PHILLIPS 66 (PSX) Stock Fundamental Analysis
NYSE:PSX - US7185461040 - Common Stock
132.83 USD
+0.21 (+0.16%)
132.95 USD
+0.12 (+0.09%)
Taking everything into account, PSX scores 3 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 does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year PSX was profitable.
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
The Return On Assets of PSX (2.25%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 6.22%, PSX is in line with its industry, outperforming 47.12% of the companies in the same industry.
With a Return On Invested Capital value of 2.16%, PSX is not doing good in the industry: 70.67% of the companies in the same industry are doing better.
PSX had an Average Return On Invested Capital over the past 3 years of 8.67%. This is significantly below the industry average of 23.39%.
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: 63.46% of the companies in the same industry are doing better.
PSX's Profit Margin has declined in the last couple of years.
PSX's Operating Margin of 1.16% is on the low side compared to the rest of the industry. PSX is outperformed by 75.48% of its industry peers.
PSX's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 9.99%, PSX is not doing good in the industry: 71.15% of the companies in the same industry are doing better.
PSX's Gross Margin has declined in the last couple of years.
| 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 below the Cost of Capital (WACC), which means it is destroying value.
PSX has less shares outstanding than it did 1 year ago.
PSX has less shares outstanding than it did 5 years ago.
The debt/assets ratio for PSX is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.08 indicates that PSX is not in any danger for bankruptcy at the moment.
PSX has a Altman-Z score of 3.08. This is amongst the best in the industry. PSX outperforms 82.21% of its industry peers.
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.
The Debt to FCF ratio of PSX (14.07) is comparable to the rest of the industry.
PSX has a Debt/Equity ratio of 0.63. This is a neutral value indicating PSX is somewhat dependend on debt financing.
PSX's Debt to Equity ratio of 0.63 is in line compared to the rest of the industry. PSX outperforms 41.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 14.07 | ||
| Altman-Z | 3.08 |
ROIC/WACC0.25
WACC8.77%
2.3 Liquidity
PSX has a Current Ratio of 1.07. This is a normal value and indicates that PSX is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.07, PSX perfoms like the industry average, outperforming 47.60% 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.
The Quick ratio of PSX (0.79) is worse than 61.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
PSX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -71.75%.
The Earnings Per Share has been decreasing by -5.44% on average over the past years.
PSX shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -12.44%.
PSX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.91% yearly.
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
The Earnings Per Share is expected to grow by 20.29% on average over the next years. This is a very strong growth
PSX is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -4.36% yearly.
EPS Next Y-12.45%
EPS Next 2Y30.17%
EPS Next 3Y24.67%
EPS Next 5Y20.29%
Revenue Next Year-8.34%
Revenue Next 2Y-5.13%
Revenue Next 3Y-2.18%
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.
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 39.42, the valuation of PSX can be described as expensive.
Based on the Price/Earnings ratio, PSX is valued a bit more expensive than the industry average as 63.94% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 27.17. PSX is valued slightly more expensive when compared to this.
With a Price/Forward Earnings ratio of 12.85, PSX is valued correctly.
PSX's Price/Forward Earnings ratio is in line with the industry average.
PSX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.78.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.42 | ||
| Fwd PE | 12.85 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PSX is valued a bit more expensive than the industry average as 67.31% of the companies are valued more cheaply.
PSX's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.07 | ||
| EV/EBITDA | 16.31 |
4.3 Compensation for Growth
A more expensive valuation may be justified as PSX's earnings are expected to grow with 24.67% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y30.17%
EPS Next 3Y24.67%
5. Dividend
5.1 Amount
PSX has a Yearly Dividend Yield of 3.86%.
PSX's Dividend Yield is comparable with the industry average which is at 6.33.
Compared to an average S&P500 Dividend Yield of 2.34, PSX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.86% |
5.2 History
The dividend of PSX has a limited annual growth rate of 5.09%.
PSX has paid a dividend for at least 10 years, which is 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.
PSX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP111.47%
EPS Next 2Y30.17%
EPS Next 3Y24.67%
132.83
+0.21 (+0.16%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners78.57%
Inst Owner Change-0.45%
Ins Owners0.19%
Ins Owner Change-0.61%
Market Cap53.68B
Analysts72.8
Price Target138.97 (4.62%)
Short Float %1.96%
Short Ratio2.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.86% |
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)0.82%
PT rev (3m)5.6%
EPS NQ rev (1m)5.76%
EPS NQ rev (3m)-1.21%
EPS NY rev (1m)16.09%
EPS NY rev (3m)16.7%
Revenue NQ rev (1m)1.56%
Revenue NQ rev (3m)-3.3%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.42 | ||
| Fwd PE | 12.85 | ||
| P/S | 0.4 | ||
| P/FCF | 36.07 | ||
| P/OCF | 15.97 | ||
| P/B | 1.95 | ||
| P/tB | 2.15 | ||
| EV/EBITDA | 16.31 |
EPS(TTM)3.37
EY2.54%
EPS(NY)10.34
Fwd EY7.78%
FCF(TTM)3.68
FCFY2.77%
OCF(TTM)8.32
OCFY6.26%
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 | 3.08 |
F-Score4
WACC8.77%
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-12.45%
EPS Next 2Y30.17%
EPS Next 3Y24.67%
EPS Next 5Y20.29%
Revenue 1Y (TTM)-12.44%
Revenue growth 3Y8.69%
Revenue growth 5Y5.91%
Sales Q2Q%-13.85%
Revenue Next Year-8.34%
Revenue Next 2Y-5.13%
Revenue Next 3Y-2.18%
Revenue Next 5Y-4.36%
EBIT growth 1Y-73.04%
EBIT growth 3Y65.23%
EBIT growth 5Y-9.09%
EBIT Next Year93.14%
EBIT Next 3Y34.53%
EBIT Next 5Y22.4%
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%