PHILLIPS 66 (PSX)
US7185461040 - Common Stock
Taking everything into account, PSX scores 4 out of 10 in our fundamental rating. PSX was compared to 214 industry peers in the Oil, Gas & Consumable Fuels industry. Both the profitability and the financial health of PSX get a neutral evaluation. Nothing too spectacular is happening here. PSX has a valuation in line with the averages, but 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.
Each year in the past 5 years PSX had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 9.28%, PSX is doing good in the industry, outperforming 61.68% of the companies in the same industry.
The Return On Equity of PSX (22.90%) is better than 69.16% of its industry peers.
PSX has a Return On Invested Capital (10.52%) which is comparable to the rest of the industry.
PSX had an Average Return On Invested Capital over the past 3 years of 7.85%. This is significantly below the industry average of 44.58%.
The last Return On Invested Capital (10.52%) for PSX is above the 3 year average (7.85%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.28% | ||
| ROE | 22.9% | ||
| ROIC | 10.52% |
ROA(3y)8.68%
ROA(5y)4.8%
ROE(3y)22.35%
ROE(5y)11.68%
ROIC(3y)7.85%
ROIC(5y)N/A
1.3 Margins
PSX's Profit Margin of 4.75% is on the low side compared to the rest of the industry. PSX is outperformed by 70.09% of its industry peers.
In the last couple of years the Profit Margin of PSX has remained more or less at the same level.
PSX has a Operating Margin of 5.52%. This is in the lower half of the industry: PSX underperforms 78.04% of its industry peers.
PSX's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 13.10%, PSX is not doing good in the industry: 73.83% of the companies in the same industry are doing better.
PSX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.52% | ||
| PM (TTM) | 4.75% | ||
| GM | 13.1% |
OM growth 3YN/A
OM growth 5Y4.56%
PM growth 3YN/A
PM growth 5Y-1.1%
GM growth 3Y9.37%
GM growth 5Y1.89%
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.
The number of shares outstanding for PSX has been reduced compared to 1 year ago.
Compared to 5 years ago, PSX has less shares outstanding
The debt/assets ratio for PSX is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.75 indicates that PSX is not in any danger for bankruptcy at the moment.
PSX's Altman-Z score of 3.75 is amongst the best of the industry. PSX outperforms 80.37% of its industry peers.
PSX has a debt to FCF ratio of 4.20. This is a neutral value as PSX would need 4.20 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.20, PSX is in line with its industry, outperforming 59.35% of the companies in the same industry.
A Debt/Equity ratio of 0.58 indicates that PSX is somewhat dependend on debt financing.
PSX's Debt to Equity ratio of 0.58 is in line compared to the rest of the industry. PSX outperforms 42.99% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 4.2 | ||
| Altman-Z | 3.75 |
ROIC/WACC1.33
WACC7.9%
2.3 Liquidity
PSX has a Current Ratio of 1.26. This is a normal value and indicates that PSX is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.26, PSX is in line with its industry, outperforming 54.21% of the companies in the same industry.
PSX has a Quick Ratio of 1.02. 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 Quick ratio (1.02) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
PSX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -14.82%.
PSX shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.99% yearly.
PSX shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -13.29%.
The Revenue has been growing slightly by 5.78% on average over the past years.
EPS 1Y (TTM)-14.82%
EPS 3YN/A
EPS 5Y5.99%
EPS growth Q2Q-22.75%
Revenue 1Y (TTM)-13.29%
Revenue growth 3Y31.97%
Revenue growth 5Y5.78%
Revenue growth Q2Q-4.99%
3.2 Future
The Earnings Per Share is expected to decrease by -3.12% on average over the next years.
PSX is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -7.25% yearly.
EPS Next Y-9.78%
EPS Next 2Y-3.93%
EPS Next 3Y-1.39%
EPS Next 5Y-3.12%
Revenue Next Year-5.02%
Revenue Next 2Y-3.67%
Revenue Next 3Y-1.37%
Revenue Next 5Y-7.25%
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 decreasing.
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 8.87, the valuation of PSX can be described as reasonable.
PSX's Price/Earnings ratio is a bit cheaper when compared to the industry. PSX is cheaper than 62.62% of the companies in the same industry.
When comparing the Price/Earnings ratio of PSX to the average of the S&P500 Index (24.55), we can say PSX is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.84, the valuation of PSX can be described as very reasonable.
Based on the Price/Forward Earnings ratio, PSX is valued a bit cheaper than the industry average as 65.42% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.92, PSX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.87 | ||
| Fwd PE | 9.84 |
4.2 Price Multiples
PSX's Enterprise Value to EBITDA ratio is in line with the industry average.
PSX's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.92 | ||
| EV/EBITDA | 7.6 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.48
EPS Next 2Y-3.93%
EPS Next 3Y-1.39%
5. Dividend
5.1 Amount
PSX has a Yearly Dividend Yield of 3.04%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.72, PSX has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, PSX pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.04% |
5.2 History
The dividend of PSX is nicely growing with an annual growth rate of 6.97%!
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)6.97%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
PSX pays out 26.87% of its income as dividend. This is a sustainable payout ratio.
DP26.87%
EPS Next 2Y-3.93%
EPS Next 3Y-1.39%
PHILLIPS 66
NYSE:PSX (5/1/2024, 7:04:00 PM)
After market: 140.21 0 (0%)140.21
-3 (-2.09%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap59.56B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.04% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.87 | ||
| Fwd PE | 9.84 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)1.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.28% | ||
| ROE | 22.9% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.52% | ||
| PM (TTM) | 4.75% | ||
| GM | 13.1% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.95
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-14.82%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y-9.78%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-13.29%
Revenue growth 3Y31.97%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y