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PAA'
s ROE % Range Over the Past 10 Years
Min: -22.86 Med: 11.18 Max: 37.1
Current: 11.79
During the past 13 years, Plains All American Pipeline LP's highest ROE % was 37.10%. The lowest was -22.86%. And the median was 11.18%.
PAA's ROE % is ranked better than 68.31% of 956
companies
in the Oil & Gas industry
Industry Median: 5.885
vs PAA: 11.79
Plains All American Pipeline LP (NAS:PAA) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Plains All American Pipeline LP ROE % Related Terms
Plains All American Pipeline LP ROE % 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.
For the Oil & Gas Midstream subindustry, Plains All American Pipeline LP's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Plains All American Pipeline LP's ROE % distribution charts can be found below:
* The bar in red indicates where Plains All American Pipeline LP's ROE % 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.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Plains All American Pipeline LP (PAA) has a ROE % of 6.26% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Plains All American Pipeline LP and its competitors. This is 44% below median its historical median of 11.18. According to the industry distribution chart, Plains All American Pipeline LP ranks #303 out of 956 companies in the Oil & Gas industry, placing it in the top 31.7%.
Is Plains All American Pipeline LP's ROE % too high?
Plains All American Pipeline LP's current ROE % of 6.26% is 44% below median its 10-year median of 11.18. The Oil & Gas industry median ROE % is 5.89. Plains All American Pipeline LP's value of 6.26% is 6.4% above this industry median. Based on the distribution chart, Plains All American Pipeline LP ranks #303 out of 956 companies in the Oil & Gas industry, which is above the industry midpoint. 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 ROE % compare to WES and DTM?
According to the Oil & Gas industry distribution chart, Plains All American Pipeline LP ranks #303 out of 956 companies for ROE %. This puts Plains All American Pipeline LP in the upper half of its industry. The industry median ROE % is 5.89. Plains All American Pipeline LP's value of 6.26% is 6.4% above this benchmark. While the company's 10-year median is 11.18 vs. the industry median of 5.89, Plains All American Pipeline LP has consistently been above 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 ROE % for an Oil & Gas company?
The median ROE % among Oil & Gas companies is 5.89, based on 956 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Plains All American Pipeline LP's current ROE % of 6.26% is 6.4% above 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Plains All American Pipeline LP and its competitors. For the Oil & Gas industry, the median ROE % is 5.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Plains All American Pipeline LP's current ROE % is 6.26%, which is 44% below median its own 10-year median of 11.18. 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 ROE % is 6.26%, which is 44% below median its 10-year median of 11.18 and 6.4% above the Oil & Gas industry median of 5.89. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Plains All American Pipeline LP (PAA), the current ROE % is 6.26% 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:
ROE %: 6.26% (44% below median its 10-year median of 11.18)
GF Value™: $17.28 vs. price of $24.89 (44% above fair value)
Industry Position: 6.4% above the Oil & Gas median (#303 of 956)
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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