Plains GP Holdings LPPAGP -1.76%76 Gross Margin % is 5.89% as of Mar. 2026, which is 27% below its 10-year median of 8.06. GuruFocus rates PAGP with a GF Score™ of 76/100 and a GF Value™ of $19.41 (Modestly Overvalued). The stock has 11 warning signs investors should review. Among 867 Oil & Gas companies, Plains GP Holdings LP ranks worse than 84.66% on this metric.
PAGP's Gross Margin % is ranked worse than 84.66% of 867
companies
in the Oil & Gas industry
Industry Median: 25.7
vs PAGP: 6.37
Plains GP Holdings LP had a gross margin of 5.89% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Plains GP Holdings LP was -6.50% per year.
Plains GP Holdings LP (NAS:PAGP) 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 GP Holdings LP had a gross margin of 5.89% 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 GP Holdings LP Gross Margin % Related Terms
Plains GP Holdings LP Gross Margin % Historical Data
* Premium members only.
The historical data trend for Plains GP Holdings LP's Gross Margin % can be seen below:
* 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.
PAGP vs HESM, GLNG, INSW: Gross Margin % Comparison
For the Oil & Gas Midstream subindustry, Plains GP Holdings 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 GP Holdings LP Gross Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Plains GP Holdings LP's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Plains GP Holdings 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 GP Holdings LP (PAGP) has a Gross Margin % of 5.89% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Plains GP Holdings LP and its competitors. This is 27% below median its historical median of 8.06. Over the past decade, Plains GP Holdings LP's Gross Margin % has ranged from 5.25 to 12.06. According to the industry distribution chart, Plains GP Holdings LP ranks #734 out of 867 companies in the Oil & Gas industry, placing it in the top 84.7%.
Is Plains GP Holdings LP's Gross Margin % too high?
Plains GP Holdings LP's current Gross Margin % of 5.89% is 27% below median its 10-year median of 8.06. Over the past 10 years, this metric has ranged from a low of 5.25 to a high of 12.06. The Oil & Gas industry median Gross Margin % is 25.70. Plains GP Holdings LP's value of 5.89% is 77.1% below this industry median. Based on the distribution chart, Plains GP Holdings LP ranks #734 out of 867 companies in the Oil & Gas industry, which is in the bottom quartile relative to peers. Overall, Plains GP Holdings LP has a GF Score™ of 76/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Plains GP Holdings LP's Gross Margin % compare to HESM and GLNG?
According to the Oil & Gas industry distribution chart, Plains GP Holdings LP ranks #734 out of 867 companies for Gross Margin %. This places Plains GP Holdings LP in the lower half of its industry. The industry median Gross Margin % is 25.70. Plains GP Holdings LP's value of 5.89% is 77.1% below this benchmark. Historically, Plains GP Holdings LP's own Gross Margin % has ranged from 5.25 to 12.06 over the past decade. While the company's 10-year median is 8.06 vs. the industry median of 25.70, Plains GP Holdings 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 25.70, based on 867 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 GP Holdings LP's current Gross Margin % of 5.89% is 77.1% 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 GP Holdings LP and its competitors. For the Oil & Gas industry, the median Gross Margin % is 25.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Plains GP Holdings LP's current Gross Margin % is 5.89%, which is 27% below median its own 10-year median of 8.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Plains GP Holdings LP stock overvalued right now?
Based on GuruFocus' analysis, Plains GP Holdings LP (PAGP) is currently considered Modestly Overvalued. The stock's GF Value™ is $19.41, compared to a current price of $23.41 — trading 20.6% above its estimated fair value. The current Gross Margin % is 5.89%, which is 27% below median its 10-year median of 8.06 and 77.1% below the Oil & Gas industry median of 25.70. Plains GP Holdings LP's overall GF Score™ is 76/100 with 11 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 GP Holdings LP (PAGP), the current Gross Margin % is 5.89% 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 GP Holdings LP (PAGP) Overvalued in 2026?
Based on GuruFocus' analysis, Plains GP Holdings LP stock appears to be overvalued.
The current stock price of $23.41 is trading 20.6% above its estimated GF Value™ of $19.41.
GuruFocus considers Plains GP Holdings LP to be Modestly Overvalued.
Key valuation signals for PAGP:
Gross Margin %: 5.89% (27% below median its 10-year median of 8.06)
GF Value™: $19.41 vs. price of $23.41 (20.6% above fair value)
Industry Position: 77.1% below the Oil & Gas median (#734 of 867)
No single metric tells the full story. See the PAGP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Plains GP Holdings LP owns and operates midstream energy infrastructure and provides logistics services for crude oil, natural gas liquids (NGL), and natural gas. The group manages its operations through two operating segments: Crude Oil segment operations generally consist of gathering and transporting crude oil using pipelines (including gathering systems), trucks, and, at times, on barges or railcars; and NGL segment operations involve NGL storage and terminalling from NGL assets located in the Southwestern United States. It generates the majority of its revenue from the Crude Oil segment. Its geographic markets are the United States and Canada. It generates the majority of its revenue from the United States.
76GF Score
Get the complete analysis for PAGP
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
PAGP has been successfully added to your 
