PHINIA Inc. (PHIN) AI Stock Analysis

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PHINIA Inc.

(NYSE:PHIN)

71Outperform

PHINIA Inc. shows strong cash flow management and stable profit margins, providing a solid foundation despite challenges in revenue growth and profitability. Technical indicators suggest caution, as the stock is trading below key moving averages. The valuation appears stretched with a high P/E ratio, but the dividend yield offers some attractiveness. The earnings call suggests a balanced outlook with opportunities for growth and challenges in sales and costs. Overall, PHINIA Inc. is positioned well for future growth, but careful monitoring of market trends and cost management will be essential.

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

Market Cap

$1.62B

Dividend Yield2.5%

Average Volume (3M)643.29K

Price to Earnings (P/E)25.0

Beta (1Y)1.08

Revenue Growth-5.44%

EPS GrowthN/A

CountryUS

Employees12,700

SectorConsumer Cyclical

Sector Strength63

IndustryAuto - Parts

Share Statistics

EPS (TTM)1.75

Shares Outstanding39,804,512

10 Day Avg. Volume504,456

30 Day Avg. Volume643,290

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.53

Price to Cash Flow (P/CF)6.20

P/FCF Ratio8.20

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$51.60

Price Target Upside26.44% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering5

PHINIA Inc. Business Overview & Revenue Model

Company DescriptionPHINIA 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 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 solid financial health with stable profitability and effective cash flow management. The income statement shows stable gross profit margins, though revenue growth faces challenges. The balance sheet reflects prudent financial leverage with a healthy debt-to-equity ratio, while strong cash flows provide a buffer against potential market uncertainties.

Income Statement

Positive

PHINIA Inc. shows a stable gross profit margin over the years with a slight improvement in gross profit margins from 20.3% in 2023 to 22.2% in 2024. The net profit margin shows volatility from 2.9% in 2023 to 2.3% in 2024. Revenue decreased slightly by 2.8% from 2023 to 2024, indicating a challenge in maintaining sales growth. EBIT and EBITDA margins are consistent, reflecting stable operational efficiency.

Balance Sheet

Positive

The company maintains a healthy debt-to-equity ratio of 0.63 in 2024, reflecting a balanced approach to leveraging. Stockholders' equity decreased from 2023 to 2024, affecting the equity ratio which dropped slightly to 41.8%. Return on equity declined to 5.0% in 2024, signaling a decrease in profitability for shareholders.

Cash Flow

Positive

PHINIA shows strong cash flow management with a significant increase in operating cash flow from 2023 to 2024. Free cash flow improved, showing robust cash generation, and the free cash flow to net income ratio increased to 3.9 in 2024. The operating cash flow to net income ratio of 3.9 indicates strong cash conversion capabilities.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
3.34B	3.40B	3.50B	3.44B	3.23B	1.03B
	Gross Profit
736.00M	756.00M	724.00M	726.00M	676.00M	175.00M
	EBIT
255.00M	259.00M	241.00M	287.00M	174.00M	-93.00M
	EBITDA
389.00M	446.00M	433.00M	545.00M	424.00M	-26.00M
	Net Income Common Stockholders
76.00M	79.00M	102.00M	187.00M	152.00M	-124.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
373.00M	484.00M	365.00M	251.00M	259.00M	0.00
	Total Assets
3.75B	3.77B	4.04B	4.07B	4.18B	0.00
	Total Debt
989.00M	988.00M	864.00M	113.00M	100.00M	0.00
	Net Debt
616.00M	504.00M	499.00M	-138.00M	-159.00M	0.00
	Total Liabilities
2.21B	2.19B	2.15B	2.43B	2.47B	0.00
	Stockholders Equity
1.54B	1.57B	1.89B	1.64B	1.71B	0.00
Cash Flow		Free Cash Flow
275.00M	308.00M	100.00M	196.00M	1.00M	-151.00M
	Operating Cash Flow
317.00M	308.00M	250.00M	303.00M	147.00M	-97.00M
	Investing Cash Flow
-94.00M	-101.00M	-150.00M	-105.00M	-140.00M	369.00M
	Financing Cash Flow
-172.00M	-96.00M	20.00M	-185.00M	-44.00M	2.00M

PHINIA Inc. Technical Analysis

Technical Analysis Sentiment

Negative

Last Price40.81

Price Trends

50DMA

44.12

Negative

100DMA

47.15

Negative

200DMA

46.67

Negative

Market Momentum

MACD

-0.53

Negative

RSI

46.65

Neutral

STOCH

76.40

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PHIN, the sentiment is Negative. The current price of 40.81 is above the 20-day moving average (MA) of 40.69, below the 50-day MA of 44.12, and below the 200-day MA of 46.67, indicating a neutral trend. The MACD of -0.53 indicates Negative momentum. The RSI at 46.65 is Neutral, neither overbought nor oversold. The STOCH value of 76.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VC	77 Outperform	$1.84B	6.94	25.15%	―	-1.35%	-39.06%
PLOW	74 Outperform	$551.59M	10.24	22.04%	4.94%	0.06%	137.74%
PHIN	71 Outperform	$1.62B	24.96	4.49%	2.50%	-5.44%	―
ADNT	62 Neutral	$1.06B	800.64	-0.10%	―	-5.42%	-99.08%
Sector *	60 Neutral	$6.86B	11.61	3.16%	4.15%	2.41%	-21.45%
DAN	59 Neutral	$1.90B	―	-3.92%	3.06%	-2.57%	-248.28%
GTX	54 Neutral	$1.87B	7.29	-41.90%	0.66%	-10.58%	―

* Consumer Cyclical Sector Average

Performance Comparison

PHIN

PHINIA Inc.

40.81

1.07

2.69%

DAN

Dana Holding

13.06

0.87

7.14%

PLOW

Douglas Dynamics

23.88

2.43

11.33%

Visteon

78.99

-33.82

-29.98%

ADNT

Adient

12.57

-18.18

-59.12%

GTX

Garrett Motion

9.15

-0.54

-5.57%

PHINIA Inc. Earnings Call Summary

Earnings Call Date: Apr 25, 2025 | % Change Since: -7.27% | 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.

Highlights

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.

Lowlights

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.