PHILLIPS 66 (PSX) Stock Fundamental Analysis
USA - NYSE:PSX - US7185461040 - Common Stock
136.14 USD
-0.93 (-0.68%)
136.14 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to PSX. PSX was compared to 210 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 has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
PSX had positive earnings in the past year.
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
PSX has a Return On Assets of 1.97%. This is comparable to the rest of the industry: PSX outperforms 41.15% of its industry peers.
PSX's Return On Equity of 5.56% is in line compared to the rest of the industry. PSX outperforms 44.50% of its industry peers.
PSX has a worse Return On Invested Capital (3.56%) than 64.11% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PSX is significantly below the industry average of 21.93%.
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 63.16% of its industry peers.
In the last couple of years the Profit Margin of PSX has declined.
Looking at the Operating Margin, with a value of 1.99%, PSX is doing worse than 70.81% of the companies in the same industry.
PSX's Operating Margin has declined in the last couple of years.
PSX has a Gross Margin of 10.79%. This is in the lower half of the industry: PSX underperforms 69.38% of its industry peers.
In the last couple of years the Gross Margin of PSX has declined.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so PSX is still creating some value.
The number of shares outstanding for PSX has been reduced compared to 1 year ago.
PSX has less shares outstanding than it did 5 years ago.
PSX has a worse debt/assets ratio than last year.
2.2 Solvency
PSX has an Altman-Z score of 3.15. This indicates that PSX is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of PSX (3.15) is better than 81.82% 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.
PSX's Debt to FCF ratio of 16.10 is in line compared to the rest of the industry. PSX outperforms 46.41% of its industry peers.
A Debt/Equity ratio of 0.71 indicates that PSX is somewhat dependend on debt financing.
PSX has a Debt to Equity ratio of 0.71. This is in the lower half of the industry: PSX underperforms 60.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 16.1 | ||
| Altman-Z | 3.15 |
ROIC/WACC0.45
WACC7.95%
2.3 Liquidity
A Current Ratio of 1.23 indicates that PSX should not have too much problems paying its short term obligations.
PSX's Current ratio of 1.23 is in line compared to the rest of the industry. PSX outperforms 55.50% of its industry peers.
PSX has a Quick Ratio of 1.23. 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 (0.87) is comparable to the rest of the 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.
The Earnings Per Share has been decreasing by -5.44% on average over the past years.
Looking at the last year, PSX shows a very negative growth in Revenue. The Revenue has decreased by -10.68% in the last year.
The Revenue has been growing slightly by 5.91% on average over the past years.
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%-102.76%
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.
Based on estimates for the next years, PSX will show a decrease in Revenue. The Revenue will decrease by -3.28% on average per year.
EPS Next Y-5.39%
EPS Next 2Y36.5%
EPS Next 3Y26.92%
EPS Next 5Y22.37%
Revenue Next Year-8.43%
Revenue Next 2Y-4.98%
Revenue Next 3Y-2.19%
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
Based on the Price/Earnings ratio of 35.36, 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 62.68% of the companies are valued more cheaply.
PSX is valuated rather expensively when we compare the Price/Earnings ratio to 26.11, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 11.98, the valuation of PSX can be described as reasonable.
The rest of the industry has a similar Price/Forward Earnings ratio as PSX.
PSX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.55.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.36 | ||
| Fwd PE | 11.98 |
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 61.24% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PSX is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.72 | ||
| EV/EBITDA | 12.74 |
4.3 Compensation for Growth
A more expensive valuation may be justified as PSX's earnings are expected to grow with 26.92% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y36.5%
EPS Next 3Y26.92%
5. Dividend
5.1 Amount
PSX has a Yearly Dividend Yield of 3.50%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.83, PSX has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.37, PSX pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.5% |
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 127.72% 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.
DP127.72%
EPS Next 2Y36.5%
EPS Next 3Y26.92%
136.14
-0.93 (-0.68%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners78.49%
Inst Owner Change-1.09%
Ins Owners0.19%
Ins Owner Change-0.87%
Market Cap55.02B
Revenue(TTM)131.95B
Net Income(TTM)1.50B
Analysts72
Price Target147.86 (8.61%)
Short Float %1.5%
Short Ratio2.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.5% |
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)26.58%
Min EPS beat(2)15.05%
Max EPS beat(2)38.11%
EPS beat(4)3
Avg EPS beat(4)17.15%
Min EPS beat(4)-21.28%
Max EPS beat(4)38.11%
EPS beat(8)6
Avg EPS beat(8)15.38%
EPS beat(12)8
Avg EPS beat(12)11.28%
EPS beat(16)12
Avg EPS beat(16)14.13%
Revenue beat(2)1
Avg Revenue beat(2)-49.73%
Min Revenue beat(2)-103.06%
Max Revenue beat(2)3.59%
Revenue beat(4)3
Avg Revenue beat(4)-23.71%
Min Revenue beat(4)-103.06%
Max Revenue beat(4)4.37%
Revenue beat(8)7
Avg Revenue beat(8)-8.5%
Revenue beat(12)11
Avg Revenue beat(12)-4.97%
Revenue beat(16)14
Avg Revenue beat(16)-2.19%
PT rev (1m)5.66%
PT rev (3m)7.27%
EPS NQ rev (1m)19.37%
EPS NQ rev (3m)34.12%
EPS NY rev (1m)3.22%
EPS NY rev (3m)25.46%
Revenue NQ rev (1m)1.22%
Revenue NQ rev (3m)-1.7%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)-1.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.36 | ||
| Fwd PE | 11.98 | ||
| P/S | 0.42 | ||
| P/FCF | 40.72 | ||
| P/OCF | 16.14 | ||
| P/B | 2.04 | ||
| P/tB | 2.25 | ||
| EV/EBITDA | 12.74 |
EPS(TTM)3.85
EY2.83%
EPS(NY)11.37
Fwd EY8.35%
FCF(TTM)3.34
FCFY2.46%
OCF(TTM)8.43
OCFY6.19%
SpS326.52
BVpS66.61
TBVpS60.51
PEG (NY)N/A
PEG (5Y)N/A
Graham Number75.96
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 | 3.15 |
F-Score6
WACC7.95%
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 Y-5.39%
EPS Next 2Y36.5%
EPS Next 3Y26.92%
EPS Next 5Y22.37%
Revenue 1Y (TTM)-10.68%
Revenue growth 3Y8.69%
Revenue growth 5Y5.91%
Sales Q2Q%-102.76%
Revenue Next Year-8.43%
Revenue Next 2Y-4.98%
Revenue Next 3Y-2.19%
Revenue Next 5Y-3.28%
EBIT growth 1Y-22.77%
EBIT growth 3Y65.23%
EBIT growth 5Y-9.09%
EBIT Next Year97.55%
EBIT Next 3Y34.69%
EBIT Next 5Y23.91%
FCF growth 1Y-80.95%
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 2 / 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 5 / 10.
How sustainable is the dividend of PHILLIPS 66 (PSX) stock?
The dividend rating of PHILLIPS 66 (PSX) is 5 / 10 and the dividend payout ratio is 127.72%.