PHINIA Inc.
PHINIA Inc. Fundamental Analysis
PHINIA Inc. (PHIN) shows weak financial fundamentals with a PE ratio of 22.98, profit margin of 3.73%, and ROE of 8.21%. The company generates $3.4B in annual revenue with weak year-over-year growth of -2.77%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 41.0/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze PHIN's fundamental strength across five key dimensions:
Efficiency Score
WeakPHIN struggles to generate sufficient returns from assets.
Valuation Score
ExcellentPHIN trades at attractive valuation levels.
Growth Score
WeakPHIN faces weak or negative growth trends.
Financial Health Score
ExcellentPHIN maintains a strong and stable balance sheet.
Profitability Score
WeakPHIN struggles to sustain strong margins.
Key Financial Metrics
Is PHIN Expensive or Cheap?
P/E Ratio
PHIN trades at 22.98 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, PHIN's PEG of 0.50 indicates potential undervaluation.
Price to Book
The market values PHINIA Inc. at 1.88 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.54 times EBITDA. This is generally considered low.
How Well Does PHIN Make Money?
Net Profit Margin
For every $100 in sales, PHINIA Inc. keeps $3.73 as profit after all expenses.
Operating Margin
Core operations generate 8.84 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.21 in profit for every $100 of shareholder equity.
ROA
PHINIA Inc. generates $3.41 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
PHINIA Inc. generates limited operating cash flow of $306.75M, signaling weaker underlying cash strength.
Free Cash Flow
PHINIA Inc. produces free cash flow of $252.68M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $6.57 in free cash annually.
FCF Yield
PHIN converts 8.79% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
22.98
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.50
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.88
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.84
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.64
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.86
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How PHIN Stacks Against Its Sector Peers
| Metric | PHIN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 22.98 | 25.25 | Neutral |
| ROE | 8.21% | 1170.00% | Weak |
| Net Margin | 3.73% | 742.00% | Weak |
| Debt/Equity | 0.64 | 0.77 | Neutral |
| Current Ratio | 1.86 | 9.19 | Neutral |
| ROA | 3.41% | -6467.00% (disorted) | Weak |
PHIN outperforms its industry in 0 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews PHINIA Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
251.65%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
168.07%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
439.27%
Industry Style: Cyclical, Growth, Discretionary
High Growth