Plains GP Holdings, L.P. [NYSE: PAGP] opened at $24.1 and closed at $23.60 a share within trading session on 13/06/2019. That means that the stock gained by 3.56% compared to the closing price from a day before, when the stock touched $24.44.

Between the start and the closing of the latest trading session, Plains GP Holdings, L.P. [NYSE: PAGP] had 2.57 million shares being bought and sold. In the last three months, average trading volumes hovered around 1.43M shares. During the last week, volatility in the share price was set at 2.07%, which placed the metric for the last 30 days at 2.41%. The price of the stock additionally went down to $19.17 during that period and PAGP managed to take a rebound to $27.00 in the last 52 weeks.

Plains GP Holdings, L.P. [NYSE:PAGP]: Analyst Rating and Earnings

Stock market traders oftentimes pay a lot of attention to what top analysts say regarding a potential investment. Regarding Plains GP Holdings, L.P. [PAGP], the latest average analyst recommendation we can see is from the quarter closing in December. On average, stock market experts give PAGP an Outperform rating. Its stock price has been found in the range of 19.17 to 27.00. This is compared to its latest closing price of $23.60.

Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Plains GP Holdings, L.P. [PAGP] is sitting at 1.78. This is compared to 1 month ago, when its average rating was 1.78.

For the quarter ending in Mar-19 Plains GP Holdings, L.P. [PAGP] generated $8.38 billion in sales. That’s 2.87% lower than the average estimate of $8.62 billion as provided by Wall Street analysts. The three indicators above suggest that on the whole, this stock is not presenting an attractive investment option, as there are too many red flags that don’t point to a high-value ROI.

Pay attention for this company’s financial results, of which the next release is scheduled to happen on Tue 6 Aug (In 53 Days).

Fundamental Analysis of Plains GP Holdings, L.P. [PAGP]

Now let’s turn to look at profitability: with a current Operating Margin for Plains GP Holdings, L.P. [PAGP] sitting at +5.99 and its Gross Margin at +6.94, this company’s Net Margin is now 1.30%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.

This company’s Return on Total Capital is 9.07, and its Return on Invested Capital has reached 17.80%. Its Return on Equity is 18.86, and its Return on Assets is 1.25. These metrics show a mixed bag, which means that this investment’s attractiveness can be quickly increased or decreased in the short term, depending on future updates PAGP financial performance.

Turning to investigate this organization’s capital structure, Plains GP Holdings, L.P. [PAGP] has generated a Total Debt to Total Equity ratio of 498.86. Similarly, its Total Debt to Total Capital is 83.30, while its Total Debt to Total Assets stands at 34.32. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 495.29, and its Long-Term Debt to Total Capital is 82.70. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.

What about valuation? This company’s Enterprise Value to EBITDA is 5.04 and its Total Debt to EBITDA Value is 3.61. The Enterprise Value to Sales for this firm is now 0.37, and its Total Debt to Enterprise Value stands at 0.35. Plains GP Holdings, L.P. [PAGP] has a Price to Book Ratio of 1.74, a Price to Cash Flow Ratio of 2.18 and P/E Ratio of 8.74. These metrics all suggest that Plains GP Holdings, L.P. is more likely to generate a positive ROI.

Shifting the focus to workforce efficiency, Plains GP Holdings, L.P. [PAGP] earns $6,924,082 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 12.38 and its Total Asset Turnover is 1.27. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.84 and its Current Ratio is 1.02. This company is not investing its short-term assets in an optimally efficient way, making it a riskier investment.

Plains GP Holdings, L.P. [PAGP] has 278.76M shares outstanding, amounting to a total market cap of $6.81B. Its stock price has been found in the range of 19.17 to 27.00. At its current price, it has moved down by -9.48% from its 52-week high, and it has moved up 27.49% from its 52-week low.

This stock’s Beta value is currently 1.10, which indicates that it is 2.07% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 57.16. This RSI score is good, suggesting this stock is neither overbought or oversold.

Conclusion: Is Plains GP Holdings, L.P. [PAGP] a Reliable Buy?

Plains GP Holdings, L.P. [PAGP] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.