PLAINS ALL AMER PIPELINE LP (PAA) Stock Fundamental Analysis
NASDAQ:PAA - Nasdaq - US7265031051 - Currency: USD
Overall PAA gets a fundamental rating of 3 out of 10. We evaluated PAA against 212 industry peers in the Oil, Gas & Consumable Fuels industry. PAA may be in some trouble as it scores bad on both profitability and health. 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.
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
The Return On Assets of PAA (1.94%) is worse than 60.38% of its industry peers.
PAA has a Return On Equity of 5.24%. This is comparable to the rest of the industry: PAA outperforms 40.57% of its industry peers.
PAA has a Return On Invested Capital (5.56%) 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 27.43%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.94% | ||
| ROE | 5.24% | ||
| ROIC | 5.56% |
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 has a worse Profit Margin (1.03%) than 66.04% of its industry peers.
PAA's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 2.68%, PAA is doing worse than 71.23% of the companies in the same industry.
In the last couple of years the Operating Margin of PAA has declined.
The Gross Margin of PAA (5.48%) is worse than 77.36% of its industry peers.
PAA's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.68% | ||
| PM (TTM) | 1.03% | ||
| GM | 5.48% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PAA is destroying value.
The number of shares outstanding for PAA has been increased compared to 1 year ago.
PAA has less shares outstanding than it did 5 years ago.
PAA has a worse debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of PAA is 4.12, which is a neutral value as it means it would take PAA, 4.12 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 4.12, PAA is doing good in the industry, outperforming 70.75% of the companies in the same industry.
PAA has a Debt/Equity ratio of 0.74. This is a neutral value indicating PAA is somewhat dependend on debt financing.
PAA has a Debt to Equity ratio of 0.74. This is in the lower half of the industry: PAA underperforms 65.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 4.12 | ||
| Altman-Z | N/A |
ROIC/WACC0.54
WACC10.26%
2.3 Liquidity
PAA has a Current Ratio of 0.97. This is a bad value and indicates that PAA is not financially healthy enough and could expect problems in meeting its short term obligations.
PAA has a Current ratio (0.97) which is in line with its industry peers.
A Quick Ratio of 0.88 indicates that PAA may have some problems paying its short term obligations.
PAA has a Quick ratio of 0.88. This is comparable to the rest of the industry: PAA outperforms 42.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.59% over the past year.
Measured over the past years, PAA shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -10.57% on average per year.
PAA shows a small growth in Revenue. In the last year, the Revenue has grown by 2.79%.
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)5.59%
EPS 3Y7.66%
EPS 5Y-10.57%
EPS Q2Q%0%
Revenue 1Y (TTM)2.79%
Revenue growth 3Y5.97%
Revenue growth 5Y8.26%
Sales Q2Q%-2.33%
3.2 Future
The Earnings Per Share is expected to grow by 5.67% on average over the next years.
The Revenue is expected to decrease by -6.83% on average over the next years.
EPS Next Y0.25%
EPS Next 2Y-1.87%
EPS Next 3Y2.42%
EPS Next 5Y5.67%
Revenue Next Year8.78%
Revenue Next 2Y3.55%
Revenue Next 3Y2.7%
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.
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
A Price/Earnings ratio of 11.29 indicates a reasonable valuation of PAA.
The rest of the industry has a similar Price/Earnings ratio as PAA.
The average S&P500 Price/Earnings ratio is at 28.29. PAA is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 11.26, which indicates a very decent 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.
PAA is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.29 | ||
| Fwd PE | 11.26 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as PAA.
PAA's Price/Free Cash Flow ratio is rather cheap when compared to the industry. PAA is cheaper than 82.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.48 | ||
| EV/EBITDA | 8.35 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)44.64
PEG (5Y)N/A
EPS Next 2Y-1.87%
EPS Next 3Y2.42%
5. Dividend
5.1 Amount
PAA has a Yearly Dividend Yield of 8.57%, which is a nice return.
Compared to an average industry Dividend Yield of 7.41, PAA pays a better dividend. On top of this PAA pays more dividend than 81.13% of the companies listed in the same industry.
PAA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.57% |
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
PAA pays out 222.76% of its income as dividend. This is not a sustainable payout ratio.
