Quality Investor

Phillips 66

Rank #336ValueWatchlistCompare with other stocks

PSX · NYSE · Energy

Phillips 66 (PSX) — Rank #336 by gross profitability (GP/assets 0.20) · ROE 14.0% · Piotroski F-Score N/A.

As-of 2026-10-30 · CIK 0001534701 · all metrics point-in-time as of the filing date.

About

Phillips 66 operates as an integrated downstream energy provider in the United States, the United Kingdom, Germany, and internationally.

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It operates through five segments: Midstream, Chemicals, Refining, Marketing and Specialties (M&S), and Renewable Fuels. The Midstream segment provides crude oil and refined petroleum product transportation, terminaling, and storage services, as well as natural gas and natural gas liquids (NGL) gathering, processing, transportation, fractionation, storage and marketing services. It also exports liquefied petroleum gas. The Chemicals segment produces and markets ethylene and other olefin products; aromatics and styrenics products, such as benzene, cyclohexane, styrene, and polystyrene; various specialty chemical products, including organosulfur chemicals, solvents, catalysts, and chemicals used in drilling and mining; and petrochemicals and plastics. The Refining segment refines crude oil and other feedstocks into petroleum products, such as gasolines and distillates, including aviation fuels. The M&S segment purchases for resale and markets refined products, including gasolines, distillates, and aviation fuels. This segment also manufactures and markets specialty products, such as automotive, commercial, industrial, and specialty lubricants, as well as base oils. The Renewable Fuels segment processes renewable feedstocks into renewable products, as well as supplies sustainable aviation fuel. This segment also procures renewable feedstocks, manages certain regulatory credits, and markets renewable diesel, renewable jet fuel, and other renewable fuels. The company markets its products under the Phillips 66, Conoco and 76, JET, Kendall, Red Line, and other private label brands.

Phillips 66 was founded in 1875 and is headquartered in Houston, Texas.

Industry
Oil & Gas Refining & Marketing
Sector
Energy
State
DE
Filer Category
Large accelerated filer
Fiscal Year End
December 31

Company Snapshot

P/E and dividend yield are the primary valuation lenses for mature businesses.

Market Cap

—

P/E (annual)

—

P/S (annual)

—

P/B

—

P/OCF (annual)

—

Shareholder Yield

—

Employees

12,600

Industry

Oil & Gas Refining & Marketing

Exchange

NYSE

8/9

Flags passed

PSX fails 1 critical flag

Passes 8 of 9 quality flags

  • FAIL
    Revenue declining YoY

    Revenue contracted year over year

  • PASS
    Gross margin holding
  • PASS
    Dilution within 2%
  • PASS
    Disclosure consistent
  • PASS
    Passes safety gate
  • PASS
    Balance sheet stable
  • PASS
    No competitive retreat
  • PASS
    SBC not compressing margin
  • PASS
    No valuation convergence

Strengths RPO outpacing revenue · Sequential beat (rev + EPS)

No data FCF vs investment · Operating margin · Free cash flow — not counted as a pass.

A count of the 12 warning flags that could be evaluated. Unweighted: colour follows the worst flag.

Quality Profile

Profitability

1/1 pass
GP / assets
0.20
Return on equity
14.0%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
1.50
Current ratio
1.32×
Net cash
$2.30B

Cash Flow

1/1 pass
Positive FCF
N/A
Cash-backed earnings
N/A
Accruals healthy
PASS
SBC / revenue
0.2%

Growth

1/2 pass
Revenue growth
-7.5%
Piotroski F-Score
N/A
Share dilution
-3.3%

Dividend yield and payout ratio are the primary reads at this stage (trailing P/E — see valuation above).

Profitability

Does it make money well?

Warning: Revenue declining YoY · GP/assets 0.20

Gross profitability (GP / assets)

0.20

Primary signal (Novy-Marx).

2nd of 5 SIC 2911 peers

Return on equity

14.0%

Gross margin

12.3%

2nd of 5 SIC 2911 peers

Revenue growth (YoY)

-7.5%

RPO growth (YoY)

50.9%

Remaining performance obligations growth — RPO > revenue = forward demand building.

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

-8.0%

Revenue CAGR (5Y)

15.6%

Earnings CAGR (3Y)

-26.4%

FCF CAGR (3Y)

—

Cash Flow Health

Is the cash real?

No data

Free cash flow

—

Operating cash flow minus capex.

Positive free cash flow

N/A

FCF vs net income

—

(FCF − net income) ÷ |net income|. Positive: cash above earnings. Negative: below.

FCF not below net income

Fails when free cash flow is below net income (yellow flag).

N/A

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

0.2%

Stock-based comp intensity.

Balance Sheet Strength

Can it survive a storm?

No warning flags · net cash $2.30B

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.50

Current ratio

1.32×

2nd of 5 SIC 2911 peers

Quick ratio

0.86×

Net cash

$2.30B

Cash & equivalents minus total debt.

Piotroski F-Score

N/A

Only 8/9 components determinable.

Valuation

Is the price reasonable?

No warning flags

Dividend safety

Composite score

1.5 / 5

Weak
Payout ratio
43.7%4/5 Strong
FCF coverage
N/A0/5 Weak
Dividend growth streak
1 yr1/5 Weak
Balance-sheet health
D/E 1.50 · IC N/A1/5 Weak

Capital allocation quality

Composite score

2.7 / 5

Fair
Share count trend(net buybacks)
-3.3%4/5 Strong
Buyback timing
N/AN/A
Dividend growth consistency
1 yr1/5 Weak
Net debt trajectory(deleveraging)
0.2%3/5 Good

Lifecycle Phase History

20202025
Decline
Hypergrowth
Value

Price History

PSX+386.9% · +37.1% CAGRSPY+82.9% · +12.8% CAGR