Plains GP Holdings LP Fundamental Analysis (NASDAQ: PAGP)
Plains GP Holdings LP (NASDAQ: PAGP) shows moderate financial fundamentals with a PE ratio of 9.14, profit margin of 1.06%, and ROE of 39.97%. The company generates $52.3B 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 29.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze PAGP's fundamental strength across five key dimensions:
Efficiency Score
WeakPAGP struggles to generate sufficient returns from assets.
Valuation Score
ExcellentPAGP trades at attractive valuation levels.
Growth Score
WeakPAGP faces weak or negative growth trends.
Financial Health Score
ModeratePAGP shows balanced financial health with some risks.
Profitability Score
ModeratePAGP maintains healthy but balanced margins.
Key Financial Metrics
Is PAGP Expensive or Cheap?
P/E Ratio
PAGP trades at 9.14 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, PAGP's PEG of 0.03 indicates potential undervaluation.
Price to Book
The market values Plains GP Holdings LP at 3.21 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at -0.95 times EBITDA. This is generally considered low.
How Well Does PAGP Make Money?
Net Profit Margin
For every $100 in sales, Plains GP Holdings LP keeps $1.06 as profit after all expenses.
Operating Margin
Core operations generate 3.03 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $39.97 in profit for every $100 of shareholder equity.
ROA
Plains GP Holdings LP generates $1.83 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Plains GP Holdings LP generates limited operating cash flow of $2.97B, signaling weaker underlying cash strength.
Free Cash Flow
Plains GP Holdings LP produces free cash flow of $2.62B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $13.25 in free cash annually.
FCF Yield
PAGP converts 51.97% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
9.14
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.03
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.21
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.10
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
5.47
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.12
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.40
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How PAGP Stacks Against Its Sector Peers
| Metric | PAGP Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 9.14 | 22.27 | Better (Cheaper) |
| ROE | 39.97% | 1228.00% | Weak |
| Net Margin | 1.06% | 1247.00% | Weak |
| Debt/Equity | 5.47 | 2.78 | Weak (High Leverage) |
| Current Ratio | 1.12 | 5.40 | Neutral |
| ROA | 1.83% | 4396.00% | Weak |
PAGP 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 GP Holdings LP's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
78.53%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
143.00%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
82.34%
Industry Style: Cyclical, Value, Commodity
High Growth