PLAINS GP HOLDINGS LP-CL A (PAGP) Stock Fundamental Analysis
NASDAQ:PAGP - Nasdaq - US72651A2078 - Currency: USD
Taking everything into account, PAGP scores 4 out of 10 in our fundamental rating. PAGP was compared to 213 industry peers in the Oil, Gas & Consumable Fuels industry. Both the profitability and financial health of PAGP have multiple concerns. PAGP is not valued too expensively and it also shows a decent growth rate. 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's Return On Assets of 0.51% is on the low side compared to the rest of the industry. PAGP is outperformed by 65.26% of its industry peers.
PAGP has a Return On Equity of 10.69%. This is in the better half of the industry: PAGP outperforms 60.09% of its industry peers.
The Return On Invested Capital of PAGP (5.43%) 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 25.87%.
The last Return On Invested Capital (5.43%) for PAGP is above the 3 year average (5.23%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.51% | ||
| ROE | 10.69% | ||
| ROIC | 5.43% |
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 Profit Margin of 0.29%. This is in the lower half of the industry: PAGP underperforms 68.08% of its industry peers.
In the last couple of years the Profit Margin of PAGP has declined.
PAGP's Operating Margin of 2.96% is on the low side compared to the rest of the industry. PAGP is outperformed by 70.89% of its industry peers.
PAGP's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 9.36%, PAGP is doing worse than 71.83% of the companies in the same industry.
In the last couple of years the Gross Margin of PAGP has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.96% | ||
| PM (TTM) | 0.29% | ||
| GM | 9.36% |
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.
The number of shares outstanding for PAGP has been increased compared to 1 year ago.
Compared to 5 years ago, PAGP has less shares outstanding
PAGP has a worse debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of PAGP is 4.23, which is a neutral value as it means it would take PAGP, 4.23 years of fcf income to pay off all of its debts.
PAGP has a Debt to FCF ratio of 4.23. This is in the better half of the industry: PAGP outperforms 70.89% of its industry peers.
A Debt/Equity ratio of 6.05 is on the high side and indicates that PAGP has dependencies on debt financing.
PAGP's Debt to Equity ratio of 6.05 is on the low side compared to the rest of the industry. PAGP is outperformed by 90.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.05 | ||
| Debt/FCF | 4.23 | ||
| Altman-Z | N/A |
ROIC/WACC0.7
WACC7.77%
2.3 Liquidity
A Current Ratio of 1.01 indicates that PAGP should not have too much problems paying its short term obligations.
PAGP's Current ratio of 1.01 is in line compared to the rest of the industry. PAGP outperforms 41.31% of its industry peers.
A Quick Ratio of 0.94 indicates that PAGP may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.94, PAGP is in line with its industry, outperforming 49.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
The earnings per share for PAGP have decreased strongly by -51.63% in the last year.
PAGP shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -23.92% yearly.
Looking at the last year, PAGP shows a small growth in Revenue. The Revenue has grown by 3.56% in the last year.
PAGP shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.26% yearly.
EPS 1Y (TTM)-51.63%
EPS 3Y18.32%
EPS 5Y-23.92%
EPS Q2Q%100%
Revenue 1Y (TTM)3.56%
Revenue growth 3Y5.97%
Revenue growth 5Y8.26%
Sales Q2Q%0.13%
3.2 Future
PAGP is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 30.14% yearly.
Based on estimates for the next years, PAGP will show a decrease in Revenue. The Revenue will decrease by -5.80% on average per year.
EPS Next Y218.89%
EPS Next 2Y78.57%
EPS Next 3Y50.14%
EPS Next 5Y30.14%
Revenue Next Year-4.36%
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 rather expensively with a Price/Earnings ratio of 24.07.
PAGP's Price/Earnings ratio is in line with the industry average.
PAGP is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.82, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 10.54, the valuation of PAGP can be described as very reasonable.
PAGP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PAGP is cheaper than 62.44% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, PAGP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.07 | ||
| Fwd PE | 10.54 |
4.2 Price Multiples
71.36% of the companies in the same industry are more expensive than PAGP, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, PAGP is valued cheaply inside the industry as 98.59% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.72 | ||
| EV/EBITDA | 4.67 |
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 50.14% in the coming years.
PEG (NY)0.11
PEG (5Y)N/A
EPS Next 2Y78.57%
EPS Next 3Y50.14%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.24%, PAGP is a good candidate for dividend investing.
