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Plains All American Pipeline LPPAA +1.86%76 Gross Margin % is 3.47% as of Mar. 2026, which is 23% below its 10-year median of 4.49. GuruFocus rates PAA with a GF Score™ of 76/100 and a GF Value™ of $17.28 (Significantly Overvalued). The stock has 14 warning signs investors should review. Among 870 Oil & Gas companies, Plains All American Pipeline LP ranks worse than 90.11% on this metric.
Plains All American Pipeline LP (NAS:PAA) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Plains All American Pipeline LP had a gross margin of 3.47% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Plains All American Pipeline LP Gross Margin % Related Terms
Plains All American Pipeline LP Gross Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Plains All American Pipeline LP Gross Margin % Chart
For the Oil & Gas Midstream subindustry, Plains All American Pipeline LP's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Plains All American Pipeline LP Gross Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Plains All American Pipeline LP's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Plains All American Pipeline LP's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Plains All American Pipeline LP (PAA) has a Gross Margin % of 3.47% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Plains All American Pipeline LP and its competitors. This is 23% below median its historical median of 4.49. Over the past decade, Plains All American Pipeline LP's Gross Margin % has ranged from 2.77 to 7.28. According to the industry distribution chart, Plains All American Pipeline LP ranks #784 out of 870 companies in the Oil & Gas industry, placing it in the top 90.1%.
Is Plains All American Pipeline LP's Gross Margin % too high?
Plains All American Pipeline LP's current Gross Margin % of 3.47% is 23% below median its 10-year median of 4.49. Over the past 10 years, this metric has ranged from a low of 2.77 to a high of 7.28. The Oil & Gas industry median Gross Margin % is 25.96. Plains All American Pipeline LP's value of 3.47% is 86.6% below this industry median. Based on the distribution chart, Plains All American Pipeline LP ranks #784 out of 870 companies in the Oil & Gas industry, which is in the bottom quartile relative to peers. Overall, Plains All American Pipeline LP has a GF Score™ of 76/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Plains All American Pipeline LP's Gross Margin % compare to WES and DTM?
According to the Oil & Gas industry distribution chart, Plains All American Pipeline LP ranks #784 out of 870 companies for Gross Margin %. This places Plains All American Pipeline LP in the lower half of its industry. The industry median Gross Margin % is 25.96. Plains All American Pipeline LP's value of 3.47% is 86.6% below this benchmark. Historically, Plains All American Pipeline LP's own Gross Margin % has ranged from 2.77 to 7.28 over the past decade. While the company's 10-year median is 4.49 vs. the industry median of 25.96, Plains All American Pipeline LP has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Oil & Gas company?
The median Gross Margin % among Oil & Gas companies is 25.96, based on 870 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Plains All American Pipeline LP's current Gross Margin % of 3.47% is 86.6% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Plains All American Pipeline LP and its competitors. For the Oil & Gas industry, the median Gross Margin % is 25.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Plains All American Pipeline LP's current Gross Margin % is 3.47%, which is 23% below median its own 10-year median of 4.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Plains All American Pipeline LP stock overvalued right now?
Based on GuruFocus' analysis, Plains All American Pipeline LP (PAA) is currently considered Significantly Overvalued. The stock's GF Value™ is $17.28, compared to a current price of $24.89 — trading 44% above its estimated fair value. The current Gross Margin % is 3.47%, which is 23% below median its 10-year median of 4.49 and 86.6% below the Oil & Gas industry median of 25.96. Plains All American Pipeline LP's overall GF Score™ is 76/100 with 14 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Plains All American Pipeline LP (PAA), the current Gross Margin % is 3.47% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Plains All American Pipeline LP (PAA) Overvalued in 2026?
Based on GuruFocus' analysis, Plains All American Pipeline LP stock appears to be overvalued.
The current stock price of $24.89 is trading 44% above its estimated GF Value™ of $17.28.
GuruFocus considers Plains All American Pipeline LP to be Significantly Overvalued.
Key valuation signals for PAA:
Gross Margin %: 3.47% (23% below median its 10-year median of 4.49)
GF Value™: $17.28 vs. price of $24.89 (44% above fair value)
Industry Position: 86.6% below the Oil & Gas median (#784 of 870)
No single metric tells the full story. See the PAA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Plains All American Pipeline LP Business Description
Plains All American Pipeline LP, through its subsidiaries, engages in the pipeline transportation, terminaling, storage, and gathering of crude oil and natural gas liquids (NGL) in the United States and Canada. The company operates through two segments, Crude Oil and NGL. The Crude Oil segment offers gathering and transporting crude oil through pipelines, gathering systems, trucks, barges, or railcars. The NGL segment is involved in natural gas processing and NGL fractionation, storage, transportation, and terminalling. It generates the majority of its revenue from the Crude Oil segment.
76GF Score
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