One-glance verdict
Within fair range
$262.70 our estimate vs market $282.83
Wall Street consensus: $291.74 (11.1% higher than our fair-value estimate)
8% above our estimate
Fundamentals snapshot
Phillips 66
PSX · NYQ · Energy · Oil & Gas Refining & Marketing
Current price
$282.83
52-week range
$127.16 - $299.39
Market cap
$110.32B
Balance sheet
Stretched
3.11x Stretched
Net debt $12.68B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 27.1% last year.
- Reward Returns 39.8% on equity, ahead of 40% of its peers.
- Risk Net debt grew 68.2% over 3 years.
- Risk Forward P/E (9.2x) is higher than trailing (9.1x) - earnings are expected to drop.
What this company does
Phillips 66
Phillips 66 is a company that takes crude oil and other raw materials and turns them into everyday products like gasoline for cars, jet fuel for planes, and chemicals used to make plastics. The money they make comes from selling these refined products, as well as transporting and storing oil and gas for others. This matters because it means their profits can go up or down depending on how much oil is being refined and how much people are driving and flying.
How the company got here
Phillips 66 has a long history, tracing its roots back to 1875. It was originally part of ConocoPhillips, an oil exploration and production company. In 2012, ConocoPhillips spun off its downstream and midstream assets, creating Phillips 66 as a separate, publicly traded company focused on refining and marketing oil and gas products, as well as midstream logistics. This strategic move allowed Phillips 66 to concentrate on its core businesses of turning crude oil into usable fuels and transporting those products to market.
What it actually does
Phillips 66 is essentially a company that takes crude oil and other raw materials and transforms them into the gasoline you put in your car, the jet fuel that powers airplanes, and other essential petroleum products. It also plays a crucial role in moving these products from where they are made to where they are sold, and even produces some chemicals used in manufacturing. Think of them as a vital link in the chain that gets energy from the ground to your everyday life.
Refining
This is the core of Phillips 66's business, where they take crude oil and process it into a variety of fuels and other products. They operate large facilities called refineries that use complex processes to separate and transform crude oil into things like gasoline, diesel fuel, and jet fuel. These refined products are then sold to distributors and other companies, forming a significant portion of the company's revenue.
Midstream
The Midstream segment is all about transportation and storage. Phillips 66 moves crude oil and refined products through pipelines, ships, and terminals. They also handle natural gas and natural gas liquids (NGLs), which are components of natural gas used for heating and in manufacturing. This segment is crucial because it ensures that the products made in the refineries can efficiently reach customers and that raw materials can get to the refineries.
Marketing and Specialties (M&S)
This segment focuses on selling the refined products and also includes specialty items. Phillips 66 markets gasoline under familiar brands like Phillips 66, 76, and Conoco at gas stations. They also sell other refined products like distillates and aviation fuels to commercial customers. Additionally, this segment produces and markets lubricants for vehicles and industrial uses, adding another layer to how they make money from oil and gas.
Chemicals
Phillips 66 also has a Chemicals segment that produces and markets various chemical products derived from petroleum. These include basic chemicals like ethylene, which is a building block for plastics, and aromatics. They also produce specialty chemicals used in different industrial applications. This segment diversifies the company's revenue streams beyond just fuels.
Renewable Fuels
This is a newer and growing part of Phillips 66's business, focused on producing fuels from renewable sources. They process things like vegetable oils and animal fats to create renewable diesel and sustainable aviation fuel. This segment reflects the broader energy industry's shift towards more sustainable options and allows Phillips 66 to participate in the market for lower-carbon fuels.
