PHINIA Inc. (PHIN) AI Stock Analysis

• Market Cap: $2.08B
• Dividend Yield: 1.99%
• Average Volume (3M): 417.41K
• Price to Earnings (P/E): 20.6
• Beta (1Y): 1.21
• Revenue Growth: -4.30%
• EPS Growth: 39.80%
• Country: US
• Employees: 12,700
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 1.27
• Shares Outstanding: 38,904,476
• 10 Day Avg. Volume: 347,130
• 30 Day Avg. Volume: 417,407
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.20
• Enterprise Value/Revenue: 0.74
• Enterprise Value/Gross Profit: 3.33
• Enterprise Value/Ebitda: 5.50
• 1Y Price Target: $58.60
• Price Target Upside: 10.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 67 Neutral
• Price Target: $57.00 ▲(7.45% Upside)

PHINIA Inc. scores a 67, driven by strong financial performance and positive earnings call sentiment. However, bearish technical indicators and moderate valuation metrics temper the overall score. The company's solid cash generation and strategic initiatives provide a foundation for potential growth, despite current market challenges.

Positive Factors

Strong Cash Generation

PHINIA's ability to generate strong free cash flow indicates efficient capital management, providing flexibility for investments and shareholder returns.

Strategic Growth Initiatives

Winning new business contracts, especially in emerging markets, strengthens PHINIA's market position and supports long-term revenue growth.

Acquisition of SEM

The acquisition of SEM is expected to generate $50 million in annual revenue, enhancing PHINIA's product offerings and market reach.

Negative Factors

Revenue Growth Challenges

Inconsistent revenue growth suggests potential challenges in market demand or competitive pressures, impacting long-term financial stability.

Ford Recall Impact

The recall could affect PHINIA's reputation and customer relationships, potentially leading to financial liabilities and future revenue loss.

Working Capital Challenges

Negative working capital impacts cash flow and may limit PHINIA's ability to fund operations and growth initiatives without additional financing.

PHINIA Inc. Business Overview & Revenue Model

Company Description

PHINIA Inc. develops and manufactures gasoline and diesel fuel injection components and systems. The company also sells products and services to independent aftermarket customers and original equipment service customers with new and remanufactured products. Its product portfolio includes a range of solutions covering the fuel injection, electronics and engine management, starters and alternators, maintenance, test equipment, and vehicle diagnostics categories. The company was incorporated in 2023 and is based in Auburn Hills, Michigan.

How the Company Makes Money

PHINIA Inc. generates revenue primarily through the sale of its automotive fuel and electrical systems to vehicle manufacturers and the aftermarket sector. The company's key revenue streams include contracts with OEMs, where it supplies fuel injection and ignition systems that are integrated into new vehicles. Additionally, PHINIA benefits from aftermarket sales, where it provides replacement parts and system upgrades to existing vehicles. Strategic partnerships with automotive manufacturers and continuous investment in research and development to innovate and improve product offerings are significant factors contributing to the company's earnings. These partnerships and innovations help maintain competitive pricing and enhance customer loyalty, driving revenue growth.

PHINIA Inc. Financial Statement Overview

Summary

PHINIA Inc. demonstrates solid financial health with strong cash generation and conservative leverage. The company shows effective operational efficiency and cash management. However, revenue growth and profitability margins present areas for improvement.

Income Statement

PHINIA Inc.'s income statement reveals a robust gross profit margin of 22.18% TTM, indicating effective cost management. However, the net profit margin is modest at 3.22% TTM, suggesting room for improvement in overall profitability. Revenue growth is inconsistent, with a slight decline of 1.32% from 2024 to TTM. The EBIT margin of 7.98% TTM shows operational efficiency, while the EBITDA margin of 12.09% TTM highlights strong cash generation capabilities.

Balance Sheet

The balance sheet shows a stable financial structure with a debt-to-equity ratio of 0.61 TTM, indicating conservative leverage. Return on Equity (ROE) is positive at 6.64% TTM, reflecting moderate profitability. However, the equity ratio of 41.78% TTM suggests a balanced approach between debt and equity financing, with potential risks if liabilities increase.

Cash Flow

Cash flow analysis shows a strong free cash flow growth rate of 18.23% TTM, indicating efficient capital management. Operating cash flow to net income ratio stands at 2.45 TTM, reflecting solid cash flow generation relative to earnings. Free cash flow to net income ratio is robust at 2.22 TTM, demonstrating the company's ability to convert earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.36B	3.40B	3.50B	3.35B	3.23B	1.03B
Gross Profit	745.00M	756.00M	724.00M	721.00M	676.00M	175.00M
EBITDA	452.00M	446.00M	433.00M	545.00M	424.00M	-26.00M
Net Income	108.00M	79.00M	102.00M	262.00M	152.00M	-124.00M
Balance Sheet
Total Assets	3.89B	3.77B	4.04B	4.07B	4.18B	0.00
Cash, Cash Equivalents and Short-Term Investments	347.00M	484.00M	365.00M	251.00M	259.00M	0.00
Total Debt	1.04B	1.04B	864.00M	212.00M	100.00M	0.00
Total Liabilities	2.27B	2.19B	2.15B	2.43B	2.47B	0.00
Stockholders Equity	1.63B	1.57B	1.89B	1.64B	1.71B	0.00
Cash Flow
Free Cash Flow	240.00M	203.00M	100.00M	196.00M	1.00M	-151.00M
Operating Cash Flow	265.00M	308.00M	250.00M	303.00M	147.00M	-97.00M
Investing Cash Flow	-110.00M	-101.00M	-150.00M	-105.00M	-140.00M	369.00M
Financing Cash Flow	-139.00M	-96.00M	20.00M	-185.00M	-44.00M	2.00M

PHINIA Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 53.05
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PHIN, the sentiment is Neutral. The current price of 53.05 is below the 20-day moving average (MA) of 55.33, below the 50-day MA of 56.46, and above the 200-day MA of 48.10, indicating a neutral trend. The MACD of -1.17 indicates Positive momentum. The RSI at 37.72 is Neutral, neither overbought nor oversold. The STOCH value of 41.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PHIN.

PHINIA Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VC	78 Outperform	$3.15B	11.02	22.96%	0.24%	-3.26%	-45.84%
LEA	71 Outperform	$5.34B	11.73	9.51%	3.07%	-3.12%	-8.23%
PHIN	67 Neutral	$2.08B	20.61	6.40%	1.99%	-4.30%	39.80%
GTX	67 Neutral	$2.58B	8.96	-41.90%	1.40%	-6.71%	43.34%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
DAN	61 Neutral	$2.50B	―	-5.00%	2.10%	-14.46%	-2170.83%
ADNT	59 Neutral	$1.88B	805.10	-11.85%	―	-3.00%	-447.89%

PHINIA Inc. Corporate Events

PHINIA Inc. Concludes Annual Shareholder Meeting

On May 21, 2025, PHINIA Inc. held its annual meeting of shareholders where several key proposals were voted on. The shareholders elected eight directors to serve until the next annual meeting, approved the compensation of the Company’s executive officers, and ratified the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for 2025.