Phillips 66 Stock Intrinsic Value – Phillips 66 Fundamentals Lead to Long-Term Value
June 23, 2023
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With its impressive fundamentals, this company is a long-term valuable asset to consider. The company’s core businesses are refining, midstream, and chemicals, which are supported by extensive marketing and retail operations. These operations are bolstered by a strong balance sheet and a dependable management team that has a proven track record of creating value for shareholders. Phillips 66 ($NYSE:PSX) maintains a diverse portfolio of assets that allows it to maintain a competitive advantage. These assets include an extensive network of supply channels, a deep commitment to innovation, and a keen focus on cost-efficiency.
In addition, Phillips 66 has a strong balance sheet and is well-positioned to benefit from the current market environment. This gives investors confidence in the future of the company, making it an attractive long-term investment. Phillips 66 has proven to be one of the top oil and gas companies in the world, with impressive fundamentals that make it a long-term valuable asset. With its diverse portfolio of assets, strong balance sheet, and reliable management team, Phillips 66 is well-positioned to benefit from the current market environment and create value for shareholders over the long-term.
Share Price
On Tuesday, the stock opened at $94.7 and closed at $96.8, up by 0.8% from its last closing price of $96.0. This steady increase in share price reflects the fundamentals that drive long-term value for Phillips 66 – namely, its diversified portfolio of businesses, its commitment to operational excellence and disciplined capital allocation strategy. Phillips 66 is committed to maximizing shareholder value and has used a variety of strategies to create long-term value. For example, the company has grown and improved its midstream and downstream segments, acquired strategic assets that increase the company’s value, and actively manages its capital structure to minimize its debt and interest expense. The company has also implemented cost-control initiatives to improve efficiency and profitability.
The strength of Phillips 66’s fundamentals is the key factor driving its long-term value. The company is well-positioned to benefit from the current energy market trends and meet the changing demands of its customers. Its commitment to operational excellence and disciplined capital allocation have enabled it to consistently deliver strong financial results and create value for shareholders. With its fundamentals leading the way, Phillips 66 is well-placed to continue creating long-term value for investors in the years to come. 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 |
| 168.21k | 12.39k | 6.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Phillips 66. More…
| Operations | Investing | Financing |
| 10.88k | -1.32k | -5.99k |
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 |
| 76.44k | 42.34k | 63.99 |
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 |
| 17.0% | 46.5% | 10.2% |
| FCF Margin | ROE | ROA |
| 5.2% | 36.4% | 14.0% |
Analysis – Phillips 66 Stock Intrinsic Value
GoodWhale has conducted a thorough analysis of the fundamentals of PHILLIPS 66. Our proprietary Valuation Line has found the intrinsic value of PHILLIPS 66 stock to be around $122.2. Currently, the stock is traded at $96.8 which represents a 20.8% discount to its intrinsic value, indicating that PHILLIPS 66 is undervalued. We recommend investors to take advantage of this opportunity and invest in PHILLIPS 66. 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 is an attractive investment opportunity due to its solid fundamentals. The company’s strong balance sheet, steady cash flow, and diversified operations make it well-positioned to capitalize on future opportunities. Its low cost structure and effective capital allocation policies support sustainable returns over the long-term. Phillips 66 has consistently increased its dividend payments year over year, providing shareholders with a steady income stream.
Additionally, its share repurchase program allows the company to use excess cash to boost earnings per share. With a solid asset base, conservative approach to risk management, and sound management team, Phillips 66 is well-positioned to provide investors with long-term value.
