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PSX

Phillips 66 NYSE:PSX Stock Report

Last Price

US$88.33

Market Cap

US$42.5b

7D

6.9%

1Y

18.7%

Updated

11 Aug, 2022

Data

Company Financials +
PSX fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance3/6
Financial Health4/6
Dividends6/6

PSX Stock Overview

Phillips 66 operates as an energy manufacturing and logistics company.

Phillips 66 Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Phillips 66
Historical stock prices
Current Share PriceUS$88.33
52 Week HighUS$111.28
52 Week LowUS$63.19
Beta1.41
1 Month Change9.71%
3 Month Change-6.63%
1 Year Change18.66%
3 Year Change-9.38%
5 Year Change9.20%
Change since IPO159.79%

Recent News & Updates

Jul 18

Phillips 66: This 4.8% Refinery Yield Is A Bargain

Phillips 66 is a diversified, growing company in the energy sector. The company has attractive long-term prospects for dividend growth. Phillips 66’s stock is trading at a reasonable 8x forward earnings multiple. After a 25% valuation drop in June, the dividend and yield of oil company Phillips 66 (PSX) are too attractive to pass up. Phillips 66, with its big and diverse portfolio of energy assets, is an appealing long-term dividend growth option that appears to be extremely cheap at the moment. Phillips 66 is an integrated firm with midstream and chemicals holdings, as well as branded outlets selling refined petroleum products, providing solid diversification. Phillips 66 stock pays an almost 5% dividend and trades at a very affordable earnings multiple of 8x. Profitable Energy Business With ROCE Upside Phillips 66 is a fully integrated energy business with properties located throughout the United States. The company's global portfolio comprises 22K miles of pipeline systems, a 50% equity stake in DCP Midstream, 28 chemical production facilities (through a joint venture), refining facilities, and 8,810 marketing and specialty outlets. Phillips 66, a major energy corporation in the United States with a market value of about $40 billion for its outstanding shares, is an essential player in the energy industry that benefits society as a whole through its logistics and distribution services. Global Assets (Phillips 66) Phillips 66 is invested in the four mentioned above core businesses: midstream, refinery, chemicals, and marketing/specialties. The refining business is the most asset-heavy, accounting for 37% of total assets. Midstream (27%) is the second-largest segment, followed by Marketing and Specialties (18%), and Chemicals (11%). Phillips 66's Chemicals investments include a 50% equity stake in Chevron Phillips Chemical Company LLC ((CPChem)), which manufactures and markets petrochemicals and polymers globally. Total Assets (Phillips 66) Phillips 66 had a strong first quarter of the year, despite the resumption of depressed energy demand following Covid-19. With $396 million in profit, the Chemicals division delivered the largest profit slice. Marketing and Specialties made $316 million in profits, while Phillips 66's midstream assets made $242 million. Income Before Income Taxes (Phillips 66) Adjusted EBITDA Rebound Energy companies, such as Phillips 66, invest heavily in infrastructure in order to sustain profit-generating activities and expand capacity. Because this demands a big amount of capital, resulting in large depreciation expenditures that skew earnings figures, energy companies tend to focus on adjusted EBITDA rather than earnings. Phillips 66 gained from rising energy demand in 2021, resulting in an increase in adjusted EBITDA last year. With the exception of 2020, Phillips has experienced strong profitability across the board, with adjusted EBITDA averaging $6.2 billion between 2017 and 2021. With the exception of the 2020 stress period, which resulted in Phillips 66's chosen capital return measure (ROCE=return on capital employed) falling to just 1%, the average adjusted yearly EBITDA is $7.3 billion. Adjusted EBITDA And ROCE (Phillips 66) Between 2018 and 2021, Phillips 66's deployment of energy assets generated an average return on capital employed of 9%, which is somewhat higher than the industry average. A 9% return, which is not bad at all, places PSX squarely at the crossroads of the Midstream and Chemical industries, both of which produce returns of at least 8%. Peer ROCE 2018-21 Average (Phillips 66) P/E-Multiple Looks Attractive Given The Yield Phillips 66 stock is trading at an 8x forecast earnings multiple, which is a very reasonable multiple given the company's 4.9% stock dividend. Valero Energy Corporation (VLO) and Marathon Petroleum Corporation (MPC) are competitors. Both firms have P/E ratios that are comparable to Phillips 66. Phillips 66's earnings multiple has reduced by nearly 25% as a result of valuation haircuts applied to refinery equities in June. Data by YCharts Phillips 66 increased their dividend by 5% in May, bringing it to $0.97 per share. Since 2012, Phillips has been dedicated to increasing the dividend. Since the company's first dividend payment of $0.20 per share in 2012, the payout has increased by 17% every year to $0.97 per share. Annual Dividend (Phillips 66) Why Phillips 66 Could See A Lower Stock Price A 2020-style slump in the energy markets would not sit well with Phillips 66, and a significant drop in the ROCE measure could be expected. Phillips 66, being an integrated corporation with a diverse portfolio of energy assets, will be less vulnerable to a recession than upstream enterprises.

