Phillips 66 (PSX) AI Stock Analysis

• Market Cap: $54.02B
• Dividend Yield: 3.52%
• Average Volume (3M): 2.58M
• Price to Earnings (P/E): 32.2
• Beta (1Y): 1.09
• 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): 2.52
• Shares Outstanding: 404,124,270
• 10 Day Avg. Volume: 1,991,983
• 30 Day Avg. Volume: 2,577,981
• 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: 1.29
• Enterprise Value/Revenue: 0.52
• Enterprise Value/Gross Profit: 17.46
• Enterprise Value/Ebitda: 11.40
• 1Y Price Target: $146.50
• Price Target Upside: 9.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 64 Neutral
• Price Target: $141.00 ▲(5.49% Upside)

Phillips 66's overall stock score reflects a mixed financial performance with strong earnings call highlights. The company's strategic focus on refining and midstream segments supports a positive outlook, but high valuation and technical indicators suggest caution. Addressing challenges in chemicals and renewable fuels, along with managing debt, will be crucial for future growth.

Positive Factors

Strong Refining Utilization

High refining utilization indicates efficient operations and strong demand for refined products, supporting long-term revenue stability.

Midstream Segment Growth

Growth in the Midstream segment enhances Phillips 66's infrastructure capabilities, ensuring steady income and supporting strategic goals.

Record Shareholder Returns

Significant shareholder returns reflect strong capital allocation strategies, enhancing investor confidence and long-term value creation.

Negative Factors

Chemicals Segment Weakness

Weakness in the Chemicals segment due to lower margins impacts profitability, requiring strategic adjustments to improve performance.

Challenges in Renewable Fuels

Weak margins in renewable fuels highlight challenges in adapting to regulatory changes and market pressures, affecting future growth.

Increased Debt from Acquisitions

Increased debt from acquisitions may strain financial flexibility, necessitating careful management to maintain balance sheet health.

Phillips 66 Business Overview & Revenue Model

Company Description

Phillips 66 (PSX) is a diversified energy manufacturing and logistics company based in the United States. The company operates through four main segments: Midstream, Chemicals, Refining, and Marketing and Specialties. Phillips 66 is engaged in the processing and transportation of crude oil, natural gas, and refined products, while also producing and marketing petrochemicals and specialty products. With a strong focus on safety and sustainability, Phillips 66 plays a vital role in the energy supply chain, catering to both domestic and international markets.

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: 133.66
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 133.66 is above the 20-day moving average (MA) of 131.75, above the 50-day MA of 131.75, and above the 200-day MA of 120.91, indicating a bullish trend. The MACD of 0.56 indicates Negative momentum. The RSI at 53.99 is Neutral, neither overbought nor oversold. The STOCH value of 74.44 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	―	$51.65B	35.25	6.07%	2.63%	-8.48%	-56.92%
Sector *	―	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
DINO	―	$10.20B	―	-0.93%	3.78%	-14.58%	-107.50%
MPC	―	$58.44B	28.47	11.24%	1.89%	-10.03%	-64.63%
PSX	―	$54.02B	32.17	6.00%	3.52%	-12.80%	-64.40%
DK	―	$2.25B	―	-200.75%	2.73%	-29.94%	-723.41%
PBF	―	$3.79B	―	-17.30%	3.36%	-18.73%	-236.79%

Phillips 66 Corporate Events

Phillips 66 Enhances Financial Flexibility with Securitization Amendment

On September 29, 2025, Phillips 66 Company amended its accounts receivable securitization program, increasing the maximum facility size from $1 billion to $1.25 billion and extending the maturity date to September 28, 2026. This amendment is expected to enhance the company’s financial flexibility and support its operational strategies, potentially impacting its market positioning and stakeholder interests positively.

The most recent analyst rating on (PSX) stock is a Hold with a $155.00 price target. To see the full list of analyst forecasts on Phillips 66 stock, see the PSX Stock Forecast page.

Phillips 66 Announces $2 Billion Notes Offering

On September 16, 2025, Phillips 66 Company entered into a Terms Agreement for a public offering of $2 billion in junior subordinated notes, guaranteed by Phillips 66. This financial move, involving Series A and Series B notes due in 2056, is expected to impact the company’s financial structure and market positioning.

The most recent analyst rating on (PSX) stock is a Buy with a $143.00 price target. To see the full list of analyst forecasts on Phillips 66 stock, see the PSX Stock Forecast page.

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.

The most recent analyst rating on (PSX) stock is a Hold with a $147.00 price target. To see the full list of analyst forecasts on Phillips 66 stock, see the PSX Stock Forecast page.

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.

The most recent analyst rating on (PSX) stock is a Buy with a $176.00 price target. To see the full list of analyst forecasts on Phillips 66 stock, see the PSX Stock Forecast page.

Phillips 66 Earnings Call: Strong Execution Amid Challenges

Phillips 66’s recent earnings call conveyed a generally positive sentiment, highlighting the company’s strong operational execution, particularly in its refining and midstream segments. The call also emphasized robust shareholder returns. However, challenges were noted in the chemicals segment, renewable fuels margins, and higher debt levels, indicating areas of concern for the company moving forward.