A Business at a Glance
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Phillips 66
PSX
$84.2B
Mkt Cap
$206.77
-0.10%
Phillips 66 (PSX) has a current P/E ratio of 19.2, compared to its historical median P/E of 11.7. The stock is currently considered Expensive based on its historical valuation range.
Phillips 66 (PSX) has a 5-year average return on invested capital (ROIC) of 14.0%. This indicates solid capital allocation.
Phillips 66 (PSX) has a market capitalization of $82.9B. It is classified as a large-cap stock.
Yes, Phillips 66 (PSX) pays a dividend with a trailing twelve-month yield of 2.37%. The company also returns capital through share buybacks, with a buyback yield of 1.48%.
Based on historical P/E analysis, Phillips 66 (PSX) appears expensive. The current P/E of 19.2 is 63% above its historical median of 11.7. The estimated fair value CAGR (P/E method) is 7.0%.
Phillips 66 (PSX) operates in the Petroleum Refining industry, within the Energy sector.
Phillips 66 (PSX) reported annual revenue of $132.4 billion in its most recent fiscal year, based on SEC EDGAR filings.
Phillips 66 is an independent energy company organized into five operating segments: Midstream, which provides crude oil and refined petroleum product transportation, terminaling, storage, and natural gas and NGL gathering, processing, transportation, fractionation, storage, and marketing services across approximately 70,000 miles of U.S. pipeline systems and 39 refined product terminals; Chemicals, a 50% equity investment in Chevron Phillips Chemical Company that manufactures and markets petrochemicals and plastics globally; Refining, which operates 10 refineries in the United States and Europe that convert crude oil and feedstocks into gasoline, distillates, and aviation fuels; Marketing and Specialties, which purchases and resells refined products primarily in the United States and Europe and manufactures base oils and lubricants; and Renewable Fuels, which processes renewable feedstocks into renewable products at the Rodeo Renewable Energy Complex and Humber Refinery and manages regulatory credits and renewable fuel marketing globally. The company's business model is built on integrated midstream infrastructure that connects production regions to refining and export facilities, with the Midstream segment generating stable cash flows through long-haul NGL pipelines, fractionation facilities, and the Sweeny Hub—a U.S. Gulf Coast market hub with four fractionators demonstrating 675,000 barrels per day of capacity and an LPG export terminal serving global markets. Refining operations focus on low-capital, high-return investments and operating excellence, with a target adjusted controllable cost of approximately $5.50 per barrel by 2027, while the company maintains a conservative balance sheet with a debt target of $17 billion and returns greater than 50% of net operating cash flow to shareholders through dividends and share repurchases.
【Strong margin environment continuing】 Management expects refining margins to remain constructive through the remainder of 2026 and into early 2027, supported by tight product markets and demand constriction rather than destruction, with the outlook expected to persist into early next year. The company anticipates operating cash flow to enable debt reduction to approximately $19 billion by the end of 2026 and further reduction to $17 billion in 2027, while maintaining its capital allocation framework of approximately $2 billion each for dividends, share repurchases, capital spending, and debt paydown. In Midstream, the company is on track to achieve a $4.5 billion annual EBITDA target by 2027, supported by strong fundamentals and the successful integration of recent acquisitions including Coastal Bend, which are performing above expectations; the company also expects to add a gas plant approximately every 12 to 18 months due to its attractive Permian Basin footprint. Global olefins and paraffins utilization is expected to be in the low 80s in 2026 driven by uncertainty at CPChem's Middle East joint ventures, while worldwide crude utilization is expected to be in the low to mid-90s with turnaround expenses between $120 million and $150 million.
