NYSE:PSX

Stock Analysis Report

Executive Summary

Phillips 66 operates as an energy manufacturing and logistics company.

Snowflake

Fundamentals

Proven track record with mediocre balance sheet.


Similar Companies

Share Price & News

How has Phillips 66's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.8%

PSX

-0.1%

US Oil and Gas

1.0%

US Market


1 Year Return

8.4%

PSX

-20.1%

US Oil and Gas

8.0%

US Market

Return vs Industry: PSX exceeded the US Oil and Gas industry which returned -20.1% over the past year.

Return vs Market: PSX matched the US Market which returned 8% over the past year.


Shareholder returns

PSXIndustryMarket
7 Day0.8%-0.1%1.0%
30 Day4.8%-5.4%-0.07%
90 Day5.6%-8.6%-1.0%
1 Year12.4%8.4%-17.1%-20.1%10.4%8.0%
3 Year47.7%34.0%-7.4%-15.9%46.2%36.7%
5 Year62.9%39.6%-22.6%-33.7%64.3%46.2%

Price Volatility Vs. Market

How volatile is Phillips 66's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Phillips 66 undervalued compared to its fair value and its price relative to the market?

9.29x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PSX ($108.2) is trading above our estimate of fair value ($106.84)

Significantly Below Fair Value: PSX is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: PSX is good value based on its PE Ratio (9.3x) compared to the Oil and Gas industry average (9.6x).

PE vs Market: PSX is good value based on its PE Ratio (9.3x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: PSX's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: PSX is overvalued based on its PB Ratio (2x) compared to the US Oil and Gas industry average (0.9x).


Next Steps

Future Growth

How is Phillips 66 forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

-2.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PSX's earnings are forecast to decline over the next 3 years (-2.4% per year).

Earnings vs Market: PSX's earnings are forecast to decline over the next 3 years (-2.4% per year).

High Growth Earnings: PSX's earnings are forecast to decline over the next 3 years.

Revenue vs Market: PSX's revenue (6.6% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: PSX's revenue (6.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PSX's Return on Equity is forecast to be low in 3 years time (14.5%).


Next Steps

Past Performance

How has Phillips 66 performed over the past 5 years?

9.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: PSX's earnings have grown by 9.6% per year over the past 5 years.

Accelerating Growth: PSX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: PSX had negative earnings growth (-8.9%) over the past year, making it difficult to compare to the Oil and Gas industry average (20.6%).


Return on Equity

High ROE: PSX's Return on Equity (20.7%) is considered high.


Return on Assets

ROA vs Industry: PSX has a higher Return on Assets than the Oil and Gas industry average last year.


Return on Capital Employed

ROCE Improving: PSX has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Phillips 66's financial position?


Financial Position Analysis

Short Term Liabilities: PSX's short term assets ($14.3B) exceeds its short term liabilities ($11.2B)

Long Term Liabilities: PSX's short term assets (14.3B) do not cover its long term liabilities (19.3B)


Debt to Equity History and Analysis

Debt Level: PSX's debt to equity ratio (41.3%) is considered high

Reducing Debt: PSX's debt to equity ratio has increased from 28.3% to 41.3% over the past 5 years.

Debt Coverage: PSX's debt is well covered by operating cash flow (54.8%).

Interest Coverage: PSX's interest payments on its debt are well covered by EBIT (11x coverage).


Balance Sheet

Inventory Level: PSX has a high level of physical assets or inventory.

Debt Coverage by Assets: PSX's debt is covered by short term assets (assets are 1.268970x debt).


Next Steps

Dividend

What is Phillips 66's current dividend yield, its reliability and sustainability?

3.33%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Phillips 66 before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company3.3%marketbottom25%1.4%markettop25%3.7%industryaverage4.2%forecastin3Years3.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: PSX's dividend (3.33%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: PSX's dividend (3.33%) is low compared to the top 25% of dividend payers in the US market (3.68%).

Stable Dividend: Whilst dividend payments have been stable, PSX has been paying a dividend for less than 10 years.

Growing Dividend: PSX's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (28.3%), PSX's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PSX's dividends in 3 years are forecast to be well covered by earnings (44.6% payout ratio).


Next Steps

Management

What is the CEO of Phillips 66's salary, the management and board of directors tenure and is there insider trading?

