Phillips 66PSXNYSE
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Executive Summary
Latest Data: Dec 2025Energy•Oil & Gas Refining & Marketing
$64.4BLarge Cap
A mega-cap enterprise, operating profitably, with revenues declining trading at a discount.
Key Investment Themes
Declining revenues (-8%)
Attractive valuation (14.6x P/E)
Business Narrative
Phillips 66 operates as an energy manufacturing and logistics company. It operates through four segments: Midstream, Chemicals, Refining, and Marketing and Specialties (M&S). The Midstream segment transports crude oil and other feedstocks; delivers refined petroleum products to market; provides terminaling and storage services for crude oil and refined petroleum products; transports, stores, fractionates, exports, and markets natural gas liquids; provides other fee-based processing services; and gathers, processes, transports, and markets natural gas.
EnergyOil & Gas Refining & Marketing
Cyclical
Revenue Mix
Single segment business
Bear Case
- -Declining revenues signal potential market share erosion
Company at a Glance
Business Performance
Key Highlights
Positive Signals
- Conservative balance sheet with low debt levels
Watch Areas
- Revenue declining year-over-year
- Thin profit margins under 5%
- Current liabilities exceed current assets
Financial Health
Liquidity
Concern
Current Ratio0.00
<1.0 = Weak
Cash & Equivalents$1.7B
Leverage
Watch
Debt / Equity0.00
<1.0 = Low leverage
Interest Coverage3.21x
2-5x = Adequate
Efficiency
Concern
Return on Equity0.0%
<8% = Weak
Return on Capital0.0%
<8% = Weak
Valuation Assessment
Market Cap
$64.4B
Large Cap
P/E (TTM)
14.6x
Discounted
vs 5Y avg: 14.4x (+2%)
P/S (TTM)
0.5x
Discounted
vs 5Y avg: 0.3x (+42%)
EV/EBITDA
8.6x
Discounted
vs 5Y avg: 7.9x
(+9%)
(+9%)
P/E Historical Range (5Y)
Min: 4.5xAvg: 14.4xNow: 14.6xMax: 24.2x
P/S Historical Range (5Y)
Min: 0.3xAvg: 0.3xNow: 0.5xMax: 0.4x
EV/EBITDA Historical Range (5Y)
Min: 3.6xAvg: 7.9xNow: 8.6xMax: 11.1x
Valuation Corridor
EXPENSIVE
PEG Ratio
12.57
P/E 14.6x / Growth 116.4% = Expensive
FCF Yield
6.6%
vs Cost of Capital ~8.0% = Strong
P/E Corridor (5Y)14.6x
4.5xFair: 5.6x-23.1x24.2x
P/S Corridor (5Y)0.5x
0.3xFair: 0.3x-0.4x0.4x
EV/EBITDA Corridor (5Y)8.6x
3.6xFair: 4.2x-11.1x11.1x
Detailed Financials
Comprehensive financial statement data for deep analysis
| Metric | Dec 21 | Dec 22 | Dec 23 | Dec 24 | Dec 25 |
|---|---|---|---|---|---|
| Return on Equity | - | - | - | - | - |
| Return on Invested Capital | - | - | - | - | - |
| Gross Margin | 3.0% | 7.5%↑148.7% | 7.7%↑2.1% | 3.4%↓55.7% | 5.0%↑45.9% |
| Operating Margin | 1.1% | 5.9%↑441.1% | 5.6%↓5.2% | 1.6%↓71.1% | 2.5%↑55.0% |
| Net Margin | 1.2% | 6.5%↑451.7% | 4.8%↓26.6% | 1.5%↓68.9% | 3.3%↑124.9% |
| Earnings Yield | - | - | - | - | - |
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