Phillips 66
Phillips 66 Fundamental Analysis
Phillips 66 (R66.DE) shows weak financial fundamentals with a PE ratio of 16.00, profit margin of 3.31%, and ROE of 15.90%. The company generates $132.1B in annual revenue with weak year-over-year growth of -2.81%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 49.2/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze R66.DE's fundamental strength across five key dimensions:
Efficiency Score
WeakR66.DE struggles to generate sufficient returns from assets.
Valuation Score
ExcellentR66.DE trades at attractive valuation levels.
Growth Score
WeakR66.DE faces weak or negative growth trends.
Financial Health Score
ExcellentR66.DE maintains a strong and stable balance sheet.
Profitability Score
ModerateR66.DE maintains healthy but balanced margins.
Key Financial Metrics
Is R66.DE Expensive or Cheap?
P/E Ratio
R66.DE trades at 16.00 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, R66.DE's PEG of 0.07 indicates potential undervaluation.
Price to Book
The market values Phillips 66 at 2.42 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.95 times EBITDA. This is generally considered low.
How Well Does R66.DE Make Money?
Net Profit Margin
For every $100 in sales, Phillips 66 keeps $3.31 as profit after all expenses.
Operating Margin
Core operations generate 1.87 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.90 in profit for every $100 of shareholder equity.
ROA
Phillips 66 generates $5.98 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Phillips 66 generates limited operating cash flow of $4.93B, signaling weaker underlying cash strength.
Free Cash Flow
Phillips 66 produces free cash flow of $4.25B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $10.62 in free cash annually.
FCF Yield
R66.DE converts 6.11% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
16.00
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.07
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.42
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.53
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.79
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.30
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.16
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How R66.DE Stacks Against Its Sector Peers
| Metric | R66.DE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 16.00 | 21.01 | Better (Cheaper) |
| ROE | 15.90% | 948.00% | Weak |
| Net Margin | 3.31% | -72986.00% (disorted) | Weak |
| Debt/Equity | 0.79 | -0.48 (disorted) | Distorted |
| Current Ratio | 1.30 | 6.29 | Neutral |
| ROA | 5.98% | -10862104.00% (disorted) | Weak |
R66.DE outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Phillips 66's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
43.09%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
-26.07%
Industry Style: Cyclical, Value, Commodity
DecliningFCF CAGR
-6.36%
Industry Style: Cyclical, Value, Commodity
Declining