Phillips 66 Intrinsic Stock Value – Phillips 66 Reports Strong Q2 Earnings for FY2023
August 25, 2023
☀️Earnings Overview
On August 2 2023, PHILLIPS 66 ($NYSE:PSX) reported their earnings results for the second quarter of FY2023 (ending June 30 2023). There was a decrease of 27.8% in total revenue from the same period last year, bringing it to a total of USD 35.1 billion. Net income also decreased by 46.4%, to USD 1.7 billion.
Share Price
Despite a small dip in stock price, the company still experienced a successful quarter. The stock opened at $111.2 and closed at $109.0, representing a 2.8% decrease from the prior day’s closing price of 112.1.
However, investors remain optimistic as Phillips 66 reported increases in revenue and net income compared to the same period last year. Overall, Phillips 66 had a successful quarter and shareholders continue to be impressed with the progress and growth the company achieved. Despite the brief dip in stock price, investors are confident in the future prospects of Phillips 66 and remain excited about the potential for further increases in revenue and net income in the coming quarters. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Phillips 66. More…
| Total Revenues | Net Income | Net Margin |
| 154.72k | 10.93k | 5.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Phillips 66. More…
| Operations | Investing | Financing |
| 10.05k | -1.47k | -8.51k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Phillips 66. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 77.26k | 42.35k | 65.92 |
Key Ratios Snapshot
Some of the financial key ratios for Phillips 66 are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 20.6% | 77.2% | 10.0% |
| FCF Margin | ROE | ROA |
| 5.0% | 31.9% | 12.5% |
Analysis – Phillips 66 Intrinsic Stock Value
At GoodWhale, we have conducted a comprehensive analysis of PHILLIPS 66‘s wellbeing. Our proprietary Valuation Line has estimated a fair value per share of $114.8 for PHILLIPS 66. However, the stock is currently trading at $109.0, meaning it is undervalued by 5.0%. This represents an excellent opportunity for investors to purchase PHILLIPS 66 shares at a discounted rate. We believe that PHILLIPS 66 offers an attractive entry point and should be considered for investment. More…
Peers
Phillips 66 is an American multinational energy company headquartered in Houston, Texas. It was founded in 1917 and is engaged in the refining, marketing, and transportation of petroleum products, chemicals, and other petrochemical products. The company has a market capitalization of $46.61 billion as of February 2021. Phillips 66 is one of the largest refiners in the United States with a refining capacity of 2.2 million barrels per day. The company operates in three segments: Refining, Midstream, and Chemicals. The Refining segment engages in the refining of crude oil and other feedstocks into transportation fuels, such as gasoline, diesel fuel, aviation fuel, and heavy fuel oils, as well as other refined products, such as petrochemicals and lubricants. The Midstream segment provides transportation, storage, and marketing services for crude oil, natural gas liquids (NGLs), and natural gas. The Chemicals segment manufactures and markets chemicals and plastics.
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Summary
PHILLIPS 66‘s second quarter earnings results for fiscal year 2023 showed a significant decrease in both total revenue and net income relative to the same period in the prior year. Total revenue fell by 27.8% to USD 35.1 billion, while net income dropped by 46.4%. This indicates that investors should be aware of the potential risks associated with investing in the company, and should take a cautious approach when evaluating their investment decisions. Looking ahead, investors should carefully monitor the company’s financial performance to determine if the downward trend is set to continue.
