PHILLIPS 66 (PSX) Stock Fundamental Analysis
USA - NYSE:PSX - US7185461040 - Common Stock
129.72 USD
-1.63 (-1.24%)
129.72 USD
0 (0%)
Taking everything into account, PSX scores 3 out of 10 in our fundamental rating. PSX was compared to 210 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.
In the past year PSX had a positive cash flow from operations.
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
PSX has a Return On Assets of 2.25%. This is comparable to the rest of the industry: PSX outperforms 42.86% of its industry peers.
PSX has a Return On Equity (6.22%) which is in line with its industry peers.
PSX has a worse Return On Invested Capital (2.16%) than 70.48% 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 21.66%.
The last Return On Invested Capital (2.16%) 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 | 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
Looking at the Profit Margin, with a value of 1.29%, PSX is doing worse than 61.90% of the companies in the same industry.
PSX's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 1.16%, PSX is not doing good in the industry: 73.81% of the companies in the same industry are doing better.
PSX's Operating Margin has declined in the last couple of years.
PSX has a worse Gross Margin (9.99%) than 70.48% of its industry peers.
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 just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, PSX has less shares outstanding
The number of shares outstanding for PSX has been reduced compared to 5 years ago.
Compared to 1 year ago, PSX has a worse debt to assets ratio.
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.
With an excellent Altman-Z score value of 3.07, PSX belongs to the best of the industry, outperforming 80.95% of the companies in the same industry.
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.
PSX has a Debt to FCF ratio (14.07) which 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.
With a Debt to Equity ratio value of 0.63, PSX perfoms like the industry average, outperforming 41.90% 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
WACC8.06%
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 comparable to the rest of the 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.
With a Quick ratio value of 0.79, PSX is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
The earnings per share for PSX have decreased strongly by -71.75% 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.
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 20.29% 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-12.45%
EPS Next 2Y30.17%
EPS Next 3Y24.67%
EPS Next 5Y20.29%
Revenue Next Year-8.65%
Revenue Next 2Y-5.54%
Revenue Next 3Y-2.52%
Revenue Next 5Y-4.36%
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 38.49, 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 61.90% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.38. PSX is valued slightly more expensive when compared to this.
A Price/Forward Earnings ratio of 12.55 indicates a correct valuation of PSX.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PSX is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.86, PSX is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.49 | ||
| Fwd PE | 12.55 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PSX is valued a bit more expensive than 66.19% of the companies in the same industry.
PSX's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.23 | ||
| EV/EBITDA | 16.19 |
4.3 Compensation for Growth
PSX's earnings are expected to grow with 24.67% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y30.17%
EPS Next 3Y24.67%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.62%, PSX has a reasonable but not impressive dividend return.
PSX's Dividend Yield is comparable with the industry average which is at 6.18.
PSX's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.62% |
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
PSX pays out 111.47% of its income as dividend. This is not a sustainable payout ratio.
The dividend of PSX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP111.47%
EPS Next 2Y30.17%
EPS Next 3Y24.67%
129.72
-1.63 (-1.24%)
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-0.64%
Market Cap52.42B
Analysts73.6
Price Target139.93 (7.87%)
Short Float %2.28%
Short Ratio3.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.62% |
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)0.47%
PT rev (3m)4.61%
EPS NQ rev (1m)6.13%
EPS NQ rev (3m)13.3%
EPS NY rev (1m)16.09%
EPS NY rev (3m)16.7%
Revenue NQ rev (1m)-1.52%
Revenue NQ rev (3m)1.24%
Revenue NY rev (1m)-1.79%
Revenue NY rev (3m)-1.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.49 | ||
| Fwd PE | 12.55 | ||
| P/S | 0.39 | ||
| P/FCF | 35.23 | ||
| P/OCF | 15.59 | ||
| P/B | 1.91 | ||
| P/tB | 2.1 | ||
| EV/EBITDA | 16.19 |
EPS(TTM)3.37
EY2.6%
EPS(NY)10.34
Fwd EY7.97%
FCF(TTM)3.68
FCFY2.84%
OCF(TTM)8.32
OCFY6.41%
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
WACC8.06%
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-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-8.65%
Revenue Next 2Y-5.54%
Revenue Next 3Y-2.52%
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%