PSX Stock Overview
Phillips 66 operates as an energy manufacturing and logistics company.
Phillips 66 Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$88.33|
|52 Week High||US$111.28|
|52 Week Low||US$63.19|
|1 Month Change||9.71%|
|3 Month Change||-6.63%|
|1 Year Change||18.66%|
|3 Year Change||-9.38%|
|5 Year Change||9.20%|
|Change since IPO||159.79%|
Recent News & Updates
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.
|PSX||US Oil and Gas||US Market|
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.
|PSX Average Weekly Movement||6.3%|
|Oil and Gas Industry Average Movement||8.9%|
|Market Average Movement||7.8%|
|10% most volatile stocks in US Market||16.9%|
|10% least volatile stocks in US Market||3.2%|
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
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
|PSX fundamental statistics|
Is PSX overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|PSX income statement (TTM)|
|Cost of Revenue||US$132.96b|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
|Earnings per share (EPS)||11.26|
|Net Profit Margin||3.67%|
How did PSX perform over the long term?See historical performance and comparison
4.4%Current Dividend Yield
Does PSX pay a reliable dividends?See PSX dividend history and benchmarks
|Phillips 66 dividend dates|
|Ex Dividend Date||Aug 17 2022|
|Dividend Pay Date||Sep 01 2022|
|Days until Ex dividend||5 days|
|Days until Dividend pay date||20 days|
Does PSX pay a reliable dividends?See PSX dividend history and benchmarks
Is PSX undervalued compared to its fair value, analyst forecasts and its price relative to the market?
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
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.
|What is PSX's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does PSX's PE Ratio compare to its peers?
|PSX PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
VLO Valero Energy
MPC Marathon Petroleum
DINO HF Sinclair
PBF PBF Energy
PSX Phillips 66
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.
|Current PE Ratio||7.8x|
|Fair PE Ratio||14.2x|
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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How is Phillips 66 forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
Future Growth Score0/6
Future Growth Score 0/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
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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How has Phillips 66 performed over the past 5 years?
Past Performance Score3/6
Past Performance Score 3/6
Growing Profit Margin
Earnings vs Industry
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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How is Phillips 66's financial position?
Financial Health Score4/6
Financial Health Score 4/6
Short Term Liabilities
Long Term Liabilities
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 ($20.6B).
Debt to Equity History and Analysis
Debt Level: PSX's net debt to equity ratio (41.3%) is considered high.
Reducing Debt: PSX's debt to equity ratio has increased from 41.9% to 52.8% over the past 5 years.
Debt Coverage: PSX's debt is well covered by operating cash flow (53.4%).
Interest Coverage: PSX's interest payments on its debt are well covered by EBIT (10.3x coverage).
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What is Phillips 66 current dividend yield, its reliability and sustainability?
Dividend Score 6/6
Cash Flow Coverage
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: PSX's dividend (4.39%) is higher than the bottom 25% of dividend payers in the US market (1.5%).
High Dividend: PSX's dividend (4.39%) is in the top 25% of dividend payers in the US market (4.05%)
Stability and Growth of Payments
Stable Dividend: PSX's dividends per share have been stable in the past 10 years.
Growing Dividend: PSX's dividend payments have increased over the past 10 years.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonably low payout ratio (31.1%), PSX's dividend payments are well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its reasonably low cash payout ratio (37.1%), PSX's dividend payments are well covered by cash flows.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mark Lashier (60 yo)
Mr. Mark E. Lashier has been President at Phillips 66 since April 01, 2021, serves as its Chief Executive Officer since July 1, 2022 and serves as its Director since July 12, 2022. He had been Chief Operat...
CEO Compensation Analysis
Compensation vs Market: Mark's total compensation ($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.
Experienced Management: PSX's management team is seasoned and experienced (5.3 years average tenure).
Experienced Board: PSX's board of directors are considered experienced (4.3 years average tenure).
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
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 9.8%.
Phillips 66's employee growth, exchange listings and data sources
- 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
- Phillips 66
- 2331 CityWest Boulevard
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/08/11 00:00|
|End of Day Share Price||2022/08/11 00:00|
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.