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

Current Valuation: Phillips 66 (NYSE: PSX)

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Phillips 66 is in the energy sector and is part of the oil and gas refining and marketing industry. 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 0.20% with an open at 98.51 and a close of 98.72. It reached an intraday high of 99.27 and a low of 97.75.

SeekingAlpha:  Oil refiners preparing for a boom – Bloomberg

Liquidity:

The stock has a market cap of $44.9b with 454.9m shares outstanding, of which the float is 453.9m shares. Trading volume reached 2,446,895 shares compared to its average volume of 2,773,024 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 1.37% and in the past 30 trading days it returned 5.06%. Over three months, it changed 17.49%. In one year it has changed 7.79% and within that year its 52-week high was 123.97 and its 52-week low was 78.44. PSX stock is 25.85% above its 52 Week Low.

Our calculations show a 200 day moving average of 103.23 and a 50 day moving average of 94.54. Currently PSX stock is trading -4.37% below its 200 day moving average and may be a good opportunity to buy, but should check other indicators to confirm a buy signal.

SeekingAlpha:  Oil refiners preparing for a boom – Bloomberg

Earnings:

The last annual fiscal EPS for the company was reported at 11.86 that ended on 31st of December 2018, which according to the previous close, that is a PE of 8.32. 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 8.36. 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 -17.46%.

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 3.24%. 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 65.64, which means it may be overvalued by -50.39%

Indicators to Watch:

Based on the latest filings, there is 0.20% of insider ownership and 122.50% of institutional ownership. Short-interest is 6,111,634, which is 1.34% of shares outstanding. The short-interest ratio or days-to-cover ratio is 2.16. 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

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Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 22.47%, return on assets is 10.29%, profit margin is 5.27%, price-to-sales is 0.40 and price-to-book is 1.82.

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.