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Relative valuation derived from Industrials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
12.7%
Sector: 8.9%
Dividend Analysis audit
HIGH RISK
8.74%
Trailing Yield
$8.74
Per $100 Invested
High yield may not be sustainable given weak profitability.
Est. Payout Ratio
83%HIGH
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, PLAINS ALL AMERICAN PIPELINE LP (PAA) receives a "Hold" rating with a composite score of 53.0/100, ranked #191 out of 4446 stocks. Key factor scores: Quality 50/100, Value 72/100, Momentum 54/100. This is quantitative analysis only — not investment advice.
PLAINS ALL AMERICAN PIPELINE LP (PAA) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does PLAINS ALL AMERICAN PIPELINE LP Do?
Plains All American Pipeline, L.P., through its subsidiaries, engages in the pipeline transportation, terminalling, storage, and gathering of crude oil and natural gas liquids (NGL) in the United States and Canada. The company operates in two segments, Crude Oil and NGL. The Crude Oil segment offers gathering and transporting crude oil through pipelines, gathering systems, trucks, and at times on barges or railcars. This segment provides terminalling, storage, and other facilities-related services, as well as merchant activities. As of December 31, 2021, this segment owned and leased 18,300 miles of active crude oil transportation pipelines and gathering systems, as well as an additional 110 miles of pipelines that supports crude oil storage and terminalling facilities; 74 million barrels of commercial crude oil storage capacity; 38 million barrels of active, above-ground tank capacity; four marine facilities; a condensate processing facility; seven crude oil rail terminals and 2,100 crude oil railcars; and 640 trucks and 1,275 trailers. The Natural Gas Liquids segment engages in the natural gas processing, NGL fractionation, storage, transportation, and terminalling activities. As of December 31, 2021, this segment owned and operated four natural gas processing plants; nine fractionation plants; 28 million barrels of NGL storage capacity; approximately 1,620 miles of active NGL transportation pipelines, as well as an additional 55 miles of pipeline that supports NGL storage facilities; 16 NGL rail terminals and approximately 3,900 NGL rail cars; and approximately 220 trailers. The company was founded in 1981 and is headquartered in Houston, Texas. PLAINS ALL AMERICAN PIPELINE LP (PAA) is classified as a large-cap stock in the Industrials sector, specifically within the Transportation industry. The company is led by CEO Willie C. W. Chiang and employs approximately 4,100 people, headquartered in Wilmington, Texas. With a market capitalization of $15.4B, PAA is one of the prominent companies in the Industrials sector.
PLAINS ALL AMERICAN PIPELINE LP (PAA) Stock Rating — Hold (April 2026)
As of April 2026, PLAINS ALL AMERICAN PIPELINE LP receives a Hold rating with a composite score of 53.0/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.PAA ranks #191 out of 4,446 stocks in our coverage universe. Within the Industrials sector, PLAINS ALL AMERICAN PIPELINE LP ranks #31 of 752 stocks, placing it in the top 10% of its Industrials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
PAA Stock Price and 52-Week Range
PLAINS ALL AMERICAN PIPELINE LP (PAA) currently trades at $21.94. The stock gained $0.05 (0.3%) in the most recent trading session. The 52-week high for PAA is $22.24, which means the stock is currently trading -1.3% from its annual peak. The 52-week low is $15.57, putting the stock 40.9% above its annual trough. Recent trading volume was 1.7M shares, reflecting moderate market activity.
Is PAA Overvalued or Undervalued? — Valuation Analysis
PLAINS ALL AMERICAN PIPELINE LP (PAA) carries a value factor score of 72/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 9.49x, compared to the Industrials sector average of 28.33x — a discount of 67%. The price-to-book ratio stands at 1.20x, versus the sector average of 2.23x. The price-to-sales ratio is 0.34x, compared to 0.50x for the average Industrials stock. On an enterprise value basis, PAA trades at 11.02x EV/EBITDA, versus 5.70x for the sector.
Based on these multiples, PLAINS ALL AMERICAN PIPELINE LP appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
PLAINS ALL AMERICAN PIPELINE LP Profitability — ROE, Margins, and Quality Score
PLAINS ALL AMERICAN PIPELINE LP (PAA) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 12.7%, compared to the Industrials sector average of 8.9%, which is within a healthy range. Return on assets (ROA) comes in at 5.5% versus the sector average of 3.3%.
