Plains All American Pipeline L.P. Common Units representing Limited Partner Interests (PAA)

FairStock Score: 57/100 — STEADY

Key Financials

Strengths

• Generates $758 million in annual free cash flow (5.0% yield on market cap)
• Solid return on equity of 10.6% above cost of capital
• Attractive 7.4% dividend yield providing steady income returns

Concerns

• Revenue declining at 14.8% year-over-year signals potential demand weakness or market share loss
• Altman Z-Score of 0.9 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Plains All American Pipeline L.P. Common Units representing Limited Partner Interests is a mid-cap energy company valued at $15.0 billion. The business generates $44.3 billion in annual revenue with a 0.8% net margin and $758 million in free cash flow. From a quality standpoint, Plains shows distressed Altman Z-Score of 0.9 warrants caution and adequate 11% ROE. On valuation, the stock is reasonably priced at 19.2x earnings, with trades above its Graham Number with a negative 14% margin. Growth dynamics show revenue growing at -14.8% and profit growth of 850.0%. The 7.4% dividend yield adds an income component for patient holders. Our composite FairStock Score of 57/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $758 million in annual free cash flow (5.0% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the energy space. Sluggish -15% growth in a large-cap company leaves the stock vulnerable to de-rating if the market rotates toward higher-growth opportunities.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer