PLAINS GP HOLDINGS LP-CL A (PAGP) Stock Fundamental Analysis
NASDAQ:PAGP - US72651A2078
19.01 USD
-0.29 (-1.5%)
19 USD
-0.01 (-0.05%)
We assign a fundamental rating of 4 out of 10 to PAGP. PAGP was compared to 209 industry peers in the Oil, Gas & Consumable Fuels industry. PAGP may be in some trouble as it scores bad on both profitability and health. PAGP has a valuation in line with the averages, but on the other hand it scores bad on growth. Finally PAGP also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
PAGP had positive earnings in the past year.
In the past year PAGP had a positive cash flow from operations.
Of the past 5 years PAGP 4 years were profitable.
Each year in the past 5 years PAGP had a positive operating cash flow.
1.2 Ratios
PAGP has a worse Return On Assets (0.48%) than 64.59% of its industry peers.
PAGP has a Return On Equity of 10.04%. This is in the better half of the industry: PAGP outperforms 60.29% of its industry peers.
The Return On Invested Capital of PAGP (5.07%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for PAGP is significantly below the industry average of 21.91%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.48% | ||
| ROE | 10.04% | ||
| ROIC | 5.07% |
ROA(3y)0.55%
ROA(5y)-0.07%
ROE(3y)10.48%
ROE(5y)-0.69%
ROIC(3y)5.23%
ROIC(5y)4.87%
1.3 Margins
The Profit Margin of PAGP (0.28%) is worse than 66.99% of its industry peers.
In the last couple of years the Profit Margin of PAGP has declined.
PAGP's Operating Margin of 2.91% is on the low side compared to the rest of the industry. PAGP is outperformed by 70.81% of its industry peers.
PAGP's Operating Margin has declined in the last couple of years.
The Gross Margin of PAGP (9.40%) is worse than 71.29% of its industry peers.
In the last couple of years the Gross Margin of PAGP has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.91% | ||
| PM (TTM) | 0.28% | ||
| GM | 9.4% |
OM growth 3Y-8.29%
OM growth 5Y-14.79%
PM growth 3Y12.99%
PM growth 5Y-26.86%
GM growth 3Y2%
GM growth 5Y-6.37%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PAGP is destroying value.
Compared to 1 year ago, PAGP has more shares outstanding
Compared to 5 years ago, PAGP has less shares outstanding
PAGP has a worse debt/assets ratio than last year.
2.2 Solvency
PAGP has a debt to FCF ratio of 4.11. This is a neutral value as PAGP would need 4.11 years to pay back of all of its debts.
PAGP's Debt to FCF ratio of 4.11 is fine compared to the rest of the industry. PAGP outperforms 70.81% of its industry peers.
PAGP has a Debt/Equity ratio of 6.06. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 6.06, PAGP is not doing good in the industry: 89.95% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.06 | ||
| Debt/FCF | 4.11 | ||
| Altman-Z | N/A |
ROIC/WACC0.65
WACC7.84%
2.3 Liquidity
PAGP has a Current Ratio of 1.00. This is a normal value and indicates that PAGP is financially healthy and should not expect problems in meeting its short term obligations.
PAGP's Current ratio of 1.00 is in line compared to the rest of the industry. PAGP outperforms 45.45% of its industry peers.
PAGP has a Quick Ratio of 1.00. This is a bad value and indicates that PAGP is not financially healthy enough and could expect problems in meeting its short term obligations.
PAGP has a Quick ratio (0.97) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
The earnings per share for PAGP have decreased strongly by -16.87% in the last year.
The earnings per share for PAGP have been decreasing by -23.92% on average. This is quite bad
The Revenue has decreased by -3.82% in the past year.
Measured over the past years, PAGP shows a quite strong growth in Revenue. The Revenue has been growing by 8.26% on average per year.
EPS 1Y (TTM)-16.87%
EPS 3Y18.32%
EPS 5Y-23.92%
EPS Q2Q%-25%
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 28.21% on average over the next years. This is a very strong growth
PAGP is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -5.80% yearly.
EPS Next Y182.67%
EPS Next 2Y70.56%
EPS Next 3Y45.59%
EPS Next 5Y28.21%
Revenue Next Year-12.87%
Revenue Next 2Y1.15%
Revenue Next 3Y1.44%
Revenue Next 5Y-5.8%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 27.55, the valuation of PAGP can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of PAGP indicates a slightly more expensive valuation: PAGP is more expensive than 60.29% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.90, PAGP is valued at the same level.
With a Price/Forward Earnings ratio of 12.33, PAGP is valued correctly.
PAGP's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.52, PAGP is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.55 | ||
| Fwd PE | 12.33 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PAGP is valued a bit cheaper than 76.56% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, PAGP is valued cheaply inside the industry as 98.09% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.78 | ||
| EV/EBITDA | 5.07 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as PAGP's earnings are expected to grow with 45.59% in the coming years.
PEG (NY)0.15
PEG (5Y)N/A
EPS Next 2Y70.56%
EPS Next 3Y45.59%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.90%, PAGP is a good candidate for dividend investing.
PAGP's Dividend Yield is rather good when compared to the industry average which is at 6.05. PAGP pays more dividend than 84.21% of the companies in the same industry.
PAGP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.9% |
5.2 History
The dividend of PAGP has a limited annual growth rate of 2.27%.
PAGP has been paying a dividend for at least 10 years, so it has a reliable track record.
