PHINIA Inc. (PHIN) AI Stock Analysis

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PHINIA Inc.

(NYSE:PHIN)

70Outperform

PHINIA Inc. demonstrates strengths in cash flow management and operational efficiency, which underpin its business stability. Despite challenges in revenue growth and profitability, the company's solid financial base and strategic focus on growth through new business wins offer a positive long-term outlook. The stock's technical indicators are currently neutral, and valuation metrics are moderately attractive. The earnings call provided a balanced perspective, with confidence in navigating near-term challenges.

PHINIA Inc. (PHIN) vs. S&P 500 (SPY)

Market Cap

$1.65B

Dividend Yield2.46%

Average Volume (3M)520.85K

Price to Earnings (P/E)23.9

Beta (1Y)1.08

Revenue Growth-5.44%

EPS Growth-22.90%

CountryUS

Employees12,700

SectorConsumer Cyclical

Sector Strength58

IndustryAuto - Parts

Share Statistics

EPS (TTM)0.94

Shares Outstanding39,804,565

10 Day Avg. Volume490,567

30 Day Avg. Volume520,852

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap1.48

Enterprise Value/RevenueN/A

Enterprise Value/Gross Profit3.22

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$49.40

Price Target Upside19.38% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering5

PHINIA Inc. Business Overview & Revenue Model

Company DescriptionPHINIA Inc. (PHIN) is a company specializing in the automotive and industrial sectors, providing advanced technologies and solutions. The company focuses on delivering high-performance products such as fuel systems, powertrain components, and emission control technologies that improve efficiency and reduce environmental impact. PHINIA Inc. is committed to innovation and sustainability, catering to the evolving needs of its global clientele.

How the Company Makes MoneyPHINIA Inc. generates revenue primarily through the manufacture and sale of its core products, including fuel systems, powertrain components, and emission control technologies. These products are sold to automotive and industrial manufacturers who integrate them into their own offerings. The company may also engage in partnerships with key players in the automotive and industrial sectors to co-develop technologies or expand market reach. Additionally, PHINIA Inc. invests in research and development to continuously enhance its product offerings, which in turn drives sales and revenue growth. Specific revenue figures, partnership details, and other financial data are not available.

PHINIA Inc. Financial Statement Overview

Summary

PHINIA Inc. demonstrates robust cash flow management and stable margins, with an Income Statement score of 78, a Balance Sheet score of 70, and a Cash Flow score of 82. Despite challenges such as declining revenue growth and return on equity, efficient cost management and solid cash flow provide a strong foundation for the company.

Income Statement

Positive

PHINIA Inc. shows strong financial performance with stable gross and net profit margins. The TTM gross profit margin stands at 22.07%, reflecting efficient cost management. However, a slight decline in revenue growth rate in recent years, down from 6.72% in 2021 to negative growth in TTM due to a decrease in revenue, could be a concern. Despite this, the EBIT and EBITDA margins remain healthy at 7.64% and 11.66% respectively, indicating robust operational efficiency.

Balance Sheet

Positive

The company maintains a moderate debt-to-equity ratio of 0.64, indicating balanced leverage. The equity ratio is stable at 41.02%, showing a solid equity base. However, the return on equity has seen a decline from 5.97% in 2023 to 4.95% in the TTM period, suggesting a need for improved profitability. Overall, the balance sheet is stable with some room for improvement in profitability metrics.

Cash Flow

Very Positive

PHINIA Inc. demonstrates strong cash flow management with a positive free cash flow growth rate in the TTM period. The operating cash flow to net income ratio is at a healthy 4.18, illustrating efficient cash generation from operations. The free cash flow to net income ratio stands at 3.62, indicating solid cash conversion. The company's ability to generate and manage cash flows effectively positions it well for future investments.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
3.40B	3.50B	3.44B	3.23B	1.03B
	Gross Profit
756.00M	724.00M	726.00M	676.00M	175.00M
	EBIT
259.00M	241.00M	287.00M	174.00M	-93.00M
	EBITDA
446.00M	433.00M	545.00M	424.00M	-26.00M
	Net Income Common Stockholders
79.00M	102.00M	187.00M	152.00M	-124.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
484.00M	365.00M	251.00M	259.00M	0.00
	Total Assets
3.77B	4.04B	4.07B	4.18B	0.00
	Total Debt
1.04B	864.00M	113.00M	100.00M	0.00
	Net Debt
560.00M	499.00M	-138.00M	-159.00M	0.00
	Total Liabilities
2.19B	2.15B	2.43B	2.47B	0.00
	Stockholders Equity
1.57B	1.89B	1.64B	1.71B	0.00
Cash Flow		Free Cash Flow
203.00M	100.00M	196.00M	1.00M	-151.00M
	Operating Cash Flow
308.00M	250.00M	303.00M	147.00M	-97.00M
	Investing Cash Flow
-101.00M	-150.00M	-105.00M	-140.00M	369.00M
	Financing Cash Flow
-96.00M	20.00M	-185.00M	-44.00M	2.00M

