PLAINS ALL AMER PIPELINE LP (PAA) Stock Fundamental Analysis
USA - NASDAQ:PAA - US7265031051
17.01 USD
+0.11 (+0.65%)
17.1 USD
+0.09 (+0.53%)
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 it does not seem to be growing.
1. Profitability
1.1 Basic Checks
PAA had positive earnings in the past year.
In the past year PAA had a positive cash flow from operations.
Of the past 5 years PAA 4 years were profitable.
In the past 5 years PAA always reported a positive cash flow from operatings.
1.2 Ratios
PAA has a Return On Assets (2.30%) which is in line with its industry peers.
PAA's Return On Equity of 6.43% is in line compared to the rest of the industry. PAA outperforms 46.89% of its industry peers.
PAA has a Return On Invested Capital (5.57%) which is comparable to the rest of the industry.
PAA had an Average Return On Invested Capital over the past 3 years of 5.79%. This is significantly below the industry average of 21.71%.
| 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
PAA's Profit Margin of 1.31% is on the low side compared to the rest of the industry. PAA is outperformed by 61.24% of its industry peers.
In the last couple of years the Profit Margin of PAA has declined.
Looking at the Operating Margin, with a value of 2.92%, PAA is doing worse than 68.90% of the companies in the same industry.
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 73.68% of its industry peers.
In the last couple of years the Gross Margin of PAA has declined.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PAA is destroying value.
The number of shares outstanding for PAA has been increased compared to 1 year ago.
The number of shares outstanding for PAA has been reduced compared to 5 years ago.
Compared to 1 year ago, PAA has a worse debt to assets ratio.
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 better Debt to FCF ratio (4.14) than 68.42% 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.
PAA has a Debt to Equity ratio of 0.85. This is in the lower half of the industry: PAA underperforms 66.99% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 4.14 | ||
| Altman-Z | N/A |
ROIC/WACC0.67
WACC8.26%
2.3 Liquidity
A Current Ratio of 1.00 indicates that PAA should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.00, PAA is in line with its industry, outperforming 44.98% of the companies in the same industry.
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.
The Revenue has been growing by 8.26% on average over the past years. This is quite good.
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
Based on estimates for the next years, PAA will show a small growth in Earnings Per Share. The EPS will grow by 3.78% on average per year.
The Revenue is expected to decrease by -6.83% on average over the next years.
EPS Next Y-0.72%
EPS Next 2Y0.05%
EPS Next 3Y0.01%
EPS Next 5Y3.78%
Revenue Next Year-11.56%
Revenue Next 2Y-2.73%
Revenue Next 3Y-1.09%
Revenue Next 5Y-6.83%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.05, which indicates a very decent valuation of PAA.
Based on the Price/Earnings ratio, PAA is valued a bit cheaper than 72.25% of the companies in the same industry.
PAA is valuated cheaply when we compare the Price/Earnings ratio to 26.19, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 11.25, the valuation of PAA can be described as reasonable.
Based on the Price/Forward Earnings ratio, PAA is valued a bit cheaper than 64.59% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.50. PAA is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.05 | ||
| Fwd PE | 11.25 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PAA is on the same level as its industry peers.
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 | 5.71 | ||
| EV/EBITDA | 8.46 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y0.05%
EPS Next 3Y0.01%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.04%, PAA is a good candidate for dividend investing.
PAA's Dividend Yield is rather good when compared to the industry average which is at 6.15. PAA pays more dividend than 85.65% of the companies in the same industry.
PAA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.04% |
5.2 History
The dividend of PAA decreases each year by -0.28%.
PAA has been paying a dividend for at least 10 years, so it has 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
196.31% of the earnings are spent on dividend by PAA. This is not a sustainable payout ratio.
DP196.31%
EPS Next 2Y0.05%
EPS Next 3Y0.01%
17.01
+0.11 (+0.65%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners40.01%
Inst Owner Change0.14%
Ins Owners0.84%
Ins Owner Change9.35%
Market Cap11.96B
Revenue(TTM)47.80B
Net Income(TTM)624.00M
Analysts70.43
Price Target21.3 (25.22%)
Short Float %2.32%
Short Ratio3.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.04% |
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)-0.62%
PT rev (3m)-0.34%
EPS NQ rev (1m)3.58%
EPS NQ rev (3m)14.33%
EPS NY rev (1m)2.55%
EPS NY rev (3m)1.94%
Revenue NQ rev (1m)-5.61%
Revenue NQ rev (3m)-10.06%
Revenue NY rev (1m)-1.26%
Revenue NY rev (3m)-4.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.05 | ||
| Fwd PE | 11.25 | ||
| P/S | 0.25 | ||
| P/FCF | 5.71 | ||
| P/OCF | 4.35 | ||
| P/B | 1.23 | ||
| P/tB | 1.48 | ||
| EV/EBITDA | 8.46 |
EPS(TTM)1.54
EY9.05%
EPS(NY)1.51
Fwd EY8.89%
FCF(TTM)2.98
FCFY17.52%
OCF(TTM)3.91
OCFY23%
SpS67.96
BVpS13.8
TBVpS11.47
PEG (NY)N/A
PEG (5Y)N/A
Graham Number21.87
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%
ROICexgc growth 3Y-1.86%
ROICexgc 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
WACC8.26%
ROIC/WACC0.67
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-0.72%
EPS Next 2Y0.05%
EPS Next 3Y0.01%
EPS Next 5Y3.78%
Revenue 1Y (TTM)-3.82%
Revenue growth 3Y5.97%
Revenue growth 5Y8.26%
Sales Q2Q%-17.71%
Revenue Next Year-11.56%
Revenue Next 2Y-2.73%
Revenue Next 3Y-1.09%
Revenue Next 5Y-6.83%
EBIT growth 1Y-0.5%
EBIT growth 3Y-2.49%
EBIT growth 5Y-7.87%
EBIT Next Year71.13%
EBIT Next 3Y16.84%
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%
PLAINS ALL AMER PIPELINE LP / PAA FAQ
What is the fundamental rating for PAA stock?
ChartMill assigns a fundamental rating of 4 / 10 to PAA.
What is the valuation status of PLAINS ALL AMER PIPELINE LP (PAA) stock?
ChartMill assigns a valuation rating of 6 / 10 to PLAINS ALL AMER PIPELINE LP (PAA). This can be considered as Fairly Valued.
Can you provide the profitability details for PLAINS ALL AMER PIPELINE LP?
PLAINS ALL AMER PIPELINE LP (PAA) has a profitability rating of 3 / 10.
What is the financial health of PLAINS ALL AMER PIPELINE LP (PAA) stock?
The financial health rating of PLAINS ALL AMER PIPELINE LP (PAA) is 3 / 10.
Can you provide the dividend sustainability for PAA stock?
The dividend rating of PLAINS ALL AMER PIPELINE LP (PAA) is 5 / 10 and the dividend payout ratio is 196.31%.