On a margin basis, PLAINS ALL AMERICAN PIPELINE LP reports gross margins of 9.3%, compared to 35.8% for the sector. The operating margin is 3.1% (sector: 6.2%). Net profit margin stands at 3.6%, versus 3.9% for the average Industrials stock. Revenue growth is running at -10.5% on a trailing basis, compared to 6.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
PAA Debt, Balance Sheet, and Financial Health
PLAINS ALL AMERICAN PIPELINE LP has a debt-to-equity ratio of 131.0%, compared to the Industrials sector average of 70.0%. Leverage is within a manageable range for the industry, though investors should monitor debt trends over time. The current ratio is 0.96x, which may signal near-term liquidity tightness. Total debt on the balance sheet is $9.45B. Cash and equivalents stand at $1.18B.
PAA has a beta of 0.57, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for PLAINS ALL AMERICAN PIPELINE LP is 83/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
PLAINS ALL AMERICAN PIPELINE LP Revenue and Earnings History — Quarterly Trend
In TTM 2026, PLAINS ALL AMERICAN PIPELINE LP reported revenue of $46.44B. Net income for the quarter was $1.65B. Gross margin was 9.3%. Operating income came in at $1.42B.
In FY 2025, PLAINS ALL AMERICAN PIPELINE LP reported revenue of $44.26B. Net income for the quarter was $1.77B. Gross margin was 8.6%. Revenue grew -11.6% year-over-year compared to FY 2024. Operating income came in at $1.43B.
In Q3 2025, PLAINS ALL AMERICAN PIPELINE LP reported revenue of $11.58B. Net income for the quarter was $529M. Gross margin was 8.6%. Revenue grew -9.1% year-over-year compared to Q3 2024. Operating income came in at $484M.
In Q2 2025, PLAINS ALL AMERICAN PIPELINE LP reported revenue of $10.64B. Net income for the quarter was $297M. Gross margin was 8.3%. Revenue grew -17.7% year-over-year compared to Q2 2024. Operating income came in at $239M.
Over the past 8 quarters, PLAINS ALL AMERICAN PIPELINE LP has demonstrated a growth trajectory, with revenue expanding from $12.93B to $46.44B. Investors analyzing PAA stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
PAA Dividend Yield and Income Analysis
PLAINS ALL AMERICAN PIPELINE LP (PAA) currently pays a dividend yield of 8.7%. At this yield, a $10,000 investment in PAA stock would generate approximately $$874.00 in annual dividend income.
PAA Momentum and Technical Analysis Profile
PLAINS ALL AMERICAN PIPELINE LP (PAA) has a momentum factor score of 54/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 36/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 18/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
PAA vs Competitors — Industrials Sector Ranking and Peer Comparison
Comparing PAA against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full PAA vs S&P 500 (SPY) comparison to assess how PLAINS ALL AMERICAN PIPELINE LP stacks up against the broader market across all factor dimensions.
PAA Next Earnings Date
No upcoming earnings date has been announced for PLAINS ALL AMERICAN PIPELINE LP (PAA) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy PAA? — Investment Thesis Summary
PLAINS ALL AMERICAN PIPELINE LP presents a balanced picture with arguments on both sides. The value score of 72/100 suggests attractive pricing relative to fundamentals. Low volatility (stability score 83/100) reduces downside risk.
In summary, PLAINS ALL AMERICAN PIPELINE LP (PAA) earns a Hold rating with a composite score of 53.0/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on PAA stock.
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Institutional Research Dossier
PLAINS ALL AMERICAN PIPELINE LP (PAA) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
Plains All American Pipeline (PAA) currently holds a Hold rating, justified by a mixed performance profile. While the company exhibits attractive valuation metrics and strong stability, concerns arise from declining revenue growth, relatively low margins, and a high debt-to-equity ratio. The partnership's strategic focus on crude oil and NGL transportation and storage positions it within a vital segment of the energy infrastructure sector, but its ability to navigate industry volatility and maintain profitability will be crucial for future performance.
The primary takeaway is that PAA presents a balanced risk-reward scenario. Its discounted valuation and stable operations offer potential upside, but investors should closely monitor its ability to improve revenue growth and manage its debt burden. The partnership's long-term success hinges on its capacity to adapt to evolving energy market dynamics and optimize its capital allocation strategy.
Business Strategy & Overview
Plains All American Pipeline operates as a critical midstream energy infrastructure provider, primarily engaged in the transportation, terminalling, storage, and gathering of crude oil and natural gas liquids (NGL) across the United States and Canada. The company's revenue is generated through two main segments: Crude Oil and NGL. The Crude Oil segment focuses on gathering and transporting crude oil via pipelines, gathering systems, trucks, and occasionally barges or railcars. This segment also provides terminalling, storage, and other facilities-related services, including merchant activities. The NGL segment is involved in natural gas processing, NGL fractionation, storage, transportation, and terminalling activities.
