Phillips 66 [PSX] is following upward trend in the market concluded with the last trading session. The shares of the Basic Materials sector company has a current value of $101.92 after PSX shares went up by 1.12% during the last trading session. One of the reasons why Basic Materials stocks may go bullish is increased momentum in the press.
Phillips 66 [NYSE:PSX]: Analyst Rating and Earnings
Experts stock market traders frequently make a point to check what top Wall Street analysts say regarding a potential buy. Regarding Phillips 66 [PSX] currently, the latest Wall Street ratings we can see is from the fiscal quarter that’s going to end in December. On average, stock market experts give PSX an Outperform rating. Its stock price has been found in the range of 78.44 to 123.97. This is compared to its latest closing price of $100.79.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Phillips 66 [PSX] is sitting at 1.89. This is compared to 1 month ago, when its average rating was 2.00.
For the quarter ending in Mar-19 Phillips 66 [PSX] generated $23.66 billion in sales. That’s 4.39% lower than the average estimate of $24.74 billion as provided by Wall Street analysts. The three indicators above suggest that on the whole, this stock is not presenting an attractive investment option, as there are too many red flags that don’t point to a high-value ROI.
Stay on the lookout for the next publication of this organization’s financial results for the quarter, which will be made public on Fri 26 Jul (In 8 Days).
Fundamental Analysis of Phillips 66 [PSX]
Now let’s turn to look at profitability: with a current Operating Margin for Phillips 66 [PSX] sitting at +4.53 and its Gross Margin at +6.42, this company’s Net Margin is now 4.70%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 13.29, and its Return on Invested Capital has reached 9.40%. Its Return on Equity is 22.47, and its Return on Assets is 10.29. These metrics all suggest that Phillips 66 is doing well at using the money it earns to generate returns.
Turning to investigate this organization’s capital structure, Phillips 66 [PSX] has generated a Total Debt to Total Equity ratio of 45.27. Similarly, its Total Debt to Total Capital is 31.16, while its Total Debt to Total Assets stands at 20.55. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 45.00, and its Long-Term Debt to Total Capital is 30.97.
What about valuation? This company’s Enterprise Value to EBITDA is 8.36 and its Total Debt to EBITDA Value is 1.74. The Enterprise Value to Sales for this firm is now 0.48, and its Total Debt to Enterprise Value stands at 0.22. Phillips 66 [PSX] has a Price to Book Ratio of 1.59, a Price to Cash Flow Ratio of 5.39 and P/E Ratio of 9.04. These metrics all suggest that Phillips 66 is more likely to generate a positive ROI.
Shifting the focus to workforce efficiency, Phillips 66 [PSX] earns $7,835,845 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 16.27 and its Total Asset Turnover is 2.05. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 1.08 and its Current Ratio is 1.48. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Phillips 66 [PSX] has 457.60M shares outstanding, amounting to a total market cap of $46.64B. Its stock price has been found in the range of 78.44 to 123.97. At its current price, it has moved down by -17.79% from its 52-week high, and it has moved up 29.93% from its 52-week low.
This stock’s Relative Strength Index (RSI) is at 79.98. This RSI suggests that Phillips 66 is currently Overbought.
Conclusion: Is Phillips 66 [PSX] a Reliable Buy?
Shares of Phillips 66 [PSX], overall, appear to be a solid investment option, with Wall Street analysts expecting its price to rise considerably in the next 12 months. This company generates high value from the labor resources and other capital it has available, and while it has heavy Long-Term Debt to Equity, the majority of the metrics point to this investment being highly attractive.