Phillips 66 (PSX) AI Stock Analysis

• Market Cap: $50.81B
• Dividend Yield: 3.69%
• Average Volume (3M): 3.73M
• Price to Earnings (P/E): 28.4
• Beta (1Y): 0.94
• Revenue Growth: -7.61%
• EPS Growth: -66.18%
• Country: US
• Employees: 13,200
• Sector: Energy
• Sector Strength: 51
• Industry: Oil & Gas Refining & Marketing
• EPS (TTM): -0.90
• Shares Outstanding: 407,437,260
• 10 Day Avg. Volume: 3,594,487
• 30 Day Avg. Volume: 3,725,273
• PEG Ratio: -2.21
• Price to Book (P/B): 1.66
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.27
• Enterprise Value/Market Cap: 1.23
• Enterprise Value/Revenue: 0.11
• Enterprise Value/Gross Profit: 7.44
• Enterprise Value/Ebitda: 2.14
• 1Y Price Target: $131.64
• Price Target Upside: 4.70% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

Phillips 66's overall score reflects a stable financial position with strengths in cash flow management and strategic corporate actions. Challenges in profitability and a high P/E ratio are balanced by strong technical indicators and a solid dividend yield. Strategic expansions and asset optimizations support future growth prospects, despite mixed current financial performance.

Positive Factors

Corporate Governance

Glass Lewis and ISS have recommended voting for Elliott's board nominees, increasing the chances of their election.

Operational Efficiency

PSX is one of the lowest operating cost refiners, thanks to its crude sourcing flexibility and higher refining utilization rate compared to US peers.

Renewable Energy

The startup of the Rodeo Renewed project will convert the refinery into one of the world’s largest renewable fuels facilities, potentially boosting refinery performance and profitability.

Negative Factors

Activist Campaign

If Elliott loses the activism battle, there could be an overhang on PSX as Elliott exits the stock.

Chemical Business Exposure

High exposure to the chemical business in the US and EU, which remains challenged, has led to a HOLD rating recommendation.

Cost Pressures

Higher natural gas prices are expected to put upward pressure on operating costs.

Phillips 66 Business Overview & Revenue Model

Company Description

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 petroleum products to market; provides terminaling and storage services for crude oil and refined 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 produces 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, such as gasolines, distillates, aviation, and renewable fuels at 12 refineries in the United States and Europe. The M&S segment purchases for resale and markets refined petroleum products, including gasolines, distillates, and aviation fuels primarily in the United States and Europe. This segment also manufactures and markets specialty products, such as base oils and lubricants. The company was founded in 1875 and is headquartered in Houston, Texas.

How the Company Makes Money

Phillips 66 generates revenue through several key streams. The refining segment, which processes crude oil into gasoline and other fuels, accounts for a significant portion of its income. The midstream operations involve the transportation, storage, and processing of crude oil and natural gas liquids, providing stable fee-based revenue. The chemicals segment, operated through a joint venture with Chevron called Chevron Phillips Chemical Company, manufactures and sells petrochemicals and plastics. Additionally, the marketing and specialties division sells refined products at wholesale and retail levels, contributing to the company's earnings. Strategic partnerships, such as those in the chemicals sector, and a broad geographic presence also play vital roles in the company's profitability.

Phillips 66 Financial Statement Overview

Summary

Phillips 66 presents a stable financial profile with strong cash flow management and a balanced capital structure. However, profitability metrics such as net profit margin and ROE are areas of concern despite consistent revenue and gross profit figures.

Income Statement

Phillips 66 has shown a mixed performance with strong gross profit margins and positive revenue growth over the years. The TTM (Trailing-Twelve-Months) data indicates a gross profit margin of 27.44%, which is relatively healthy for the industry. However, the net profit margin for TTM stands at only 1.33%, indicating lower profitability. Revenue growth has been inconsistent, with slight declines in recent years, but overall stability has been maintained.

Balance Sheet

The company's balance sheet reflects moderate stability, with a debt-to-equity ratio of 0.69 in TTM, indicating a balanced use of debt and equity financing. The return on equity is relatively low at 6.81% for TTM, suggesting limited returns to shareholders. The equity ratio of 37.97% shows a decent level of equity financing in the asset structure.

