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 208 industry peers in the Oil, Gas & Consumable Fuels industry. PSX scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. PSX has a expensive valuation and it also scores bad on growth.
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
Looking at the Return On Assets, with a value of 2.25%, PSX is in line with its industry, outperforming 42.79% of the companies in the same industry.
With a Return On Equity value of 6.22%, PSX perfoms like the industry average, outperforming 45.19% of the companies in the same industry.
PSX's Return On Invested Capital of 2.16% is on the low side compared to the rest of the industry. PSX is outperformed by 71.15% 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 23.63%.
The 3 year average ROIC (8.67%) for PSX is well above the current ROIC(2.16%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.25% | ||
| ROE | 6.22% | ||
| ROIC | 2.16% |
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 1.29%, PSX is not doing good in the industry: 64.42% of the companies in the same industry are doing better.
PSX's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 1.16%, PSX is doing worse than 75.48% of the companies in the same industry.
PSX's Operating Margin has declined in the last couple of years.
PSX's Gross Margin of 9.99% is on the low side compared to the rest of the industry. PSX is outperformed by 71.63% of its industry peers.
In the last couple of years the Gross Margin of PSX has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.16% | ||
| PM (TTM) | 1.29% | ||
| GM | 9.99% |
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.
Compared to 1 year ago, PSX has less shares outstanding
Compared to 5 years ago, PSX has less shares outstanding
PSX has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.01 indicates that PSX is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.01, PSX belongs to the top of the industry, outperforming 82.69% of the companies in the same industry.
PSX has a debt to FCF ratio of 14.07. This is a negative value and a sign of low solvency as PSX would need 14.07 years to pay back of all of its debts.
With a Debt to FCF ratio value of 14.07, PSX perfoms like the industry average, outperforming 48.08% of the companies in the same industry.
PSX has a Debt/Equity ratio of 0.63. This is a neutral value indicating PSX is somewhat dependend on debt financing.
The Debt to Equity ratio of PSX (0.63) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 14.07 | ||
| Altman-Z | 3.01 |
ROIC/WACC0.25
WACC8.54%
2.3 Liquidity
A Current Ratio of 1.07 indicates that PSX should not have too much problems paying its short term obligations.
With a Current ratio value of 1.07, PSX perfoms like the industry average, outperforming 46.15% of the companies in the same industry.
PSX has a Quick Ratio of 1.07. This is a bad value and indicates that PSX is not financially healthy enough and could expect problems in meeting its short term obligations.
PSX's Quick ratio of 0.79 is on the low side compared to the rest of the industry. PSX is outperformed by 62.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
The earnings per share for PSX have decreased strongly by -71.75% in the last year.
Measured over the past years, PSX shows a decrease in Earnings Per Share. The EPS has been decreasing by -5.44% on average per year.
PSX shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -12.44%.
Measured over the past years, PSX shows a small growth in Revenue. The Revenue has been growing by 5.91% on average per year.
EPS 1Y (TTM)-71.75%
EPS 3Y2.29%
EPS 5Y-5.44%
EPS Q2Q%3.03%
Revenue 1Y (TTM)-12.44%
Revenue growth 3Y8.69%
Revenue growth 5Y5.91%
Sales Q2Q%-13.85%
3.2 Future
PSX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.79% yearly.
PSX is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -4.36% yearly.
EPS Next Y-24.58%
EPS Next 2Y30.11%
EPS Next 3Y24.76%
EPS Next 5Y18.79%
Revenue Next Year-6.99%
Revenue Next 2Y-5.24%
Revenue Next 3Y-3.16%
Revenue Next 5Y-4.36%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
A Price/Earnings ratio of 35.35 indicates a quite expensive valuation of PSX.
PSX's Price/Earnings ratio is a bit more expensive when compared to the industry. PSX is more expensive than 63.46% of the companies in the same industry.
PSX is valuated rather expensively when we compare the Price/Earnings ratio to 26.48, which is the current average of the S&P500 Index.
PSX is valuated reasonably with a Price/Forward Earnings ratio of 11.54.
The rest of the industry has a similar Price/Forward Earnings ratio as PSX.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.04, PSX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.35 | ||
| Fwd PE | 11.54 |
4.2 Price Multiples
65.38% of the companies in the same industry are cheaper than PSX, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PSX is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.35 | ||
| EV/EBITDA | 15.11 |
4.3 Compensation for Growth
PSX's earnings are expected to grow with 24.76% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y30.11%
EPS Next 3Y24.76%
5. Dividend
5.1 Amount
PSX has a Yearly Dividend Yield of 3.88%.
