PHINIA Inc. (PHIN) AI Stock Analysis

• Market Cap: $2.29B
• Dividend Yield: 1.8%
• Average Volume (3M): 457.90K
• Price to Earnings (P/E): 22.8
• Beta (1Y): 1.23
• Revenue Growth: -4.30%
• EPS Growth: 39.80%
• Country: US
• Employees: 12,700
• Sector: Consumer Cyclical
• Sector Strength: 82
• Industry: Auto - Parts
• EPS (TTM): 1.27
• Shares Outstanding: 38,904,476
• 10 Day Avg. Volume: 411,251
• 30 Day Avg. Volume: 457,897
• 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: 1.08
• Enterprise Value/Revenue: 0.74
• Enterprise Value/Gross Profit: 3.33
• Enterprise Value/Ebitda: 5.50
• 1Y Price Target: $57.00
• Price Target Upside: -3.32% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 74 Outperform
• Price Target: $56.00 ▼(-5.02% Downside)

PHINIA Inc.'s overall stock score is driven by its solid financial performance and positive earnings call sentiment. The company's strong cash generation and strategic growth initiatives are significant strengths. However, technical indicators suggest the stock may be overbought, and valuation metrics indicate moderate attractiveness.

Positive Factors

Growth Strategy

Management injects confidence in future growth.

Market Position

PHIN is making progress with their initiatives in the aerospace and off-highway end-markets, and gaining share in LV which offsets sales pressure from higher BEV penetration.

Valuation

PHIN’s exposure to the aftermarket is not appropriately reflected in the market’s valuation, indicating potential for a revaluation and premium pricing.

Negative Factors

Market Valuation

The aftermarket business partially shields PHIN from market volatility, translating into a premium valuation versus the more cyclical auto supplier group.

Sales Performance

Organic sales are now $110mm lower due to lower LV and CV production.

PHINIA Inc. Business Overview & Revenue Model

Company Description

PHINIA Inc. (PHIN) is a company engaged in the automotive industry, focusing on the development and production of advanced fuel systems and electrical systems for vehicles. The company's core products include fuel injection systems, ignition systems, and components designed to enhance vehicle performance and efficiency. PHINIA operates in both the original equipment manufacturer (OEM) sector and the aftermarket sector, providing solutions that cater to a diverse range of automotive applications.

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. displays solid financial health, marked by effective cost management and strong cash generation capabilities. While cash flow and operational efficiency are strengths, the modest net profit margin and inconsistent revenue growth highlight 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: Positive
• Last Price: 58.96
• 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 PHIN, the sentiment is Positive. The current price of 58.96 is above the 20-day moving average (MA) of 53.75, above the 50-day MA of 49.58, and above the 200-day MA of 47.08, indicating a bullish trend. The MACD of 2.50 indicates Negative momentum. The RSI at 78.38 is Negative, neither overbought nor oversold. The STOCH value of 92.13 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PHIN.

PHINIA Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VC	82 Outperform	$3.48B	12.16	22.96%	0.22%	-3.26%	-45.84%
PLOW	81 Outperform	$775.56M	12.16	25.41%	3.51%	1.47%	131.61%
PHIN	74 Outperform	$2.29B	22.80	6.40%	1.80%	-4.30%	39.80%
GTX	67 Neutral	$2.67B	9.24	-41.90%	0.90%	-6.71%	43.34%
ADNT	66 Neutral	$2.03B	805.10	-11.85%	―	-3.00%	-447.89%
Sector *	61 Neutral	$17.75B	12.51	-5.49%	3.06%	1.43%	-14.10%
DAN	48 Neutral	$2.67B	―	-5.00%	1.97%	-14.46%	-2170.83%

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.