PLAINS ALL AMER PIPELINE LP (PAA) Stock Fundamental Analysis
NASDAQ:PAA - Nasdaq - US7265031051 - Currency: USD
We assign a fundamental rating of 3 out of 10 to PAA. PAA was compared to 211 industry peers in the Oil, Gas & Consumable Fuels industry. PAA has a bad profitability rating. Also its financial health evaluation is rather negative. PAA has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year PAA was profitable.
PAA had a positive operating cash flow in the past year.
PAA had positive earnings in 4 of the past 5 years.
PAA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of PAA (1.93%) is worse than 67.16% of its industry peers.
PAA has a Return On Equity of 5.23%. This is in the lower half of the industry: PAA underperforms 65.69% of its industry peers.
PAA's Return On Invested Capital of 5.56% is on the low side compared to the rest of the industry. PAA is outperformed by 60.29% of its industry peers.
PAA had an Average Return On Invested Capital over the past 3 years of 5.79%. This is significantly below the industry average of 28.75%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.93% | ||
| ROE | 5.23% | ||
| 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
PAA has a worse Profit Margin (1.02%) than 71.57% of its industry peers.
In the last couple of years the Profit Margin of PAA has declined.
With a Operating Margin value of 2.67%, PAA is not doing good in the industry: 75.98% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of PAA has declined.
Looking at the Gross Margin, with a value of 5.48%, PAA is doing worse than 77.94% of the companies in the same industry.
PAA's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.67% | ||
| PM (TTM) | 1.02% | ||
| 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.
The number of shares outstanding for PAA has been reduced compared to 5 years ago.
Compared to 1 year ago, PAA has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of PAA is 2.90, which is a good value as it means it would take PAA, 2.90 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.90, PAA is in the better half of the industry, outperforming 71.08% of the companies in the same industry.
PAA has a Debt/Equity ratio of 0.74. This is a neutral value indicating PAA is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.74, PAA is doing worse than 68.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 2.9 | ||
| Altman-Z | N/A |
ROIC/WACC0.66
WACC8.46%
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 of 0.97. This is in the lower half of the industry: PAA underperforms 65.20% of its industry peers.
A Quick Ratio of 0.97 indicates that PAA may have some problems paying its short term obligations.
PAA has a Quick ratio of 0.97. This is comparable to the rest of the industry: PAA outperforms 45.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.97 |
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
PAA shows a small growth in Revenue. In the last year, the Revenue has grown by 2.79%.
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.
Based on estimates for the next years, PAA will show a decrease in Revenue. The Revenue will decrease by -6.83% on average per year.
EPS Next Y-1.69%
EPS Next 2Y-2.36%
EPS Next 3Y2.84%
EPS Next 5Y5.67%
Revenue Next Year6.41%
Revenue Next 2Y2.86%
Revenue Next 3Y2.78%
Revenue Next 5Y-6.83%
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.
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
With a Price/Earnings ratio of 13.56, PAA is valued correctly.
The rest of the industry has a similar Price/Earnings ratio as PAA.
Compared to an average S&P500 Price/Earnings ratio of 29.63, PAA is valued rather cheaply.
With a Price/Forward Earnings ratio of 13.80, PAA is valued correctly.
PAA's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, PAA is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.56 | ||
| Fwd PE | 13.8 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PAA is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, PAA is valued cheaply inside the industry as 82.84% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.79 | ||
| EV/EBITDA | 9 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-2.36%
EPS Next 3Y2.84%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.37%, PAA is a good candidate for dividend investing.
PAA's Dividend Yield is rather good when compared to the industry average which is at 6.67. PAA pays more dividend than 80.88% of the companies in the same industry.
PAA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.37% |
5.2 History
The dividend of PAA decreases each year by -0.13%.
PAA has been paying a dividend for at least 10 years, so it has a reliable track record.
PAA has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-0.13%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
DP0%
EPS Next 2Y-2.36%
EPS Next 3Y2.84%
20.48
-0.14 (-0.68%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners42.6%
Inst Owner Change2.87%
Ins Owners0.72%
Ins Owner Change0%
Market Cap14.41B
Analysts72.5
Price Target22.31 (8.94%)
Short Float %3.67%
Short Ratio3.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.37% |
Yearly Dividend1.41
Dividend Growth(5Y)-0.13%
DP0%
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)8.08%
PT rev (3m)8.25%
EPS NQ rev (1m)-4.09%
EPS NQ rev (3m)-10%
EPS NY rev (1m)4.57%
EPS NY rev (3m)5.95%
Revenue NQ rev (1m)0.53%
Revenue NQ rev (3m)7.26%
Revenue NY rev (1m)1.64%
Revenue NY rev (3m)1.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.56 | ||
| Fwd PE | 13.8 | ||
| P/S | 0.29 | ||
| P/FCF | 5.79 | ||
| P/OCF | 5.79 | ||
| P/B | 1.47 | ||
| P/tB | 1.77 | ||
| EV/EBITDA | 9 |
EPS(TTM)1.51
EY7.37%
EPS(NY)1.48
Fwd EY7.25%
FCF(TTM)3.54
FCFY17.28%
OCF(TTM)3.54
OCFY17.28%
SpS71.16
BVpS13.95
TBVpS11.56
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.93% | ||
| ROE | 5.23% | ||
| ROCE | 6.2% | ||
| ROIC | 5.56% | ||
| ROICexc | 5.65% | ||
| ROICexgc | 6.14% | ||
| OM | 2.67% | ||
| PM (TTM) | 1.02% | ||
| GM | 5.48% | ||
| FCFM | 4.97% |
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 | 2.9 | ||
| Debt/EBITDA | 3.05 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 105.29% | ||
| Profit Quality | 485.38% | ||
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z | N/A |
F-Score4
WACC8.46%
ROIC/WACC0.66
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)309.71%
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 Y-1.69%
EPS Next 2Y-2.36%
EPS Next 3Y2.84%
EPS Next 5Y5.67%
Revenue 1Y (TTM)2.79%
Revenue growth 3Y5.97%
Revenue growth 5Y8.26%
Sales Q2Q%-2.33%
Revenue Next Year6.41%
Revenue Next 2Y2.86%
Revenue Next 3Y2.78%
Revenue Next 5Y-6.83%
EBIT growth 1Y-1.4%
EBIT growth 3Y-2.49%
EBIT growth 5Y-7.87%
EBIT Next Year69.18%
EBIT Next 3Y19.35%
EBIT Next 5Y12.81%
FCF growth 1Y16.08%
FCF growth 3Y14.47%
FCF growth 5Y14.8%
OCF growth 1Y-8.69%
OCF growth 3Y7.65%
OCF growth 5Y-0.11%