PSX's Dividend Yield is comparable with the industry average which is at 6.34.
Compared to an average S&P500 Dividend Yield of 2.40, PSX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.88% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)5.09%
Div Incr Years12
Div Non Decr Years12
5.3 Sustainability
PSX pays out 111.47% of its income as dividend. This is not a sustainable payout ratio.
The dividend of PSX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP111.47%
EPS Next 2Y30.11%
EPS Next 3Y24.76%
119.13
-0.17 (-0.14%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners76.52%
Inst Owner Change-0.14%
Ins Owners0.18%
Ins Owner Change2.38%
Market Cap48.14B
Analysts74.4
Price Target137.84 (15.71%)
Short Float %2.1%
Short Ratio2.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.88% |
Yearly Dividend4.49
Dividend Growth(5Y)5.09%
DP111.47%
Div Incr Years12
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)8.41%
Min EPS beat(2)-21.28%
Max EPS beat(2)38.11%
EPS beat(4)3
Avg EPS beat(4)18.86%
Min EPS beat(4)-21.28%
Max EPS beat(4)38.11%
EPS beat(8)5
Avg EPS beat(8)13.05%
EPS beat(12)8
Avg EPS beat(12)12.25%
EPS beat(16)12
Avg EPS beat(16)17.02%
Revenue beat(2)2
Avg Revenue beat(2)1.92%
Min Revenue beat(2)0.25%
Max Revenue beat(2)3.59%
Revenue beat(4)4
Avg Revenue beat(4)3.03%
Min Revenue beat(4)0.25%
Max Revenue beat(4)4.37%
Revenue beat(8)8
Avg Revenue beat(8)4.82%
Revenue beat(12)12
Avg Revenue beat(12)4.02%
Revenue beat(16)15
Avg Revenue beat(16)4.91%
PT rev (1m)3.05%
PT rev (3m)2.11%
EPS NQ rev (1m)7.4%
EPS NQ rev (3m)-4.62%
EPS NY rev (1m)-0.14%
EPS NY rev (3m)-9.35%
Revenue NQ rev (1m)3.26%
Revenue NQ rev (3m)-1.63%
Revenue NY rev (1m)0.64%
Revenue NY rev (3m)0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.35 | ||
| Fwd PE | 11.54 | ||
| P/S | 0.36 | ||
| P/FCF | 32.35 | ||
| P/OCF | 14.32 | ||
| P/B | 1.75 | ||
| P/tB | 1.93 | ||
| EV/EBITDA | 15.11 |
EPS(TTM)3.37
EY2.83%
EPS(NY)10.33
Fwd EY8.67%
FCF(TTM)3.68
FCFY3.09%
OCF(TTM)8.32
OCFY6.98%
SpS329.03
BVpS68.03
TBVpS61.86
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.25% | ||
| ROE | 6.22% | ||
| ROCE | 2.73% | ||
| ROIC | 2.16% | ||
| ROICexc | 2.2% | ||
| ROICexgc | 2.3% | ||
| OM | 1.16% | ||
| PM (TTM) | 1.29% | ||
| GM | 9.99% | ||
| FCFM | 1.12% |
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-Score4
Asset Turnover1.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 14.07 | ||
| Debt/EBITDA | 3.82 | ||
| Cap/Depr | 63.12% | ||
| Cap/Sales | 1.41% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.61% | ||
| Profit Quality | 87.07% | ||
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.79 | ||
| Altman-Z | 3.01 |
F-Score4
WACC8.54%
ROIC/WACC0.25
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)-71.75%
EPS 3Y2.29%
EPS 5Y-5.44%
EPS Q2Q%3.03%
EPS Next Y-24.58%
EPS Next 2Y30.11%
EPS Next 3Y24.76%
EPS Next 5Y18.79%
Revenue 1Y (TTM)-12.44%
Revenue growth 3Y8.69%
Revenue growth 5Y5.91%
Sales Q2Q%-13.85%
Revenue Next Year-6.99%
Revenue Next 2Y-5.24%
Revenue Next 3Y-3.16%
Revenue Next 5Y-4.36%
EBIT growth 1Y-73.04%
EBIT growth 3Y65.23%
EBIT growth 5Y-9.09%
EBIT Next Year83.11%
EBIT Next 3Y36.83%
EBIT Next 5Y21.62%
FCF growth 1Y-80.6%
FCF growth 3Y-17.53%
FCF growth 5Y20.06%
OCF growth 1Y-66.54%
OCF growth 3Y-11.36%
OCF growth 5Y-2.71%