Shareholder Returns

PSXUS Oil and GasUS Market
7D6.9%8.4%1.3%
1Y18.7%54.7%-11.7%

Return vs Industry: PSX underperformed the US Oil and Gas industry which returned 49.9% over the past year.

Return vs Market: PSX exceeded the US Market which returned -11.6% over the past year.

Price Volatility

Is PSX's price volatile compared to industry and market?
PSX volatility
PSX Average Weekly Movement6.3%
Oil and Gas Industry Average Movement8.9%
Market Average Movement7.8%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.2%

Stable Share Price: PSX is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: PSX's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
187514,000Mark Lashierhttps://www.phillips66.com

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 transports crude oil and other feedstocks; delivers refined petroleum products to market; provides terminaling and storage services for crude oil and refined petroleum products; transports, stores, fractionates, exports, and markets natural gas liquids; provides other fee-based processing services; and gathers, processes, transports, and markets natural gas.

Phillips 66 Fundamentals Summary

How do Phillips 66's earnings and revenue compare to its market cap?
PSX fundamental statistics
Market CapUS$42.49b
Earnings (TTM)US$5.42b
Revenue (TTM)US$147.60b

7.8x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PSX income statement (TTM)
RevenueUS$147.60b
Cost of RevenueUS$132.96b
Gross ProfitUS$14.64b
Other ExpensesUS$9.23b
EarningsUS$5.42b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)11.26
Gross Margin9.92%
Net Profit Margin3.67%
Debt/Equity Ratio52.8%

How did PSX perform over the long term?

See historical performance and comparison

Dividends

4.4%

Current Dividend Yield

31%

Payout Ratio

Does PSX pay a reliable dividends?

See PSX dividend history and benchmarks
When do you need to buy PSX by to receive an upcoming dividend?
Phillips 66 dividend dates
Ex Dividend DateAug 17 2022
Dividend Pay DateSep 01 2022
Days until Ex dividend5 days
Days until Dividend pay date20 days

Does PSX pay a reliable dividends?

See PSX dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

Is PSX undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for PSX?

Other financial metrics that can be useful for relative valuation.

PSX key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.4x
Enterprise Value/EBITDA7.5x
PEG Ratio-0.6x

Price to Earnings Ratio vs Peers

How does PSX's PE Ratio compare to its peers?

PSX PE Ratio vs Peers
The above table shows the PE ratio for PSX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average5.5x
VLO Valero Energy
6.4x-46.7%US$44.9b
MPC Marathon Petroleum
5.9x-48.3%US$48.2b
DINO HF Sinclair
6.8x-17.1%US$11.0b
PBF PBF Energy
3x-44.6%US$4.3b
PSX Phillips 66
7.8x-12.9%US$42.5b

Price-To-Earnings vs Peers: PSX is expensive based on its Price-To-Earnings Ratio (7.8x) compared to the peer average (5.5x).


