PHILLIPS 66 (PSX) Stock Fundamental Analysis
NYSE:PSX - New York Stock Exchange, Inc. - US7185461040 - Common Stock - Currency: USD
Taking everything into account, PSX scores 4 out of 10 in our fundamental rating. PSX was compared to 213 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 is valued expensive and it does not seem to be growing.
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.
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
With a Return On Assets value of 2.57%, PSX perfoms like the industry average, outperforming 43.66% of the companies in the same industry.
PSX has a Return On Equity (6.77%) which is comparable to the rest of the industry.
The Return On Invested Capital of PSX (0.78%) is worse than 73.71% of its industry peers.
PSX had an Average Return On Invested Capital over the past 3 years of 8.53%. This is significantly below the industry average of 25.88%.
The 3 year average ROIC (8.53%) for PSX is well above the current ROIC(0.78%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.57% | ||
| ROE | 6.77% | ||
| ROIC | 0.78% |
ROA(3y)8.86%
ROA(5y)4.33%
ROE(3y)22.64%
ROE(5y)10.75%
ROIC(3y)8.53%
ROIC(5y)N/A
1.3 Margins
The Profit Margin of PSX (1.34%) is worse than 63.38% of its industry peers.
In the last couple of years the Profit Margin of PSX has declined.
PSX has a Operating Margin of 0.41%. This is in the lower half of the industry: PSX underperforms 75.59% of its industry peers.
In the last couple of years the Operating Margin of PSX has declined.
The Gross Margin of PSX (9.10%) is worse than 72.30% of its industry peers.
In the last couple of years the Gross Margin of PSX has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.41% | ||
| PM (TTM) | 1.34% | ||
| GM | 9.1% |
OM growth 3Y44.1%
OM growth 5Y-16.87%
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.
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 3.27 indicates that PSX is not in any danger for bankruptcy at the moment.
PSX's Altman-Z score of 3.27 is amongst the best of the industry. PSX outperforms 83.10% of its industry peers.
PSX has a debt to FCF ratio of 6.35. This is a slightly negative value and a sign of low solvency as PSX would need 6.35 years to pay back of all of its debts.
PSX has a better Debt to FCF ratio (6.35) than 61.50% of its industry peers.
PSX has a Debt/Equity ratio of 0.65. This is a neutral value indicating PSX is somewhat dependend on debt financing.
The Debt to Equity ratio of PSX (0.65) is worse than 61.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 6.35 | ||
| Altman-Z | 3.27 |
ROIC/WACC0.08
WACC9.76%
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.
PSX has a Current ratio of 1.23. This is comparable to the rest of the industry: PSX outperforms 55.40% of its industry peers.
A Quick Ratio of 0.88 indicates that PSX may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.88, PSX is in line with its industry, outperforming 44.60% of the companies in the same industry.
| 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%.
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 decrease in Revenue. The Revenue has decreased by -7.42% in the last 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
PSX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.72% yearly.
Based on estimates for the next years, PSX will show a decrease in Revenue. The Revenue will decrease by -4.36% on average per year.
EPS Next Y-24.98%
EPS Next 2Y28.34%
EPS Next 3Y24.87%
EPS Next 5Y20.72%
Revenue Next Year-6.96%
Revenue Next 2Y-3.14%
Revenue Next 3Y-0.62%
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 36.64, the valuation of PSX can be described as expensive.
65.73% of the companies in the same industry are cheaper than PSX, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of PSX to the average of the S&P500 Index (26.60), we can say PSX is valued slightly more expensively.
PSX is valuated correctly with a Price/Forward Earnings ratio of 12.03.
The rest of the industry has a similar Price/Forward Earnings ratio as PSX.
When comparing the Price/Forward Earnings ratio of PSX to the average of the S&P500 Index (22.43), we can say PSX is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.64 | ||
| Fwd PE | 12.03 |
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 68.08% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, PSX is valued a bit cheaper than the industry average as 61.50% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.64 | ||
| EV/EBITDA | 20.9 |
4.3 Compensation for Growth
PSX's earnings are expected to grow with 24.87% in the coming years. This may justify a more expensive valuation.
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 3.85%.
PSX's Dividend Yield is comparable with the industry average which is at 7.05.
Compared to an average S&P500 Dividend Yield of 2.36, PSX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.85% |
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 103.09% 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.
DP103.09%
EPS Next 2Y28.34%
EPS Next 3Y24.87%
120.9
-1.28 (-1.05%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners75.37%
Inst Owner Change-0.1%
Ins Owners0.2%
Ins Owner Change3.44%
Market Cap49.26B
Analysts76.67
Price Target131.61 (8.86%)
Short Float %3.37%
Short Ratio4.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.85% |
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)-7.86%
PT rev (3m)-6.35%
EPS NQ rev (1m)-11.55%
EPS NQ rev (3m)-24.32%
EPS NY rev (1m)-9.82%
EPS NY rev (3m)-36.15%
Revenue NQ rev (1m)-3.57%
Revenue NQ rev (3m)-4.88%
Revenue NY rev (1m)-1.38%
Revenue NY rev (3m)-2.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.64 | ||
| Fwd PE | 12.03 | ||
| P/S | 0.36 | ||
| P/FCF | 16.64 | ||
| P/OCF | 10.68 | ||
| P/B | 1.81 | ||
| P/tB | 2.01 | ||
| EV/EBITDA | 20.9 |
EPS(TTM)3.3
EY2.73%
EPS(NY)10.05
Fwd EY8.31%
FCF(TTM)7.26
FCFY6.01%
OCF(TTM)11.32
OCFY9.37%
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 | 0.98% | ||
| ROIC | 0.78% | ||
| ROICexc | 0.8% | ||
| ROICexgc | 0.84% | ||
| OM | 0.41% | ||
| 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)8.53%
ROIC(5y)N/A
ROICexc(3y)9.24%
ROICexc(5y)N/A
ROICexgc(3y)9.66%
ROICexgc(5y)N/A
ROCE(3y)10.82%
ROCE(5y)N/A
ROICexcg growth 3Y39.36%
ROICexcg growth 5Y-16.24%
ROICexc growth 3Y39.8%
ROICexc growth 5Y-15.48%
OM growth 3Y44.1%
OM growth 5Y-16.87%
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 | 5.53 | ||
| Cap/Depr | 62.42% | ||
| Cap/Sales | 1.2% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 143.69% | ||
| Profit Quality | 160.35% | ||
| Current Ratio | 1.23 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 3.27 |
F-Score5
WACC9.76%
ROIC/WACC0.08
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 5Y20.72%
Revenue 1Y (TTM)-7.42%
Revenue growth 3Y8.69%
Revenue growth 5Y5.91%
Sales Q2Q%-12.93%
Revenue Next Year-6.96%
Revenue Next 2Y-3.14%
Revenue Next 3Y-0.62%
Revenue Next 5Y-4.36%
EBIT growth 1Y-91.56%
EBIT growth 3Y56.63%
EBIT growth 5Y-11.96%
EBIT Next Year107.49%
EBIT Next 3Y38.71%
EBIT Next 5Y23.06%
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%