PLAINS ALL AMER PIPELINE LP (PAA) Stock Fundamental Analysis
NASDAQ:PAA - Nasdaq - US7265031051 - Currency: USD
Taking everything into account, PAA scores 3 out of 10 in our fundamental rating. PAA was compared to 212 industry peers in the Oil, Gas & Consumable Fuels industry. Both the profitability and financial health of PAA have multiple concerns. PAA is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
PAA had positive earnings in the past year.
In the past year PAA had a positive cash flow from operations.
PAA had positive earnings in 4 of the past 5 years.
In the past 5 years PAA always reported a positive cash flow from operatings.
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.
With a Return On Invested Capital value of 5.56%, PAA perfoms like the industry average, outperforming 45.75% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for PAA is significantly below the industry average of 25.76%.
| 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
With a Profit Margin value of 1.03%, PAA is not doing good in the industry: 65.57% of the companies in the same industry are doing better.
PAA's Profit Margin has declined in the last couple of years.
PAA has a Operating Margin of 2.68%. This is in the lower half of the industry: PAA underperforms 71.23% 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 76.89% of its industry peers.
PAA's Gross Margin has declined in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PAA is destroying value.
PAA has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, PAA has less shares outstanding
PAA has a worse debt/assets ratio than last year.
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.
PAA's Debt to FCF ratio of 4.12 is fine compared to the rest of the industry. PAA outperforms 70.28% of its industry peers.
A Debt/Equity ratio of 0.74 indicates that PAA is somewhat dependend on debt financing.
PAA has a Debt to Equity ratio of 0.74. This is in the lower half of the industry: PAA underperforms 65.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 4.12 | ||
| Altman-Z | N/A |
ROIC/WACC0.55
WACC10.16%
2.3 Liquidity
PAA has a Current Ratio of 0.97. This is a bad value and indicates that PAA is not financially healthy enough and could expect problems in meeting its short term obligations.
PAA has a Current ratio (0.97) which is comparable to the rest of the industry.
PAA has a Quick Ratio of 0.97. This is a bad value and indicates that PAA is not financially healthy enough and could expect problems in meeting 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 5.59% over the past year.
The earnings per share for PAA have been decreasing by -10.57% on average. This is quite bad
The Revenue has been growing slightly by 2.79% in the past year.
Measured over the past years, PAA shows a quite strong growth in Revenue. The Revenue has been growing by 8.26% on average per year.
EPS 1Y (TTM)5.59%
EPS 3Y7.66%
EPS 5Y-10.57%
EPS Q2Q%0%
Revenue 1Y (TTM)2.79%
Revenue growth 3Y5.97%
Revenue growth 5Y8.26%
Sales Q2Q%-2.33%
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 Y0.25%
EPS Next 2Y-1.87%
EPS Next 3Y2.42%
EPS Next 5Y5.67%
Revenue Next Year8.8%
Revenue Next 2Y3.55%
Revenue Next 3Y2.7%
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
PAA is valuated reasonably with a Price/Earnings ratio of 11.97.
Compared to the rest of the industry, the Price/Earnings ratio of PAA is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 28.87. PAA is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 11.94 indicates a reasonable valuation of PAA.
PAA's Price/Forward Earnings ratio is in line with the industry average.
PAA's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.97 | ||
| Fwd PE | 11.94 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as PAA.
Based on the Price/Free Cash Flow ratio, PAA is valued cheaper than 82.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.88 | ||
| EV/EBITDA | 8.52 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PAA does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)47.34
PEG (5Y)N/A
EPS Next 2Y-1.87%
EPS Next 3Y2.42%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.35%, PAA is a good candidate for dividend investing.
PAA's Dividend Yield is rather good when compared to the industry average which is at 7.32. PAA pays more dividend than 80.66% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.46, PAA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.35% |
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-1.87%
EPS Next 3Y2.42%
NASDAQ:PAA (4/29/2025, 12:46:09 PM)
18.075
-0.23 (-1.28%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners42.6%
Inst Owner Change0.16%
Ins Owners0.72%
Ins Owner Change0%
Market Cap12.72B
Analysts72.5
Price Target22.3 (23.37%)
Short Float %2.07%
Short Ratio2.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.35% |
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)-0.17%
PT rev (3m)8.04%
EPS NQ rev (1m)6.09%
EPS NQ rev (3m)-0.76%
EPS NY rev (1m)1.58%
EPS NY rev (3m)6.64%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)2.62%
Revenue NY rev (1m)1.39%
Revenue NY rev (3m)3.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.97 | ||
| Fwd PE | 11.94 | ||
| P/S | 0.25 | ||
| P/FCF | 6.88 | ||
| P/OCF | 5.11 | ||
| P/B | 1.3 | ||
| P/tB | 1.56 | ||
| EV/EBITDA | 8.52 |
EPS(TTM)1.51
EY8.35%
EPS(NY)1.51
Fwd EY8.38%
FCF(TTM)2.63
FCFY14.54%
OCF(TTM)3.54
OCFY19.57%
SpS71.15
BVpS13.94
TBVpS11.56
PEG (NY)47.34
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
WACC10.16%
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)5.59%
EPS 3Y7.66%
EPS 5Y-10.57%
EPS Q2Q%0%
EPS Next Y0.25%
EPS Next 2Y-1.87%
EPS Next 3Y2.42%
EPS Next 5Y5.67%
Revenue 1Y (TTM)2.79%
Revenue growth 3Y5.97%
Revenue growth 5Y8.26%
Sales Q2Q%-2.33%
Revenue Next Year8.8%
Revenue Next 2Y3.55%
Revenue Next 3Y2.7%
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%