Cash Flow

Phillips 66 demonstrates strong cash flow management with a significant operating cash flow to net income ratio of 2.49 in TTM, indicating efficient conversion of net income into cash flows. The free cash flow has grown by 45.02% from the previous year, reflecting improved cash generation capabilities. Despite negative investing cash flows, the company maintains a healthy cash flow position.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
137.74B	143.15B	147.40B	169.99B	111.48B	64.13B
	Gross Profit
8.40B	10.83B	11.15B	18.43B	7.77B	5.03B
	EBIT
527.00M	1.75B	8.02B	12.74B	3.83B	-287.00M
	EBITDA
5.95B	5.99B	12.37B	16.91B	3.95B	-3.05B
	Net Income Common Stockholders
1.86B	2.11B	7.00B	11.02B	1.31B	-3.71B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.49B	1.74B	3.32B	6.13B	3.15B	2.51B
	Total Assets
71.84B	72.58B	75.50B	76.44B	55.59B	54.72B
	Total Debt
18.80B	20.06B	19.36B	17.19B	14.45B	15.89B
	Net Debt
17.31B	18.32B	16.04B	11.06B	11.30B	13.38B
	Total Liabilities
43.48B	44.12B	43.85B	42.34B	33.96B	33.20B
	Stockholders Equity
27.27B	27.41B	30.58B	29.49B	19.17B	18.98B
Cash Flow		Free Cash Flow
2.96B	2.33B	4.61B	8.62B	4.16B	-809.00M
	Operating Cash Flow
4.61B	4.19B	7.03B	10.81B	6.02B	2.11B
	Investing Cash Flow
-207.00M	-2.46B	-5.86B	-1.49B	-1.87B	-3.08B
	Financing Cash Flow
-4.51B	-3.31B	-4.03B	-6.39B	-3.47B	1.79B

Phillips 66 Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 125.73
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PSX, the sentiment is Positive. The current price of 125.73 is above the 20-day moving average (MA) of 109.66, above the 50-day MA of 113.25, and above the 200-day MA of 122.57, indicating a bullish trend. The MACD of 4.03 indicates Negative momentum. The RSI at 71.39 is Negative, neither overbought nor oversold. The STOCH value of 92.76 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PSX.

Phillips 66 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SUN	74 Outperform	$8.71B	10.26	26.11%	6.13%	-3.59%	22.77%
PSX	72 Outperform	$50.81B	28.44	6.48%	3.69%	-7.61%	-66.18%
DINO	72 Outperform	$6.90B	35.13	-1.49%	5.37%	-11.17%	-109.60%
MPC	69 Neutral	$50.42B	23.22	12.37%	2.10%	-6.39%	-64.50%
VLO	68 Neutral	$42.51B	47.73	3.73%	3.21%	-8.44%	-85.95%
Sector *	57 Neutral	$7.20B	3.42	-3.69%	5.69%	0.56%	-50.74%
PBF	55 Neutral	$2.58B	―	-18.01%	4.69%	-16.30%	-160.78%

Phillips 66 Corporate Events

Phillips 66 Sells Majority Stake in European Assets

On May 15, 2025, Phillips 66 announced that its subsidiary, Phillips 66 Continental Holding GmbH, has entered into an agreement to sell a 65% interest in its retail marketing assets in Germany and Austria to a consortium owned by Energy Equation Partners and Stonepeak. This transaction, expected to close in the second half of 2025, will allow Phillips 66 to optimize its portfolio and enhance shareholder value by monetizing non-core assets while retaining a 35% interest in the business. The deal values the retail business at approximately €2.5 billion and is expected to generate pre-tax cash proceeds of around €1.5 billion, which will be used to support strategic priorities such as debt reduction and shareholder returns.

The most recent analyst rating on (PSX) stock is a Buy with a $191.00 price target. To see the full list of analyst forecasts on Phillips 66 stock, see the PSX Stock Forecast page.

Spark’s Take on PSX Stock

According to Spark, TipRanks’ AI Analyst, PSX is a Outperform.

Phillips 66 shows stability with strong cash flow management and strategic expansions in the midstream segment. Despite challenges in profitability and a higher-than-average P/E ratio, the company’s dividend yield offers some compensation. Positive strategic moves, such as the acquisition of EPIC Y-Grade, enhance its long-term potential, but immediate financial performance remains mixed.

To see Spark’s full report on PSX stock, click here.

Phillips 66 Completes $2.2 Billion Acquisition of EPIC Y-Grade

On April 1, 2025, Phillips 66 completed the acquisition of EPIC Y-Grade GP, LLC and EPIC Y-Grade, LP for approximately $2.2 billion, enhancing its position as a leading integrated downstream energy provider. This acquisition, which includes natural gas liquids pipelines and fractionation facilities, strengthens Phillips 66’s ability to deliver energy products efficiently and is expected to create long-term value for shareholders. The expansion of the NGL pipeline capacity is planned to be completed by the fourth quarter of 2026, further integrating Permian production with Gulf Coast markets.

Phillips 66 Announces Board Member Departures in 2025

On February 12, 2025, Phillips 66 announced that board members Gary K. Adams and Denise L. Ramos decided not to stand for reelection at the company’s 2025 Annual Meeting of Shareholders, as part of the board’s ongoing refreshment activities. Their departure will result in the reduction of the board size from 14 to 12 directors, effective immediately after the Annual Meeting, indicating a strategic shift but not due to any disagreements with company policies.