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Plains All American Pipeline LPPAA -2.05%73 Pretax Margin % is 2.69% as of Mar. 2026, which is 12% below its 10-year median of 3.04. GuruFocus rates PAA with a GF Score™ of 73/100 and a GF Value™ of $17.29 (Significantly Overvalued). The stock has 14 warning signs investors should review. Among 918 Oil & Gas companies, Plains All American Pipeline LP ranks worse than 57.84% on this metric.
Plains All American Pipeline LP (NAS:PAA) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Plains All American Pipeline LP Pretax Margin % Related Terms
Plains All American Pipeline LP Pretax 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 Pretax Margin % Chart
For the Oil & Gas Midstream subindustry, Plains All American Pipeline LP's Pretax Margin %, along with its competitors' market caps and Pretax 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 Pretax Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Plains All American Pipeline LP's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Plains All American Pipeline LP's Pretax 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.
Plains All American Pipeline LP (PAA) has a Pretax Margin % of 2.69% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Plains All American Pipeline LP and its competitors. This is 12% below median its historical median of 3.04. According to the industry distribution chart, Plains All American Pipeline LP ranks #531 out of 918 companies in the Oil & Gas industry, placing it in the top 57.8%.
Is Plains All American Pipeline LP's Pretax Margin % too high?
Plains All American Pipeline LP's current Pretax Margin % of 2.69% is 12% below median its 10-year median of 3.04. The Oil & Gas industry median Pretax Margin % is 5.37. Plains All American Pipeline LP's value of 2.69% is 49.9% below this industry median. Based on the distribution chart, Plains All American Pipeline LP ranks #531 out of 918 companies in the Oil & Gas industry, which is below the industry midpoint. Overall, Plains All American Pipeline LP has a GF Score™ of 73/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Plains All American Pipeline LP's Pretax Margin % compare to WES and DTM?
According to the Oil & Gas industry distribution chart, Plains All American Pipeline LP ranks #531 out of 918 companies for Pretax Margin %. This places Plains All American Pipeline LP in the lower half of its industry. The industry median Pretax Margin % is 5.37. Plains All American Pipeline LP's value of 2.69% is 49.9% below this benchmark. While the company's 10-year median is 3.04 vs. the industry median of 5.37, 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 Pretax Margin % for an Oil & Gas company?
The median Pretax Margin % among Oil & Gas companies is 5.37, based on 918 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax 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 Pretax Margin % of 2.69% is 49.9% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Plains All American Pipeline LP and its competitors. For the Oil & Gas industry, the median Pretax Margin % is 5.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Plains All American Pipeline LP's current Pretax Margin % is 2.69%, which is 12% below median its own 10-year median of 3.04. 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 $17.29, compared to a current price of $24.31 — trading 40.6% above its estimated fair value. The current Pretax Margin % is 2.69%, which is 12% below median its 10-year median of 3.04 and 49.9% below the Oil & Gas industry median of 5.37. Plains All American Pipeline LP's overall GF Score™ is 73/100 with 14 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Plains All American Pipeline LP (PAA), the current Pretax Margin % is 2.69% 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 $24.31 is trading 40.6% above its estimated GF Value™ of $17.29.
GuruFocus considers Plains All American Pipeline LP to be Significantly Overvalued.
Key valuation signals for PAA:
Pretax Margin %: 2.69% (12% below median its 10-year median of 3.04)
GF Value™: $17.29 vs. price of $24.31 (40.6% above fair value)
Industry Position: 49.9% below the Oil & Gas median (#531 of 918)
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, 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.
73GF Score
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