PLAINS GP HOLDINGS LP-CL A (PAGP) Stock Fundamental Analysis
NASDAQ:PAGP - Nasdaq - US72651A2078 - Currency: USD
We assign a fundamental rating of 4 out of 10 to PAGP. PAGP was compared to 211 industry peers in the Oil, Gas & Consumable Fuels industry. Both the profitability and financial health of PAGP have multiple concerns. PAGP has a decent growth rate and is not valued too expensively. 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.
PAGP had positive earnings in 4 of the past 5 years.
PAGP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.51%, PAGP is doing worse than 63.98% of the companies in the same industry.
PAGP's Return On Equity of 10.69% is fine compared to the rest of the industry. PAGP outperforms 63.51% of its industry peers.
PAGP has a Return On Invested Capital of 5.43%. This is comparable to the rest of the industry: PAGP outperforms 45.97% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PAGP is significantly below the industry average of 23.79%.
The 3 year average ROIC (5.23%) for PAGP is below the current ROIC(5.43%), indicating increased profibility in the last year.
| 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's Profit Margin of 0.29% is on the low side compared to the rest of the industry. PAGP is outperformed by 66.82% of its industry peers.
In the last couple of years the Profit Margin of PAGP has declined.
PAGP has a Operating Margin of 2.96%. This is in the lower half of the industry: PAGP underperforms 70.62% of its industry peers.
PAGP's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 9.36%, PAGP is not doing good in the industry: 72.04% of the companies in the same industry are doing better.
PAGP's Gross Margin has declined in the last couple of years.
| 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
PAGP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
PAGP has more shares outstanding than it did 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
PAGP has a debt to FCF ratio of 4.23. This is a neutral value as PAGP would need 4.23 years to pay back of all of its debts.
PAGP's Debt to FCF ratio of 4.23 is fine compared to the rest of the industry. PAGP outperforms 69.19% of its industry peers.
PAGP has a Debt/Equity ratio of 6.05. This is a high value indicating a heavy dependency on external 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 89.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.05 | ||
| Debt/FCF | 4.23 | ||
| Altman-Z | N/A |
ROIC/WACC0.68
WACC7.99%
2.3 Liquidity
A Current Ratio of 1.01 indicates that PAGP should not have too much problems paying its short term obligations.
PAGP has a Current ratio (1.01) which is in line with its industry peers.
PAGP has a Quick Ratio of 1.01. This is a bad value and indicates that PAGP is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.94, PAGP perfoms like the industry average, outperforming 50.24% 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.
Measured over the past years, PAGP shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -23.92% on average per year.
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
Based on estimates for the next years, PAGP will show a very strong growth in Earnings Per Share. The EPS will grow by 25.22% 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 Y187.83%
EPS Next 2Y73.74%
EPS Next 3Y46.87%
EPS Next 5Y25.22%
Revenue Next Year-17.42%
Revenue Next 2Y3.51%
Revenue Next 3Y2.88%
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
A Price/Earnings ratio of 26.76 indicates a quite expensive valuation of PAGP.
PAGP's Price/Earnings ratio is in line with the industry average.
PAGP's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.30.
Based on the Price/Forward Earnings ratio of 12.38, the valuation of PAGP can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PAGP is on the same level as its industry peers.
PAGP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.76 | ||
| Fwd PE | 12.38 |
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 73.93% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, PAGP is valued cheaper than 97.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.91 | ||
| EV/EBITDA | 4.82 |
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 46.87% in the coming years.
PEG (NY)0.14
PEG (5Y)N/A
EPS Next 2Y73.74%
EPS Next 3Y46.87%
5. Dividend
5.1 Amount
PAGP has a Yearly Dividend Yield of 7.78%, which is a nice return.
PAGP's Dividend Yield is rather good when compared to the industry average which is at 6.51. PAGP pays more dividend than 80.57% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, PAGP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.78% |
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.
PAGP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP181.38%
EPS Next 2Y73.74%
EPS Next 3Y46.87%
19.8
+0.15 (+0.76%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners83.96%
Inst Owner Change0%
Ins Owners2.67%
Ins Owner Change0%
Market Cap3.92B
Analysts75.79
Price Target21.68 (9.49%)
Short Float %4.48%
Short Ratio4.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.78% |
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)-3.41%
PT rev (3m)-4.74%
EPS NQ rev (1m)-1.09%
EPS NQ rev (3m)18.36%
EPS NY rev (1m)-9.74%
EPS NY rev (3m)2.62%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.24%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-27.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.76 | ||
| Fwd PE | 12.38 | ||
| P/S | 0.08 | ||
| P/FCF | 1.91 | ||
| P/OCF | 1.45 | ||
| P/B | 2.89 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.82 |
EPS(TTM)0.74
EY3.74%
EPS(NY)1.6
Fwd EY8.08%
FCF(TTM)10.37
FCFY52.38%
OCF(TTM)13.67
OCFY69.06%
SpS253.31
BVpS6.86
TBVpS-1.61
PEG (NY)0.14
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
WACC7.99%
ROIC/WACC0.68
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 Y187.83%
EPS Next 2Y73.74%
EPS Next 3Y46.87%
EPS Next 5Y25.22%
Revenue 1Y (TTM)3.56%
Revenue growth 3Y5.97%
Revenue growth 5Y8.26%
Sales Q2Q%0.13%
Revenue Next Year-17.42%
Revenue Next 2Y3.51%
Revenue Next 3Y2.88%
Revenue Next 5Y-5.8%
EBIT growth 1Y6%
EBIT growth 3Y-2.81%
EBIT growth 5Y-7.75%
EBIT Next Year70.9%
EBIT Next 3Y20.01%
EBIT Next 5Y8.55%
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%