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Now trading at a price of $124.65, Phillips 66 has moved -1.4% so far today.

Phillips 66 returned gains of 23.8% last year, with its stock price reaching a high of $131.37 and a low of $89.74. Over the same period, the stock outperformed the S&P 500 index by 8.8%. More recently, the company's 50-day average price was $116.28. Phillips 66 operates as an energy manufacturing and logistics company in the United States, the United Kingdom, Germany, and internationally. Based in Houston, TX, the large-cap Energy company has 13,000 full time employees. Phillips 66 has offered a 3.3% dividend yield over the last 12 months.

The Business Has Weak Operating Margins:

2018 2019 2020 2021 2022 2023
Revenue (MM) $111,461 $107,293 $64,129 $111,476 $169,990 $149,408
Revenue Growth n/a -3.74% -40.23% 73.83% 52.49% -12.11%
Operating Margins 7% 4% -6% 1% 6% 5%
Net Margins 7% 4% 0% 2% 9% 7%
Net Income (MM) $7,445 $4,178 $261 $1,740 $14,639 $10,255
Net Interest Expense (MM) $504 $458 $499 $581 $2,737 $872
Depreciation & Amort. (MM) $1,356 $1,341 $1,395 $1,605 $1,629 $1,961
Earnings Per Share $11.8 $6.77 -$9.06 $2.97 $23.27 $16.900000000000002
EPS Growth n/a -42.63% -233.83% 132.78% 683.5% -27.37%
Diluted Shares (MM) 474 454 440 440 474 426
Free Cash Flow (MM) $7,573 $4,808 $2,111 $6,017 $10,813 $9,589
Current Ratio 1.48 1.24 1.39 1.15 1.38 1.29
Total Debt (MM) $24,710 $19,581 $16,844 $15,918 $18,529 $23,008
Net Debt / EBITDA 2.46 3.26 -5.55 4.37 0.98 1.7

Phillips 66 has growing revenues and no capital expenditures and positive EPS growth. Additionally, the company's financial statements display irregular cash flows and healthy leverage. However, the firm has weak operating margins with a negative growth trend.

Phillips 66 Shares Are Inexpensive:

Phillips 66 has a trailing twelve month P/E ratio of 7.0, compared to an average of 8.53 for the Energy sector. Based on its EPS guidance of $13.48, the company has a forward P/E ratio of 8.6. The 1.9% compound average growth rate of Phillips 66's historical and projected earnings per share yields a PEG ratio of 3.66. This suggests that these shares are overvalued. The market is placing a fair value on Phillips 66's equity, since its P/B ratio of 1.78 is comparable to its sector average of 1.78. The company's shares are currently trading -25.0% below their Graham number.

Phillips 66 Has an Average Rating of Buy:

The 16 analysts following Phillips 66 have set target prices ranging from $116.0 to $150.0 per share, for an average of $133.17 with a buy rating. As of April 2023, the company is trading -12.7% away from its average target price, indicating that there is an analyst consensus of some upside potential.

Phillips 66 has an average amount of shares sold short because 2.4% of the company's shares are sold short. Institutions own 74.2% of the company's shares, and the insider ownership rate stands at 0.4%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 9% stake in the company is worth $5,002,018,957.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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