3.0yrs

Average management tenure


CEO

Greg Garland (62yo)

7.5yrs

Tenure

US$19,278,335

Compensation

Mr. Greg C. Garland has been the Chairman and Chief Executive Officer of Phillips 66 Partners GP LLC, the General Partner at Phillips 66 Partners LP since March 2013. Mr. Garland has been the Chairman of t ...


CEO Compensation Analysis

Compensation vs. Market: Greg's total compensation ($USD19.28M) is about average for companies of similar size in the US market ($USD11.18M).

Compensation vs Earnings: Greg's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.0yrs

Average Tenure

57yo

Average Age

Experienced Management: PSX's management team is considered experienced (3 years average tenure).


Board Age and Tenure

7.5yrs

Average Tenure

66yo

Average Age

Experienced Board: PSX's board of directors are considered experienced (7.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$165,81628 May 19
John Lowe
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$82.91
BuyUS$168,81013 May 19
John Lowe
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$84.41
BuyUS$1,984,58121 Nov 18
James Ferguson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares21,500
Max PriceUS$92.31

Ownership Breakdown


Management Team

  • Jeff Dietert

    Vice President of Investor Relations

    • Tenure: 2.5yrs
  • Greg Garland (62yo)

    Chairman & CEO

    • Tenure: 7.5yrs
    • Compensation: US$19.28m
  • Tim Roberts (57yo)

    Executive Vice President of Midstream

    • Tenure: 1.2yrs
    • Compensation: US$4.54m
  • Kevin Mitchell (53yo)

    Executive VP of Finance & CFO

    • Tenure: 3.8yrs
    • Compensation: US$6.81m
  • Bob Herman (60yo)

    Executive Vice President of Refining

    • Tenure: 5.7yrs
    • Compensation: US$5.14m
  • Paula Johnson (56yo)

    Executive VP of Legal & Government Affairs

    • Tenure: 3yrs
    • Compensation: US$5.32m
  • Sonya Reed (45yo)

    Senior Vice President of Human Resources & Corporate Communications

    • Tenure: 3yrs
  • Zhanna Golodryga (63yo)

    SVP and Chief Digital & Administrative Officer

    • Tenure: 2.5yrs
  • Jay Churchill

    Senior Vice President of Health

    • Tenure: 3.1yrs
  • Pam McGinnis

    President of Global Marketing Group

    • Tenure: 2.9yrs

Board Members

  • Terry McGraw (71yo)

    Independent Director

    • Tenure: 7.5yrs
    • Compensation: US$335.18k
  • John Lowe (60yo)

    Independent Director

    • Tenure: 7.5yrs
    • Compensation: US$346.97k
  • Glenn Tilton (71yo)

    Lead Director

    • Tenure: 3.7yrs
    • Compensation: US$408.33k
  • Denise Ramos (62yo)

    Independent Director

    • Tenure: 3yrs
    • Compensation: US$337.62k
  • Victoria Tschinkel (70yo)

    Independent Director

    • Tenure: 7.5yrs
    • Compensation: US$351.02k
  • Marna Whittington (71yo)

    Independent Director

    • Tenure: 7.5yrs
    • Compensation: US$404.66k
  • Gary Adams (68yo)

    Independent Director

    • Tenure: 3yrs
    • Compensation: US$340.13k
  • Charles Holley (62yo)

    Independent Director

    • Tenure: 0yrs
  • Greg Garland (62yo)

    Chairman & CEO

    • Tenure: 7.5yrs
    • Compensation: US$19.28m
  • James Ferguson (64yo)

    Independent Director

    • Tenure: 7.5yrs
    • Compensation: US$351.45k

Company Information

Phillips 66's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Phillips 66
  • Ticker: PSX
  • Exchange: NYSE
  • Founded: 1875
  • Industry: Oil and Gas Refining and Marketing
  • Sector: Energy
  • Market Cap: US$48.532b
  • Shares outstanding: 448.54m
  • Website: https://www.phillips66.com

Number of Employees


Location

  • Phillips 66
  • 2331 CityWest Boulevard
  • Houston
  • Texas
  • 77042
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PSXNYSE (New York Stock Exchange)YesCommon StockUSUSDApr 2012
R66DB (Deutsche Boerse AG)YesCommon StockDEEURApr 2012
0KHZLSE (London Stock Exchange)YesCommon StockGBUSDApr 2012

Biography

Phillips 66 operates as an energy manufacturing and logistics company. It operates through four segments: Midstream, Chemicals, Refining, and Marketing and Specialties (M&S). The Midstream segment transpor ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 00:29
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.