| Metric | Target | Period |
|---|---|---|
| Debt target | approximately $19 billion | end of 2026 |
| Debt target | $17 billion | 2027 |
| Adjusted controllable cost per barrel | approximately $5.50 | by end of 2027 |
| Worldwide crude utilization rate | low to mid-90s | 2026 |
| Turnaround expense | between $120 million and $150 million | 2026 |
| Corporate and other costs | between $430 million and $450 million | 2026 |
Debt target (end of 2026): “we expect operating cash flow, working capital benefits, and the reduction of cash balances as markets stabilize to enable us to reduce debt to approximately $19 billion”
Debt target (2027): “In 2027, we expect operating cash flow to enable us to reduce debt by a further $2 billion to $17 billion”
Adjusted controllable cost per barrel (by end of 2027): “In refining, we're targeting adjusted controllable cost per barrel to be approximately $5.50 on an annual basis by the end of 2027”
Worldwide crude utilization rate (2026): “In refining, we expect the worldwide crude utilization rate to be in the low to mid-90s”
Turnaround expense (2026): “Turnaround expense is expected to be between $120 million and $150 million”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Segment | 2021 | 2022 | 2023 | 2024 | 2025 | % of Total |
|---|---|---|---|---|---|---|
Refined petroleum products and renewable fuels | — | $131.80B | $108.64B | $103.69B | $97.36B | 74% |
NGL and natural gas | $9.07B | $16.17B | $14.47B | $14.55B | $17.07B | 13% |
Crude oil resales | $12.80B | $20.57B | $20.82B | $22.01B | $15.18B | 11% |
Services and other | $581M | $1.44B | $3.46B | $2.91B | $2.77B | 2% |
Refined petroleum products | $89.02B | $131.80B | $108.64B | — | — | — |
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 134.5B | 132.4B | 143.2B | 147.4B | 170.0B | 111.5B |
| Net Income | 4.1B | 4.4B | 2.1B | 7.0B | 11.0B | 1.3B |
| EPS | $7.40 | $10.79 | $4.99 | $15.48 | $23.27 | $2.97 |
| Free Cash Flow | 0 | 5.0B | 4.2B | 7.0B | 10.8B | 6.0B |
| ROIC | 0.0% | 10.7% | 5.5% | 16.5% | 31.3% | 5.9% |
| Gross Margin | - | 12.3% | 9.2% | 13.1% | 11.8% | 8.4% |
| Debt/Equity | 0.95 | 0.74 | 0.78 | 0.67 | 0.62 | 0.81 |
| Dividends/Share | $4.89 | $4.75 | $4.50 | $4.20 | $3.83 | $3.62 |
| Operating Income | 0 | 6.3B | 3.5B | 10.1B | 14.9B | 2.0B |
| Operating Margin | 0.0% | 4.7% | 2.5% | 6.8% | 8.7% | 1.8% |
| ROE | 14.4% | 15.6% | 7.3% | 23.3% | 45.3% | 6.8% |
| Shares Outstanding | 401M | 407M | 422M | 452M | 473M | 440M |
Phillips 66 passes 4 of 9 quality checks, suggesting mixed fundamentals.
Phillips 66 trades at 19.2x trailing earnings, compared to its 15-year median P/E of 11.7x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 30.4x vs a median of 9.2x. The company's 5-year average ROIC is 14.0% with a gross margin of 11.0%. Total shareholder yield (dividends + buybacks) is 3.8%. At current prices, the estimated annualized return to fair value is +19.8%.
Phillips 66 (PSX) has a net profit margin of 3.3%. This is a modest margin.
Phillips 66 (PSX) generated $5.0 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Phillips 66 (PSX) has a debt-to-equity ratio of 0.74. This indicates moderate leverage.
Phillips 66 (PSX) reported earnings per share (EPS) of $10.79 in its most recent fiscal year.
Phillips 66 (PSX) has a return on equity (ROE) of 15.6%. This indicates the company generates strong returns for shareholders.
Phillips 66 (PSX) has a 5-year average gross margin of 11.0%. This lower margin is typical of capital-intensive or commodity businesses.
The Ledger Terminal provides 16 years of financial data for Phillips 66 (PSX), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Phillips 66 (PSX) has a book value per share of $71.44, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects refining margins to remain constructive through the remainder of 2026 and into early 2027, supported by tight product markets and demand constriction rather than destruction, with the outlook expected to persist into early next year. The company anticipates operating cash flow to enable debt reduction to approximately $19 billion by the end of 2026 and further reduction to $17 billion in 2027, while maintaining its capital allocation framework of approximately $2 billion each for dividends, share repurchases, capital spending, and debt paydown. In Midstream, the company is on track to achieve a $4.5 billion annual EBITDA target by 2027, supported by strong fundamentals and the successful integration of recent acquisitions including Coastal Bend, which are performing above expectations; the company also expects to add a gas plant approximately every 12 to 18 months due to its attractive Permian Basin footprint. Global olefins and paraffins utilization is expected to be in the low 80s in 2026 driven by uncertainty at CPChem's Middle East joint ventures, while worldwide crude utilization is expected to be in the low to mid-90s with turnaround expenses between $120 million and $150 million.
Based on recent SEC filings and earnings calls, Phillips 66 (PSX) has provided the following forward guidance: Debt target: approximately $19 billion (end of 2026); Debt target: $17 billion (2027); Adjusted controllable cost per barrel: approximately $5.50 (by end of 2027); Worldwide crude utilization rate: low to mid-90s (2026); Turnaround expense: between $120 million and $150 million (2026), plus 1 additional metric.
Corporate and other costs (2026): “We anticipate corporate and other costs to be between $430 million and $450 million”