What management is betting on now
Phillips 66's management is focused on optimizing its existing refining and midstream operations for efficiency and profitability. They are also investing in the growth of their Midstream segment to enhance logistics and transportation capabilities. A key strategic priority is expanding their Renewable Fuels business, aiming to capture a larger share of the growing market for sustainable fuels. This dual approach allows them to benefit from traditional energy sources while also positioning themselves for the future of energy.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
Revenue
$50.54B
Net income
$5.62B
Diluted EPS
14.08
Operating cash flow
$7.28B
Free cash flow
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Sources
Revenue
$51.00B
Net income
$3.85B
Diluted EPS
9.55
Operating cash flow
$7.26B
Free cash flow
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Sources
Revenue
$32.54B
Net income
$207.00M
Diluted EPS
0.51
Operating cash flow
$-2.26B
Free cash flow
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Sources
Revenue
$34.11B
Net income
$2.91B
Diluted EPS
7.14
Operating cash flow
$2.75B
Free cash flow
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Sources
Revenue
$34.52B
Net income
$133.00M
Diluted EPS
0.32
Operating cash flow
$1.18B
Free cash flow
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Revenue
$33.32B
Net income
$877.00M
Diluted EPS
2.15
Operating cash flow
$845.00M
Free cash flow
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Revenue
$30.43B
Net income
$487.00M
Diluted EPS
1.18
Operating cash flow
$187.00M
Free cash flow
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Revenue
$33.69B
Net income
$8.00M
Diluted EPS
0.06
Operating cash flow
$1.20B
Free cash flow
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Is it cheap or expensive?
Fair value $262.70 vs current price $282.83
Wall Street consensus is the average analyst price target: $291.74 (11.1% higher than our fair-value estimate).
Our most-likely fair value is $262.70 a share — about 7.1% away from today's price of $282.83, so the stock currently looks fairly priced.
Is it drowning in debt?
Stretched
Net debt $12.7B. Interest coverage 3.1x.
Net debt
$12.68B
Interest coverage
3.11x
Phillips 66's profit covers its interest bill about 3.1 times over.
Stretched
Worse cushion
Baseline
Better cushion
PSX
BASELINE
Phillips 66
Total debt $18.53B Interest coverage 3.11x This is the baseline the peer rows are being compared against.
Total debt $34.29B Interest coverage 4.08x +31% vs PSX Carries about 1.3x more debt cushion than PSX.
Total debt $11.00B Interest coverage 7.76x +149% vs PSX Carries about 2.5x more debt cushion than PSX.
Total debt $34.21B Interest coverage 4.90x +58% vs PSX Carries about 1.6x more debt cushion than PSX.
Total debt $70.24B Interest coverage 2.68x -14% vs PSX Has roughly the same debt cushion as PSX.
Total debt $3.36B Interest coverage 4.27x +37% vs PSX Carries about 1.4x more debt cushion than PSX.
What you should know
The case for and against PSX
3 Rewards
3 Risks
Rewards
-
Revenue grew 27.1% last year.
-
Returns 39.8% on equity, ahead of 40% of its peers.
-
Free cash flow was positive in 4/10 years.
Risks
-
Net debt grew 68.2% over 3 years.
-
Forward P/E (9.2x) is higher than trailing (9.1x) - earnings are expected to drop.
-
Insider ownership is only 0.2% (peer median: 5.7%).
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)
9.07x
Forward P/E
9.18x
P/B
3.21x
P/S
0.66x
EV/EBITDA
8.07x
PEG ratio
0.90x
Profitability
How much profit each dollar creates
Gross margin
15.1%
Operating margin
13.2%
Net margin
7.5%
ROE
39.8%
ROA
10.6%
Health
Liquidity and balance-sheet strength
Debt / equity
0.52x
Current ratio
1.34x
Quick ratio
0.92x
Total debt
$18.53B
Total cash
$5.85B
Growth
How the business has been compounding
Revenue TTM
$168.19B
Revenue 5Y CAGR
4.4%
EPS TTM
31.18
EPS 5Y CAGR
-22.6%
Cash flow
How much cash the business throws off
Operating CF TTM
$15.03B
Free CF TTM
$2.73B
FCF margin
1.6%
Dividend
Shareholder payout
Yield
1.9%
Payout ratio
16.1%
Last ex-div date
2026-11-17