NYSE:PSX

Stock Analysis Report

Executive Summary

Phillips 66 operates as an energy manufacturing and logistics company.


Snowflake Analysis

Average dividend payer and fair value.


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

Stable Share Price: PSX's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

18.8%

PSX

5.9%

US Oil and Gas

7.2%

US Market


1 Year Return

-42.7%

PSX

-56.4%

US Oil and Gas

-10.4%

US Market

Return vs Industry: PSX exceeded the US Oil and Gas industry which returned -57.2% over the past year.

Return vs Market: PSX underperformed the US Market which returned -12.7% over the past year.


Shareholder returns

PSXIndustryMarket
7 Day18.8%5.9%7.2%
30 Day-27.7%-35.6%-12.6%
90 Day-51.4%-51.6%-19.4%
1 Year-40.5%-42.7%-54.6%-56.4%-8.5%-10.4%
3 Year-23.7%-30.9%-51.8%-56.5%15.8%8.3%
5 Year-18.4%-30.4%-55.3%-62.2%35.8%21.0%

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?

44.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PSX ($52.32) is trading below our estimate of fair value ($97.19)

Significantly Below Fair Value: PSX is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PSX is poor value based on its PE Ratio (7.7x) compared to the Oil and Gas industry average (6.7x).

PE vs Market: PSX is good value based on its PE Ratio (7.7x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: PSX is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: PSX is overvalued based on its PB Ratio (0.9x) compared to the US Oil and Gas industry average (0.5x).


Next Steps

Future Growth

How is Phillips 66 forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

8.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PSX's forecast earnings growth (5% per year) is above the savings rate (1.7%).

Earnings vs Market: PSX's earnings (5% per year) are forecast to grow slower than the US market (12.3% per year).

High Growth Earnings: PSX's earnings are forecast to grow, but not significantly.

Revenue vs Market: PSX's revenue (6.1% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: PSX's revenue (6.1% 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 (13.4%).


Next Steps

Past Performance

How has Phillips 66 performed over the past 5 years?

7.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PSX has high quality earnings.

Growing Profit Margin: PSX's current net profit margins (2.9%) are lower than last year (5%).


Past Earnings Growth Analysis

Earnings Trend: PSX's earnings have grown by 7.4% 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 (-45.1%) over the past year, making it difficult to compare to the Oil and Gas industry average (-11.4%).


Return on Equity

High ROE: PSX's Return on Equity (12.4%) is considered low.


Next Steps

Financial Health

How is Phillips 66's financial position?


Financial Position Analysis

Short Term Liabilities: PSX's short term assets ($14.4B) exceed its short term liabilities ($11.6B).

Long Term Liabilities: PSX's short term assets ($14.4B) do not cover its long term liabilities ($19.9B).


Debt to Equity History and Analysis

Debt Level: PSX's debt to equity ratio (42.3%) is considered high.

Reducing Debt: PSX's debt to equity ratio has increased from 39.2% to 42.3% over the past 5 years.

Debt Coverage: PSX's debt is well covered by operating cash flow (41.9%).

Interest Coverage: PSX's interest payments on its debt are well covered by EBIT (7.9x 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 1.3x debt).


Next Steps

Dividend

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

6.65%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PSX's dividend (6.88%) is higher than the bottom 25% of dividend payers in the US market (1.98%).

High Dividend: PSX's dividend (6.88%) is in the top 25% of dividend payers in the US market (5.49%)


Stability and Growth of Payments

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 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (51.5%), PSX's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PSX's dividends in 3 years are forecast to be well covered by earnings (45.1% payout ratio).


Next Steps

Management

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

3.4yrs

Average management tenure


CEO

Greg Garland (62yo)

7.83s

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 ($USD19.28M) is above average for companies of similar size in the US market ($USD11.74M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Greg Garland
Chairman & CEO7.83yrsUS$19.28m0.12% $27.8m
Kevin Mitchell
Executive VP of Finance & CFO4.17yrsUS$6.81m0.0098% $2.3m
Paula Johnson
Executive VP of Legal and Government Affairs3.42yrsUS$5.32m0.017% $3.9m
Robert Herman
Executive Vice President of Refining6yrsUS$5.14m0.0082% $1.9m
Timothy Roberts
Executive Vice President of Midstream1.58yrsUS$4.54m0.0018% $415.0k
Zhanna Golodryga
SVP and Chief Digital & Administrative Officer2.83yrsno datano data
Jeffrey Dietert
Vice President of Investor Relations2.83yrsno datano data
Sonya Reed
Senior Vice President of Human Resources & Corporate Communications3.42yrsno datano data
Pam McGinnis
President of Global Marketing Group3.25yrsno datano data
Jay Churchill
Senior Vice President of Health3.42yrsno datano data

3.4yrs

Average Tenure

57yo

Average Age

Experienced Management: PSX's management team is considered experienced (3.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Greg Garland
Chairman & CEO7.83yrsUS$19.28m0.12% $27.8m
Harold McGraw
Independent Director7.83yrsUS$335.18k0.00011% $26.1k
John Lowe
Independent Director7.83yrsUS$346.97k0.0080% $1.9m
Glenn Tilton
Lead Director4yrsUS$408.33k0.0014% $320.1k
Denise Ramos
Independent Director3.42yrsUS$337.62kno data
Victoria Tschinkel
Independent Director7.83yrsUS$351.02k0.011% $2.7m
Marna Whittington
Independent Director7.83yrsUS$404.66k0.00057% $135.2k
Gary Adams
Independent Director3.42yrsUS$340.13k0.0021% $486.1k
Charles Holley
Independent Director0.42yrno datano data
James Ferguson
Independent Director7.83yrsUS$351.45k0.0050% $1.2m

7.8yrs

Average Tenure

66yo

Average Age

Experienced Board: PSX's board of directors are considered experienced (7.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: PSX insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$23.713b
  • Shares outstanding: 437.84m
  • 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
R66ETLX (Eurotlx)YesCommon StockITEURApr 2012
PSXCWBAG (Wiener Boerse AG)YesCommon StockATEURApr 2012
P1SX34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 2 COMBRBRLDec 2019

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 transports crude oil and other feedstocks; delivers refined products to market; provides terminaling and storage services for crude oil and 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. The Chemicals segment manufactures and markets ethylene and other olefin products; aromatics and styrenics products, such as benzene, cyclohexane, styrene, and polystyrene; and various specialty chemical products, including organosulfur chemicals, solvents, catalysts, and chemicals used in drilling and mining. The Refining segment refines crude oil and other feedstocks into petroleum products comprising gasolines, distillates, and aviation fuels at 13 refineries in the United States and Europe. The M&S segment purchases for resale and markets refined petroleum products consisting of gasolines, distillates, and aviation fuels primarily in the United States and Europe. It also manufactures and markets specialty products, such as petroleum coke products, waxes, solvents, and polypropylene. Phillips 66 was founded in 1875 and is headquartered in Houston, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 03:10
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.