Now trading at a price of $129.46, Phillips 66 has moved -0.5% so far today.
Phillips 66 returned gains of 29.3% 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 6.8%. More recently, the company's 50-day average price was $117.02. 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 3.2% 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.
The Market Is Undervaluing Phillips 66:
Phillips 66 has a trailing twelve month P/E ratio of 7.1, compared to an average of 8.53 for the Energy sector. Based on its EPS guidance of $13.18, the company has a forward P/E ratio of 8.9. The 1.6% compound average growth rate of Phillips 66's historical and projected earnings per share yields a PEG ratio of 4.44. 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 1.85 is comparable to its sector average of 1.78. The company's shares are currently trading -22.1% below their Graham number.
Analysts Give Phillips 66 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 $135.98 with a buy rating. As of April 2023, the company is trading -13.9% 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 $5,195,037,303.