PHINIA Inc. Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price41.38

Price Trends

50DMA

42.67

Negative

100DMA

46.23

Negative

200DMA

46.59

Negative

Market Momentum

MACD

-0.30

Negative

RSI

49.15

Neutral

STOCH

57.69

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 41.38 is above the 20-day moving average (MA) of 40.64, below the 50-day MA of 42.67, and below the 200-day MA of 46.59, indicating a neutral trend. The MACD of -0.30 indicates Negative momentum. The RSI at 49.15 is Neutral, neither overbought nor oversold. The STOCH value of 57.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PHIN.

PHINIA Inc. Risk Analysis

PHINIA Inc. disclosed 31 risk factors in its most recent earnings report. PHINIA Inc. reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

PHINIA Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VC	77 Outperform	$2.20B	7.54	25.15%	―	-1.35%	-39.06%
PLOW	77 Outperform	$589.01M	9.04	26.52%	4.63%	1.14%	127.04%
PHIN	70 Outperform	$1.65B	23.94	4.49%	2.46%	-5.44%	-22.90%
GTX	66 Neutral	$2.28B	8.64	-41.90%	0.53%	-10.26%	―
DAN	63 Neutral	$2.13B	―	-2.40%	2.74%	-7.00%	-366.59%
Sector *	61 Neutral	$6.58B	11.81	3.06%	3.99%	2.54%	-21.54%
ADNT	60 Neutral	$1.06B	805.10	-14.33%	―	-5.33%	-292.58%

* Consumer Cyclical Sector Average

Performance Comparison

PHIN

PHINIA Inc.

40.91

-0.89

-2.13%

DAN

Dana Holding

14.63

1.49

11.34%

PLOW

Douglas Dynamics

25.62

2.52

10.91%

Visteon

80.75

-35.77

-30.70%

ADNT

Adient

12.58

-15.98

-55.95%

GTX

Garrett Motion

11.32

2.00

21.46%

PHINIA Inc. Earnings Call Summary

Earnings Call Date:Apr 25, 2025

(Q1-2025)

% Change Since: -5.98%|

Next Earnings Date:Aug 11, 2025

Earnings Call Sentiment Neutral

The earnings call reflects a balanced perspective with significant achievements in business retention, new wins, and capital return strategies, offset by challenges in sales decline and increased costs, particularly due to tariffs and market softness.

Q1-2025 Updates

Positive Updates

Strong Business Retention and New Wins

PHINIA Inc. experienced strong business retention and new conquest wins, including a 350 bar GDi system for the Brazilian market and high-volume fuel delivery module wins in the Americas.

Capital Return Strategy and Share Buybacks

Returned $111 million to shareholders through share buybacks and dividends, including repurchasing more than 7.5 million shares or roughly 16.5% of outstanding shares.

Strong Balance Sheet and Liquidity

PHINIA Inc. maintains a strong balance sheet with $373 million in cash and cash equivalents and total liquidity of approximately $900 million.

Positive Outlook for New Business Opportunities

Continued focus on product development and customer relationships, leading to sustained momentum in new customer growth and business expansion in various markets.

Negative Updates

Decline in Net Sales and Operating Margins

Net sales in the quarter were $796 million, down 7.8% year-over-year. Adjusted operating margins decreased by 140 basis points to 12.2%.

Impact of Tariffs and Increased Costs

Approximately $4 million in tariff costs were incurred, with expectations to pass these through in Q2. Additional costs were incurred due to being a standalone entity.

Challenges in the Automotive and Commercial Markets

Lower sales in aftermarket and fuel system segments due to reduced OEM volumes and softening commercial vehicle markets in North America.

Company Guidance

During the PHINIA Inc. First Quarter 2025 Earnings Conference Call, the company provided detailed guidance despite a challenging macroeconomic environment. Key metrics included net sales of $796 million, reflecting a 7.8% decrease year-over-year, primarily due to reduced OEM volumes. Adjusted EBITDA was reported at $103 million with a margin of 12.9%, marking a 260 basis point decline from the previous year. The company maintained a strong balance sheet with cash and cash equivalents of $373 million and total liquidity of approximately $900 million, alongside a net leverage ratio of 1.4 times. PHINIA Inc. returned $111 million to shareholders through share buybacks and dividends in the first quarter. Looking ahead, the company reaffirmed its 2025 guidance, anticipating stable revenue despite headwinds such as tariffs and foreign exchange impacts, and expressing confidence in passing these costs to customers. PHINIA Inc. remains focused on long-term profitable growth, maintaining a robust capital allocation strategy, and continuing to drive expansion through new business wins and product development.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.