PAGP has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)2.27%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
PAGP pays out 202.94% of its income as dividend. This is not a sustainable payout ratio.
The dividend of PAGP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP202.94%
EPS Next 2Y70.56%
EPS Next 3Y45.59%
19.01
-0.29 (-1.5%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners83.82%
Inst Owner Change-9.53%
Ins Owners2.67%
Ins Owner Change-0.02%
Market Cap3.76B
Analysts73
Price Target21.83 (14.83%)
Short Float %3.88%
Short Ratio5.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.9% |
Yearly Dividend0.32
Dividend Growth(5Y)2.27%
DP202.94%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-34.77%
Min EPS beat(2)-55.97%
Max EPS beat(2)-13.57%
EPS beat(4)0
Avg EPS beat(4)-56.85%
Min EPS beat(4)-115.08%
Max EPS beat(4)-13.57%
EPS beat(8)0
Avg EPS beat(8)-42.42%
EPS beat(12)2
Avg EPS beat(12)8.79%
EPS beat(16)4
Avg EPS beat(16)8.84%
Revenue beat(2)0
Avg Revenue beat(2)-15.66%
Min Revenue beat(2)-16.72%
Max Revenue beat(2)-14.6%
Revenue beat(4)0
Avg Revenue beat(4)-13.29%
Min Revenue beat(4)-17.15%
Max Revenue beat(4)-4.69%
Revenue beat(8)2
Avg Revenue beat(8)-7.53%
Revenue beat(12)2
Avg Revenue beat(12)-7.94%
Revenue beat(16)6
Avg Revenue beat(16)-0.96%
PT rev (1m)0.87%
PT rev (3m)-2.73%
EPS NQ rev (1m)-1.16%
EPS NQ rev (3m)-10.37%
EPS NY rev (1m)-3.04%
EPS NY rev (3m)-11.36%
Revenue NQ rev (1m)-4.75%
Revenue NQ rev (3m)-13.41%
Revenue NY rev (1m)4.18%
Revenue NY rev (3m)-8.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.55 | ||
| Fwd PE | 12.33 | ||
| P/S | 0.08 | ||
| P/FCF | 1.78 | ||
| P/OCF | 1.37 | ||
| P/B | 2.78 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.07 |
EPS(TTM)0.69
EY3.63%
EPS(NY)1.54
Fwd EY8.11%
FCF(TTM)10.68
FCFY56.16%
OCF(TTM)13.88
OCFY73%
SpS241.72
BVpS6.85
TBVpS-1.43
PEG (NY)0.15
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.48% | ||
| ROE | 10.04% | ||
| ROCE | 5.88% | ||
| ROIC | 5.07% | ||
| ROICexc | 5.17% | ||
| ROICexgc | 5.56% | ||
| OM | 2.91% | ||
| PM (TTM) | 0.28% | ||
| GM | 9.4% | ||
| FCFM | 4.42% |
ROA(3y)0.55%
ROA(5y)-0.07%
ROE(3y)10.48%
ROE(5y)-0.69%
ROIC(3y)5.23%
ROIC(5y)4.87%
ROICexc(3y)5.29%
ROICexc(5y)4.92%
ROICexgc(3y)5.77%
ROICexgc(5y)5.34%
ROCE(3y)6.07%
ROCE(5y)5.65%
ROICexcg growth 3Y-2%
ROICexcg growth 5Y-7.01%
ROICexc growth 3Y-1.66%
ROICexc growth 5Y-5.85%
OM growth 3Y-8.29%
OM growth 5Y-14.79%
PM growth 3Y12.99%
PM growth 5Y-26.86%
GM growth 3Y2%
GM growth 5Y-6.37%
F-Score5
Asset Turnover1.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.06 | ||
| Debt/FCF | 4.11 | ||
| Debt/EBITDA | 3.46 | ||
| Cap/Depr | 64.53% | ||
| Cap/Sales | 1.32% | ||
| Interest Coverage | 3.59 | ||
| Cash Conversion | 115.68% | ||
| Profit Quality | 1552.21% | ||
| Current Ratio | 1 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z | N/A |
F-Score5
WACC7.84%
ROIC/WACC0.65
Cap/Depr(3y)53.51%
Cap/Depr(5y)63.68%
Cap/Sales(3y)1.06%
Cap/Sales(5y)1.44%
Profit Quality(3y)1354.41%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-16.87%
EPS 3Y18.32%
EPS 5Y-23.92%
EPS Q2Q%-25%
EPS Next Y182.67%
EPS Next 2Y70.56%
EPS Next 3Y45.59%
EPS Next 5Y28.21%
Revenue 1Y (TTM)-3.82%
Revenue growth 3Y5.97%
Revenue growth 5Y8.26%
Sales Q2Q%-17.71%
Revenue Next Year-12.87%
Revenue Next 2Y1.15%
Revenue Next 3Y1.44%
Revenue Next 5Y-5.8%
EBIT growth 1Y-0.36%
EBIT growth 3Y-2.81%
EBIT growth 5Y-7.75%
EBIT Next Year70.96%
EBIT Next 3Y18.54%
EBIT Next 5Y8.7%
FCF growth 1Y-11%
FCF growth 3Y4.06%
FCF growth 5Y8.42%
OCF growth 1Y-5.51%
OCF growth 3Y7.65%
OCF growth 5Y-0.13%