PSX Phillips 66 - Fundamental Analysis
NEUTRAL
PSX Stock | Fundamental Analysis & Investment Insights
NYSE
•
Energy
•
Oil & Gas Refining & Marketing
Current Price
$142.32
Analyst Target
$147.2
+3.4% Upside
52W High
$143.25
52W Low
$91.01
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
65%
Analysis Accuracy
Phillips 66 (PSX) trades near its 52-week high with strong 5-year total returns (+174%) and solid short-term momentum, supported by a 3.37% dividend yield and analyst buy rating. However, the stock faces significant headwinds from collapsing profitability, with earnings down -61% YoY and a concerning 126.68% payout ratio, raising sustainability questions. Valuation metrics are mixed: while forward P/E of 15.00 aligns with sector averages, the current P/E of 38.36 is elevated given weak earnings momentum. Insider selling activity and weak quarterly earnings delivery (0/4 beats last four quarters) contrast with bullish analyst sentiment, creating conflicting signals.
Key Strengths
Attractive dividend yield of 3.37% provides income appeal in a low-growth environment
Forward P/E of 15.00 is in line with sector average (16.48), suggesting reasonable forward valuation
Strong long-term price performance: +174% over 5 years, outperforming many energy peers
Moderate leverage with Debt/Equity of 0.77, below sector average of 0.35 but manageable
Market cap of $57.34B ensures liquidity and index relevance, supporting institutional ownership
Key Risks
Earnings down -61% YoY and Q/Q earnings decline of -61.60% signal severe profitability contraction
Payout ratio of 126.68% indicates dividend is not fully covered by earnings, creating coverage risk
Profit margin of 1.14% is drastically below sector average of 10.52%, reflecting weak pricing power
Insider selling by CFO and General Counsel totaling $7.14M in last 6 months signals leadership skepticism
Current P/E of 38.36 is extremely high for a company with negative earnings growth, indicating potential multiple compression risk
AI Fair Value Estimate
Based on comprehensive analysis
$135.0
-5.1% below current price
Performance Snowflake
Multi-dimensional AI analysis across 5 key categories
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Historical Performance Trends
Long-term financial metrics and growth patterns
Valuation Metrics
Key valuation ratios and pricing indicators
Profitability, Growth & Financial Health
Detailed profit margins, ROE, debt ratios, and liquidity metrics
Sector Comparison & Peer Analysis
Compare PSX against industry averages and similar companies
Insider Trading & Analyst Ratings
Track insider transactions and Wall Street analyst recommendations