20.33 USD
+0.01 (+0.05%)
20.33 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to PAGP. PAGP was compared to 207 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. Finally 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.
- In the past 5 years PAGP always reported a positive cash flow from operatings.
1.2 Ratios
- PAGP's Return On Assets of 0.64% is on the low side compared to the rest of the industry. PAGP is outperformed by 65.70% of its industry peers.
- With a decent Return On Equity value of 13.83%, PAGP is doing good in the industry, outperforming 76.33% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 5.17%, PAGP is in line with its industry, outperforming 45.41% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for PAGP is significantly below the industry average of 21.94%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.64% | ||
| ROE | 13.83% | ||
| ROIC | 5.17% |
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 has a worse Profit Margin (0.40%) than 66.18% of its industry peers.
- PAGP's Profit Margin has declined in the last couple of years.
- With a Operating Margin value of 3.08%, PAGP is not doing good in the industry: 68.60% of the companies in the same industry are doing better.
- PAGP's Operating Margin has declined in the last couple of years.
- PAGP has a Gross Margin of 9.23%. This is in the lower half of the industry: PAGP underperforms 71.01% of its industry peers.
- In the last couple of years the Gross Margin of PAGP has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.08% | ||
| PM (TTM) | 0.4% | ||
| GM | 9.23% |
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.
- The number of shares outstanding for PAGP has been increased compared to 1 year ago.
- Compared to 5 years ago, PAGP has less shares outstanding
- Compared to 1 year ago, PAGP has a worse debt to assets ratio.
2.2 Solvency
- PAGP has a debt to FCF ratio of 4.27. This is a neutral value as PAGP would need 4.27 years to pay back of all of its debts.
- PAGP's Debt to FCF ratio of 4.27 is fine compared to the rest of the industry. PAGP outperforms 67.63% of its industry peers.
- PAGP has a Debt/Equity ratio of 6.27. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 6.27, PAGP is not doing good in the industry: 89.37% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.27 | ||
| Debt/FCF | 4.27 | ||
| Altman-Z | N/A |
ROIC/WACC0.66
WACC7.83%
2.3 Liquidity
- PAGP has a Current Ratio of 1.04. This is a normal value and indicates that PAGP is financially healthy and should not expect problems in meeting its short term obligations.
- PAGP has a Current ratio (1.04) which is in line with its industry peers.
- PAGP has a Quick Ratio of 1.01. This is a normal value and indicates that PAGP is financially healthy and should not expect problems in meeting its short term obligations.
- With a Quick ratio value of 1.01, PAGP perfoms like the industry average, outperforming 52.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
- PAGP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.41%, which is quite good.
- The earnings per share for PAGP have been decreasing by -23.92% on average. This is quite bad
- PAGP shows a decrease in Revenue. In the last year, the revenue decreased by -7.42%.
- 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)9.41%
EPS 3Y18.32%
EPS 5Y-23.92%
EPS Q2Q%141.18%
Revenue 1Y (TTM)-7.42%
Revenue growth 3Y5.97%
Revenue growth 5Y8.26%
Sales Q2Q%-9.14%
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 29.87% 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 Y200.42%
EPS Next 2Y74.51%
EPS Next 3Y44.67%
EPS Next 5Y29.87%
Revenue Next Year-9.89%
Revenue Next 2Y-1.28%
Revenue Next 3Y0.17%
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.
- 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 rather expensively with a Price/Earnings ratio of 21.86.
- PAGP's Price/Earnings ratio is in line with the industry average.
- When comparing the Price/Earnings ratio of PAGP to the average of the S&P500 Index (27.30), we can say PAGP is valued inline with the index average.
- With a Price/Forward Earnings ratio of 12.60, PAGP is valued correctly.
- 63.28% of the companies in the same industry are more expensive than PAGP, based on the Price/Forward Earnings ratio.
- PAGP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.86 | ||
| Fwd PE | 12.6 |
4.2 Price Multiples
- 75.85% of the companies in the same industry are more expensive than PAGP, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, PAGP is valued cheaply inside the industry as 99.52% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.82 | ||
| EV/EBITDA | 5.15 |
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 44.67% in the coming years.
PEG (NY)0.11
PEG (5Y)N/A
EPS Next 2Y74.51%
EPS Next 3Y44.67%
5. Dividend
5.1 Amount
- PAGP has a Yearly Dividend Yield of 8.28%, which is a nice return.
- Compared to an average industry Dividend Yield of 3.75, PAGP pays a better dividend. On top of this PAGP pays more dividend than 84.06% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, PAGP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.28% |
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 154.84% 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.
DP154.84%
EPS Next 2Y74.51%
EPS Next 3Y44.67%
PLAINS GP HOLDINGS LP-CL A / PAGP FAQ
Can you provide the ChartMill fundamental rating for PLAINS GP HOLDINGS LP-CL A?
ChartMill assigns a fundamental rating of 4 / 10 to PAGP.
Can you provide the valuation status for PLAINS GP HOLDINGS LP-CL A?
ChartMill assigns a valuation rating of 6 / 10 to PLAINS GP HOLDINGS LP-CL A (PAGP). This can be considered as Fairly Valued.
What is the profitability of PAGP stock?
PLAINS GP HOLDINGS LP-CL A (PAGP) has a profitability rating of 3 / 10.
What is the earnings growth outlook for PLAINS GP HOLDINGS LP-CL A?
The Earnings per Share (EPS) of PLAINS GP HOLDINGS LP-CL A (PAGP) is expected to grow by 200.42% in the next year.
Is the dividend of PLAINS GP HOLDINGS LP-CL A sustainable?
The dividend rating of PLAINS GP HOLDINGS LP-CL A (PAGP) is 7 / 10 and the dividend payout ratio is 154.84%.