Phillips 66 (PSX) AI Stock Analysis

• Market Cap: $53.01B
• Dividend Yield: 3.53%
• Average Volume (3M): 2.05M
• Price to Earnings (P/E): 31.6
• Beta (1Y): 1.05
• Revenue Growth: -12.80%
• EPS Growth: -64.40%
• Country: US
• Employees: 13,200
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Refining & Marketing
• EPS (TTM): 2.38
• Shares Outstanding: 404,124,270
• 10 Day Avg. Volume: 2,119,041
• 30 Day Avg. Volume: 2,046,949
• 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: 1.31
• Enterprise Value/Revenue: 0.52
• Enterprise Value/Gross Profit: 17.46
• Enterprise Value/Ebitda: 11.40
• 1Y Price Target: $137.55
• Price Target Upside: 3.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 69 Neutral
• Price Target: $143.00 ▲(7.49% Upside)

Phillips 66's overall stock score reflects strong operational performance in key segments and positive technical momentum. However, high valuation, liquidity concerns, and legal risks weigh on the score. The company's strategic focus on refining and midstream, along with shareholder returns, supports its outlook.

Positive Factors

Refining Capacity Expansion

Acquiring full ownership of WRB Refining LP enhances Phillips 66's refining capacity by 250 MBD, strengthening its market position and operational synergies, which supports long-term growth and shareholder value.

Midstream Segment Growth

The Midstream segment's growth trajectory, supported by strategic investments, is crucial for Phillips 66's long-term financial health, providing stable cash flows and enhancing its integrated business model.

Record Shareholder Returns

Strong capital allocation and shareholder returns indicate Phillips 66's commitment to enhancing shareholder value, reflecting robust financial management and confidence in sustained profitability.

Negative Factors

Declining Revenue Growth

A declining revenue growth trend suggests challenges in maintaining market share or pricing power, potentially impacting long-term profitability and strategic initiatives.

Increased Debt from Acquisitions

Higher debt levels from acquisitions may strain cash flow and limit financial flexibility, posing risks to Phillips 66's ability to invest in growth opportunities and manage economic downturns.

Chemicals Segment Weakness

Weak performance in the Chemicals segment, affected by market and regulatory pressures, could hinder Phillips 66's diversification efforts and long-term growth potential in this market.

Phillips 66 Business Overview & Revenue Model

Company Description

Phillips 66 operates as an energy manufacturing and logistics company. It operates through four segments: Midstream, Chemicals, Refining, and Marketing and Specialties (M&S). The Midstream segment transports crude oil and other feedstocks; delivers refined petroleum products to market; provides terminaling and storage services for crude oil and refined petroleum products; transports, stores, fractionates, exports, and markets natural gas liquids; provides other fee-based processing services; and gathers, processes, transports, and markets natural gas. The Chemicals segment produces and markets ethylene and other olefin products; aromatics and styrenics products, such as benzene, cyclohexane, styrene, and polystyrene; and various specialty chemical products, including organosulfur chemicals, solvents, catalysts, and chemicals used in drilling and mining. The Refining segment refines crude oil and other feedstocks into petroleum products, such as gasolines, distillates, aviation, and renewable fuels at 12 refineries in the United States and Europe. The M&S segment purchases for resale and markets refined petroleum products, including gasolines, distillates, and aviation fuels primarily in the United States and Europe. This segment also manufactures and markets specialty products, such as base oils and lubricants. The company was founded in 1875 and is headquartered in Houston, Texas.

How the Company Makes Money

Phillips 66 generates revenue primarily through its Refining segment, which refines crude oil into various petroleum products, such as gasoline, diesel, and jet fuel. This segment benefits from the price differentials between crude oil and refined products. The Midstream segment contributes revenue through the transportation and storage of crude oil and natural gas, earning fees for the use of its infrastructure. The Chemicals segment generates income by producing and selling petrochemicals, which are used in various industries, including plastics and manufacturing. Additionally, the Marketing and Specialties segment earns revenue by selling branded fuels and specialty products at retail locations. Partnerships with other energy companies and the development of logistics networks further enhance Phillips 66's ability to maximize earnings and ensure a steady flow of products to market.

Phillips 66 Financial Statement Overview

Summary

Phillips 66's financial performance shows a mixed picture. The income statement reflects declining margins and growth, while the balance sheet is stable but indicates declining shareholder returns. The cash flow statement highlights potential liquidity challenges.

