PHILLIPS 66 (PSX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PSX - US7185461040 - Common Stock
131.99 USD
+0.21 (+0.16%)
131.99 USD
0 (0%)
Taking everything into account, PSX scores 4 out of 10 in our fundamental rating. PSX was compared to 208 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 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.
Of the past 5 years PSX 4 years were profitable.
PSX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PSX has a Return On Assets (1.97%) which is in line with its industry peers.
PSX has a Return On Equity of 5.56%. This is comparable to the rest of the industry: PSX outperforms 45.19% of its industry peers.
The Return On Invested Capital of PSX (3.56%) is worse than 66.83% 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 21.00%.
The last Return On Invested Capital (3.56%) 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 | 1.97% | ||
| ROE | 5.56% | ||
| ROIC | 3.56% |
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
Looking at the Profit Margin, with a value of 1.13%, PSX is doing worse than 64.42% of the companies in the same industry.
PSX's Profit Margin has declined in the last couple of years.
The Operating Margin of PSX (1.99%) is worse than 72.12% of its industry peers.
PSX's Operating Margin has declined in the last couple of years.
PSX's Gross Margin of 10.79% is on the low side compared to the rest of the industry. PSX is outperformed by 71.15% of its industry peers.
In the last couple of years the Gross Margin of PSX has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.99% | ||
| PM (TTM) | 1.13% | ||
| GM | 10.79% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so PSX is still creating some value.
The number of shares outstanding for PSX has been reduced compared to 1 year ago.
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
An Altman-Z score of 3.13 indicates that PSX is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 3.13, PSX belongs to the best of the industry, outperforming 85.10% of the companies in the same industry.
PSX has a debt to FCF ratio of 16.10. This is a negative value and a sign of low solvency as PSX would need 16.10 years to pay back of all of its debts.
PSX has a Debt to FCF ratio (16.10) which is comparable to the rest of the industry.
PSX has a Debt/Equity ratio of 0.71. This is a neutral value indicating PSX is somewhat dependend on debt financing.
PSX has a Debt to Equity ratio of 0.71. This is in the lower half of the industry: PSX underperforms 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 16.1 | ||
| Altman-Z | 3.13 |
ROIC/WACC0.44
WACC8.04%
2.3 Liquidity
A Current Ratio of 1.23 indicates that PSX should not have too much problems paying its short term obligations.
PSX has a Current ratio (1.23) which is in line with its industry peers.
PSX has a Quick Ratio of 1.23. 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 has a Quick ratio of 0.87. This is comparable to the rest of the industry: PSX outperforms 46.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
PSX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -58.78%.
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.
Looking at the last year, PSX shows a very negative growth in Revenue. The Revenue has decreased by -10.68% in the last year.
The Revenue has been growing slightly by 5.91% on average over the past years.
EPS 1Y (TTM)-58.78%
EPS 3Y2.29%
EPS 5Y-5.44%
EPS Q2Q%23.53%
Revenue 1Y (TTM)-10.68%
Revenue growth 3Y8.69%
Revenue growth 5Y5.91%
Sales Q2Q%-3.27%
3.2 Future
PSX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.11% yearly.
The Revenue is expected to decrease by -3.28% on average over the next years.
EPS Next Y6.44%
EPS Next 2Y41.46%
EPS Next 3Y29.68%
EPS Next 5Y22.11%
Revenue Next Year-6.53%
Revenue Next 2Y-4.74%
Revenue Next 3Y-1.69%
Revenue Next 5Y-3.28%
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.
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 34.28, the valuation of PSX can be described as expensive.
Based on the Price/Earnings ratio, PSX is valued a bit more expensive than 63.94% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.43, PSX is valued a bit more expensive.
The Price/Forward Earnings ratio is 10.81, which indicates a very decent valuation of PSX.
69.71% of the companies in the same industry are more expensive than PSX, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of PSX to the average of the S&P500 Index (23.66), we can say PSX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.28 | ||
| Fwd PE | 10.81 |
4.2 Price Multiples
PSX's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. PSX is more expensive than 64.42% of the companies in the same industry.
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 | 39.36 | ||
| EV/EBITDA | 12.42 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as PSX's earnings are expected to grow with 29.68% in the coming years.
PEG (NY)5.32
PEG (5Y)N/A
EPS Next 2Y41.46%
EPS Next 3Y29.68%
5. Dividend
5.1 Amount
PSX has a Yearly Dividend Yield of 3.35%. Purely for dividend investing, there may be better candidates out there.
PSX's Dividend Yield is comparable with the industry average which is at 3.83.
PSX's Dividend Yield is rather good when compared to the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.35% |
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
127.72% 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.
