PHILLIPS 66 (PSX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PSX - US7185461040 - Common Stock
129.56 USD
+0.97 (+0.75%)
129.56 USD
0 (0%)
Taking everything into account, PSX scores 4 out of 10 in our fundamental rating. PSX was compared to 209 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 is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year PSX was profitable.
PSX had a positive operating cash flow in the past year.
Of the past 5 years PSX 4 years were profitable.
Each year in the past 5 years PSX had a positive operating cash flow.
1.2 Ratios
PSX has a Return On Assets of 1.97%. This is comparable to the rest of the industry: PSX outperforms 42.58% of its industry peers.
Looking at the Return On Equity, with a value of 5.56%, PSX is in line with its industry, outperforming 44.98% of the companies in the same industry.
PSX has a Return On Invested Capital of 3.56%. This is in the lower half of the industry: PSX underperforms 65.55% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PSX is significantly below the industry average of 21.18%.
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
PSX's Profit Margin of 1.13% is on the low side compared to the rest of the industry. PSX is outperformed by 64.11% of its industry peers.
In the last couple of years the Profit Margin of PSX has declined.
PSX has a worse Operating Margin (1.99%) than 70.81% of its industry peers.
In the last couple of years the Operating Margin of PSX has declined.
PSX has a Gross Margin of 10.79%. This is in the lower half of the industry: PSX underperforms 69.86% of its industry peers.
PSX's Gross Margin has declined in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PSX is creating some value.
Compared to 1 year ago, PSX has less shares outstanding
PSX has less shares outstanding than it did 5 years ago.
PSX has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.11 indicates that PSX is not in any danger for bankruptcy at the moment.
PSX has a better Altman-Z score (3.11) than 84.69% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 16.10, PSX is in line with its industry, outperforming 48.33% of the companies in the same industry.
PSX has a Debt/Equity ratio of 0.71. This is a neutral value indicating PSX is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.71, PSX is doing worse than 61.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 16.1 | ||
| Altman-Z | 3.11 |
ROIC/WACC0.45
WACC7.98%
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.
The Current ratio of PSX (1.23) is comparable to the rest of the industry.
A Quick Ratio of 0.87 indicates that PSX may have some problems paying its short term obligations.
With a Quick ratio value of 0.87, PSX perfoms like the industry average, outperforming 46.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
The earnings per share for PSX have decreased strongly by -58.78% 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.
Looking at the last year, PSX shows a very negative growth in Revenue. The Revenue has decreased by -10.68% 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)-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
The Earnings Per Share is expected to grow by 22.11% on average over the next years. This is a very strong growth
The Revenue is expected to decrease by -3.28% on average over the next years.
EPS Next Y6.2%
EPS Next 2Y39.71%
EPS Next 3Y28.08%
EPS Next 5Y22.11%
Revenue Next Year-6.5%
Revenue Next 2Y-5.36%
Revenue Next 3Y-2.4%
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.
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 33.65, the valuation of PSX can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of PSX indicates a slightly more expensive valuation: PSX is more expensive than 63.16% of the companies listed in the same industry.
PSX's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.77.
PSX is valuated reasonably with a Price/Forward Earnings ratio of 10.88.
Based on the Price/Forward Earnings ratio, PSX is valued a bit cheaper than the industry average as 71.77% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of PSX to the average of the S&P500 Index (23.35), we can say PSX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.65 | ||
| Fwd PE | 10.88 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PSX is valued a bit more expensive than the industry average as 62.68% 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 | 38.64 | ||
| EV/EBITDA | 12.2 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PSX does not grow enough to justify the current Price/Earnings ratio.
PSX's earnings are expected to grow with 28.08% in the coming years. This may justify a more expensive valuation.
PEG (NY)5.43
PEG (5Y)N/A
EPS Next 2Y39.71%
EPS Next 3Y28.08%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.74%, PSX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.93, PSX has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.00, PSX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.74% |
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 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
PSX pays out 127.72% 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.
DP127.72%
EPS Next 2Y39.71%
EPS Next 3Y28.08%
129.56
+0.97 (+0.75%)
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 Cap52.20B
Revenue(TTM)131.95B
Net Income(TTM)1.50B
Analysts72.31
Price Target151.31 (16.79%)
Short Float %1.9%
Short Ratio3.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.74% |
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)0.86%
PT rev (3m)8.13%
EPS NQ rev (1m)5.99%
EPS NQ rev (3m)59.83%
EPS NY rev (1m)10.33%
EPS NY rev (3m)15.86%
Revenue NQ rev (1m)0.47%
Revenue NQ rev (3m)4.61%
Revenue NY rev (1m)1.4%
Revenue NY rev (3m)2.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.65 | ||
| Fwd PE | 10.88 | ||
| P/S | 0.4 | ||
| P/FCF | 38.64 | ||
| P/OCF | 15.32 | ||
| P/B | 1.94 | ||
| P/tB | 2.13 | ||
| EV/EBITDA | 12.2 |
EPS(TTM)3.85
EY2.97%
EPS(NY)11.91
Fwd EY9.19%
FCF(TTM)3.35
FCFY2.59%
OCF(TTM)8.46
OCFY6.53%
SpS327.49
BVpS66.8
TBVpS60.69
PEG (NY)5.43
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 | 3.11 |
F-Score6
WACC7.98%
ROIC/WACC0.45
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 Y6.2%
EPS Next 2Y39.71%
EPS Next 3Y28.08%
EPS Next 5Y22.11%
Revenue 1Y (TTM)-10.68%
Revenue growth 3Y8.69%
Revenue growth 5Y5.91%
Sales Q2Q%-3.27%
Revenue Next Year-6.5%
Revenue Next 2Y-5.36%
Revenue Next 3Y-2.4%
Revenue Next 5Y-3.28%
EBIT growth 1Y-22.77%
EBIT growth 3Y65.23%
EBIT growth 5Y-9.09%
EBIT Next Year112.69%
EBIT Next 3Y38.2%
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%.