PHILLIPS 66 (PSX) Stock Fundamental Analysis
NYSE:PSX - New York Stock Exchange, Inc. - US7185461040 - Common Stock - Currency: USD
PSX gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 213 industry peers in the Oil, Gas & Consumable Fuels industry. The financial health of PSX is average, but there are quite some concerns on its profitability. PSX does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year PSX was profitable.
In the past year PSX had a positive cash flow from operations.
PSX had positive earnings in 4 of the past 5 years.
Each year in the past 5 years PSX had a positive operating cash flow.
1.2 Ratios
The Return On Assets of PSX (2.57%) is comparable to the rest of the industry.
PSX's Return On Equity of 6.77% is in line compared to the rest of the industry. PSX outperforms 45.54% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.53%, PSX is doing worse than 71.83% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for PSX is significantly below the industry average of 23.55%.
The last Return On Invested Capital (1.53%) for PSX is well below the 3 year average (8.67%), which needs to be investigated, but indicates that PSX had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.57% | ||
| ROE | 6.77% | ||
| ROIC | 1.53% |
ROA(3y)8.86%
ROA(5y)4.33%
ROE(3y)22.64%
ROE(5y)10.75%
ROIC(3y)8.67%
ROIC(5y)N/A
1.3 Margins
With a Profit Margin value of 1.34%, PSX is not doing good in the industry: 63.38% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of PSX has declined.
PSX has a Operating Margin of 0.80%. This is in the lower half of the industry: PSX underperforms 74.65% of its industry peers.
In the last couple of years the Operating Margin of PSX has declined.
PSX has a Gross Margin of 9.10%. This is in the lower half of the industry: PSX underperforms 72.77% of its industry peers.
In the last couple of years the Gross Margin of PSX has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.8% | ||
| PM (TTM) | 1.34% | ||
| GM | 9.1% |
OM growth 3Y52.02%
OM growth 5Y-14.16%
PM growth 3Y7.9%
PM growth 5Y-12.42%
GM growth 3Y3.1%
GM growth 5Y-3.37%
2. Health
2.1 Basic Checks
PSX has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
PSX has less shares outstanding than it did 1 year ago.
PSX has less shares outstanding than it did 5 years ago.
PSX has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.30 indicates that PSX is not in any danger for bankruptcy at the moment.
The Altman-Z score of PSX (3.30) is better than 83.57% of its industry peers.
The Debt to FCF ratio of PSX is 6.35, which is on the high side as it means it would take PSX, 6.35 years of fcf income to pay off all of its debts.
PSX's Debt to FCF ratio of 6.35 is in line compared to the rest of the industry. PSX outperforms 59.15% of its industry peers.
A Debt/Equity ratio of 0.65 indicates that PSX is somewhat dependend on debt financing.
PSX has a Debt to Equity ratio of 0.65. This is in the lower half of the industry: PSX underperforms 60.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 6.35 | ||
| Altman-Z | 3.3 |
ROIC/WACC0.2
WACC7.51%
2.3 Liquidity
PSX has a Current Ratio of 1.23. This is a normal value and indicates that PSX is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.23, PSX is in line with its industry, outperforming 55.40% of the companies in the same industry.
A Quick Ratio of 0.88 indicates that PSX may have some problems paying its short term obligations.
PSX's Quick ratio of 0.88 is in line compared to the rest of the industry. PSX outperforms 44.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
PSX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -75.54%.
The Earnings Per Share has been decreasing by -5.44% on average over the past years.
The Revenue has decreased by -7.42% in the past year.
PSX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.91% yearly.
EPS 1Y (TTM)-75.54%
EPS 3Y2.29%
EPS 5Y-5.44%
EPS Q2Q%-147.37%
Revenue 1Y (TTM)-7.42%
Revenue growth 3Y8.69%
Revenue growth 5Y5.91%
Sales Q2Q%-12.93%
3.2 Future
Based on estimates for the next years, PSX will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.79% on average per year.
PSX is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -4.36% yearly.
EPS Next Y-24.98%
EPS Next 2Y28.34%
EPS Next 3Y24.87%
EPS Next 5Y18.79%
Revenue Next Year-7.59%
Revenue Next 2Y-3.74%
Revenue Next 3Y-1.43%
Revenue Next 5Y-4.36%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
Based on the Price/Earnings ratio of 37.02, the valuation of PSX can be described as expensive.
Based on the Price/Earnings ratio, PSX is valued a bit more expensive than 63.85% of the companies in the same industry.
PSX's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.31.
With a Price/Forward Earnings ratio of 12.16, PSX is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PSX is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of PSX to the average of the S&P500 Index (22.13), we can say PSX is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.02 | ||
| Fwd PE | 12.16 |
4.2 Price Multiples
67.61% of the companies in the same industry are cheaper than PSX, based on the Enterprise Value to EBITDA ratio.
61.03% of the companies in the same industry are more expensive than PSX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.81 | ||
| EV/EBITDA | 17.87 |
4.3 Compensation for Growth
A more expensive valuation may be justified as PSX's earnings are expected to grow with 24.87% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y28.34%
EPS Next 3Y24.87%
5. Dividend
5.1 Amount
PSX has a Yearly Dividend Yield of 3.95%. Purely for dividend investing, there may be better candidates out there.
PSX's Dividend Yield is comparable with the industry average which is at 6.58.
