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PHINIA Inc. (PHIN)
NYSE:PHIN
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PHINIA Inc. (PHIN) AI Stock Analysis

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PHIN

PHINIA Inc.

(NYSE:PHIN)

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Neutral 62 (OpenAI - 5.2)
Rating:62Neutral
Price Target:
$77.00
▼(-1.92% Downside)
Action:Reiterated
Date:07/31/26
Overall score reflects solid underlying financial performance led by strong cash flow conversion and improving profitability, plus a constructive earnings outlook with maintained guidance midpoint. These positives are partially offset by weak near-term technical positioning (price below the 20/50/100-day averages) and a valuation that looks only moderately attractive (P/E ~22 with a modest ~1.56% yield).
Positive Factors
Strong cash generation
PHINIA's high cash conversion (TTM OCF $359M, FCF $304M, FCF ≈84% of net income) provides durable internal funding for capex, dividends, buybacks and tuck‑ins. Reliable FCF improves resilience to cyclical auto volumes and supports deleveraging and strategic investments over the next several quarters.
Negative Factors
Rising leverage and lower equity cushion
Higher leverage and a reduced equity base versus 2023 materially tighten financial flexibility. With debt near ~$1.0B and D/E ≈0.67, PHINIA depends on continued strong cash conversion to maintain investment, M&A and shareholder returns without compromising liquidity if end markets soften.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
PHINIA's high cash conversion (TTM OCF $359M, FCF $304M, FCF ≈84% of net income) provides durable internal funding for capex, dividends, buybacks and tuck‑ins. Reliable FCF improves resilience to cyclical auto volumes and supports deleveraging and strategic investments over the next several quarters.
Read all positive factors

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

PHINIA Inc. Business Overview & Revenue Model

Company Description
PHINIA Inc. specializes in the engineering and production of fuel injection components and systems for both gasoline and diesel engines. Beyond its core manufacturing, the company extends its reach by supplying a variety of new and reconditioned p...
How the Company Makes Money
PHINIA primarily makes money by selling engineered components and systems for vehicle and industrial powertrain applications. The core revenue stream is the sale of fuel-system products (such as fuel injection equipment and related fuel delivery c...

PHINIA Inc. Earnings Call Summary

Earnings Call Date:Jul 30, 2026
(Q2-2026)
|
% Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call conveyed a broadly positive operational and financial performance: solid revenue growth, strong free cash flow generation, improved EPS, disciplined capital returns, and an accretive tuck-in acquisition (stoba) expected to expand capabilities and margins. Offsetting items include FX and tariff-related top-line impacts, a modest decline in adjusted EBITDA margin (40 bps), increased incentive and stock‑based compensation costs, and regional weakness in China. Management retained a prudent and steady capital allocation stance while tightening guidance ranges and maintaining the midpoint, signaling confidence in execution despite external uncertainties.
Positive Updates
Top-line Growth
Total net sales of $940 million in Q2, up 5.6% year-over-year. Excluding FX impacts, tariff pass-throughs and SEM contribution, revenue increased ~2% year-over-year.
Negative Updates
Foreign Exchange Headwind
Unfavorable FX translation reduced revenue by approximately $21 million in the quarter as RMB, euro and Brazilian real strengthened versus the U.S. dollar.
Read all updates
Q2-2026 Updates
Negative
Top-line Growth
Total net sales of $940 million in Q2, up 5.6% year-over-year. Excluding FX impacts, tariff pass-throughs and SEM contribution, revenue increased ~2% year-over-year.
Read all positive updates
Company Guidance
PHINIA tightened its 2026 outlook while keeping the midpoint, guiding net sales of $3.57–3.67 billion (mid‑single‑digit growth inclusive of FX; low‑single‑digit ex‑FX), adjusted EBITDA of $485–515 million (13.5%–14.1% margin) and adjusted free cash flow of $210–250 million, with an adjusted tax rate of 30%–33%; management reiterated a ~4% FY CapEx target (Q2 CapEx was 2.3%), maintained net leverage below its 1.5x target (Q2 net leverage 1.3x) and $820 million total liquidity, noted the guide excludes impacts from the announced stoba acquisition and potential policy changes, and said the pending stoba deal (expected close Q4’26) would add roughly $80 million of third‑party sales and ~$25 million of run‑rate EBITDA (≈40 bps margin accretion) on closing.

