Phillips 66 (PSX)

FairStock Score: 66/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Phillips 66 as a cyclical downstream operator, not a bond substitute. At the 2026-10-26 close of $288.85, FairStock calculates a P/E of 16.50, P/B of 3.66, EV/EBITDA of 10.06, and FCF yield of 5.5% on $6.4B trailing free cash flow. The record is uneven: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $51.0B, net income $3.8B, and diluted EPS $9.55; in fiscal Q2 2025, the quarter ended 2025-06-30, revenue was $33.3B, net income $877M, and diluted EPS $2.15. That swing shows why FairStock's Lynch category is CYCLICAL — earnings follow the economic cycle. FY2025 revenue was $132.4B with net income $4.4B and diluted EPS $10.79, while FY2024 was $143.2B, $2.1B, and $4.99. The 9/9 Piotroski score, 2.88 Altman Z-score, 23.45% ROE, and 0.70 beta suggest resilience, but ROCE of 6.04% and D/E of 0.63 temper the quality case. The FairStock Score of 64/100 points to a mixed picture. Graham would balk at the $176.38 Graham Number versus the $288.85 price, a -60.55% margin of safety. I see a decent integrated asset base with strong current cash generation, but the price already reflects a lot of cyclical good news. I would want a wider margin of safety and evidence that mid-cycle returns, not peak spreads, support the valuation.

In plain English: Phillips 66 makes and sells fuels and chemicals and also moves and stores energy products. The business looks strong right now: in the quarter ended June 30, 2026, it earned $3.8 billion on $51.0 billion of revenue, far above the same quarter a year earlier. But at the 2026-10-26 close of $288.85, the shares look expensive compared with the company's accounting value and a conservative check of earnings and assets, and profits are very cyclical.

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Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer