Phillips 66 (PSX) AI Stock Analysis

• Market Cap: $48.74B
• Dividend Yield: 4.01%
• Average Volume (3M): 3.44M
• Price to Earnings (P/E): 27.3
• Beta (1Y): 1.06
• Revenue Growth: -7.61%
• EPS Growth: -66.18%
• Country: US
• Employees: 13,200
• Sector: Energy
• Sector Strength: 55
• Industry: Oil & Gas Refining & Marketing
• EPS (TTM): -0.90
• Shares Outstanding: 407,437,260
• 10 Day Avg. Volume: 4,340,912
• 30 Day Avg. Volume: 3,442,318
• PEG Ratio: -2.44
• Price to Book (P/B): 1.87
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.18
• Enterprise Value/Market Cap: 1.40
• Enterprise Value/Revenue: 0.12
• Enterprise Value/Gross Profit: 8.11
• Enterprise Value/Ebitda: 2.34
• 1Y Price Target: $130.27
• Price Target Upside: 8.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 72 Outperform
• Price Target: $127.00 ▲(5.68%Upside)

Phillips 66's overall stock score reflects a stable financial profile with strong cash flow management and strategic corporate actions enhancing future growth prospects. While the technical analysis and valuation show some caution, the company's focus on shareholder returns and strategic expansion initiatives are significant positives.

Positive Factors

Renewable Energy Transition

The startup of the Rodeo Renewed project will convert the refinery into one of the world’s largest renewable fuels facilities, potentially boosting refinery performance and profitability.

Shareholder Return Strategy

Portfolio flexibility, quality of assets, and commitment to returning >50% of OCF to shareholders all support a robust total return profile.

Strategic Acquisitions

Recent acquisitions, notably DCP and EPIC, bolster PSX’s midstream integration, enabling more complete wellhead-to-market participation.

Negative Factors

Activist Campaign Concerns

If Elliott loses the activism battle, there could be an overhang on PSX as Elliott exits the stock.

Chemical Business Challenges

High exposure to the chemical business in the US and EU, which remains challenged, has led to a HOLD rating recommendation.

Corporate Governance Issues

PSX corporate governance has been somewhat questionable, with issues like not declassifying its board despite favorable shareholder votes.

Phillips 66 Business Overview & Revenue Model

Company Description

Phillips 66 (PSX) is a diversified energy manufacturing and logistics company headquartered in Houston, Texas. The company operates in four primary segments: Midstream, Chemicals, Refining, and Marketing and Specialties. Phillips 66 is involved in the transportation, refining, and marketing of petroleum products, as well as the production of petrochemicals and plastics through its joint ventures. Its core products include gasoline, diesel, jet fuel, lubricants, and a variety of petrochemical products.

How the Company Makes Money

Phillips 66 generates revenue through several streams. In the Midstream segment, the company earns money by transporting, storing, and processing crude oil and refined petroleum products. The Chemicals segment, primarily through its joint venture with Chevron, Chevron Phillips Chemical Company LLC, produces and markets petrochemicals and plastics, contributing significantly to revenue. The Refining segment involves the processing of crude oil into refined petroleum products, with earnings driven by refining margins and the sale of these products. Lastly, the Marketing and Specialties segment generates income through the sale of refined products and specialty products like lubricants, primarily through its network of branded retail and wholesale outlets. Partnerships, strategic investments, and market conditions significantly impact Phillips 66's earnings, affecting refining margins, chemical prices, and transportation fees.

Phillips 66 Financial Statement Overview

Summary

Phillips 66 presents a stable financial profile with strengths in cash flow generation and a balanced capital structure. However, profitability metrics like net profit margin and ROE are areas of concern. Despite these, the company demonstrates resilience through consistent revenue and gross profit figures, aided by effective cash flow management.

Income Statement

Phillips 66 has shown a mixed performance with strong gross profit margins and positive revenue growth over the years. The TTM (Trailing-Twelve-Months) data indicates a gross profit margin of 27.44%, which is relatively healthy for the industry. However, the net profit margin for TTM stands at only 1.33%, indicating lower profitability. Revenue growth has been inconsistent, with slight declines in recent years, but overall stability has been maintained.

Balance Sheet

The company's balance sheet reflects moderate stability, with a debt-to-equity ratio of 0.69 in TTM, indicating a balanced use of debt and equity financing. The return on equity is relatively low at 6.81% for TTM, suggesting limited returns to shareholders. The equity ratio of 37.97% shows a decent level of equity financing in the asset structure.