PHINIA Inc. Financial Statement Overview

Summary
Financials are solid but not standout: cash generation is a strength (TTM OCF $359M and FCF $304M; FCF ~84% of net income), while profitability is improving but still thin (TTM net margin ~4.0% and EBIT margin ~8.1%) and below the stronger 2022 profile. Leverage is workable but less cushioned than 2023 (TTM D/E ~0.67 and equity lower vs. 2023), making consistent cash flow important.
Income Statement
66
Positive
Balance Sheet
61
Positive
Cash Flow
74
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue3.62B3.48B3.40B3.50B3.35B3.23B
Gross Profit789.00M727.00M726.00M692.00M722.00M675.00M
EBITDA440.00M436.00M446.00M433.00M545.00M424.00M
Net Income135.00M130.00M79.00M102.00M262.00M152.00M
Balance Sheet
Total Assets3.84B3.82B3.77B4.04B4.07B4.18B
Cash, Cash Equivalents and Short-Term Investments370.00M359.00M484.00M365.00M251.00M259.00M
Total Debt1.06B1.02B1.04B864.00M1.13B1.14B
Total Liabilities2.30B2.23B2.19B2.15B2.43B2.47B
Stockholders Equity1.54B1.59B1.57B1.89B1.64B1.71B
Cash Flow
Free Cash Flow304.00M188.00M203.00M100.00M196.00M1.00M
Operating Cash Flow359.00M312.00M308.00M250.00M303.00M147.00M
Investing Cash Flow-117.00M-132.00M-101.00M-150.00M-105.00M-140.00M
Financing Cash Flow-168.00M-310.00M-96.00M20.00M-185.00M-44.00M

PHINIA Inc. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price78.51
Price Trends
50DMA
79.36
Negative
100DMA
75.63
Negative
200DMA
69.12
Positive
Market Momentum
MACD
-0.90
Positive
RSI
44.01
Neutral
STOCH
50.87
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 78.51 is above the 20-day moving average (MA) of 78.05, below the 50-day MA of 79.36, and above the 200-day MA of 69.12, indicating a neutral trend. The MACD of -0.90 indicates Positive momentum. The RSI at 44.01 is Neutral, neither overbought nor oversold. The STOCH value of 50.87 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 30 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
67
Neutral
$6.54B12.1310.90%2.14%3.55%25.67%
63
Neutral
$2.79B18.679.71%1.23%-1.13%-47.30%
62
Neutral
$2.70B20.858.62%1.45%7.65%35.57%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
61
Neutral
$5.81B16.66-46.50%0.95%8.47%29.11%
58
Neutral
$1.65B29.632.77%3.85%
55
Neutral
$2.90B-19.80-13.31%1.63%-23.37%-131.29%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PHIN
PHINIA Inc.
74.91
23.13
44.66%
DAN
Dana Incorporated
28.44
10.90
62.17%
LEA
Lear
122.84
29.61
31.76%
VC
Visteon
104.13
-7.92
-7.07%
ADNT
Adient
19.42
-2.45
-11.20%
GTX
Garrett Motion
29.85
17.58
143.22%

PHINIA Inc. Corporate Events

Executive/Board ChangesShareholder Meetings
PHINIA Shareholders Endorse Board, Pay and Auditor Choices
Positive
May 28, 2026
At PHINIA Inc.’s annual meeting of shareholders held on May 22, 2026, investors elected eight director nominees to serve until the next annual meeting, reinforcing continuity in the company’s board leadership. Shareholders also approve...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jul 31, 2026