Income Statement

Phillips 66 has shown a decline in revenue growth, with a negative trend in recent periods. The gross profit margin is relatively stable, but the net profit margin has decreased compared to previous years. The EBIT and EBITDA margins have also seen a decline, indicating reduced operational efficiency. Overall, the income statement reflects moderate profitability with some concerns about growth and margin compression.

Balance Sheet

The company's debt-to-equity ratio is moderate, suggesting a balanced approach to leveraging. However, the return on equity has decreased significantly from its peak, indicating reduced profitability for shareholders. The equity ratio remains stable, reflecting a solid capital structure. Overall, the balance sheet is stable but shows signs of declining shareholder returns.

Cash Flow

Phillips 66 has experienced a significant decline in free cash flow growth, which is a concern. The operating cash flow to net income ratio is relatively low, indicating potential challenges in converting income into cash. The free cash flow to net income ratio has also decreased, suggesting reduced cash generation relative to earnings. Overall, the cash flow statement highlights potential liquidity issues and reduced cash efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	132.82B	143.12B	147.26B	170.12B	111.94B	63.69B
Gross Profit	3.99B	4.86B	11.29B	12.77B	3.38B	180.00M
EBITDA	6.11B	5.99B	12.37B	16.91B	3.95B	-3.05B
Net Income	1.72B	2.12B	7.00B	11.02B	1.31B	-3.98B
Balance Sheet
Total Assets	75.94B	72.58B	75.50B	76.44B	55.59B	54.72B
Cash, Cash Equivalents and Short-Term Investments	1.05B	1.74B	3.32B	6.13B	3.15B	2.51B
Total Debt	20.93B	20.06B	19.36B	17.19B	14.74B	16.16B
Total Liabilities	47.31B	44.12B	43.85B	42.34B	33.96B	33.20B
Stockholders Equity	27.49B	27.41B	30.58B	29.49B	19.17B	18.98B
Cash Flow
Free Cash Flow	1.49B	2.33B	4.61B	8.62B	4.16B	-809.00M
Operating Cash Flow	3.36B	4.19B	7.03B	10.81B	6.02B	2.11B
Investing Cash Flow	-3.16B	-2.46B	-5.86B	-1.49B	-1.87B	-3.08B
Financing Cash Flow	-1.54B	-3.31B	-4.03B	-6.39B	-3.47B	1.79B

Phillips 66 Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 133.04
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PSX, the sentiment is Positive. The current price of 133.04 is above the 20-day moving average (MA) of 130.92, above the 50-day MA of 126.38, and above the 200-day MA of 118.61, indicating a bullish trend. The MACD of 2.13 indicates Positive momentum. The RSI at 62.02 is Neutral, neither overbought nor oversold. The STOCH value of 59.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PSX.

Phillips 66 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VLO	73 Outperform	50.84B	67.44	3.17%	2.72%	-11.72%	-86.21%
PSX	69 Neutral	$53.01B	31.57	6.00%	3.53%	-12.80%	-64.40%
SUN	66 Neutral	7.64B	24.59	6.81%	7.15%	-8.65%	-73.25%
DINO	65 Neutral	9.85B	-112.15	-0.91%	3.80%	-14.58%	-107.50%
MPC	65 Neutral	56.15B	27.11	12.83%	1.97%	-10.03%	-64.63%
PBF	51 Neutral	3.53B	-3.55	-9.63%	3.61%	-18.73%	-236.79%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

Phillips 66 Corporate Events

Phillips 66 Acquires Full Ownership of WRB Refining

On September 9, 2025, Phillips 66 announced an agreement to acquire the remaining 50% ownership interest in WRB Refining LP from Cenovus Energy Inc. for $1.4 billion. This acquisition will give Phillips 66 full ownership of the Wood River and Borger refineries, enhancing its industry position and operational synergies. The transaction is expected to increase Phillips 66’s refining capacity by approximately 250 MBD and is anticipated to deliver annual synergies of about $50 million, unlocking opportunities for high-return projects and long-term shareholder value.

Phillips 66 Ordered to Pay $195 Million Damages

On July 30, 2025, the Superior Court of California ordered Phillips 66 to pay $195 million in exemplary damages to Propel Fuels, in addition to $604.9 million in compensatory damages awarded in October 2024. Phillips 66 denies wrongdoing and plans to appeal, although the outcome is uncertain.