PLAINS GP HOLDINGS LP-CL A (PAGP) Stock Fundamental Analysis
NASDAQ:PAGP - Nasdaq - US72651A2078 - Currency: USD
We assign a fundamental rating of 3 out of 10 to PAGP. PAGP was compared to 212 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 correct valuation and a medium growth rate.
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 (0.37%) than 67.45% of its industry peers.
Looking at the Return On Equity, with a value of 7.62%, PAGP is in line with its industry, outperforming 46.70% of the companies in the same industry.
PAGP has a Return On Invested Capital (5.04%) which is in line with its industry peers.
PAGP had an Average Return On Invested Capital over the past 3 years of 5.23%. This is significantly below the industry average of 25.74%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.37% | ||
| ROE | 7.62% | ||
| ROIC | 5.04% |
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
PAGP has a worse Profit Margin (0.21%) than 68.40% of its industry peers.
In the last couple of years the Profit Margin of PAGP has declined.
The Operating Margin of PAGP (2.67%) is worse than 72.17% of its industry peers.
In the last couple of years the Operating Margin of PAGP has declined.
The Gross Margin of PAGP (9.01%) is worse than 73.11% of its industry peers.
PAGP's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.67% | ||
| PM (TTM) | 0.21% | ||
| GM | 9.01% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PAGP is destroying value.
Compared to 1 year ago, PAGP has more shares outstanding
PAGP has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, PAGP has a worse debt to assets ratio.
2.2 Solvency
PAGP has a debt to FCF ratio of 4.09. This is a neutral value as PAGP would need 4.09 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.09, PAGP is in the better half of the industry, outperforming 70.28% of the companies in the same industry.
PAGP has a Debt/Equity ratio of 5.34. This is a high value indicating a heavy dependency on external financing.
PAGP's Debt to Equity ratio of 5.34 is on the low side compared to the rest of the industry. PAGP is outperformed by 90.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.34 | ||
| Debt/FCF | 4.09 | ||
| Altman-Z | N/A |
ROIC/WACC0.65
WACC7.7%
2.3 Liquidity
A Current Ratio of 0.97 indicates that PAGP may have some problems paying its short term obligations.
PAGP has a Current ratio of 0.97. This is comparable to the rest of the industry: PAGP outperforms 41.98% of its industry peers.
A Quick Ratio of 0.88 indicates that PAGP may have some problems paying its short term obligations.
PAGP has a Quick ratio (0.88) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
PAGP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -80.94%.
PAGP shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -23.92% yearly.
The Revenue has been growing slightly by 2.79% 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)-80.94%
EPS 3Y18.32%
EPS 5Y-23.92%
EPS Q2Q%-118.52%
Revenue 1Y (TTM)2.79%
Revenue growth 3Y5.97%
Revenue growth 5Y8.26%
Sales Q2Q%-2.33%
3.2 Future
Based on estimates for the next years, PAGP will show a very strong growth in Earnings Per Share. The EPS will grow by 30.14% on average per year.
PAGP is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -5.80% yearly.
EPS Next Y242.76%
EPS Next 2Y80.66%
EPS Next 3Y51.45%
EPS Next 5Y30.14%
Revenue Next Year13.46%
Revenue Next 2Y5.13%
Revenue Next 3Y4.05%
Revenue Next 5Y-5.8%
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
PAGP is valuated quite expensively with a Price/Earnings ratio of 33.53.
Compared to the rest of the industry, the Price/Earnings ratio of PAGP indicates a slightly more expensive valuation: PAGP is more expensive than 65.09% of the companies listed in the same industry.
PAGP's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.22.
PAGP is valuated reasonably with a Price/Forward Earnings ratio of 9.78.
PAGP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PAGP is cheaper than 63.21% of the companies in the same industry.
PAGP's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.53 | ||
| Fwd PE | 9.78 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PAGP is valued a bit cheaper than the industry average as 69.81% of the companies are valued more expensively.
97.17% of the companies in the same industry are more expensive than PAGP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.88 | ||
| EV/EBITDA | 4.58 |
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.
PAGP's earnings are expected to grow with 51.45% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.14
PEG (5Y)N/A
EPS Next 2Y80.66%
EPS Next 3Y51.45%
5. Dividend
5.1 Amount
PAGP has a Yearly Dividend Yield of 8.51%, which is a nice return.
