Phillips 66 (PSX) Stock

Phillips 66 trades at a P/E ratio of 32.68, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple. Looking ahead, the forward P/E of 13.28 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 0.50 suggests the stock may be undervalued relative to its growth rate.

With a beta of 1.13, Phillips 66 is roughly as volatile as the market, moving in line with broad market trends. This moderate beta suggests the stock offers market-level returns without excessive volatility. The price-to-book ratio of 2.05 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Phillips 66 achieves a profit margin of 1.29%, meaning it retains $1.29 from every $100 in revenue after all expenses. This relatively low margin suggests the company operates in a competitive environment or high-cost industry where profitability is challenging. The operating margin of 4.42% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 6.18% and ROA at 1.30%, the company achieves moderate returns on invested capital.

Phillips 66's revenue declined by 12.60% year-over-year, indicating challenges in maintaining sales momentum. This contraction may reflect market headwinds, competitive pressures, or strategic transitions. Earnings decreased by 9.80% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against OIL & GAS REFINING & MARKETING industry averages for proper context.

Phillips 66 offers a dividend yield of 3.33%, paying $4.65 per share annually. This above-average yield of 2-4% provides meaningful income while still allowing the company to reinvest for growth. It compares favorably to the S&P 500 average and offers competitive returns versus bonds in the current rate environment. To receive the next dividend, shares must be purchased before the ex-dividend date of Aug 19, 2025.

The dividend sustainability can be assessed through the payout ratio - Phillips 66 pays $4.65 per share in dividends against earnings of $4.21 per share, resulting in a payout ratio of 100.00%. This very high payout exceeding 90% raises sustainability concerns, as nearly all earnings go to dividends. Any earnings decline could force a dividend cut. The next dividend payment is scheduled for Sep 2, 2025.

Phillips 66 has a market capitalization of $55.6B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 404.12M shares outstanding, the company's ownership is relatively concentrated. As a participant in the OIL & GAS REFINING & MARKETING industry, it competes with other firms in this sector.

Phillips 66's book value per share is $68.03, while the current stock price is $137.05, resulting in a price-to-book (P/B) ratio of 2.01. This reasonable premium to book value suggests the market values the company's earnings power and intangible assets appropriately. Most profitable companies trade between 1-3x book value. As a common stock, this represents equity ownership with voting rights.

20 analysts cover PSX with 50% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $140.89 implies 2.8% upside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:2 Strong Buy, 8 Buy, 10 Hold, 00The neutral stance suggests uncertainty or fair valuation at current levels.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.