Another strong showing for Phillips
 | By Rifka Kats | Macroaxis Story |
Phillips 66 (PSX.US), a prominent player in the Oil & Gas Refining & Marketing industry, has been demonstrating a robust performance that solidifies its investment appeal. With a market capitalization of 54.4B, the company has a strong financial footing. The company's net income applicable to common shares stands at a whopping 11B, indicating its profitability. Despite a quarterly earnings growth showing a loss of 0.43, the company's EPS estimate for the next year is promising at 13.21. The revenue per share is a robust 330.49, and the enterprise value revenue is 0.3711, further emphasizing the company's financial strength. With Wall Street's target price set at 128.37, Phillips 66 stock presents a potential upside of 2.64, making it an attractive investment option.
Rigorous look on Phillips
Phillips 66 reported a revenue of $169.99 billion last year. The total income attributable to common stockholders was $11.39 billion, with a profit before taxes, overhead, and interest of $20.06 billion. Approximately 73.0% of the company's shares are owned by institutional investors. Phillips 66 has a price-to-book ratio of 1.64. Typically, companies with a comparable Price to Book (P/B) ratio are able to outperform the market in the long run. The company has a Price/Earnings To Growth (PEG) ratio of 0.73. The firm reported earnings per share (EPS) of $23.19. Phillips 66's last dividend was issued on August 17, 2023.Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.
Reviewed by Ellen Johnson
Phillips 66, a key player in the Oil, Gas & Consumable Fuels sector, has demonstrated a robust performance that significantly bolsters its investment appeal. As of the latest update on September 9, 2023, the company, listed under the code PSX on the F exchange, has posted a remarkable net income from continuing operations of $11.4 billion, showcasing its financial strength and operational efficiency. Despite a loss of $642 million in net interest income, the company has managed to maintain a healthy net income applicable to common shares of $11 billion. This has been achieved through a strategic focus on its core business, Oil & Gas Refining & Marketing, and the dedicated efforts of its 13,000 full-time employees. Phillips 66 has shown an impressive return on equity of 40.85%, well above the industry average, indicating efficient use of shareholders' funds. The company's earnings per share stand at a robust $23.19, further solidifying its financial stability. Additionally, the company offers a generous dividend per share of $4.04, making it an attractive option for income-focused investors. The company's PEG ratio of 0.731 suggests that the stock is reasonably priced given its earnings growth rate. Analysts have a consensus 'Buy' rating on the stock, with 2 buy recommendations and 5 hold recommendations. The estimated target price stands at $128.083, offering potential upside for investors. Despite a change to net income of -$2.7 billion, Phillips 66 has managed to maintain a strong financial position, with a gross profit of $20.1 billion on revenues of $154.7 billion. The company's enterprise value to EBITDA ratio of 3.7739 further underscores its value proposition. In the volatile energy sector, Phillips 66 stands out as a resilient and profitable investment option. Phillips 66's Accounts Payable Turnover remains relatively stable at present, compared to the previous year. The company reported an Accounts Payable Turnover of 17.76 in 2022. The Accrued Expenses Turnover is projected to increase to 81.52 in 2023, while the Revenue Per Employee is expected to slightly exceed $12.7 million in the same year.
As interest grows in the oil, gas, and consumable fuels sector, it's prudent to delve deeper into the specifics of Phillips 66. We will assess the reasons for our continued optimism, anticipating a recovery. Furthermore, I will highlight some of the key fundamental factors influencing Phillips' services and discuss how these will shape the investment outlook for the current year.The performance of Phillips 66 in the marketplace will significantly impact your decision to invest in its stock. Revenue growth, profitability, competitive positioning, management quality, and industry trends can influence Phillips' stock prices. When investing in Phillips, there are several factors to consider and potential outcomes to expect. As a company performs well, its stock price may increase, allowing investors to benefit from price appreciation. However, Phillips Stock can experience significant price fluctuations due to market conditions, economic factors, industry trends, or company-specific news. This is why investing in stocks such as Phillips carries risks, including the potential for capital loss. Stock prices can decline, and investors may incur losses if they sell shares at a lower price than their initial investment.
And What about dividends?
A dividend is the distribution of a portion of Phillips earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Phillips dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Phillips one year expected dividend income is about USD3.19 per share.
Dividend Paid And Capex Coverage Ratio is likely to rise to 1.78 in 2024, whereas Dividends Paid is likely to drop slightly above 1.4 B in 2024. | Last Reported | Projected for Next Year | ||
| Dividends Paid | 1.9 B | 1.4 B | |
| Dividend Yield | 0.03 | 0.02 | |
| Dividend Payout Ratio | 0.27 | 0.26 | |
| Dividend Paid And Capex Coverage Ratio | 1.63 | 1.78 |
Investing in dividend-paying stocks, such as Phillips 66 is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Phillips must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Phillips. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.How important is Phillips's Liquidity
Phillips financial leverage refers to using borrowed capital as a funding source to finance Phillips 66 ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Phillips financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Phillips' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Phillips' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Phillips's total debt and its cash.
What do experts say about Phillips?
Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
Analysis ConsensusAnother Deeper Perspective
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Phillips has an asset utilization ratio of 222.38 percent. This suggests that the company is making $2.22 for each dollar of assets. An increasing asset utilization means that Phillips 66 is more efficient with each dollar of assets it utilizes for everyday operations. Phillips 66 (PSX.US), a key player in the Oil & Gas Refining & Marketing industry, has been showcasing a robust performance that solidifies its investment appeal. Despite a challenging environment, the company posted a net income of $11.39 billion and operating income of $12.7 billion. This strong profitability is reflected in its earnings per share (EPS) of 23.19X and diluted EPS of 23.19. The company's return on assets stands at 0.0883, indicating efficient use of its assets.The company's financial health is further underscored by its substantial retained earnings of $25.43 billion. Despite a net interest income loss of $642 million, the company managed to generate a healthy cash flow from operations of $10.81 billion. The company's market capitalization stands at $54.43 billion, with a PE ratio of 5.2708, suggesting that the stock is undervalued. Phillips 66's shares are largely held by institutions, with 72.90% of shares owned by them. The company's short ratio stands at 3.04X, indicating a relatively low level of short interest. With a Wall Street target price of $128.37, the stock presents a promising investment opportunity. Despite a probability of bankruptcy at 12.38%, the company's Z score of 5.3 suggests a low probability of financial distress. .
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