PLAINS GP HOLDINGS LP-CL A (PAGP) Stock Fundamental Analysis
NASDAQ:PAGP - Nasdaq - US72651A2078 - Currency: USD
Overall PAGP gets a fundamental rating of 3 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 has a valuation in line with the averages, but it does not seem to be growing.
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.
The reported net income has been mixed in the past 5 years: PAGP reported negative net income in multiple years.
PAGP had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a Return On Assets value of 0.59%, PAGP is not doing good in the industry: 73.53% of the companies in the same industry are doing better.
With a Return On Equity value of 11.35%, PAGP perfoms like the industry average, outperforming 50.98% of the companies in the same industry.
PAGP has a Return On Invested Capital of 5.53%. This is in the lower half of the industry: PAGP underperforms 61.27% of its industry peers.
PAGP had an Average Return On Invested Capital over the past 3 years of 5.26%. This is significantly below the industry average of 28.75%.
The 3 year average ROIC (5.26%) for PAGP is below the current ROIC(5.53%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.59% | ||
| ROE | 11.35% | ||
| ROIC | 5.53% |
ROA(3y)0.49%
ROA(5y)0.08%
ROE(3y)9.24%
ROE(5y)0.86%
ROIC(3y)5.26%
ROIC(5y)5.19%
1.3 Margins
Looking at the Profit Margin, with a value of 0.33%, PAGP is doing worse than 74.02% of the companies in the same industry.
In the last couple of years the Profit Margin of PAGP has declined.
PAGP's Operating Margin of 2.99% is on the low side compared to the rest of the industry. PAGP is outperformed by 75.98% of its industry peers.
In the last couple of years the Operating Margin of PAGP has declined.
PAGP's Gross Margin of 8.89% is on the low side compared to the rest of the industry. PAGP is outperformed by 73.53% of its industry peers.
PAGP's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.99% | ||
| PM (TTM) | 0.33% | ||
| GM | 8.89% |
OM growth 3Y-8.83%
OM growth 5Y-15.27%
PM growth 3YN/A
PM growth 5Y-16.15%
GM growth 3Y-11.24%
GM growth 5Y-7.27%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PAGP is destroying value.
There is no outstanding debt for PAGP. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
The Debt to FCF ratio of PAGP is 3.69, which is a good value as it means it would take PAGP, 3.69 years of fcf income to pay off all of its debts.
PAGP has a better Debt to FCF ratio (3.69) than 66.67% of its industry peers.
A Debt/Equity ratio of 4.93 is on the high side and indicates that PAGP has dependencies on debt financing.
The Debt to Equity ratio of PAGP (4.93) is worse than 93.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.93 | ||
| Debt/FCF | 3.69 | ||
| Altman-Z | N/A |
ROIC/WACC0.7
WACC7.9%
2.3 Liquidity
A Current Ratio of 1.01 indicates that PAGP should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.01, PAGP is doing worse than 62.75% of the companies in the same industry.
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.
The Quick ratio of PAGP (0.92) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
The earnings per share for PAGP have decreased strongly by -80.94% in the last year.
The earnings per share for PAGP have been decreasing by -23.92% on average. This is quite bad
EPS 1Y (TTM)-80.94%
EPS 3Y18.32%
EPS 5Y-23.92%
EPS Q2Q%-118.52%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-2.33%
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 29.60% on average per year.
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 Y237.86%
EPS Next 2Y81.87%
EPS Next 3Y53.95%
EPS Next 5Y29.6%
Revenue Next Year15.3%
Revenue Next 2Y6.38%
Revenue Next 3Y-9.09%
Revenue Next 5Y-5.8%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 40.91, which means the current valuation is very expensive for PAGP.
70.10% of the companies in the same industry are cheaper than PAGP, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 29.63. PAGP is valued slightly more expensive when compared to this.
Based on the Price/Forward Earnings ratio of 12.11, the valuation of PAGP can be described as correct.
PAGP's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of PAGP to the average of the S&P500 Index (22.68), we can say PAGP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.91 | ||
| Fwd PE | 12.11 |
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 71.08% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, PAGP is valued cheaply inside the industry as 97.06% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.98 | ||
| EV/EBITDA | 4.56 |
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.
PAGP's earnings are expected to grow with 53.95% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.17
PEG (5Y)N/A
EPS Next 2Y81.87%
EPS Next 3Y53.95%
5. Dividend
5.1 Amount
PAGP has a Yearly Dividend Yield of 6.96%, which is a nice return.
PAGP's Dividend Yield is a higher than the industry average which is at 6.67.
PAGP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.96% |
5.2 History
The dividend of PAGP has a limited annual growth rate of 2.67%.
PAGP has been paying a dividend for at least 10 years, so it has a reliable track record.
PAGP has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)2.67%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
145.18% 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.
