PHILLIPS 66 (PSX)
US7185461040 - Common Stock
We assign a fundamental rating of 4 out of 10 to PSX. PSX was compared to 205 industry peers in the Oil, Gas & Consumable Fuels industry. Both the profitability and the financial health of PSX get a neutral evaluation. Nothing too spectacular is happening here. PSX has a valuation in line with the averages, but on the other hand it scores bad on growth. Finally PSX also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
PSX had positive earnings in the past year.
PSX had a positive operating cash flow in the past year.
PSX had positive earnings in 4 of the past 5 years.
In the past 5 years PSX always reported a positive cash flow from operatings.
1.2 Ratios
PSX has a Return On Assets (4.47%) which is comparable to the rest of the industry.
PSX has a Return On Equity of 11.69%. This is comparable to the rest of the industry: PSX outperforms 52.94% of its industry peers.
The Return On Invested Capital of PSX (4.35%) is worse than 66.18% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PSX is significantly below the industry average of 29.03%.
| 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 69.61% of the companies in the same industry.
PSX's Profit Margin has been stable in the last couple of years.
PSX has a Operating Margin of 2.26%. This is in the lower half of the industry: PSX underperforms 79.41% of its industry peers.
PSX's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 9.94%, PSX is not doing good in the industry: 72.55% of the companies in the same industry are doing better.
PSX's Gross Margin has improved in the last couple of years.
| 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 just above the Cost of Capital (WACC), so PSX is still creating some value.
Compared to 1 year ago, PSX has less shares outstanding
Compared to 5 years ago, PSX has less shares outstanding
Compared to 1 year ago, PSX has a worse debt to assets ratio.
2.2 Solvency
PSX has an Altman-Z score of 3.34. This indicates that PSX is financially healthy and has little risk of bankruptcy at the moment.
PSX's Altman-Z score of 3.34 is amongst the best of the industry. PSX outperforms 80.39% of its industry peers.
The Debt to FCF ratio of PSX is 6.26, which is on the high side as it means it would take PSX, 6.26 years of fcf income to pay off all of its debts.
PSX has a Debt to FCF ratio of 6.26. This is comparable to the rest of the industry: PSX outperforms 55.39% of its industry peers.
PSX has a Debt/Equity ratio of 0.64. This is a neutral value indicating PSX is somewhat dependend on debt financing.
The Debt to Equity ratio of PSX (0.64) is worse than 63.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 6.26 | ||
| Altman-Z | 3.34 |
ROIC/WACC0.56
WACC7.75%
2.3 Liquidity
A Current Ratio of 1.21 indicates that PSX should not have too much problems paying its short term obligations.
PSX's Current ratio of 1.21 is in line compared to the rest of the industry. PSX outperforms 48.04% 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 63.73% 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%.
The Earnings Per Share has been growing slightly by 5.99% on average over the past years.
Looking at the last year, PSX shows a decrease in Revenue. The Revenue has decreased by -1.12% in the last year.
The Revenue has been growing slightly by 5.78% on average over the past years.
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 -1.21% on average per year.
PSX is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -5.34% yearly.
EPS Next Y-51.94%
EPS Next 2Y-22.91%
EPS Next 3Y-7.24%
EPS Next 5Y-1.21%
Revenue Next Year-2.1%
Revenue Next 2Y-4.77%
Revenue Next 3Y-2.61%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 11.82, the valuation of PSX can be described as reasonable.
The rest of the industry has a similar Price/Earnings ratio as PSX.
PSX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.20.
A Price/Forward Earnings ratio of 11.75 indicates a reasonable valuation of PSX.
PSX's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of PSX to the average of the S&P500 Index (23.73), we can say PSX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.82 | ||
| Fwd PE | 11.75 |
4.2 Price Multiples
67.65% of the companies in the same industry are cheaper than PSX, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as PSX.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.26 | ||
| EV/EBITDA | 11.84 |
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)1.97
EPS Next 2Y-22.91%
EPS Next 3Y-7.24%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.17%, PSX is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 7.14, PSX has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, PSX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.17% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)6.97%
Div Incr Years12
Div Non Decr Years12
5.3 Sustainability
55.60% of the earnings are spent on dividend by PSX. 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 (12/20/2024, 8:04:00 PM)
After market: 110 -0.37 (-0.34%)110.37
+0.02 (+0.02%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners76.28%
Inst Owner Change-1.82%
Ins Owners0.18%
Ins Owner Change0.05%
Market Cap45.58B
Analysts77.5
Price Target149.07 (35.06%)
Short Float %1.75%
Short Ratio2.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.17% |
Dividend Growth(5Y)6.97%
DP55.6%
Div Incr Years12
Div Non Decr Years12
Ex-Date
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)-0.85%
PT rev (3m)-5.9%
EPS NQ rev (1m)2.54%
EPS NQ rev (3m)-52.23%
EPS NY rev (1m)-1.35%
EPS NY rev (3m)-17.65%
Revenue NQ rev (1m)-0.71%
Revenue NQ rev (3m)-7.32%
Revenue NY rev (1m)0.23%
Revenue NY rev (3m)-0.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.82 | ||
| Fwd PE | 11.75 | ||
| P/S | 0.31 | ||
| P/FCF | 14.26 | ||
| P/OCF | 8.79 | ||
| P/B | 1.59 | ||
| P/tB | 1.75 | ||
| EV/EBITDA | 11.84 |
EPS(TTM)9.34
EY8.46%
EPS(NY)9.39
Fwd EY8.51%
FCF(TTM)7.74
FCFY7.01%
OCF(TTM)12.55
OCFY11.37%
SpS357.73
BVpS69.55
TBVpS62.93
PEG (NY)N/A
PEG (5Y)1.97
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 | 3.34 |
F-Score5
WACC7.75%
ROIC/WACC0.56
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-1.21%
Revenue 1Y (TTM)-1.12%
Revenue growth 3Y31.97%
Revenue growth 5Y5.78%
Sales Q2Q%-10.31%
Revenue Next Year-2.1%
Revenue Next 2Y-4.77%
Revenue Next 3Y-2.61%
Revenue Next 5Y-5.34%
EBIT growth 1Y-61.63%
EBIT growth 3YN/A
EBIT growth 5Y10.61%
EBIT Next Year-23.2%
EBIT Next 3Y-0.28%
EBIT Next 5Y0.13%
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%