PAGP (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
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.
Peers
| Peer | P/E | P/B | P/S | EV/EBITDA | ROIC % | Net margin % |
|---|---|---|---|---|---|---|
| AM | 25.12 | 5.15 | 7.63 | 14.01 | — | 0.30 |
| KNTK | 19.51 | -3.45 | 2.12 | 5.44 | — | 0.25 |
| HESM | 13.69 | 9.91 | 5.10 | 9.65 | — | 0.23 |
| INSW | 7.08 | 2.44 | 4.39 | 4.50 | — | 0.62 |
| EE | 24.98 | 1.72 | 2.92 | 11.00 | — | 0.03 |