PAGP's Dividend Yield is rather good when compared to the industry average which is at 6.77. PAGP pays more dividend than 81.22% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, PAGP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.24% |
5.2 History
The dividend of PAGP has a limited annual growth rate of 2.27%.
PAGP has paid a dividend for at least 10 years, which is 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
181.38% of the earnings are spent on dividend by PAGP. This is not a sustainable payout ratio.
The dividend of PAGP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP181.38%
EPS Next 2Y78.57%
EPS Next 3Y50.14%
17.81
+0.1 (+0.56%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners80.04%
Inst Owner Change6.23%
Ins Owners2.67%
Ins Owner Change-0.08%
Market Cap3.52B
Analysts76
Price Target22.44 (26%)
Short Float %4.05%
Short Ratio4.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.24% |
Yearly Dividend0.32
Dividend Growth(5Y)2.27%
DP181.38%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-64.33%
Min EPS beat(2)-115.08%
Max EPS beat(2)-13.57%
EPS beat(4)0
Avg EPS beat(4)-50.81%
Min EPS beat(4)-115.08%
Max EPS beat(4)-13.57%
EPS beat(8)1
Avg EPS beat(8)10.05%
EPS beat(12)2
Avg EPS beat(12)11.78%
EPS beat(16)4
Avg EPS beat(16)-4.59%
Revenue beat(2)0
Avg Revenue beat(2)-16.94%
Min Revenue beat(2)-17.15%
Max Revenue beat(2)-16.72%
Revenue beat(4)1
Avg Revenue beat(4)-9.1%
Min Revenue beat(4)-17.15%
Max Revenue beat(4)2.18%
Revenue beat(8)2
Avg Revenue beat(8)-7.08%
Revenue beat(12)3
Avg Revenue beat(12)-5.7%
Revenue beat(16)7
Avg Revenue beat(16)2.59%
PT rev (1m)-1.38%
PT rev (3m)1.6%
EPS NQ rev (1m)-4.39%
EPS NQ rev (3m)22.03%
EPS NY rev (1m)-6.96%
EPS NY rev (3m)-4.18%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)-3.49%
Revenue NY rev (1m)-15.6%
Revenue NY rev (3m)-17.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.07 | ||
| Fwd PE | 10.54 | ||
| P/S | 0.07 | ||
| P/FCF | 1.72 | ||
| P/OCF | 1.3 | ||
| P/B | 2.6 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.67 |
EPS(TTM)0.74
EY4.15%
EPS(NY)1.69
Fwd EY9.49%
FCF(TTM)10.37
FCFY58.24%
OCF(TTM)13.67
OCFY76.78%
SpS253.31
BVpS6.86
TBVpS-1.61
PEG (NY)0.11
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.51% | ||
| ROE | 10.69% | ||
| ROCE | 6.3% | ||
| ROIC | 5.43% | ||
| ROICexc | 5.53% | ||
| ROICexgc | 5.96% | ||
| OM | 2.96% | ||
| PM (TTM) | 0.29% | ||
| GM | 9.36% | ||
| FCFM | 4.09% |
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-Score6
Asset Turnover1.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.05 | ||
| Debt/FCF | 4.23 | ||
| Debt/EBITDA | 3.26 | ||
| Cap/Depr | 63.15% | ||
| Cap/Sales | 1.3% | ||
| Interest Coverage | 3.94 | ||
| Cash Conversion | 107.34% | ||
| Profit Quality | 1414.48% | ||
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z | N/A |
F-Score6
WACC7.77%
ROIC/WACC0.7
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)-51.63%
EPS 3Y18.32%
EPS 5Y-23.92%
EPS Q2Q%100%
EPS Next Y218.89%
EPS Next 2Y78.57%
EPS Next 3Y50.14%
EPS Next 5Y30.14%
Revenue 1Y (TTM)3.56%
Revenue growth 3Y5.97%
Revenue growth 5Y8.26%
Sales Q2Q%0.13%
Revenue Next Year-4.36%
Revenue Next 2Y5.13%
Revenue Next 3Y4.05%
Revenue Next 5Y-5.8%
EBIT growth 1Y6%
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-12.01%
FCF growth 3Y4.06%
FCF growth 5Y8.42%
OCF growth 1Y-3.67%
OCF growth 3Y7.65%
OCF growth 5Y-0.13%