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PHINIA Inc.
(NYSE:PHIN)
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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.
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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)
Market Cap
$2.70B
Dividend Yield1.55%
Average Volume (3M)394.33K
Price to Earnings (P/E)20.8
Beta (1Y)1.02
Revenue Growth7.65%
EPS Growth35.57%
CountryUS
Employees12,500
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)3.53
Shares Outstanding36,638,090
10 Day Avg. Volume234,160
30 Day Avg. Volume394,335
Financial Highlights & Ratios
PEG Ratio0.23
Price to Book (P/B)1.55
Price to Sales (P/S)0.71
P/FCF Ratio13.10
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$89.00Price Target Upside13.36% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)5.98
Revenue Forecast (FY)$3.64B
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
Positive
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
Income Statement
66
Positive
Balance Sheet
61
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.62B | 3.48B | 3.40B | 3.50B | 3.35B | 3.23B |
| Gross Profit | 789.00M | 727.00M | 726.00M | 692.00M | 722.00M | 675.00M |
| EBITDA | 440.00M | 436.00M | 446.00M | 433.00M | 545.00M | 424.00M |
| Net Income | 135.00M | 130.00M | 79.00M | 102.00M | 262.00M | 152.00M |
Balance Sheet | ||||||
| Total Assets | 3.84B | 3.82B | 3.77B | 4.04B | 4.07B | 4.18B |
| Cash, Cash Equivalents and Short-Term Investments | 370.00M | 359.00M | 484.00M | 365.00M | 251.00M | 259.00M |
| Total Debt | 1.06B | 1.02B | 1.04B | 864.00M | 1.13B | 1.14B |
| Total Liabilities | 2.30B | 2.23B | 2.19B | 2.15B | 2.43B | 2.47B |
| Stockholders Equity | 1.54B | 1.59B | 1.57B | 1.89B | 1.64B | 1.71B |
Cash Flow | ||||||
| Free Cash Flow | 304.00M | 188.00M | 203.00M | 100.00M | 196.00M | 1.00M |
| Operating Cash Flow | 359.00M | 312.00M | 308.00M | 250.00M | 303.00M | 147.00M |
| Investing Cash Flow | -117.00M | -132.00M | -101.00M | -150.00M | -105.00M | -140.00M |
| Financing Cash Flow | -168.00M | -310.00M | -96.00M | 20.00M | -185.00M | -44.00M |
PHINIA Inc. Technical Analysis
Negative
78.51
Price Trends
79.36
Negative
75.63
Negative
69.12
Positive
Market Momentum
-0.90
Positive
44.01
Neutral
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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $6.54B | 12.13 | 10.90% | 2.14% | 3.55% | 25.67% | |
63 Neutral | $2.79B | 18.67 | 9.71% | 1.23% | -1.13% | -47.30% | |
62 Neutral | $2.70B | 20.85 | 8.62% | 1.45% | 7.65% | 35.57% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $5.81B | 16.66 | -46.50% | 0.95% | 8.47% | 29.11% | |
58 Neutral | $1.65B | 29.63 | 2.77% | ― | 3.85% | ― | |
55 Neutral | $2.90B | -19.80 | -13.31% | 1.63% | -23.37% | -131.29% |
* Consumer Cyclical Sector Average
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.