCFM | 4.39% |
ROA(3y)2.83%
ROA(5y)-0.31%
ROE(3y)7.62%
ROE(5y)-0.46%
ROIC(3y)5.79%
ROIC(5y)5.39%
ROICexc(3y)5.86%
ROICexc(5y)5.46%
ROICexgc(3y)6.43%
ROICexgc(5y)5.95%
ROCE(3y)6.45%
ROCE(5y)6.01%
ROICexcg growth 3Y-1.86%
ROICexcg growth 5Y-7.15%
ROICexc growth 3Y-1.48%
ROICexc growth 5Y-5.92%
OM growth 3Y-7.98%
OM growth 5Y-14.9%
PM growth 3Y3.2%
PM growth 5Y-29.38%
GM growth 3Y-2.76%
GM growth 5Y-8.73%
F-Score5
Asset Turnover1.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 4.14 | ||
| Debt/EBITDA | 3.45 | ||
| Cap/Depr | 66.77% | ||
| Cap/Sales | 1.37% | ||
| Interest Coverage | 3.17 | ||
| Cash Conversion | 115.73% | ||
| Profit Quality | 335.9% | ||
| Current Ratio | 1 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z | N/A |
F-Score5
WACC8.92%
ROIC/WACC0.62
Cap/Depr(3y)57.92%
Cap/Depr(5y)66.47%
Cap/Sales(3y)1.14%
Cap/Sales(5y)1.49%
Profit Quality(3y)268.2%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)3.36%
EPS 3Y7.66%
EPS 5Y-10.57%
EPS Q2Q%16.13%
EPS Next Y-5.84%
EPS Next 2Y-4.78%
EPS Next 3Y-2.18%
EPS Next 5Y3.78%
Revenue 1Y (TTM)-3.82%
Revenue growth 3Y5.97%
Revenue growth 5Y8.26%
Sales Q2Q%-17.71%
Revenue Next Year-7.43%
Revenue Next 2Y2.32%
Revenue Next 3Y0.63%
Revenue Next 5Y-6.83%
EBIT growth 1Y-0.5%
EBIT growth 3Y-2.49%
EBIT growth 5Y-7.87%
EBIT Next Year69.06%
EBIT Next 3Y16.73%
EBIT Next 5Y8.42%
FCF growth 1Y-10.31%
FCF growth 3Y3.68%
FCF growth 5Y8.17%
OCF growth 1Y-5.37%
OCF growth 3Y7.65%
OCF growth 5Y-0.11%