PAGP's Dividend Yield is a higher than the industry average which is at 7.33.
PAGP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.51% |
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 243.69% 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.
DP243.69%
EPS Next 2Y80.66%
EPS Next 3Y51.45%
17.77
-0.09 (-0.5%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners80.04%
Inst Owner Change0.43%
Ins Owners2.67%
Ins Owner Change-0.08%
Market Cap3.51B
Analysts76
Price Target22.44 (26.28%)
Short Float %3.91%
Short Ratio4.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.51% |
Yearly Dividend0.32
Dividend Growth(5Y)2.27%
DP243.69%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-78.94%
Min EPS beat(2)-115.08%
Max EPS beat(2)-42.79%
EPS beat(4)0
Avg EPS beat(4)-54.2%
Min EPS beat(4)-115.08%
Max EPS beat(4)-27.14%
EPS beat(8)2
Avg EPS beat(8)30.94%
EPS beat(12)3
Avg EPS beat(12)23.32%
EPS beat(16)5
Avg EPS beat(16)0.73%
Revenue beat(2)0
Avg Revenue beat(2)-10.92%
Min Revenue beat(2)-17.15%
Max Revenue beat(2)-4.69%
Revenue beat(4)1
Avg Revenue beat(4)-6.93%
Min Revenue beat(4)-17.15%
Max Revenue beat(4)2.18%
Revenue beat(8)2
Avg Revenue beat(8)-5.72%
Revenue beat(12)4
Avg Revenue beat(12)-3.35%
Revenue beat(16)8
Avg Revenue beat(16)4.78%
PT rev (1m)0%
PT rev (3m)6.67%
EPS NQ rev (1m)25.75%
EPS NQ rev (3m)46.26%
EPS NY rev (1m)22.21%
EPS NY rev (3m)8.95%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)5.64%
Revenue NY rev (1m)-0.65%
Revenue NY rev (3m)-1.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.53 | ||
| Fwd PE | 9.78 | ||
| P/S | 0.07 | ||
| P/FCF | 1.88 | ||
| P/OCF | 1.41 | ||
| P/B | 2.6 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.58 |
EPS(TTM)0.53
EY2.98%
EPS(NY)1.82
Fwd EY10.22%
FCF(TTM)9.43
FCFY53.08%
OCF(TTM)12.56
OCFY70.69%
SpS253.23
BVpS6.83
TBVpS-1.65
PEG (NY)0.14
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.37% | ||
| ROE | 7.62% | ||
| ROCE | 5.85% | ||
| ROIC | 5.04% | ||
| ROICexc | 5.11% | ||
| ROICexgc | 5.53% | ||
| OM | 2.67% | ||
| PM (TTM) | 0.21% | ||
| GM | 9.01% | ||
| FCFM | 3.72% |
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 Turnover1.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.34 | ||
| Debt/FCF | 4.09 | ||
| Debt/EBITDA | 3.06 | ||
| Cap/Depr | 60.33% | ||
| Cap/Sales | 1.24% | ||
| Interest Coverage | 3.8 | ||
| Cash Conversion | 105.21% | ||
| Profit Quality | 1810.68% | ||
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | N/A |
F-Score5
WACC7.7%
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)-80.94%
EPS 3Y18.32%
EPS 5Y-23.92%
EPS Q2Q%-118.52%
EPS Next Y242.76%
EPS Next 2Y80.66%
EPS Next 3Y51.45%
EPS Next 5Y30.14%
Revenue 1Y (TTM)2.79%
Revenue growth 3Y5.97%
Revenue growth 5Y8.26%
Sales Q2Q%-2.33%
Revenue Next Year13.46%
Revenue Next 2Y5.13%
Revenue Next 3Y4.05%
Revenue Next 5Y-5.8%
EBIT growth 1Y-1.04%
EBIT growth 3Y-2.81%
EBIT growth 5Y-7.75%
EBIT Next Year72.03%
EBIT Next 3Y21.06%
EBIT Next 5Y12.84%
FCF growth 1Y-13.78%
FCF growth 3Y4.06%
FCF growth 5Y8.42%
OCF growth 1Y-8.74%
OCF growth 3Y7.65%
OCF growth 5Y-0.13%