DP127.72%
EPS Next 2Y41.46%
EPS Next 3Y29.68%
131.99
+0.21 (+0.16%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners78%
Inst Owner Change0.38%
Ins Owners0.16%
Ins Owner Change-0.38%
Market Cap53.18B
Revenue(TTM)131.95B
Net Income(TTM)1.50B
Analysts72.31
Price Target150.98 (14.39%)
Short Float %1.82%
Short Ratio3.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.35% |
Yearly Dividend4.49
Dividend Growth(5Y)5.09%
DP127.72%
Div Incr Years12
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)26.64%
Min EPS beat(2)15.17%
Max EPS beat(2)38.11%
EPS beat(4)3
Avg EPS beat(4)17.18%
Min EPS beat(4)-21.28%
Max EPS beat(4)38.11%
EPS beat(8)6
Avg EPS beat(8)15.4%
EPS beat(12)8
Avg EPS beat(12)11.29%
EPS beat(16)12
Avg EPS beat(16)14.14%
Revenue beat(2)2
Avg Revenue beat(2)5.33%
Min Revenue beat(2)3.59%
Max Revenue beat(2)7.06%
Revenue beat(4)4
Avg Revenue beat(4)3.82%
Min Revenue beat(4)0.25%
Max Revenue beat(4)7.06%
Revenue beat(8)8
Avg Revenue beat(8)5.26%
Revenue beat(12)12
Avg Revenue beat(12)4.21%
Revenue beat(16)15
Avg Revenue beat(16)4.69%
PT rev (1m)2.11%
PT rev (3m)7.9%
EPS NQ rev (1m)9.16%
EPS NQ rev (3m)59.81%
EPS NY rev (1m)10.58%
EPS NY rev (3m)21.58%
Revenue NQ rev (1m)0.71%
Revenue NQ rev (3m)4.05%
Revenue NY rev (1m)1.37%
Revenue NY rev (3m)2.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.28 | ||
| Fwd PE | 10.81 | ||
| P/S | 0.4 | ||
| P/FCF | 39.36 | ||
| P/OCF | 15.6 | ||
| P/B | 1.98 | ||
| P/tB | 2.17 | ||
| EV/EBITDA | 12.42 |
EPS(TTM)3.85
EY2.92%
EPS(NY)12.21
Fwd EY9.25%
FCF(TTM)3.35
FCFY2.54%
OCF(TTM)8.46
OCFY6.41%
SpS327.49
BVpS66.8
TBVpS60.69
PEG (NY)5.32
PEG (5Y)N/A
Graham Number76.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.97% | ||
| ROE | 5.56% | ||
| ROCE | 4.52% | ||
| ROIC | 3.56% | ||
| ROICexc | 3.68% | ||
| ROICexgc | 3.85% | ||
| OM | 1.99% | ||
| PM (TTM) | 1.13% | ||
| GM | 10.79% | ||
| FCFM | 1.02% |
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
ROICexgc growth 3Y47.02%
ROICexgc 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-Score6
Asset Turnover1.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 16.1 | ||
| Debt/EBITDA | 3.26 | ||
| Cap/Depr | 63.25% | ||
| Cap/Sales | 1.56% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 57.96% | ||
| Profit Quality | 90.25% | ||
| Current Ratio | 1.23 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 3.13 |
F-Score6
WACC8.04%
ROIC/WACC0.44
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)-58.78%
EPS 3Y2.29%
EPS 5Y-5.44%
EPS Q2Q%23.53%
EPS Next Y6.44%
EPS Next 2Y41.46%
EPS Next 3Y29.68%
EPS Next 5Y22.11%
Revenue 1Y (TTM)-10.68%
Revenue growth 3Y8.69%
Revenue growth 5Y5.91%
Sales Q2Q%-3.27%
Revenue Next Year-6.53%
Revenue Next 2Y-4.74%
Revenue Next 3Y-1.69%
Revenue Next 5Y-3.28%
EBIT growth 1Y-22.77%
EBIT growth 3Y65.23%
EBIT growth 5Y-9.09%
EBIT Next Year112.11%
EBIT Next 3Y39.32%
EBIT Next 5Y23.87%
FCF growth 1Y-80.95%
FCF growth 3Y-17.53%
FCF growth 5Y20.06%
OCF growth 1Y-64.46%
OCF growth 3Y-11.36%
OCF growth 5Y-2.71%
PHILLIPS 66 / PSX FAQ
What is the ChartMill fundamental rating of PHILLIPS 66 (PSX) stock?
ChartMill assigns a fundamental rating of 4 / 10 to PSX.
Can you provide the valuation status for PHILLIPS 66?
ChartMill assigns a valuation rating of 3 / 10 to PHILLIPS 66 (PSX). This can be considered as Overvalued.
Can you provide the profitability details for PHILLIPS 66?
PHILLIPS 66 (PSX) has a profitability rating of 3 / 10.
How financially healthy is PHILLIPS 66?
The financial health rating of PHILLIPS 66 (PSX) is 4 / 10.
How sustainable is the dividend of PHILLIPS 66 (PSX) stock?
The dividend rating of PHILLIPS 66 (PSX) is 6 / 10 and the dividend payout ratio is 127.72%.