Plains GP Holdings LPPAGP -1.76%76 Operating Margin % is 2.81% as of Mar. 2026, which is 20% below its 10-year median of 3.53. GuruFocus rates PAGP with a GF Score™ of 76/100 and a GF Value™ of $19.43 (Modestly Overvalued). The stock has 11 warning signs investors should review. Among 916 Oil & Gas companies, Plains GP Holdings LP ranks worse than 62.88% on this metric.
Plains GP Holdings LP (NAS:PAGP) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Plains GP Holdings LP Operating Margin % Related Terms
Plains GP Holdings LP Operating Margin % Historical Data
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The historical data trend for Plains GP Holdings LP's Operating 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: Operating Margin % Comparison
For the Oil & Gas Midstream subindustry, Plains GP Holdings LP's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Plains GP Holdings LP's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Plains GP Holdings LP's Operating Margin % falls into.
Plains GP Holdings LP Operating Margin % Calculation
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Plains GP Holdings LP's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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 GP Holdings LP (PAGP) has a Operating Margin % of 2.81% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Plains GP Holdings LP and its competitors. This is 20% below median its historical median of 3.53. Over the past decade, Plains GP Holdings LP's Operating Margin % has ranged from 2.09 to 6.34. According to the industry distribution chart, Plains GP Holdings LP ranks #576 out of 916 companies in the Oil & Gas industry, placing it in the top 62.9%.
Is Plains GP Holdings LP's Operating Margin % too high?
Plains GP Holdings LP's current Operating Margin % of 2.81% is 20% below median its 10-year median of 3.53. Over the past 10 years, this metric has ranged from a low of 2.09 to a high of 6.34. The Oil & Gas industry median Operating Margin % is 6.86. Plains GP Holdings LP's value of 2.81% is 59% below this industry median. Based on the distribution chart, Plains GP Holdings LP ranks #576 out of 916 companies in the Oil & Gas industry, which is below the industry midpoint. 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 Operating Margin % compare to HESM and GLNG?
According to the Oil & Gas industry distribution chart, Plains GP Holdings LP ranks #576 out of 916 companies for Operating Margin %. This places Plains GP Holdings LP in the lower half of its industry. The industry median Operating Margin % is 6.86. Plains GP Holdings LP's value of 2.81% is 59% below this benchmark. Historically, Plains GP Holdings LP's own Operating Margin % has ranged from 2.09 to 6.34 over the past decade. While the company's 10-year median is 3.53 vs. the industry median of 6.86, 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 Operating Margin % for an Oil & Gas company?
The median Operating Margin % among Oil & Gas companies is 6.86, based on 916 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Plains GP Holdings LP's current Operating Margin % of 2.81% is 59% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Plains GP Holdings LP and its competitors. For the Oil & Gas industry, the median Operating Margin % is 6.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Plains GP Holdings LP's current Operating Margin % is 2.81%, which is 20% below median its own 10-year median of 3.53. 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 $19.43, compared to a current price of $23.41 — trading 20.5% above its estimated fair value. The current Operating Margin % is 2.81%, which is 20% below median its 10-year median of 3.53 and 59% below the Oil & Gas industry median of 6.86. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Plains GP Holdings LP (PAGP), the current Operating Margin % is 2.81% 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 20.5% above its estimated GF Value™ of $19.43.
GuruFocus considers Plains GP Holdings LP to be Modestly Overvalued.
Key valuation signals for PAGP:
Operating Margin %: 2.81% (20% below median its 10-year median of 3.53)
GF Value™: $19.43 vs. price of $23.41 (20.5% above fair value)
Industry Position: 59% below the Oil & Gas median (#576 of 916)
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
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