DP222.76%
EPS Next 2Y-1.87%
EPS Next 3Y2.42%
NASDAQ:PAA (4/21/2025, 2:00:06 PM)
17.045
-0.69 (-3.92%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners42.6%
Inst Owner Change0.11%
Ins Owners0.72%
Ins Owner Change0%
Market Cap12.00B
Analysts72.5
Price Target22.57 (32.41%)
Short Float %2.93%
Short Ratio3.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.57% |
Yearly Dividend1.63
Dividend Growth(5Y)-0.28%
DP222.76%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.97%
Min EPS beat(2)2.31%
Max EPS beat(2)19.64%
EPS beat(4)3
Avg EPS beat(4)6.18%
Min EPS beat(4)-1.66%
Max EPS beat(4)19.64%
EPS beat(8)7
Avg EPS beat(8)10.92%
EPS beat(12)9
Avg EPS beat(12)12.61%
EPS beat(16)12
Avg EPS beat(16)15.61%
Revenue beat(2)0
Avg Revenue beat(2)-7.19%
Min Revenue beat(2)-10.79%
Max Revenue beat(2)-3.59%
Revenue beat(4)0
Avg Revenue beat(4)-5.77%
Min Revenue beat(4)-10.79%
Max Revenue beat(4)-0.24%
Revenue beat(8)0
Avg Revenue beat(8)-12.21%
Revenue beat(12)2
Avg Revenue beat(12)-7.17%
Revenue beat(16)6
Avg Revenue beat(16)2.88%
PT rev (1m)1.01%
PT rev (3m)9.32%
EPS NQ rev (1m)6.87%
EPS NQ rev (3m)-0.76%
EPS NY rev (1m)1.98%
EPS NY rev (3m)6.64%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)2.62%
Revenue NY rev (1m)1.38%
Revenue NY rev (3m)3.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.29 | ||
| Fwd PE | 11.26 | ||
| P/S | 0.24 | ||
| P/FCF | 6.48 | ||
| P/OCF | 4.82 | ||
| P/B | 1.22 | ||
| P/tB | 1.47 | ||
| EV/EBITDA | 8.35 |
EPS(TTM)1.51
EY8.86%
EPS(NY)1.51
Fwd EY8.88%
FCF(TTM)2.63
FCFY15.42%
OCF(TTM)3.54
OCFY20.76%
SpS71.15
BVpS13.94
TBVpS11.56
PEG (NY)44.64
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.94% | ||
| ROE | 5.24% | ||
| ROCE | 6.2% | ||
| ROIC | 5.56% | ||
| ROICexc | 5.66% | ||
| ROICexgc | 6.14% | ||
| OM | 2.68% | ||
| PM (TTM) | 1.03% | ||
| GM | 5.48% | ||
| FCFM | 3.69% |
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-Score4
Asset Turnover1.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 4.12 | ||
| Debt/EBITDA | 3.05 | ||
| Cap/Depr | 62.38% | ||
| Cap/Sales | 1.28% | ||
| Interest Coverage | 3.52 | ||
| Cash Conversion | 105.24% | ||
| Profit Quality | 359.92% | ||
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | N/A |
F-Score4
WACC10.26%
ROIC/WACC0.54
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)5.59%
EPS 3Y7.66%
EPS 5Y-10.57%
EPS Q2Q%0%
EPS Next Y0.25%
EPS Next 2Y-1.87%
EPS Next 3Y2.42%
EPS Next 5Y5.67%
Revenue 1Y (TTM)2.79%
Revenue growth 3Y5.97%
Revenue growth 5Y8.26%
Sales Q2Q%-2.33%
Revenue Next Year8.78%
Revenue Next 2Y3.55%
Revenue Next 3Y2.7%
Revenue Next 5Y-6.83%
EBIT growth 1Y-1.33%
EBIT growth 3Y-2.49%
EBIT growth 5Y-7.87%
EBIT Next Year70.48%
EBIT Next 3Y20.51%
EBIT Next 5Y12.81%
FCF growth 1Y-13.75%
FCF growth 3Y3.68%
FCF growth 5Y8.17%
OCF growth 1Y-8.69%
OCF growth 3Y7.65%
OCF growth 5Y-0.11%