PLAINS GP HOLDINGS LP-CL A (PAGP) Stock Fundamental Analysis
USA - NASDAQ:PAGP - US72651A2078
17.38 USD
+0.29 (+1.7%)
17.43 USD
+0.05 (+0.29%)
Overall PAGP gets a fundamental rating of 4 out of 10. We evaluated PAGP against 211 industry peers in the Oil, Gas & Consumable Fuels industry. Both the profitability and financial health of PAGP have multiple concerns. PAGP is valued correctly, but it does not seem to be growing. Finally PAGP also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
PAGP had positive earnings in the past year.
PAGP had a positive operating cash flow in the past year.
PAGP had positive earnings in 4 of the past 5 years.
Each year in the past 5 years PAGP had a positive operating cash flow.
1.2 Ratios
The Return On Assets of PAGP (0.48%) is worse than 65.88% of its industry peers.
With a decent Return On Equity value of 10.04%, PAGP is doing good in the industry, outperforming 61.61% of the companies in the same industry.
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 21.53%.
| 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
PAGP's Profit Margin of 0.28% is on the low side compared to the rest of the industry. PAGP is outperformed by 66.82% of its industry peers.
PAGP's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 2.91%, PAGP is doing worse than 69.67% of the companies in the same industry.
In the last couple of years the Operating Margin of PAGP has declined.
PAGP has a worse Gross Margin (9.40%) than 70.62% 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.
PAGP has more shares outstanding than it did 1 year ago.
PAGP has less shares outstanding than it did 5 years ago.
The debt/assets ratio for PAGP is higher compared to a year ago.
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 has a Debt to FCF ratio of 4.11. This is in the better half of the industry: PAGP outperforms 70.14% 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.
PAGP's Debt to Equity ratio of 6.06 is on the low side compared to the rest of the industry. PAGP is outperformed by 90.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.06 | ||
| Debt/FCF | 4.11 | ||
| Altman-Z | N/A |
ROIC/WACC0.67
WACC7.54%
2.3 Liquidity
A Current Ratio of 1.00 indicates that PAGP should not have too much problems paying its short term obligations.
The Current ratio of PAGP (1.00) is comparable to the rest of the industry.
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.
The Quick ratio of PAGP (0.97) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
PAGP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -16.87%.
The earnings per share for PAGP have been decreasing by -23.92% on average. This is quite bad
Looking at the last year, PAGP shows a decrease in Revenue. The Revenue has decreased by -3.82% in the last year.
The Revenue has been growing by 8.26% on average over the past years. This is quite good.
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
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 Y194.24%
EPS Next 2Y74.73%
EPS Next 3Y46.49%
EPS Next 5Y28.21%
Revenue Next Year-12.39%
Revenue Next 2Y-0.66%
Revenue Next 3Y0.17%
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 25.19.
PAGP's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.77. PAGP is around the same levels.
The Price/Forward Earnings ratio is 10.74, which indicates a very decent valuation of PAGP.
Based on the Price/Forward Earnings ratio, PAGP is valued a bit cheaper than the industry average as 65.40% of the companies are valued more expensively.
PAGP is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.23, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.19 | ||
| Fwd PE | 10.74 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PAGP indicates a somewhat cheap valuation: PAGP is cheaper than 76.30% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PAGP indicates a rather cheap valuation: PAGP is cheaper than 99.53% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.63 | ||
| EV/EBITDA | 4.89 |
4.3 Compensation for Growth
PAGP's 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 46.49% in the coming years.
PEG (NY)0.13
PEG (5Y)N/A
EPS Next 2Y74.73%
EPS Next 3Y46.49%
5. Dividend
5.1 Amount
PAGP has a Yearly Dividend Yield of 8.97%, which is a nice return.
Compared to an average industry Dividend Yield of 6.30, PAGP pays a better dividend. On top of this PAGP pays more dividend than 83.89% of the companies listed in the same industry.
PAGP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.97% |
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
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 2Y74.73%
EPS Next 3Y46.49%
17.38
+0.29 (+1.7%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners80.6%
Inst Owner Change0.44%
Ins Owners2.67%
Ins Owner Change-0.02%
Market Cap3.44B
Analysts73
Price Target21.57 (24.11%)
Short Float %4.26%
Short Ratio6.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.97% |
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%
PT rev (3m)-0.31%
EPS NQ rev (1m)4.15%
EPS NQ rev (3m)5.57%
EPS NY rev (1m)4.09%
EPS NY rev (3m)0.93%
Revenue NQ rev (1m)1.68%
Revenue NQ rev (3m)-4.74%
Revenue NY rev (1m)2.11%
Revenue NY rev (3m)6.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.19 | ||
| Fwd PE | 10.74 | ||
| P/S | 0.07 | ||
| P/FCF | 1.63 | ||
| P/OCF | 1.25 | ||
| P/B | 2.54 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.89 |
EPS(TTM)0.69
EY3.97%
EPS(NY)1.62
Fwd EY9.31%
FCF(TTM)10.68
FCFY61.42%
OCF(TTM)13.88
OCFY79.84%
SpS241.72
BVpS6.85
TBVpS-1.43
PEG (NY)0.13
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
WACC7.54%
ROIC/WACC0.67
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 Y194.24%
EPS Next 2Y74.73%
EPS Next 3Y46.49%
EPS Next 5Y28.21%
Revenue 1Y (TTM)-3.82%
Revenue growth 3Y5.97%
Revenue growth 5Y8.26%
Sales Q2Q%-17.71%
Revenue Next Year-12.39%
Revenue Next 2Y-0.66%
Revenue Next 3Y0.17%
Revenue Next 5Y-5.8%
EBIT growth 1Y-0.36%
EBIT growth 3Y-2.81%
EBIT growth 5Y-7.75%
EBIT Next Year70.9%
EBIT Next 3Y17.85%
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%