Compared to an average S&P500 Dividend Yield of 2.40, PSX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.95% |
5.2 History
The dividend of PSX has a limited annual growth rate of 5.09%.
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)5.09%
Div Incr Years12
Div Non Decr Years12
5.3 Sustainability
103.09% of the earnings are spent on dividend by PSX. This is not a sustainable payout ratio.
PSX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP103.09%
EPS Next 2Y28.34%
EPS Next 3Y24.87%
122.15
+0.63 (+0.52%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners76.52%
Inst Owner Change-0.1%
Ins Owners0.18%
Ins Owner Change2.67%
Market Cap49.77B
Analysts74.17
Price Target133.77 (9.51%)
Short Float %2.14%
Short Ratio2.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.95% |
Yearly Dividend4.49
Dividend Growth(5Y)5.09%
DP103.09%
Div Incr Years12
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)7.72%
Min EPS beat(2)-21.28%
Max EPS beat(2)36.71%
EPS beat(4)3
Avg EPS beat(4)13.21%
Min EPS beat(4)-21.28%
Max EPS beat(4)36.71%
EPS beat(8)5
Avg EPS beat(8)9.24%
EPS beat(12)8
Avg EPS beat(12)10.09%
EPS beat(16)12
Avg EPS beat(16)16.03%
Revenue beat(2)2
Avg Revenue beat(2)2.31%
Min Revenue beat(2)0.25%
Max Revenue beat(2)4.37%
Revenue beat(4)4
Avg Revenue beat(4)4.32%
Min Revenue beat(4)0.25%
Max Revenue beat(4)8.75%
Revenue beat(8)8
Avg Revenue beat(8)4.73%
Revenue beat(12)12
Avg Revenue beat(12)4.6%
Revenue beat(16)15
Avg Revenue beat(16)5.74%
PT rev (1m)1.64%
PT rev (3m)-5.2%
EPS NQ rev (1m)-4.63%
EPS NQ rev (3m)-24.87%
EPS NY rev (1m)0%
EPS NY rev (3m)-36.76%
Revenue NQ rev (1m)-0.19%
Revenue NQ rev (3m)-5.41%
Revenue NY rev (1m)-0.67%
Revenue NY rev (3m)-3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.02 | ||
| Fwd PE | 12.16 | ||
| P/S | 0.36 | ||
| P/FCF | 16.81 | ||
| P/OCF | 10.79 | ||
| P/B | 1.82 | ||
| P/tB | 2.03 | ||
| EV/EBITDA | 17.87 |
EPS(TTM)3.3
EY2.7%
EPS(NY)10.05
Fwd EY8.23%
FCF(TTM)7.26
FCFY5.95%
OCF(TTM)11.32
OCFY9.27%
SpS338.14
BVpS66.94
TBVpS60.21
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.57% | ||
| ROE | 6.77% | ||
| ROCE | 1.94% | ||
| ROIC | 1.53% | ||
| ROICexc | 1.57% | ||
| ROICexgc | 1.65% | ||
| OM | 0.8% | ||
| PM (TTM) | 1.34% | ||
| GM | 9.1% | ||
| FCFM | 2.15% |
ROA(3y)8.86%
ROA(5y)4.33%
ROE(3y)22.64%
ROE(5y)10.75%
ROIC(3y)8.67%
ROIC(5y)N/A
ROICexc(3y)9.38%
ROICexc(5y)N/A
ROICexgc(3y)9.81%
ROICexgc(5y)N/A
ROCE(3y)10.99%
ROCE(5y)N/A
ROICexcg growth 3Y47.02%
ROICexcg growth 5Y-13.51%
ROICexc growth 3Y47.48%
ROICexc growth 5Y-12.72%
OM growth 3Y52.02%
OM growth 5Y-14.16%
PM growth 3Y7.9%
PM growth 5Y-12.42%
GM growth 3Y3.1%
GM growth 5Y-3.37%
F-Score5
Asset Turnover1.92
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 6.35 | ||
| Debt/EBITDA | 4.73 | ||
| Cap/Depr | 62.42% | ||
| Cap/Sales | 1.2% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 122.91% | ||
| Profit Quality | 160.35% | ||
| Current Ratio | 1.23 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 3.3 |
F-Score5
WACC7.51%
ROIC/WACC0.2
Cap/Depr(3y)111.89%
Cap/Depr(5y)132.17%
Cap/Sales(3y)1.41%
Cap/Sales(5y)2.09%
Profit Quality(3y)84.92%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-75.54%
EPS 3Y2.29%
EPS 5Y-5.44%
EPS Q2Q%-147.37%
EPS Next Y-24.98%
EPS Next 2Y28.34%
EPS Next 3Y24.87%
EPS Next 5Y18.79%
Revenue 1Y (TTM)-7.42%
Revenue growth 3Y8.69%
Revenue growth 5Y5.91%
Sales Q2Q%-12.93%
Revenue Next Year-7.59%
Revenue Next 2Y-3.74%
Revenue Next 3Y-1.43%
Revenue Next 5Y-4.36%
EBIT growth 1Y-83.38%
EBIT growth 3Y65.23%
EBIT growth 5Y-9.09%
EBIT Next Year83.11%
EBIT Next 3Y36.83%
EBIT Next 5Y21.62%
FCF growth 1Y-65.87%
FCF growth 3Y-17.53%
FCF growth 5Y20.06%
OCF growth 1Y-57.58%
OCF growth 3Y-11.36%
OCF growth 5Y-2.71%