PAA's strategic positioning centers on providing essential infrastructure services that connect producers with end-markets. The company's extensive network of pipelines, storage facilities, and processing plants allows it to capture value at various points along the energy value chain. A key aspect of PAA's strategy involves optimizing its asset base to enhance efficiency and reduce costs. This includes investing in new infrastructure projects, upgrading existing facilities, and divesting non-core assets. The company also focuses on securing long-term contracts with producers and refiners to ensure stable revenue streams.
The company's business model is heavily reliant on the demand for crude oil and NGLs. Fluctuations in commodity prices, production levels, and regulatory policies can significantly impact PAA's financial performance. The partnership actively monitors these factors and adjusts its operations accordingly. For example, during periods of low oil prices, PAA may reduce its capital spending and focus on maximizing the utilization of its existing assets. Conversely, during periods of high oil prices, PAA may increase its capital spending to expand its infrastructure and capture additional market share.
PAA faces competition from other midstream energy companies, as well as from alternative transportation methods such as rail and trucking. To maintain its competitive edge, the company emphasizes its extensive network, its operational expertise, and its commitment to safety and environmental stewardship. The company also seeks to differentiate itself by offering a comprehensive suite of services that meet the diverse needs of its customers. The company's ability to adapt to changing market conditions and maintain its competitive position will be critical for its long-term success.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
-10.5%
Sector: 6.4%
-264% VS SCTR
Economic Moat Analysis
Plains All American Pipeline possesses a narrow economic moat, primarily derived from its strategic asset base and the high cost of replicating its extensive pipeline network. The company's network of pipelines and storage facilities creates a barrier to entry for new competitors, as constructing similar infrastructure requires significant capital investment and regulatory approvals. This existing infrastructure provides PAA with a cost advantage over potential entrants, allowing it to maintain a degree of pricing power in certain markets.
The company's moat is further supported by its established relationships with producers and refiners. These relationships are built on trust and reliability, making it difficult for competitors to displace PAA as the preferred provider of transportation and storage services. The company's operational expertise and its commitment to safety and environmental stewardship also contribute to its competitive advantage.
However, PAA's moat is not impenetrable. The company faces competition from other midstream energy companies, as well as from alternative transportation methods such as rail and trucking. In addition, the company's business is subject to regulatory risks, which could potentially erode its competitive advantage. The increasing focus on renewable energy sources and the potential for reduced demand for fossil fuels also pose a long-term threat to PAA's moat.
The narrow moat is reflected in the company's profitability and returns on capital. While PAA generates consistent profits and cash flow, its margins are relatively low compared to other companies with wider moats. The company's return on equity (ROE) of 12.7% is above the sector average of 9.2%, but it is not significantly higher, suggesting that PAA's competitive advantage is not particularly strong. The company's ability to maintain and expand its moat will depend on its ability to adapt to changing market conditions and invest in new technologies and infrastructure.
The moat's strength is also influenced by the regulatory environment. Changes in regulations related to pipeline safety, environmental protection, or transportation rates could impact PAA's profitability and competitive position. The company must navigate these regulatory challenges effectively to protect its moat and maintain its competitive advantage. The future of PAA's moat is uncertain, as the energy landscape continues to evolve. The company's ability to adapt to these changes and maintain its competitive position will be critical for its long-term success.
Financial Health & Profitability
Plains All American Pipeline's financial health presents a mixed picture. The company's revenue has fluctuated over the past few years, with a notable decrease of -10.5% in the latest TTM period compared to the sector average of 6.6% growth. This decline raises concerns about the company's ability to generate sustainable revenue growth. However, the company's net income has remained relatively stable, indicating that it has been able to manage its costs effectively.
The company's profitability metrics, such as gross margin and operating margin, are relatively low compared to the sector averages. The company's gross margin of 9.3% is significantly lower than the sector average of 35.8%, while its operating margin of 3.1% is also lower than the sector average of 6.2%. This suggests that PAA faces challenges in generating profits from its operations. However, its net margin of 3.6% is roughly in line with the sector average of 3.7%.
PAA's balance sheet is characterized by a high level of debt. The company's total debt of $9.45 billion is significantly higher than its total cash of $1.18 billion. The company's debt-to-equity ratio of 131.00 is also significantly higher than the sector average of 70.00. This high level of debt raises concerns about the company's financial flexibility and its ability to weather economic downturns. However, the company has been generating strong free cash flow, which it can use to reduce its debt burden.
The company's current ratio of 0.96 indicates that it may face challenges in meeting its short-term obligations. A current ratio below 1 suggests that the company's current liabilities exceed its current assets. However, the company's strong free cash flow generation provides some comfort in this regard. The company's return on equity (ROE) of 12.7% is above the sector average of 9.2%, indicating that it is generating attractive returns for its shareholders. However, this is partially driven by the company's high level of leverage.
