One-glance verdict
Undervalued
$74.24 our estimate vs market $60.54
Wall Street consensus: $94.00 (26.6% higher than our fair-value estimate)
18% below our estimate, below the bear case
Fundamentals snapshot
PHINIA Inc.
PHIN · NYQ · Consumer Cyclical · Auto Parts
Current price
$60.54
52-week range
$50.80 - $86.94
Market cap
$2.22B
Balance sheet
Stretched
3.96x Stretched
Net debt $692.00M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 3.8% last year.
- Reward Returns 8.5% on equity, ahead of 40% of its peers.
- Reward Free cash flow was positive in 5/10 years.
- Risk Operating margin compressed from 11.0% to 7.8% over 3 years.
What this company does
PHINIA Inc.
PHINIA makes and sells key parts for vehicle engines, specializing in fuel systems that help traditional gas and hybrid vehicles run efficiently. The company earns money by selling these parts to vehicle makers and also by selling replacement parts and repair services through its Aftermarket business (the market for parts and services after a vehicle is sold). Because its products are needed for both building new cars and maintaining the millions of vehicles already on the road, its success is tied to both vehicle production and ongoing repair trends.
How the company got here
PHINIA was formed in July 2023 when it was spun off from BorgWarner, a large auto parts supplier. BorgWarner decided to separate its fuel systems and aftermarket businesses to focus more on electric vehicles (EVs). This separation allows PHINIA to concentrate on making parts for traditional gasoline and diesel engines, as well as developing technologies for cleaner fuels. The company has a long history of over 100 years in manufacturing through its well-known brands like Delphi, Delco Remy, and Hartridge.
What it actually does
PHINIA makes and sells parts that are essential for vehicles with internal combustion engines (the engines in most cars today) to run efficiently and with lower emissions. Think of things like fuel injectors, pumps, and sensors that control how fuel is used in an engine. They also provide replacement parts and diagnostic equipment for vehicle maintenance and repair. Their products are used in a wide range of vehicles, from passenger cars and trucks to heavy-duty commercial vehicles like buses and construction equipment.
Fuel Systems
This is a major part of PHINIA's business, where they design and manufacture advanced systems that deliver fuel to a vehicle's engine. These systems include components like fuel pumps, injectors, and engine control modules. The main customers are original equipment manufacturers (OEMs), which are the big car and truck makers. The goal of these systems is to improve fuel economy (how far a vehicle can go on a gallon of gas) and reduce harmful emissions.
Aftermarket
This segment focuses on selling parts and services for vehicles after they have been sold to the public. This includes replacement parts for maintenance and repairs, as well as diagnostic tools and test equipment for mechanics. They sell these products under well-known brand names like Delphi and Delco Remy to distributors, repair shops, and service networks. This part of the business provides a steady stream of revenue as there is a constant need to service the millions of vehicles already on the road.
What management is betting on now
PHINIA's leadership is focused on being a leader in systems for combustion engines, while also investing in technologies for alternative fuels like hydrogen. They see a long-term need for efficient internal combustion engines, especially in commercial vehicles and industrial applications. The company is also making strategic acquisitions to broaden its manufacturing capabilities and expand into new technologies for lower-carbon fuels. A key part of their strategy is to continue growing their aftermarket business, which provides a consistent and profitable source of revenue.
Price history
How the share price has moved
—
Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$70.00M
FY2024 Q4
$53.00M
FY2025 Q1
$5.00M
FY2025 Q2
$23.00M
FY2025 Q3
$93.00M
FY2025 Q4
$67.00M
FY2026 Q1
$21.00M
FY2026 Q2
$69.00M
Revenue
$940.00M
Net income
$40.00M
Diluted EPS
1.05
Operating cash flow
$91.00M
Free cash flow
$69.00M
Fetching…
Sources
Revenue
$878.00M
Net income
$37.00M
Diluted EPS
0.96
Operating cash flow
$53.00M
Free cash flow
$21.00M
Fetching…
Sources
Revenue
$889.00M
Net income
$45.00M
Diluted EPS
1.14
Operating cash flow
$96.00M
Free cash flow
$67.00M
Fetching…
Sources
Revenue
$908.00M
Net income
$13.00M
Diluted EPS
0.33
Operating cash flow
$119.00M
Free cash flow
$93.00M
Fetching…
Sources
Revenue
$890.00M
Net income
$46.00M
Diluted EPS
1.14
Operating cash flow
$57.00M
Free cash flow
$23.00M
Fetching…
Sources
Revenue
$796.00M
Net income
$26.00M
Diluted EPS
0.63
Operating cash flow
$40.00M
Free cash flow
$5.00M
Fetching…
Sources
Revenue
$833.00M
Net income
$5.00M
Diluted EPS
0.13
Operating cash flow
$73.00M
Free cash flow
$53.00M
Fetching…
Sources
Revenue
$839.00M
Net income
$31.00M
Diluted EPS
0.70
Operating cash flow
$95.00M
Free cash flow
$70.00M
Fetching…
Sources
Is it cheap or expensive?
Fair value $74.24 vs current price $60.54
Wall Street consensus is the average analyst price target: $94.00 (26.6% higher than our fair-value estimate).
Our most-likely fair value is $74.24 a share — about 22.6% above today's price of $60.54, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Stretched
Net debt $692.0M. Interest coverage 4.0x.
Net debt
$692.00M
Interest coverage
3.96x
PHINIA Inc.'s profit covers its interest bill about 4.0 times over.
Stretched
Worse cushion
Baseline
Better cushion
PHIN
BASELINE
PHINIA Inc.
Total debt $1.06B Interest coverage 3.96x This is the baseline the peer rows are being compared against.
Total debt $4.06B Interest coverage 13.36x +237% vs PHIN Carries about 3.4x more debt cushion than PHIN.
Total debt $1.50B Interest coverage 1.18x -70% vs PHIN Carries about 3.4x less debt cushion than PHIN.
Total debt $671.40M Interest coverage 11.74x +196% vs PHIN Carries about 3.0x more debt cushion than PHIN.
Total debt $3.52B Interest coverage 7.71x +95% vs PHIN Carries about 1.9x more debt cushion than PHIN.
What you should know
The case for and against PHIN
3 Rewards
1 Risk
Rewards
-
Revenue grew 3.8% last year.
-
Returns 8.5% on equity, ahead of 40% of its peers.
-
Free cash flow was positive in 5/10 years.
Risks
-
Operating margin compressed from 11.0% to 7.8% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
17.35x
Forward P/E
8.77x
P/B
1.44x
P/S
0.61x
EV/EBITDA
5.97x
PEG ratio
—
Profitability
How much profit each dollar creates
Gross margin
21.8%
Operating margin
7.8%
Net margin
3.7%
ROE
8.5%
ROA
5.2%
Health
Liquidity and balance-sheet strength
Debt / equity
0.69x
Current ratio
1.81x
Quick ratio
1.20x
Total debt
$1.06B
Total cash
$370.00M
Growth
How the business has been compounding
Revenue TTM
$3.62B
Revenue 5Y CAGR
1.9%
EPS TTM
3.49
EPS 5Y CAGR
-16.8%
Cash flow
How much cash the business throws off
Operating CF TTM
$359.00M
Free CF TTM
$188.00M
FCF margin
5.2%
Dividend
Shareholder payout
Yield
2.0%
Payout ratio
32.7%
Last ex-div date
2026-09-04