DP145.18%
EPS Next 2Y81.87%
EPS Next 3Y53.95%
21.68
-0.16 (-0.73%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners80.04%
Inst Owner Change-87.43%
Ins Owners2.67%
Ins Owner Change-0.08%
Market Cap4.28B
Analysts76
Price Target22.4 (3.32%)
Short Float %4.75%
Short Ratio5.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.96% |
Yearly Dividend0.27
Dividend Growth(5Y)2.67%
DP145.18%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-37.29%
Min EPS beat(2)-42.79%
Max EPS beat(2)-31.8%
EPS beat(4)0
Avg EPS beat(4)-29.31%
Min EPS beat(4)-42.79%
Max EPS beat(4)-15.5%
EPS beat(8)2
Avg EPS beat(8)38.94%
EPS beat(12)4
Avg EPS beat(12)40.4%
EPS beat(16)5
Avg EPS beat(16)-0.51%
Revenue beat(2)1
Avg Revenue beat(2)-1.25%
Min Revenue beat(2)-4.69%
Max Revenue beat(2)2.18%
Revenue beat(4)2
Avg Revenue beat(4)-1.5%
Min Revenue beat(4)-8.06%
Max Revenue beat(4)4.56%
Revenue beat(8)2
Avg Revenue beat(8)-3.82%
Revenue beat(12)5
Avg Revenue beat(12)0.96%
Revenue beat(16)8
Avg Revenue beat(16)5.63%
PT rev (1m)6.48%
PT rev (3m)6.7%
EPS NQ rev (1m)-6.52%
EPS NQ rev (3m)-6.52%
EPS NY rev (1m)3.59%
EPS NY rev (3m)-2.5%
Revenue NQ rev (1m)9.03%
Revenue NQ rev (3m)9.03%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.91 | ||
| Fwd PE | 12.11 | ||
| P/S | 0.08 | ||
| P/FCF | 1.98 | ||
| P/OCF | 1.55 | ||
| P/B | 2.93 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.56 |
EPS(TTM)0.53
EY2.44%
EPS(NY)1.79
Fwd EY8.26%
FCF(TTM)10.94
FCFY50.45%
OCF(TTM)14.02
OCFY64.66%
SpS255.07
BVpS7.4
TBVpS-1.07
PEG (NY)0.17
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.59% | ||
| ROE | 11.35% | ||
| ROCE | 6.47% | ||
| ROIC | 5.53% | ||
| ROICexc | 5.69% | ||
| ROICexgc | 6.14% | ||
| OM | 2.99% | ||
| PM (TTM) | 0.33% | ||
| GM | 8.89% | ||
| FCFM | 4.29% |
ROA(3y)0.49%
ROA(5y)0.08%
ROE(3y)9.24%
ROE(5y)0.86%
ROIC(3y)5.26%
ROIC(5y)5.19%
ROICexc(3y)5.33%
ROICexc(5y)5.24%
ROICexgc(3y)5.83%
ROICexgc(5y)5.77%
ROCE(3y)6.16%
ROCE(5y)6.08%
ROICexcg growth 3Y15.06%
ROICexcg growth 5Y-10.46%
ROICexc growth 3Y13.34%
ROICexc growth 5Y-9.21%
OM growth 3Y-8.83%
OM growth 5Y-15.27%
PM growth 3YN/A
PM growth 5Y-16.15%
GM growth 3Y-11.24%
GM growth 5Y-7.27%
F-Score6
Asset Turnover1.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.93 | ||
| Debt/FCF | 3.69 | ||
| Debt/EBITDA | 2.83 | ||
| Cap/Depr | 58.35% | ||
| Cap/Sales | 1.21% | ||
| Interest Coverage | 4.08 | ||
| Cash Conversion | 108.72% | ||
| Profit Quality | 1301.2% | ||
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.92 | ||
| Altman-Z | N/A |
F-Score6
WACC7.9%
ROIC/WACC0.7
Cap/Depr(3y)47.81%
Cap/Depr(5y)93.17%
Cap/Sales(3y)0.91%
Cap/Sales(5y)1.94%
Profit Quality(3y)1670.29%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-80.94%
EPS 3Y18.32%
EPS 5Y-23.92%
EPS Q2Q%-118.52%
EPS Next Y237.86%
EPS Next 2Y81.87%
EPS Next 3Y53.95%
EPS Next 5Y29.6%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-2.33%
Revenue Next Year15.3%
Revenue Next 2Y6.38%
Revenue Next 3Y-9.09%
Revenue Next 5Y-5.8%
EBIT growth 1Y24.4%
EBIT growth 3Y16.6%
EBIT growth 5Y-8.99%
EBIT Next Year82.79%
EBIT Next 3Y22.54%
EBIT Next 5Y14.24%
FCF growth 1Y-6.57%
FCF growth 3Y41.84%
FCF growth 5Y18.52%
OCF growth 1Y2.4%
OCF growth 3Y21.7%
OCF growth 5Y0.89%