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Phillips 66 PSX

Morningstar Rating
$140.11 +1.64 (1.18%)
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Company Report

Phillips 66 Strategy Is Compelling, but Shares Look Overvalued

Phillips 66 remains the most diversified independent refiner with greater interests in marketing, chemical, and midstream assets than peers. While the performance of its refining segment will be the primary determinant of earnings in the near term, the midstream segment will increasingly be the value driver over time as Phillips 66 aims to grow its potential midcycle EBITDA by $4 billion (initially $3 billion) to $14 billion by 2025.

Price vs Fair Value

PSX is trading at a 135% premium.
Price
$140.11
Fair Value
$832.00
Uncertainty
High
1-Star Price
$235.10
5-Star Price
$94.10
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Phillips 66 is expanding its midstream and chemical segments so that refining will represent a smaller portion of earnings over time and help to mitigate the risk of falling refined product demand.

Bears

Narrowing of light crude spreads or rising natural gas prices could undercut key tenets of US refiners' cost advantage, making Phillips 66 less competitive in the global export market.

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News

Trading Information

Previous Close Price
$138.47
Day Range
$137.33140.37
52-Week Range
$105.56174.08
Bid/Ask
$139.13 / $141.18
Market Cap
$59.40 Bil
Volume/Avg
8 / 2.3 Mil

Key Statistics

Price/Earnings (Normalized)
10.39
Price/Sales
0.42
Dividend Yield (Trailing)
3.07%
Dividend Yield (Forward)
3.28%
Total Yield
10.17%

Company Profile

Phillips 66 is an independent refiner with 12 refineries that have a total crude throughput capacity of 1.8 million barrels per day, or mmb/d. In 2023, the Rodeo, California, facility ceased operations and be converted to produce renewable diesel. The midstream segment comprises extensive transportation and NGL processing assets and includes DCP Midstream, which holds 600 mbd of NGL fractionation and 22,000 miles of pipeline. Its CPChem chemical joint venture operates facilities in the United States and the Middle East and primarily produces olefins and polyolefins.
Sector
Energy
Industry
Oil & Gas Refining & Marketing
Stock Style Box
Large Value
Total Number of Employees
14,000

Competitors

Valuation

Metric
PSX
DINO
MPC
Price/Earnings (Normalized)
10.394.168.30
Price/Book Value
2.000.932.57
Price/Sales
0.420.290.44
Price/Cash Flow
8.204.205.51
Price/Earnings
PSX
DINO
MPC

Financial Strength

Metric
PSX
DINO
MPC
Quick Ratio
0.741.060.95
Current Ratio
1.172.171.43
Interest Coverage
8.7911.639.58
Quick Ratio
PSX
DINO
MPC

Profitability

Metric
PSX
DINO
MPC
Return on Assets (Normalized)
7.88%8.67%10.60%
Return on Equity (Normalized)
19.90%15.99%36.66%
Return on Invested Capital (Normalized)
12.71%12.01%16.02%
Return on Assets
PSX
DINO
MPC
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