Phillips 66 Intrinsic Value Calculator – Investors Reap Rewards with Phillips 66: 3.6% Yield and Undervalued Stock Make it a Top-Tier Income Play
November 22, 2023
☀️Trending News
Phillips 66 ($NYSE:PSX) is a top-tier income play, offering investors an attractive 3.6% yield and an undervalued stock. The company is an independent energy manufacturer and marketer with operations spanning the U.S. and abroad. Not only is Phillips 66 a leader in its field, it has also earned the reputation of being a reliable investment with a long-term track record of success. Its refining operations produce gasoline, diesel, aviation fuel, and other products, including asphalt, sulfur, and petrochemical feedstocks. Internationally, Phillips 66 operates in countries such as Germany, the Netherlands, the Czech Republic, Ireland, and Singapore.
This broad range of operations allows Phillips 66 to offer investors a robust portfolio of assets. The current share price yields 3.6%, making it an attractive income play for investors who are looking for reliable income with little risk. Furthermore, the stock is currently undervalued relative to its peers, making this an even more attractive option for income investors.
Analysis – Phillips 66 Intrinsic Value Calculator
At GoodWhale, we have conducted an analysis of PHILLIPS 66‘s wellbeing. Using our proprietary Valuation Line, we calculated the intrinsic value of PHILLIPS 66 shares to be around $112.5. Currently, PHILLIPS 66 stock is trading at $118.1, making it a fair price but slightly overvalued by 5.0%. More…
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 |
| 149.41k | 7.64k | 3.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Phillips 66. More…
| Operations | Investing | Financing |
| 9.59k | -1.41k | -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 |
| 74.89k | 43.83k | 67.95 |
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 |
| 24.8% | 43.4% | 7.5% |
| FCF Margin | ROE | ROA |
| 4.7% | 23.3% | 9.3% |
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 $46.61 billion as of February 2021. Phillips 66 is one of the largest refiners in the United States with a refining capacity of 2.2 million barrels per day. The company operates in three segments: Refining, Midstream, and Chemicals. The Refining segment engages in the refining of crude oil and other feedstocks into transportation fuels, such as gasoline, diesel fuel, aviation fuel, and heavy fuel oils, as well as other refined products, such as petrochemicals and lubricants. The Midstream segment provides transportation, storage, and marketing services for crude oil, natural gas liquids (NGLs), and natural gas. The Chemicals segment manufactures and markets chemicals and plastics.
– Targa Resources Corp ($NYSE:TRGP)
Targa Resources Corp is an American energy company that engages in the gathering, processing, and transportation of natural gas and natural gas liquids. The company has a market cap of 15.21B as of 2022 and a Return on Equity of 45.39%. Targa Resources is headquartered in Houston, Texas.
– PT Surya Esa Perkasa Tbk ($IDX:ESSA)
Surya Esa Perkasa Tbk is one of the largest publicly traded companies in Indonesia. It has a market capitalization of 15.03 trillion as of 2022 and a return on equity of 49.72%. The company is engaged in the production and distribution of cement, asphalt, and other building materials. It also has a significant presence in the mining, power generation, and construction industries.
– ONEOK Inc ($NYSE:OKE)
ONEOK, Inc. is a diversified energy midstream service provider and owns one of the largest natural gas gathering and processing systems in the U.S. The company operates in three segments: Natural Gas Gathering and Processing, Natural Gas Liquids (NGL) Transportation, and NGLs Sales and Services.
ONEOK’s market cap as of 2022 is 24.88B. The company has a ROE of 28.78%.
Summary
Phillips 66 is a top-tier income play, offering investors a 3.6% dividend yield that is currently undervalued. The company has a strong track record of increasing its dividend, and analysts predict further increases in the future. Phillips 66 has a healthy balance sheet and strong cash flows, ensuring it can handle rising expenses and maintain its dividend. The company has been able to keep prices in line with the industry despite the competitive landscape, and its refining operations have remained profitable.
