PHINIA Inc. (PHIN) AI Stock Analysis

• Market Cap: $2.33B
• Dividend Yield: 1.78%
• Average Volume (3M): 391.48K
• Price to Earnings (P/E): 27.3
• Beta (1Y): 1.15
• Revenue Growth: -0.72%
• EPS Growth: -4.90%
• Country: US
• Employees: 12,700
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 1.59
• Shares Outstanding: 38,442,673
• 10 Day Avg. Volume: 529,106
• 30 Day Avg. Volume: 391,483
• PEG Ratio: -1.57
• Price to Book (P/B): 1.35
• Price to Sales (P/S): 0.62
• P/FCF Ratio: 10.44
• Enterprise Value/Market Cap: 1.28
• Enterprise Value/Revenue: 0.87
• Enterprise Value/Gross Profit: 4.03
• Enterprise Value/Ebitda: 7.45
• 1Y Price Target: $62.00
• Price Target Upside: 2.43% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 4.83
• Revenue Forecast (FY): $3.44B

• Rating: 72 Outperform
• Price Target: $60.00 ▼(-0.88% Downside)

PHINIA Inc. has a solid financial foundation with strong cash flow and revenue growth. The positive earnings call and improved guidance are significant strengths. However, technical indicators and valuation suggest caution, as the stock may be overvalued with potential bearish momentum.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, enabling strategic investments and shareholder returns.

Strategic Acquisitions

Strategic acquisitions like SEM enhance product offerings and market reach, driving long-term growth and competitive advantage.

Negative Factors

Low Profit Margins

Low profit margins can limit reinvestment capabilities and shareholder returns, posing a challenge to long-term profitability.

Rising Debt Levels

Increased leverage may strain financial resources and reduce flexibility, impacting long-term financial health.

Aftermarket Margin Decline

Declining margins in key segments can erode profitability and competitiveness, affecting overall business performance.

PHINIA Inc. Business Overview & Revenue Model

Company Description

PHINIA Inc. (PHIN) is a leading provider of advanced technology solutions focused on the automotive and industrial sectors. The company specializes in the development and manufacturing of high-performance components and systems that optimize the efficiency and sustainability of vehicles. PHIN's core products include fuel systems, electrical components, and advanced sensors that enhance vehicle performance and reduce emissions, catering to both original equipment manufacturers (OEMs) and the aftermarket.

How the Company Makes Money

PHIN generates revenue primarily through the sale of its automotive components and systems to OEMs and aftermarket distributors. The company's revenue model is based on a combination of direct sales, long-term contracts with automotive manufacturers, and partnerships with other industry leaders to co-develop innovative technologies. Key revenue streams include the sale of fuel systems, electrical components, and advanced sensors, as well as ongoing support services and maintenance contracts. Additionally, PHIN benefits from significant collaborations with major automotive firms, which not only provide a steady stream of orders but also enhance its market position through shared research and development initiatives.

PHINIA Inc. Financial Statement Overview

Summary

PHINIA Inc. exhibits stable financial performance with consistent revenue growth and strong cash flow generation. However, profitability margins are relatively low, and there is room for improvement in net profit margins and operational efficiency.

Income Statement

PHINIA Inc. shows a stable revenue growth trend with a TTM revenue growth rate of 2.06%. The gross profit margin is consistent at around 22%, indicating efficient cost management. However, the net profit margin is relatively low at 2.63%, suggesting room for improvement in profitability. EBIT and EBITDA margins have decreased slightly over the years, reflecting potential operational challenges.

Balance Sheet

The company's debt-to-equity ratio has increased to 0.63, indicating a moderate level of leverage. Return on equity is stable at 5.69%, but lower than previous years, suggesting a decline in profitability. The equity ratio remains healthy at around 40%, showing a strong equity base relative to total assets.

Cash Flow

PHINIA Inc. demonstrates strong cash flow management with a significant free cash flow growth rate of 49.17% TTM. The operating cash flow to net income ratio is 0.26, indicating efficient conversion of earnings to cash. The free cash flow to net income ratio is robust at 1.24, highlighting strong cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.43B	3.40B	3.50B	3.35B	3.23B	1.03B
Gross Profit	737.00M	726.00M	692.00M	722.00M	675.00M	175.00M
EBITDA	399.00M	446.00M	433.00M	545.00M	424.00M	-26.00M
Net Income	90.00M	79.00M	102.00M	262.00M	152.00M	-124.00M
Balance Sheet
Total Assets	3.99B	3.77B	4.04B	4.07B	4.18B	0.00
Cash, Cash Equivalents and Short-Term Investments	349.00M	484.00M	365.00M	251.00M	259.00M	0.00
Total Debt	1.05B	1.04B	864.00M	1.13B	1.14B	0.00
Total Liabilities	2.40B	2.19B	2.15B	2.43B	2.47B	0.00
Stockholders Equity	1.59B	1.57B	1.89B	1.64B	1.71B	0.00
Cash Flow
Free Cash Flow	243.00M	203.00M	100.00M	196.00M	1.00M	-151.00M
Operating Cash Flow	289.00M	308.00M	250.00M	303.00M	147.00M	-97.00M
Investing Cash Flow	-120.00M	-101.00M	-150.00M	-105.00M	-140.00M	369.00M
Financing Cash Flow	-280.00M	-96.00M	20.00M	-185.00M	-44.00M	2.00M

PHINIA Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 60.53
• 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 60.53 is above the 20-day moving average (MA) of 56.07, above the 50-day MA of 54.21, and above the 200-day MA of 49.14, indicating a bullish trend. The MACD of 1.59 indicates Negative momentum. The RSI at 76.50 is Negative, neither overbought nor oversold. The STOCH value of 93.05 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
LEA	75 Outperform	$6.16B	14.55	8.96%	2.59%	-1.90%	-13.86%
VC	73 Outperform	$2.72B	8.97	23.16%	0.55%	-4.03%	-39.51%
PHIN	72 Outperform	$2.33B	27.32	5.47%	1.78%	-0.72%	-4.90%
GTX	71 Outperform	$3.38B	11.06	―	1.50%	-1.09%	56.16%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
DAN	58 Neutral	$2.77B	53.71	-4.82%	1.69%	-18.23%	―
ADNT	53 Neutral	$1.55B	-5.87	-14.41%	―	-1.04%	-1510.41%

PHINIA Inc. Corporate Events

PHINIA Inc. Settles Tax Dispute with BorgWarner

PHINIA Inc. has entered into a settlement agreement with BorgWarner Inc. to resolve claims related to tax matters following their separation in July 2023. The agreement involves PHINIA making payments totaling $78 million to BorgWarner, partially funded by tax refunds, and receiving $7 million from BorgWarner for pre-Spin-Off tax reimbursements. The settlement also includes amendments to the tax agreement, potentially allowing PHINIA to gain $29 million in tax credits by 2026, despite an expected $39 million loss recorded in Q3 2025.