Cash Flow

Phillips 66 demonstrates strong cash flow management with a significant operating cash flow to net income ratio of 2.49 in TTM, indicating efficient conversion of net income into cash flows. The free cash flow has grown by 45.02% from the previous year, reflecting improved cash generation capabilities. Despite negative investing cash flows, the company maintains a healthy cash flow position.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	137.74B	143.15B	147.40B	169.99B	111.48B	64.13B
Gross Profit	8.40B	10.83B	11.15B	18.43B	7.77B	5.03B
EBITDA	5.95B	5.99B	12.37B	16.91B	3.95B	-3.05B
Net Income	1.86B	2.11B	7.00B	11.02B	1.31B	-3.71B
Balance Sheet
Total Assets	71.84B	72.58B	75.50B	76.44B	55.59B	54.72B
Cash, Cash Equivalents and Short-Term Investments	1.49B	1.74B	3.32B	6.13B	3.15B	2.51B
Total Debt	18.80B	20.06B	19.36B	17.19B	14.45B	15.89B
Total Liabilities	43.48B	44.12B	43.85B	42.34B	33.96B	33.20B
Stockholders Equity	27.27B	27.41B	30.58B	29.49B	19.17B	18.98B
Cash Flow
Free Cash Flow	2.96B	2.33B	4.61B	8.62B	4.16B	-809.00M
Operating Cash Flow	4.61B	4.19B	7.03B	10.81B	6.02B	2.11B
Investing Cash Flow	-207.00M	-2.46B	-5.86B	-1.49B	-1.87B	-3.08B
Financing Cash Flow	-4.51B	-3.31B	-4.03B	-6.39B	-3.47B	1.79B

Phillips 66 Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 120.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 120.17 is above the 20-day moving average (MA) of 118.74, above the 50-day MA of 112.89, and above the 200-day MA of 119.62, indicating a bullish trend. The MACD of 2.09 indicates Positive momentum. The RSI at 54.71 is Neutral, neither overbought nor oversold. The STOCH value of 16.78 is Positive, 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
PSX	72 Outperform	$48.74B	27.28	6.48%	4.01%	-7.61%	-66.18%
MPC	72 Outperform	$50.90B	23.28	12.37%	2.20%	-6.39%	-64.50%
DINO	71 Outperform	$7.72B	35.13	-1.49%	4.88%	-11.17%	-109.60%
SUN	68 Neutral	$7.86B	9.25	26.11%	6.98%	-3.59%	22.77%
Sector *	68 Neutral	$14.70B	9.57	6.41%	5.37%	4.12%	-71.24%
VLO	66 Neutral	$42.51B	47.90	3.73%	3.33%	-8.44%	-85.95%
PBF	48 Neutral	$2.46B	―	-18.01%	5.18%	-16.30%	-160.78%

Phillips 66 Corporate Events

Phillips 66 Holds Annual Shareholders Meeting Decisions

On May 21, 2025, Phillips 66 held its Annual Meeting of Shareholders, where several key decisions were made. The shareholders elected four Class I directors to serve until 2028, approved the executive compensation and its annual advisory frequency, and ratified Ernst & Young LLP as the independent auditor for 2025. However, proposals to declassify the Board of Directors and to require annual director resignations were not approved. These decisions reflect the company’s ongoing governance strategies and may impact its operational focus and stakeholder relations.

The most recent analyst rating on (PSX) stock is a Buy with a $191.00 price target. To see the full list of analyst forecasts on Phillips 66 stock, see the PSX Stock Forecast page.

Phillips 66 Announces Preliminary Board Election Results

On May 21, 2025, Phillips 66 held its annual meeting of shareholders where preliminary results indicated the election of two Phillips 66 nominees, Robert W. Pease and Nigel Hearne, and two Elliott Management nominees, Sigmund L. Cornelius and Michael A. Heim, to the board of directors. Despite significant support, the proposal to declassify the board did not pass, as it failed to secure the required 80% affirmative vote. The board remains committed to declassification, acknowledging shareholder preference for annual elections. The results are preliminary until certified by the independent Inspector of Election.

The most recent analyst rating on (PSX) stock is a Buy with a $191.00 price target. To see the full list of analyst forecasts on Phillips 66 stock, see the PSX Stock Forecast page.

Phillips 66 Sells Majority Stake in European Assets

On May 15, 2025, Phillips 66 announced that its subsidiary, Phillips 66 Continental Holding GmbH, has entered into an agreement to sell a 65% interest in its retail marketing assets in Germany and Austria to a consortium owned by Energy Equation Partners and Stonepeak. This transaction, expected to close in the second half of 2025, will allow Phillips 66 to optimize its portfolio and enhance shareholder value by monetizing non-core assets while retaining a 35% interest in the business. The deal values the retail business at approximately €2.5 billion and is expected to generate pre-tax cash proceeds of around €1.5 billion, which will be used to support strategic priorities such as debt reduction and shareholder returns.

The most recent analyst rating on (PSX) stock is a Buy with a $191.00 price target. To see the full list of analyst forecasts on Phillips 66 stock, see the PSX Stock Forecast page.

Phillips 66 Completes $2.2 Billion Acquisition of EPIC Y-Grade

On April 1, 2025, Phillips 66 completed the acquisition of EPIC Y-Grade GP, LLC and EPIC Y-Grade, LP for approximately $2.2 billion, enhancing its position as a leading integrated downstream energy provider. This acquisition, which includes natural gas liquids pipelines and fractionation facilities, strengthens Phillips 66’s ability to deliver energy products efficiently and is expected to create long-term value for shareholders. The expansion of the NGL pipeline capacity is planned to be completed by the fourth quarter of 2026, further integrating Permian production with Gulf Coast markets.