Price to Earnings Ratio vs Industry

How does PSX's PE Ratio compare vs other companies in the US Oil and Gas Industry?

Price-To-Earnings vs Industry: PSX is good value based on its Price-To-Earnings Ratio (7.8x) compared to the US Oil and Gas industry average (9.8x)


Price to Earnings Ratio vs Fair Ratio

What is PSX's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

PSX PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.8x
Fair PE Ratio14.2x

Price-To-Earnings vs Fair Ratio: PSX is good value based on its Price-To-Earnings Ratio (7.8x) compared to the estimated Fair Price-To-Earnings Ratio (14.2x).


Share Price vs Fair Value

What is the Fair Price of PSX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: PSX ($88.33) is trading below our estimate of fair value ($93.6)

Significantly Below Fair Value: PSX is trading below fair value, but not by a significant amount.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

How is Phillips 66 forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-12.9%

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 (-12.9% per year).

Earnings vs Market: PSX's earnings are forecast to decline over the next 3 years (-12.9% per year).

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

Revenue vs Market: PSX's revenue is expected to decline over the next 3 years (-11.7% per year).

High Growth Revenue: PSX's revenue is forecast to decline over the next 3 years (-11.7% 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 (13.9%).


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Past Performance

How has Phillips 66 performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-29.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PSX has high quality earnings.

Growing Profit Margin: PSX became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: PSX's earnings have declined by 29.8% per year over the past 5 years.

Accelerating Growth: PSX has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: PSX has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (172.9%).


Return on Equity

High ROE: PSX's Return on Equity (23.2%) is considered high.


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Financial Health

How is Phillips 66's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: PSX's short term assets ($22.5B) exceed its short term liabilities ($17.6B).

Long Term Liabilities: PSX's short term assets ($22.5B) exceed its long term liabilities ($20.6B).


Debt to Equity History and Analysis

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

Reducing Debt: PSX's debt to equity ratio has increased from 41.9% to 52.8% over the past 5 years.

Debt Coverage: PSX's debt is well covered by operating cash flow (53.4%).

Interest Coverage: PSX's interest payments on its debt are well covered by EBIT (10.3x coverage).


Balance Sheet


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Dividend

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

Dividend Score

6/6

Dividend Score 6/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


4.39%

Current Dividend Yield

Upcoming Dividend Payment

TodayAug 12 2022Ex Dividend DateAug 17 2022Dividend Pay DateSep 01 202215 days from Ex DividendBuy in the next 5 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: PSX's dividend (4.39%) is higher than the bottom 25% of dividend payers in the US market (1.5%).

High Dividend: PSX's dividend (4.39%) is in the top 25% of dividend payers in the US market (4.05%)


Stability and Growth of Payments

Stable Dividend: PSX's dividends per share have been stable in the past 10 years.

Growing Dividend: PSX's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (31.1%), PSX's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (37.1%), PSX's dividend payments are well covered by cash flows.


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Management

How experienced are the management team and are they aligned to shareholders interests?

5.3yrs

Average management tenure


CEO

Mark Lashier (60 yo)

1.33yrs

Tenure

US$11,152,813

Compensation

Mr. Mark E. Lashier has been President at Phillips 66 since April 01, 2021, serves as its Chief Executive Officer since July 1, 2022 and serves as its Director since July 12, 2022. He had been Chief Operat...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD11.15M) is about average for companies of similar size in the US market ($USD12.88M).

Compensation vs Earnings: Insufficient data to compare Mark's compensation with company performance.


Leadership Team

Experienced Management: PSX's management team is seasoned and experienced (5.3 years average tenure).


Board Members

Experienced Board: PSX's board of directors are considered experienced (4.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 9.8%.


Top Shareholders

Company Information

Phillips 66's 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
  • Implied Market Cap: US$42.491b
  • Shares outstanding: 481.05m
  • Website: https://www.phillips66.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/11 00:00
End of Day Share Price2022/08/11 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.