PHILLIPS 66 (PSX) Stock Fundamental Analysis
USA - NYSE:PSX - US7185461040 - Common Stock
126.76 USD
-4.33 (-3.3%)
126.76 USD
0 (0%)
Taking everything into account, PSX scores 3 out of 10 in our fundamental rating. PSX was compared to 211 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 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
Looking at the Return On Assets, with a value of 2.25%, PSX is in line with its industry, outperforming 43.60% of the companies in the same industry.
With a Return On Equity value of 6.22%, PSX perfoms like the industry average, outperforming 46.92% 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 69.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PSX is significantly below the industry average of 21.57%.
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
The Profit Margin of PSX (1.29%) is worse than 62.09% of its industry peers.
In the last couple of years the Profit Margin of PSX has declined.
With a Operating Margin value of 1.16%, PSX is not doing good in the industry: 73.46% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of PSX has declined.
PSX has a Gross Margin of 9.99%. This is in the lower half of the industry: PSX underperforms 70.14% 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.
PSX has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, PSX has less shares outstanding
PSX has a worse debt/assets ratio than last year.
2.2 Solvency
PSX has an Altman-Z score of 3.07. This indicates that PSX is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.07, PSX belongs to the top of the industry, outperforming 80.57% of the companies in the same industry.
The Debt to FCF ratio of PSX is 14.07, which is on the high side as it means it would take PSX, 14.07 years of fcf income to pay off all of its debts.
PSX has a Debt to FCF ratio (14.07) which is in line with its industry peers.
PSX has a Debt/Equity ratio of 0.63. This is a neutral value indicating PSX is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.63, PSX perfoms like the industry average, outperforming 41.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 14.07 | ||
| Altman-Z | 3.07 |
ROIC/WACC0.27
WACC8.03%
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.
PSX has a Current ratio (1.07) which is in line with its industry peers.
A Quick Ratio of 0.79 indicates that PSX may have some problems paying its short term obligations.
PSX has a worse Quick ratio (0.79) than 60.19% 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%.
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.
The Revenue for PSX has decreased by -12.44% in the past year. This is quite bad
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
PSX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.37% yearly.
The Revenue is expected to decrease by -3.28% on average over the next years.
EPS Next Y-8.34%
EPS Next 2Y33.54%
EPS Next 3Y24.8%
EPS Next 5Y22.37%
Revenue Next Year-8.22%
Revenue Next 2Y-5.3%
Revenue Next 3Y-2.54%
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
The Price/Earnings ratio is 37.61, which means the current valuation is very expensive for PSX.
Compared to the rest of the industry, the Price/Earnings ratio of PSX indicates a slightly more expensive valuation: PSX is more expensive than 62.56% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.02. PSX is valued slightly more expensive when compared to this.
Based on the Price/Forward Earnings ratio of 11.65, the valuation of PSX can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PSX is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 22.57. PSX is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.61 | ||
| Fwd PE | 11.65 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PSX indicates a slightly more expensive valuation: PSX is more expensive than 66.82% of the companies listed in the same industry.
PSX's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.43 | ||
| EV/EBITDA | 16.17 |
4.3 Compensation for Growth
A more expensive valuation may be justified as PSX's earnings are expected to grow with 24.80% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y33.54%
EPS Next 3Y24.8%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.66%, PSX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.07, PSX has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, PSX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.66% |
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 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
111.47% 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.
DP111.47%
EPS Next 2Y33.54%
EPS Next 3Y24.8%
126.76
-4.33 (-3.3%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners78.49%
Inst Owner Change0%
Ins Owners0.19%
Ins Owner Change-0.86%
Market Cap51.23B
Analysts72
Price Target143.77 (13.42%)
Short Float %2.12%
Short Ratio3.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.66% |
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)3.45%
PT rev (3m)7.49%
EPS NQ rev (1m)-1.82%
EPS NQ rev (3m)7.06%
EPS NY rev (1m)4.7%
EPS NY rev (3m)21.37%
Revenue NQ rev (1m)0.84%
Revenue NQ rev (3m)3.27%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)-0.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.61 | ||
| Fwd PE | 11.65 | ||
| P/S | 0.39 | ||
| P/FCF | 34.43 | ||
| P/OCF | 15.24 | ||
| P/B | 1.86 | ||
| P/tB | 2.05 | ||
| EV/EBITDA | 16.17 |
EPS(TTM)3.37
EY2.66%
EPS(NY)10.88
Fwd EY8.58%
FCF(TTM)3.68
FCFY2.9%
OCF(TTM)8.32
OCFY6.56%
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 | 3.07 |
F-Score4
WACC8.03%
ROIC/WACC0.27
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-8.34%
EPS Next 2Y33.54%
EPS Next 3Y24.8%
EPS Next 5Y22.37%
Revenue 1Y (TTM)-12.44%
Revenue growth 3Y8.69%
Revenue growth 5Y5.91%
Sales Q2Q%-13.85%
Revenue Next Year-8.22%
Revenue Next 2Y-5.3%
Revenue Next 3Y-2.54%
Revenue Next 5Y-3.28%
EBIT growth 1Y-73.04%
EBIT growth 3Y65.23%
EBIT growth 5Y-9.09%
EBIT Next Year97.55%
EBIT Next 3Y34.69%
EBIT Next 5Y23.91%
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%