Analyzing the quarterly financial history reveals some trends. While revenue has fluctuated, net income has generally remained stable. Gross margins and operating margins have also remained relatively consistent. The company's ability to maintain its profitability despite fluctuations in revenue suggests that it has been able to manage its costs effectively. However, the company needs to improve its revenue growth to ensure its long-term financial health.
Valuation Assessment
Plains All American Pipeline's valuation appears attractive based on several key metrics. The company's P/E ratio of 9.2x is significantly lower than the sector average of 27.7x, suggesting that the stock is undervalued relative to its earnings. Similarly, the company's EV/EBITDA ratio of 2.7x is also significantly lower than the sector average of 5.7x, further indicating that the stock is undervalued relative to its enterprise value.
The company's free cash flow (FCF) generation is strong, with a TTM FCF of $2.15 billion. This strong FCF generation provides the company with the financial flexibility to invest in new projects, reduce its debt burden, and return capital to shareholders. A high FCF yield would typically indicate an undervalued company, but the exact yield cannot be calculated without a share price.
However, it is important to consider the company's growth prospects when assessing its valuation. The company's revenue growth has been negative in the latest TTM period, which could justify a lower valuation multiple. Investors may be discounting the stock due to concerns about the company's ability to generate sustainable revenue growth in the future.
Despite the negative revenue growth, the company's strong FCF generation and attractive valuation multiples suggest that the stock may be undervalued. However, investors should carefully consider the risks associated with the company, including its high level of debt and its exposure to commodity price volatility. The company's ability to improve its revenue growth and manage its debt burden will be critical for its stock price to appreciate.
A discounted cash flow (DCF) analysis would be necessary to determine the intrinsic value of the stock. However, based on the available data, it appears that the stock is trading at a discount to its intrinsic value. The market may be overly pessimistic about the company's future prospects, creating an opportunity for value investors. The Hold rating reflects the balanced risk-reward profile of the stock. While the valuation is attractive, the concerns about revenue growth and debt warrant a cautious approach.
Risk & Uncertainty
Plains All American Pipeline faces several key risks that could impact its financial performance and stock price. One of the most significant risks is commodity price volatility. The company's revenue is heavily dependent on the demand for crude oil and NGLs, which are subject to fluctuations in commodity prices. A sharp decline in commodity prices could reduce the company's revenue and profitability.
Another key risk is regulatory risk. The company's operations are subject to a variety of federal, state, and local regulations related to pipeline safety, environmental protection, and transportation rates. Changes in these regulations could increase the company's costs and reduce its profitability. For example, stricter regulations on pipeline safety could require the company to invest in new infrastructure and maintenance, increasing its capital expenditures.
The company also faces competition from other midstream energy companies, as well as from alternative transportation methods such as rail and trucking. Increased competition could reduce the company's market share and pricing power. The company's high level of debt also poses a risk. The company's debt-to-equity ratio is significantly higher than the sector average, which could make it difficult for the company to weather economic downturns or invest in new projects.
Environmental risks are also a concern. Pipeline leaks or spills could result in significant environmental damage and legal liabilities. The company must invest in safety measures and risk management programs to mitigate these risks. The increasing focus on renewable energy sources and the potential for reduced demand for fossil fuels also pose a long-term risk to the company's business. The company must adapt to these changes and diversify its operations to ensure its long-term sustainability.
Bulls Say / Bears Say
The Bull Case
BULL VIEWPAA's discounted valuation relative to peers and its strong free cash flow generation provide a compelling investment opportunity.
BULL VIEWThe company's strategic asset base and established relationships with producers and refiners create a competitive advantage that will support long-term profitability.
BULL VIEWPAA's commitment to reducing its debt burden and returning capital to shareholders will drive shareholder value.
The Bear Case
BEAR VIEWPAA's declining revenue growth and relatively low margins raise concerns about its ability to generate sustainable profits.
BEAR VIEWThe company's high level of debt and exposure to commodity price volatility make it a risky investment.
BEAR VIEWIncreasing regulatory scrutiny and the shift towards renewable energy sources pose a long-term threat to PAA's business model.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score PAA and 4,400+ other equities.
PLAINS ALL AMERICAN PIPELINE LP exhibits a 13% valuation discount relative to institutional benchmarks. This represents a constructive entry window based on current multiples.
Return on Assets
Efficiency of asset utilization
5.5%
Sector: 3.3%
Gross Margin
Pricing power and cost efficiency
9.3%
Sector: 35.8%
Operating Margin
Core business profitability
3.1%
Sector: 6.2%
Net Margin
Bottom-line profitability
3.6%
Sector: 3.9%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield0.00%
Yield Delta—
Income Projection audit
A $10,000 investment would generate approximately $874 annually in dividends at the current trailing rate.
