Plains GP Holdings LP (PAGP) Stock Analysis
Verdict: BUY
Robust FCF yield and deep EV/EBITDA discount drive midstream upside, but high leverage and crude volume sensitivity remain key swing risks.
Investment score: 68/100
Analysis as of
Is Plains GP Holdings LP stock worth reviewing? The TradeMates thesis
PAGP offers an attractive 6.70% dividend yield backed by $2.29B in annual free cash flow and a low EV/EBITDA multiple of 4.93x. Despite trading above analyst target consensus ($25.50), strategic Permian/Rockies asset integration and deleveraging support further upside.
7-factor investment score
- Valuation: 75/100 (weight 20%)
- Financial Health: 60/100 (weight 15%)
- Technical Momentum: 75/100 (weight 15%)
- Earnings Quality: 80/100 (weight 15%)
- Insider Sentiment: 50/100 (weight 10%)
- Analyst Consensus: 55/100 (weight 10%)
- Risk-Adjusted Return: 70/100 (weight 15%)
Plains GP Holdings LP opportunities and risks
What speaks for PAGP
- Deep EV/EBITDA discount relative to midstream peers
What speaks against PAGP
- Crude oil volume throughput sensitivity in key production basins
Peers and competitors
- AM
- KNTK
- HESM
- INSW
- EE
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| PAGP | 9.9x | 0.1x | 4.9x | 5.1% | 1.1% | 47.8% |
| AM | 25.1x | 7.6x | 14.0x | 62.9% | 30.4% | 9.8% |
| KNTK | 19.5x | 2.1x | 5.4x | 40.1% | 25.3% | 4.8% |
| HESM | 13.7x | 5.1x | 9.7x | 80.8% | 23.3% | 8.5% |
| INSW | 7.1x | 4.4x | 4.5x | 66.0% | 61.9% | 4.9% |
| EE | 25.0x | 2.9x | 11.0x | 37.0% | 3.2% | 0.9% |
| Peer median | 19.5x | 4.4x | 9.7x | 62.9% | 25.3% | 4.9% |
Frequently asked questions about Plains GP Holdings LP (PAGP)
Is PAGP stock a good investment?
The TradeMates model rates Plains GP Holdings LP as BUY with an investment score of 68/100. PAGP offers an attractive 6.70% dividend yield backed by $2.29B in annual free cash flow and a low EV/EBITDA multiple of 4.93x. Despite trading above analyst target consensus ($25.50), strategic Permian/Rockies asset integration and deleveraging support further upside. This is algorithmic model output, not personal investment advice.
Is PAGP stock a buy?
The TradeMates model verdict for PAGP is BUY with an investment score of 68/100. Treat this as a model signal to review, not a personal buy recommendation.