Plains All American Pipeline, L.P.
Plains All American Pipeline, L.P. Fundamental Analysis
Plains All American Pipeline, L.P. (PAA) shows moderate financial fundamentals with a PE ratio of 14.32, profit margin of 2.54%, and ROE of 11.77%. The company generates $45.1B in annual revenue with weak year-over-year growth of -11.61%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 19.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze PAA's fundamental strength across five key dimensions:
Efficiency Score
WeakPAA struggles to generate sufficient returns from assets.
Valuation Score
ExcellentPAA trades at attractive valuation levels.
Growth Score
WeakPAA faces weak or negative growth trends.
Financial Health Score
WeakPAA carries high financial risk with limited liquidity.
Profitability Score
WeakPAA struggles to sustain strong margins.
Key Financial Metrics
Is PAA Expensive or Cheap?
P/E Ratio
PAA trades at 14.32 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, PAA's PEG of 0.33 indicates potential undervaluation.
Price to Book
The market values Plains All American Pipeline, L.P. at 1.71 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.89 times EBITDA. This is generally considered low.
How Well Does PAA Make Money?
Net Profit Margin
For every $100 in sales, Plains All American Pipeline, L.P. keeps $2.54 as profit after all expenses.
Operating Margin
Core operations generate 2.97 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.77 in profit for every $100 of shareholder equity.
ROA
Plains All American Pipeline, L.P. generates $3.62 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Plains All American Pipeline, L.P. generates limited operating cash flow of $2.71B, signaling weaker underlying cash strength.
Free Cash Flow
Plains All American Pipeline, L.P. produces free cash flow of $2.13B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $3.02 in free cash annually.
FCF Yield
PAA converts 13.04% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.32
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.33
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.71
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.36
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.21
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.94
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How PAA Stacks Against Its Sector Peers
| Metric | PAA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.32 | 21.39 | Better (Cheaper) |
| ROE | 11.77% | 922.00% | Weak |
| Net Margin | 2.54% | -57637.00% (disorted) | Weak |
| Debt/Equity | 1.21 | -0.49 (disorted) | Distorted |
| Current Ratio | 0.94 | 5.04 | Weak Liquidity |
| ROA | 3.62% | -1987.00% (disorted) | Weak |
PAA outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Plains All American Pipeline, L.P.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
96.53%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
157.29%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
100.53%
Industry Style: Cyclical, Value, Commodity
High Growth