Home Sectors Energy Stock Valuation: Phillips 66 (NYSE: PSX)

Stock Valuation: Phillips 66 (NYSE: PSX)

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Phillips 66 is part of the oil and gas refining and marketing industry and trades as part of the energy sector. The company CEO is Greg Garland. Phillips 66 is an oil and gas company that purchases for resale and markets refined petroleum products. Its joint venture operates facilities in the United States and the Middle East and primarily produces olefins and polyolefins.

Previous Intraday Trading Performance:

The PSX stock showed a previous change of 0.76% with an open at 92.99 and a close of 94.23. It reached an intraday high of 95.35 and a low of 92.87.

SeekingAlpha:  Will Cupid’s Arrow Hit The Energy Market With Some Love This Week?

Liquidity:

The stock has a market cap of $43.5b with 461.1m shares outstanding, of which the float is 460.4m shares. Trading volume reached 4,191,634 shares compared to its average volume of 2,999,454 shares. Based on the current average volume and close price, the trading liquidity is good.

Historical Trading Performance:

Over the last five trading days, Phillips 66 shares returned -0.99% and in the past 30 trading days it returned 10.91%. Over three months, it changed -2.71%. In one year it has changed 3.69% and within that year its 52-week high was 123.97 and its 52-week low was 78.44. PSX stock is 20.13% above its 52 Week Low.

Our calculations show a 200 day moving average of 106.01 and a 50 day moving average of 90.76. Currently PSX stock is trading -11.11% below its 200 day moving average and may not be a good opportunity to buy as it may continue to trend down.

SeekingAlpha:  Phillips 66 Is On My Watchlist

Earnings:

The last annual fiscal EPS for the company was reported at 9.87 that ended on 31st of December 2017, which according to the previous close, that is a PE of 9.55. Based on 9 analyst estimates, the consensus EPS for the next quarter is 2.76. The TTM EPS is 11.81, which comes to a TTM PE of 7.98. Historically, the PE high was 35.10 and the PE low was 6.90. If the stock reached its PE low, that would represent a price of 81.48, which is a decrease of -13.53%.

The following are the last four quarter reported earnings per share:
12-31-2018:  4.87
09-30-2018:  3.10
06-30-2018:  2.80
03-31-2018:  1.04

The dividend per share is currently 3.20, which is a dividend yield of 3.40%. Also, the payout ratio is 27.10%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 77.37, which means it may be overvalued by -21.80%

Indicators to Watch:

Based on the latest filings, there is 0.20% of insider ownership and 119.30% of institutional ownership. Short-interest is 6,686,001, which is 1.45% of shares outstanding. The short-interest ratio or days-to-cover ratio is 2.19. This stock has some short interest, but it may be normal and no cause for concern if long the position.

The current calculated beta is 0.95

SeekingAlpha:  Phillips 66, Kinder Morgan announce open season for Gray Oak Pipeline

Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 28.59%, return on assets is 12.07%, profit margin is 4.34%, price-to-sales is 0.53 and price-to-book is 1.85.

Company Scores:

All scores are out of six:
 2  :Valuation Score
 5  :Past Performance Score
 3  :Financial Strength Score
 1  :Future Growth Score
 3  :Dividend Score
 2  :Overall Score

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John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.