Phillips 66PSX
NYSE • Energy
$162.50
P/E
15.08
PEG
—
FCF Yield
4.7%
Rev Growth YoY
+1.3% YoY
Gross Margin
12.3%
Health Score
6/10
D/E Ratio
0.68
Confidence
MEDIUM
Business Snapshot
Phillips 66 is a diversified downstream energy company operating across refining, midstream, chemicals, and marketing segments, with operations primarily in the United States and internationally. It processes crude oil into petroleum products and also holds significant stakes in pipeline and petrochemical joint ventures. At a market cap of $63.86B, Phillips 66 is firmly a **large-cap** company within the Energy sector's Oil & Gas Refining & Marketing industry.
Financial Health
**Score: 6/10** Phillips 66 maintains positive free cash flow of $3.03B (FCF yield of 4.7%), providing meaningful capital-return capacity, but thin margins are a structural concern for a refiner of its scale. Net margin stands at just 3.3% on TTM revenue of $132.38B, which is typical for refining but leaves little buffer against margin compression...
Risk Assessment
- **PRICE vs. DCF:** Current price of $162.50 trades at a ~44% premium to the Python DCF estimate of $113.00 (WACC: 9.0%, growth: 1.3%), suggesting limited margin of safety under conservative assumptions. - **TECHNICAL TREND:** MACD signal is bearish and price sits below the 50-day moving average of $164.74, indicating short-term downward price momentum. - **52-WEEK RANGE:** PSX trades at $162.50, well below its 52-week high of $190.61 — a drawdown of approximately 15% — signalling a weakening intermediate-term trend despite the longer-term golden cross. - **MARGIN VULNERABILITY:** Net margin of 3.3% on $132.38B in revenue means even modest compression in crack spreads or refining margins could significantly erode profitability. - **REVENUE STAGNATION:** Top-line growth of just 1.3% YoY in a commodity-driven business provides limited organic upside and makes the stock heavily reliant on buybacks, dividends, or multiple expansion for shareholder returns. ---...