PHILLIPS 66 (PSX) Stock Fundamental Analysis
NYSE:PSX - New York Stock Exchange, Inc. - US7185461040 - Common Stock
Taking everything into account, PSX scores 3 out of 10 in our fundamental rating. PSX was compared to 210 industry peers in the Oil, Gas & Consumable Fuels industry. PSX has an average financial health and profitability rating. PSX has a expensive valuation and it also scores bad on growth. PSX also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
PSX had positive earnings in the past year.
In the past year PSX had a positive cash flow from operations.
PSX had positive earnings in 4 of the past 5 years.
PSX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 4.47%, PSX perfoms like the industry average, outperforming 45.15% of the companies in the same industry.
PSX's Return On Equity of 11.69% is in line compared to the rest of the industry. PSX outperforms 53.88% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.35%, PSX is doing worse than 66.50% of the companies in the same industry.
PSX had an Average Return On Invested Capital over the past 3 years of 7.85%. This is significantly below the industry average of 28.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.47% | ||
| ROE | 11.69% | ||
| ROIC | 4.35% |
ROA(3y)8.68%
ROA(5y)4.8%
ROE(3y)22.35%
ROE(5y)11.68%
ROIC(3y)7.85%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 2.27%, PSX is doing worse than 68.45% of the companies in the same industry.
In the last couple of years the Profit Margin of PSX has remained more or less at the same level.
The Operating Margin of PSX (2.26%) is worse than 78.64% of its industry peers.
In the last couple of years the Operating Margin of PSX has grown nicely.
The Gross Margin of PSX (9.94%) is worse than 71.84% of its industry peers.
In the last couple of years the Gross Margin of PSX has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.26% | ||
| PM (TTM) | 2.27% | ||
| GM | 9.94% |
OM growth 3YN/A
OM growth 5Y4.56%
PM growth 3YN/A
PM growth 5Y-1.1%
GM growth 3Y9.37%
GM growth 5Y1.89%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PSX is destroying value.
PSX has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, PSX has less shares outstanding
The debt/assets ratio for PSX is higher compared to a year ago.
2.2 Solvency
PSX has an Altman-Z score of 3.40. This indicates that PSX is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.40, PSX belongs to the top of the industry, outperforming 80.10% of the companies in the same industry.
PSX has a debt to FCF ratio of 6.26. This is a slightly negative value and a sign of low solvency as PSX would need 6.26 years to pay back of all of its debts.
PSX has a Debt to FCF ratio (6.26) which is in line with its industry peers.
A Debt/Equity ratio of 0.64 indicates that PSX is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.64, PSX is not doing good in the industry: 63.11% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 6.26 | ||
| Altman-Z | 3.4 |
ROIC/WACC0.54
WACC8.02%
2.3 Liquidity
PSX has a Current Ratio of 1.21. This is a normal value and indicates that PSX is financially healthy and should not expect problems in meeting its short term obligations.
PSX has a Current ratio of 1.21. This is comparable to the rest of the industry: PSX outperforms 46.60% of its industry peers.
A Quick Ratio of 0.83 indicates that PSX may have some problems paying its short term obligations.
PSX has a worse Quick ratio (0.83) than 65.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
PSX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -44.11%.
PSX shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.99% yearly.
The Revenue has decreased by -1.12% in the past year.
Measured over the past years, PSX shows a small growth in Revenue. The Revenue has been growing by 5.78% on average per year.
EPS 1Y (TTM)-44.11%
EPS 3YN/A
EPS 5Y5.99%
EPS Q2Q%-55.94%
Revenue 1Y (TTM)-1.12%
Revenue growth 3Y31.97%
Revenue growth 5Y5.78%
Sales Q2Q%-10.31%
3.2 Future
Based on estimates for the next years, PSX will show a decrease in Earnings Per Share. The EPS will decrease by -2.57% on average per year.
Based on estimates for the next years, PSX will show a decrease in Revenue. The Revenue will decrease by -5.34% on average per year.
EPS Next Y-51.94%
EPS Next 2Y-22.91%
EPS Next 3Y-7.24%
EPS Next 5Y-2.57%
Revenue Next Year-4.04%
Revenue Next 2Y-4.8%
Revenue Next 3Y-2.69%
Revenue Next 5Y-5.34%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
PSX is valuated correctly with a Price/Earnings ratio of 12.90.
The rest of the industry has a similar Price/Earnings ratio as PSX.
The average S&P500 Price/Earnings ratio is at 28.29. PSX is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 12.83, the valuation of PSX can be described as correct.
PSX's Price/Forward Earnings ratio is in line with the industry average.
PSX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.9 | ||
| Fwd PE | 12.83 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PSX is valued a bit more expensive than 64.56% of the companies in the same industry.
PSX's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.57 | ||
| EV/EBITDA | 12.62 |
4.3 Compensation for Growth
PSX's earnings are expected to decrease with -7.24% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)2.15
EPS Next 2Y-22.91%
EPS Next 3Y-7.24%
5. Dividend
5.1 Amount
PSX has a Yearly Dividend Yield of 3.85%.
PSX's Dividend Yield is a higher than the industry average which is at 6.39.
PSX's Dividend Yield is rather good when compared to the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.85% |
5.2 History
The dividend of PSX is nicely growing with an annual growth rate of 6.97%!
