PLAINS ALL AMER PIPELINE LP (PAA) Stock Fundamental Analysis
NASDAQ:PAA - Nasdaq - US7265031051 - Currency: USD
PAA gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 213 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 it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year PAA was profitable.
PAA had a positive operating cash flow in the past year.
PAA had positive earnings in 4 of the past 5 years.
PAA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of PAA (1.94%) is comparable to the rest of the industry.
PAA has a Return On Equity (5.24%) which is in line with its industry peers.
PAA has a Return On Invested Capital (5.56%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PAA is significantly below the industry average of 25.88%.
| 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 Profit Margin of 1.03%. This is in the lower half of the industry: PAA underperforms 64.32% of its industry peers.
In the last couple of years the Profit Margin of PAA has declined.
PAA has a Operating Margin of 2.68%. This is in the lower half of the industry: PAA underperforms 71.36% of its industry peers.
In the last couple of years the Operating Margin of PAA has declined.
PAA has a Gross Margin of 5.48%. This is in the lower half of the industry: PAA underperforms 75.12% of its industry peers.
In the last couple of years the Gross Margin of PAA has declined.
| 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
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.
Compared to 1 year ago, PAA has a worse debt to assets ratio.
2.2 Solvency
PAA has a debt to FCF ratio of 4.12. This is a neutral value as PAA would need 4.12 years to pay back of all of its debts.
The Debt to FCF ratio of PAA (4.12) is better than 71.83% of its industry peers.
PAA has a Debt/Equity ratio of 0.74. This is a neutral value indicating PAA is somewhat dependend on debt financing.
The Debt to Equity ratio of PAA (0.74) is worse than 63.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 4.12 | ||
| Altman-Z | N/A |
ROIC/WACC0.55
WACC10.14%
2.3 Liquidity
A Current Ratio of 0.97 indicates that PAA may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.97, PAA is in line with its industry, outperforming 40.38% of the companies in the same industry.
A Quick Ratio of 0.88 indicates that PAA may have some problems paying its short term obligations.
PAA has a Quick ratio (0.88) which is comparable to the rest of the industry.
| 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 4.20% 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.
The Revenue has been growing slightly by 2.79% in the past year.
The Revenue has been growing by 8.26% on average over the past years. This is quite good.
EPS 1Y (TTM)4.2%
EPS 3Y7.66%
EPS 5Y-10.57%
EPS Q2Q%-4.88%
Revenue 1Y (TTM)2.79%
Revenue growth 3Y5.97%
Revenue growth 5Y8.26%
Sales Q2Q%0.13%
3.2 Future
PAA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.67% yearly.
The Revenue is expected to decrease by -6.83% on average over the next years.
EPS Next Y-4.59%
EPS Next 2Y-2.44%
EPS Next 3Y0.82%
EPS Next 5Y5.67%
Revenue Next Year1.26%
Revenue Next 2Y6.37%
Revenue Next 3Y2.82%
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
Based on the Price/Earnings ratio of 11.09, the valuation of PAA can be described as reasonable.
PAA's Price/Earnings ratio is a bit cheaper when compared to the industry. PAA is cheaper than 64.79% of the companies in the same industry.
When comparing the Price/Earnings ratio of PAA to the average of the S&P500 Index (25.91), we can say PAA is valued rather cheaply.
PAA is valuated reasonably with a Price/Forward Earnings ratio of 11.50.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PAA is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.85, PAA is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.09 | ||
| Fwd PE | 11.5 |
4.2 Price Multiples
PAA's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, PAA is valued cheaper than 85.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.29 | ||
| EV/EBITDA | 8.02 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-2.44%
EPS Next 3Y0.82%
5. Dividend
5.1 Amount
PAA has a Yearly Dividend Yield of 8.80%, which is a nice return.
Compared to an average industry Dividend Yield of 6.72, PAA pays a better dividend. On top of this PAA pays more dividend than 83.57% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, PAA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.8% |
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
222.76% of the earnings are spent on dividend by PAA. This is not a sustainable payout ratio.
DP222.76%
EPS Next 2Y-2.44%
EPS Next 3Y0.82%
NASDAQ:PAA (5/23/2025, 9:31:04 AM)
16.53
-0.09 (-0.54%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners42.6%
Inst Owner Change-5.29%
Ins Owners0.72%
Ins Owner Change0%
Market Cap11.63B
Analysts72.5
Price Target22.02 (33.21%)
Short Float %2.08%
Short Ratio2.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.8% |
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)-2.43%
PT rev (3m)2.06%
EPS NQ rev (1m)-1.81%
EPS NQ rev (3m)1.59%
EPS NY rev (1m)-4.83%
EPS NY rev (3m)-2.17%
Revenue NQ rev (1m)-1.99%
Revenue NQ rev (3m)0.05%
Revenue NY rev (1m)-6.91%
Revenue NY rev (3m)-4.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.09 | ||
| Fwd PE | 11.5 | ||
| P/S | 0.23 | ||
| P/FCF | 6.29 | ||
| P/OCF | 4.67 | ||
| P/B | 1.19 | ||
| P/tB | 1.43 | ||
| EV/EBITDA | 8.02 |
EPS(TTM)1.49
EY9.01%
EPS(NY)1.44
Fwd EY8.7%
FCF(TTM)2.63
FCFY15.9%
OCF(TTM)3.54
OCFY21.4%
SpS71.15
BVpS13.94
TBVpS11.56
PEG (NY)N/A
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
WACC10.14%
ROIC/WACC0.55
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)4.2%
EPS 3Y7.66%
EPS 5Y-10.57%
EPS Q2Q%-4.88%
EPS Next Y-4.59%
EPS Next 2Y-2.44%
EPS Next 3Y0.82%
EPS Next 5Y5.67%
Revenue 1Y (TTM)2.79%
Revenue growth 3Y5.97%
Revenue growth 5Y8.26%
Sales Q2Q%0.13%
Revenue Next Year1.26%
Revenue Next 2Y6.37%
Revenue Next 3Y2.82%
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%