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

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PHINIA Inc.

(NYSE:PHIN)

Rating:71Outperform
Price Target:
$54.00
▲(11.89%Upside)
PHINIA Inc. demonstrates strong cash flow and stable margins, but faces challenges in declining revenue growth and valuation concerns. The technical analysis indicates potential overbought conditions despite bullish momentum. The earnings call highlighted some positive business developments but also emphasized cost pressures and market challenges.
Positive Factors
Future Growth
Management injects confidence in future growth.
Market Diversification
PHIN is diversifying away from automotive end markets, offering growth and margin expansion opportunities in more profitable sectors such as commercial vehicles and off-highway vehicles.
Negative Factors
Production Challenges
Organic sales are now $110mm lower due to lower LV and CV production.

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

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 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. demonstrates strong cash flow management and stable profit margins, which are essential for its financial health. However, concerns arise from declining revenue growth and return on equity, indicating the need for improved profitability.
Income Statement
78
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
70
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
82
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.34B3.40B3.50B3.44B3.23B1.03B
Gross Profit736.00M756.00M724.00M726.00M676.00M175.00M
EBITDA433.00M446.00M433.00M545.00M424.00M-26.00M
Net Income76.00M79.00M102.00M187.00M152.00M-124.00M
Balance Sheet
Total Assets3.75B3.77B4.04B4.07B4.18B0.00
Cash, Cash Equivalents and Short-Term Investments373.00M484.00M365.00M251.00M259.00M0.00
Total Debt1.04B1.04B864.00M113.00M100.00M0.00
Total Liabilities2.21B2.19B2.15B2.43B2.47B0.00
Stockholders Equity1.54B1.57B1.89B1.64B1.71B0.00
Cash Flow
Free Cash Flow240.00M203.00M100.00M196.00M1.00M-151.00M
Operating Cash Flow317.00M308.00M250.00M303.00M147.00M-97.00M
Investing Cash Flow-94.00M-101.00M-150.00M-105.00M-140.00M369.00M
Financing Cash Flow-172.00M-96.00M20.00M-185.00M-44.00M2.00M

PHINIA Inc. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price48.26
Price Trends
50DMA
43.62
Positive
100DMA
43.55
Positive
200DMA
46.15
Positive
Market Momentum
MACD
1.40
Negative
RSI
70.62
Negative
STOCH
92.91
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 48.26 is above the 20-day moving average (MA) of 44.99, above the 50-day MA of 43.62, and above the 200-day MA of 46.15, indicating a bullish trend. The MACD of 1.40 indicates Negative momentum. The RSI at 70.62 is Negative, neither overbought nor oversold. The STOCH value of 92.91 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 1 New Risks
1.
We or the Former Parent may fail to perform under, or additional disputes may arise between the parties relating to, various transaction agreements that have been executed in connection with the separation. Q4, 2024

PHINIA Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
VCVC
80
Outperform
$3.02B10.3725.15%-1.35%-39.06%
79
Outperform
$704.87M11.2626.52%3.88%1.14%127.04%
71
Outperform
$1.92B27.544.49%2.24%-5.44%-22.90%
66
Neutral
$1.91B805.10-14.33%-5.33%-292.58%
63
Neutral
$16.85B11.30-7.01%2.93%1.72%-24.85%
DADAN
61
Neutral
$2.46B-2.40%2.37%-7.00%-366.59%
GTGTX
61
Neutral
$2.28B8.73-41.90%2.13%-10.26%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PHIN
PHINIA Inc.
48.95
3.68
8.13%
DAN
Dana Incorporated
17.13
5.09
42.28%
PLOW
Douglas Dynamics
30.15
7.31
32.01%
VC
Visteon
114.36
-0.64
-0.56%
ADNT
Adient
22.99
-2.34
-9.24%
GTX
Garrett Motion
11.39
1.84
19.27%

PHINIA Inc. Corporate Events

Executive/Board ChangesShareholder Meetings
PHINIA Inc. Concludes Annual Shareholder Meeting
Neutral
May 28, 2025

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.

The most recent analyst rating on (PHIN) stock is a Hold with a $50.00 price target. To see the full list of analyst forecasts on PHINIA Inc. stock, see the PHIN Stock Forecast page.

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 11, 2025