PSX has been paying a dividend for at least 10 years, so it has a reliable track record.
PSX has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)6.97%
Div Incr Years12
Div Non Decr Years12
5.3 Sustainability
PSX pays out 55.60% of its income as dividend. This is a bit on the high side, but may be sustainable.
The Dividend Rate of PSX has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP55.6%
EPS Next 2Y-22.91%
EPS Next 3Y-7.24%
PHILLIPS 66
NYSE:PSX (1/21/2025, 8:22:06 PM)
After market: 119.683 -0.81 (-0.67%)120.49
-0.04 (-0.03%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners76.28%
Inst Owner Change0.06%
Ins Owners0.18%
Ins Owner Change0.88%
Market Cap49.76B
Analysts76.67
Price Target146.02 (21.19%)
Short Float %1.55%
Short Ratio2.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.85% |
Yearly Dividend4.2
Dividend Growth(5Y)6.97%
DP55.6%
Div Incr Years12
Div Non Decr Years12
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18.7%
Min EPS beat(2)15.5%
Max EPS beat(2)21.9%
EPS beat(4)3
Avg EPS beat(4)13.62%
Min EPS beat(4)-13.39%
Max EPS beat(4)30.47%
EPS beat(8)5
Avg EPS beat(8)8.34%
EPS beat(12)9
Avg EPS beat(12)13.13%
EPS beat(16)12
Avg EPS beat(16)15.65%
Revenue beat(2)2
Avg Revenue beat(2)6.33%
Min Revenue beat(2)3.91%
Max Revenue beat(2)8.75%
Revenue beat(4)4
Avg Revenue beat(4)6.71%
Min Revenue beat(4)3.91%
Max Revenue beat(4)9.07%
Revenue beat(8)8
Avg Revenue beat(8)4.41%
Revenue beat(12)11
Avg Revenue beat(12)4.98%
Revenue beat(16)14
Avg Revenue beat(16)3.67%
PT rev (1m)-2.05%
PT rev (3m)-4.49%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-52.23%
EPS NY rev (1m)0%
EPS NY rev (3m)-17.65%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.32%
Revenue NY rev (1m)-1.98%
Revenue NY rev (3m)-2.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.9 | ||
| Fwd PE | 12.83 | ||
| P/S | 0.34 | ||
| P/FCF | 15.57 | ||
| P/OCF | 9.6 | ||
| P/B | 1.73 | ||
| P/tB | 1.91 | ||
| EV/EBITDA | 12.62 |
EPS(TTM)9.34
EY7.75%
EPS(NY)9.39
Fwd EY7.79%
FCF(TTM)7.74
FCFY6.42%
OCF(TTM)12.55
OCFY10.42%
SpS357.73
BVpS69.55
TBVpS62.93
PEG (NY)N/A
PEG (5Y)2.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.47% | ||
| ROE | 11.69% | ||
| ROCE | 5.64% | ||
| ROIC | 4.35% | ||
| ROICexc | 4.47% | ||
| ROICexgc | 4.7% | ||
| OM | 2.26% | ||
| PM (TTM) | 2.27% | ||
| GM | 9.94% | ||
| FCFM | 2.16% |
ROA(3y)8.68%
ROA(5y)4.8%
ROE(3y)22.35%
ROE(5y)11.68%
ROIC(3y)7.85%
ROIC(5y)N/A
ROICexc(3y)8.54%
ROICexc(5y)N/A
ROICexgc(3y)8.93%
ROICexgc(5y)N/A
ROCE(3y)10.18%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y3.27%
ROICexc growth 3YN/A
ROICexc growth 5Y4.48%
OM growth 3YN/A
OM growth 5Y4.56%
PM growth 3YN/A
PM growth 5Y-1.1%
GM growth 3Y9.37%
GM growth 5Y1.89%
F-Score5
Asset Turnover1.97
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 6.26 | ||
| Debt/EBITDA | 3.42 | ||
| Cap/Depr | 96.36% | ||
| Cap/Sales | 1.34% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 96% | ||
| Profit Quality | 95.18% | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | 3.4 |
F-Score5
WACC8.02%
ROIC/WACC0.54
Cap/Depr(3y)124.29%
Cap/Depr(5y)174.2%
Cap/Sales(3y)1.53%
Cap/Sales(5y)2.55%
Profit Quality(3y)154.13%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-44.11%
EPS 3YN/A
EPS 5Y5.99%
EPS Q2Q%-55.94%
EPS Next Y-51.94%
EPS Next 2Y-22.91%
EPS Next 3Y-7.24%
EPS Next 5Y-2.57%
Revenue 1Y (TTM)-1.12%
Revenue growth 3Y31.97%
Revenue growth 5Y5.78%
Sales Q2Q%-10.31%
Revenue Next Year-4.04%
Revenue Next 2Y-4.8%
Revenue Next 3Y-2.69%
Revenue Next 5Y-5.34%
EBIT growth 1Y-61.63%
EBIT growth 3YN/A
EBIT growth 5Y10.61%
EBIT Next Year-27.42%
EBIT Next 3Y-1.08%
EBIT Next 5Y-0.47%
FCF growth 1Y-44.75%
FCF growth 3YN/A
FCF growth 5Y-1.34%
OCF growth 1Y-34.08%
OCF growth 3Y49.33%
OCF growth 5Y-1.48%